Air Force awards $23.4M contract for USAFA Visitor Center construction, highlighting potential value in specialized building projects

Contract Overview

Contract Amount: $23,407,652 ($23.4M)

Contractor: Kwaan-Nasco Joint Venture

Awarding Agency: Department of Defense

Start Date: 2022-03-21

End Date: 2026-05-11

Contract Duration: 1,512 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TRUE NORTH COMMONS VISITOR CENTER - AWARD FOR SERVICE TO DESIGN AND CONSTRUCT THE NORTH COMMONS VISITOR CENTER FOR USAFA IAW PWS DATED 7 SEPT 21.

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to KWAAN-NASCO JOINT VENTURE for work described as: TRUE NORTH COMMONS VISITOR CENTER - AWARD FOR SERVICE TO DESIGN AND CONSTRUCT THE NORTH COMMONS VISITOR CENTER FOR USAFA IAW PWS DATED 7 SEPT 21. Key points: 1. The contract value suggests a significant investment in specialized infrastructure for the Air Force Academy. 2. The fixed-price nature of the contract aims to provide cost certainty for the government. 3. The duration of the contract (over 4 years) indicates a complex project with substantial construction phases. 4. The award to a joint venture may reflect the need for combined expertise in large-scale construction. 5. The project's focus on a visitor center implies a public-facing element and potential for community engagement.

Value Assessment

Rating: good

Benchmarking this contract's value requires comparison to similar large-scale institutional building projects. Given the specialized nature of constructing a visitor center at a military academy, the $23.4 million price tag appears within a reasonable range for a project of this scope and duration. The firm fixed-price contract structure provides a degree of predictability, though the final cost will depend on the contractor's efficiency and management of unforeseen issues. Without specific cost breakdowns for design and construction elements, a precise value-for-money assessment is challenging, but the award suggests the Air Force believes this price reflects fair value for the intended outcome.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating that the Department of the Air Force identified a specific contractor, KWAAN-NASCO JOINT VENTURE, deemed uniquely qualified or that competition was otherwise not feasible or advantageous. This approach bypasses the standard competitive bidding process, which typically involves multiple firms submitting proposals. The rationale for a sole-source award often stems from factors such as urgency, specialized capabilities, or prior performance, but it limits the potential for price discovery through market competition.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions that can arise from competitive bidding. This can potentially lead to higher costs compared to a fully competed contract.

Public Impact

The primary beneficiaries are the U.S. Air Force Academy (USAFA) and its visitors, who will gain access to a new visitor center. The project will deliver design and construction services for a key facility at USAFA. The geographic impact is localized to the U.S. Air Force Academy in Colorado. The construction phase will likely involve a workforce of skilled tradespeople and construction professionals. The completed visitor center will serve as an educational and informational hub for academy guests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness for taxpayers.
Long contract duration (over 4 years) increases exposure to potential cost overruns or delays.
Lack of detailed cost breakdown makes granular value assessment difficult.
The specific nature of the 'service to design and construct' needs further clarity on scope.

Positive Signals

Firm fixed-price contract provides cost certainty for the base scope.
Award to a joint venture suggests capability to handle complex, large-scale projects.
Project aims to enhance visitor experience and facilities at a prominent federal institution.
The specific PWS dated 7 Sept 21 provides a defined scope for the contractor.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of facilities for public use, education, and commerce. The market size for such projects can be substantial, particularly when involving government entities like the Department of Defense. Comparable spending benchmarks would involve analyzing other large-scale visitor centers, educational facilities, or public-facing infrastructure projects awarded by federal agencies, considering factors like square footage, complexity, and location.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. The award to KWAAN-NASCO JOINT VENTURE, a joint venture, suggests a focus on large-scale capabilities. The absence of set-aside provisions means that opportunities for small businesses may be limited to potential subcontracting roles determined by the prime contractor, rather than direct set-aside awards. This could have implications for the broader small business ecosystem if significant subcontracting opportunities are not actively pursued.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, which stipulate deliverables and timelines. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Projects
Federal Visitor Center Construction
Department of Defense Facilities Management
Air Force Academy Infrastructure Development
Large-Scale Construction Contracts

Risk Flags

Sole-source award
Long contract duration
Potential for cost overruns despite fixed price
Limited public information on contractor's specific past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to KWAAN-NASCO JOINT VENTURE. TRUE NORTH COMMONS VISITOR CENTER - AWARD FOR SERVICE TO DESIGN AND CONSTRUCT THE NORTH COMMONS VISITOR CENTER FOR USAFA IAW PWS DATED 7 SEPT 21.

Who is the contractor on this award?

The obligated recipient is KWAAN-NASCO JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2022-03-21. End: 2026-05-11.

What is the track record of KWAAN-NASCO JOINT VENTURE in completing similar large-scale construction projects for the federal government?

Assessing the track record of KWAAN-NASCO JOINT VENTURE requires a review of their past performance on federal contracts, particularly those involving institutional or visitor center construction. Information on their prior projects, including timeliness of completion, adherence to budget, and quality of work, would be crucial. Federal procurement databases and past performance reviews (if available) can provide insights. A joint venture structure often implies that the individual entities within the venture have established track records, and their combined capacity is being leveraged for this specific project. Without specific data on their prior federal engagements, it's difficult to definitively assess their suitability beyond the Air Force's apparent confidence in awarding this sole-source contract.

How does the $23.4 million cost compare to similar visitor center construction projects at other federal facilities or military installations?

Directly comparing the $23.4 million cost requires identifying comparable projects in terms of size, scope, complexity, and location. Visitor centers can vary significantly in their architectural design, amenities, and intended capacity. Projects at military installations might also have unique security or logistical requirements. Benchmarking against similar-sized institutional buildings or public facilities constructed within the last few years would provide a more relevant comparison. Factors such as prevailing construction costs in Colorado, the specific PWS requirements (e.g., sustainable building standards, technological integration), and the duration of the construction period (over 4 years) all influence the overall cost. A comprehensive analysis would involve normalizing for these variables to determine if the price represents good value.

What are the primary risks associated with this sole-source contract, and what mitigation strategies are in place?

The primary risk associated with this sole-source contract is the potential for reduced cost-effectiveness due to the lack of competitive bidding. Without multiple proposals, there's less market pressure to drive down prices. Another risk is the contractor's performance; if KWAAN-NASCO JOINT VENTURE underperforms or faces significant challenges, the project could face delays or cost overruns, despite the firm fixed-price structure. Mitigation strategies typically involve robust contract oversight by the Air Force, clear performance metrics defined in the PWS, and strong communication channels. The firm fixed-price nature itself acts as a risk mitigation tool for the government regarding scope changes, but the contractor bears the risk of cost increases. The long duration also presents risks related to material price fluctuations and labor availability.

What are the expected performance metrics and success criteria for the North Commons Visitor Center project?

The expected performance metrics and success criteria for the North Commons Visitor Center project would be detailed within the Performance Work Statement (PWS) dated September 7, 2021. Typically, for construction projects, these include adherence to the approved design and specifications, completion within the agreed-upon schedule (by May 11, 2026), and meeting quality standards for materials and workmanship. Functional requirements, such as the operational readiness of the facility upon completion, accessibility features, and integration of any specified technological systems, would also be key. Post-occupancy evaluations might assess user satisfaction and operational efficiency. The firm fixed-price contract implies that meeting these defined requirements within the agreed price is the primary measure of success.

How does the historical spending on similar construction projects at the Air Force Academy compare to this award?

Analyzing historical spending on similar construction projects at the Air Force Academy is essential for context. This involves examining past awards for facilities, infrastructure upgrades, or new construction at USAFA. Key metrics to compare would include the cost per square foot, the type of facility constructed, and the procurement method (competitive vs. sole-source). If previous visitor centers or comparable institutional buildings were constructed competitively, comparing their final costs to this sole-source award could highlight potential differences in value. Understanding the academy's historical investment patterns in infrastructure provides a baseline against which this $23.4 million contract can be evaluated for its relative cost and significance.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 374 KEKU RD, KAKE, AK, 99830

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,407,652

Exercised Options: $23,407,652

Current Obligation: $23,407,652

Actual Outlays: $1,096,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline