DoD's $20.4M KEMRI Construction Contract with Wolf Creek Federal Services Inc. Lacks Competition

Contract Overview

Contract Amount: $20,366,767 ($20.4M)

Contractor: Wolf Creek Federal Services Inc

Awarding Agency: Department of Defense

Start Date: 2013-09-12

End Date: 2022-02-28

Contract Duration: 3,091 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: KEMRI CONSTRUCTION

Plain-Language Summary

Department of Defense obligated $20.4 million to WOLF CREEK FEDERAL SERVICES INC for work described as: KEMRI CONSTRUCTION Key points: 1. Significant spending of $20.4M on construction services. 2. Sole-source award indicates limited competition, potentially impacting price. 3. Long contract duration (2013-2022) raises questions about ongoing need and value. 4. Defense sector spending, with specific agency focus on threat reduction.

Value Assessment

Rating: questionable

The contract value of $20.4M for construction services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar projects. The cost-plus-fixed-fee structure can incentivize cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may lead to higher costs for taxpayers. The rationale for sole-source is not provided.

Taxpayer Impact: The lack of competition on this $20.4M contract likely results in higher costs for taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract raises questions about its continued necessity and efficiency. Lack of transparency in the sole-source justification hinders public understanding of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Cost-plus-fixed-fee pricing

Positive Signals

Contract awarded to a specific entity for a defined period.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. Defense construction spending can vary significantly based on geopolitical needs and infrastructure requirements. Benchmarks are difficult without specific project details.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss=false, sb=false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure the pricing is fair and reasonable and that the services provided were necessary throughout the contract's long duration.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on justification
Long contract duration without clear need evolution

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to WOLF CREEK FEDERAL SERVICES INC. KEMRI CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is WOLF CREEK FEDERAL SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2013-09-12. End: 2022-02-28.

What was the justification for awarding this significant construction contract on a sole-source basis, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification or documentation supporting this determination is absent. Typically, sole-source awards require rigorous justification, such as a unique capability or urgent need, to ensure fair and reasonable pricing and prevent waste.

How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness of this long-term construction project?

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs, as their fee is a percentage of the total cost. For a long-term project like this, which spanned nearly nine years, the potential for cost escalation is significant. Without competitive bidding, it's challenging to ascertain if the fixed fee and overall costs represent good value for the taxpayer.

Given the contract's duration from 2013 to 2022, was the scope of work consistently aligned with evolving defense needs?

A contract spanning almost a decade raises questions about its adaptability to changing requirements. While definitive contracts can be modified, the initial sole-source award and long duration suggest a potential lack of agility. Periodic reviews would be crucial to ensure the services remained relevant and cost-effective throughout its lifecycle.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $20,751,033

Exercised Options: $20,705,720

Current Obligation: $20,366,767

Actual Outlays: $1,107,716

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,969,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline