DHS awarded Korte Construction $34.4M for a 400-room dormitory at FLETC Charleston

Contract Overview

Contract Amount: $34,404,567 ($34.4M)

Contractor: Korte Construction Company

Awarding Agency: Department of Homeland Security

Start Date: 2009-11-10

End Date: 2012-10-29

Contract Duration: 1,084 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 41

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD 400 ROOM DORMITORY, FLETC, CHARLESTON

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.4 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN BUILD 400 ROOM DORMITORY, FLETC, CHARLESTON Key points: 1. The contract was awarded under firm-fixed-price terms, suggesting a defined scope and cost. 2. The project involved the construction of a large dormitory facility, indicating significant infrastructure investment. 3. The duration of the contract was over 1000 days, pointing to a complex and lengthy build. 4. The award was made through full and open competition, implying a competitive bidding process. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded by the Department of Homeland Security, Federal Law Enforcement Training Center.

Value Assessment

Rating: fair

The contract value of $34.4 million for a 400-room dormitory is a substantial investment. Without specific cost breakdowns for materials, labor, and profit, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature suggests the government aimed to control costs upfront. Benchmarking against similar dormitory construction projects, especially those for government facilities, would be necessary to determine if this price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 41 bids suggests a robust level of interest and competition for this project. A high number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The extensive competition for this dormitory construction project likely resulted in a more favorable price for taxpayers, as contractors vied to win the bid.

Public Impact

Federal law enforcement trainees will benefit from new, modern dormitory accommodations. The construction project provided employment opportunities in the Charleston, South Carolina area. The facility enhances the training capacity of the Federal Law Enforcement Training Center. The project contributes to the physical infrastructure of a key federal training facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Delays in construction could impact training schedules and operational readiness.
Quality control during a large-scale construction project requires diligent oversight.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Full and open competition suggests a competitive bidding process leading to potentially better value.
The contractor, Korte Construction Company, has experience in large-scale construction projects.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale government construction projects is often characterized by significant competition among established firms. The value of this single contract is substantial, representing a notable investment in federal infrastructure. Comparable projects would include other large dormitory or barracks constructions for federal agencies or educational institutions.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a specific small business set-aside. While Korte Construction Company may utilize small businesses as subcontractors, the primary award was not directed towards small businesses. Further analysis would be needed to determine the extent of small business subcontracting participation.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer and project managers within the Federal Law Enforcement Training Center (FLETC) or the Department of Homeland Security. Accountability measures would include adherence to the contract's specifications, schedule, and quality standards. Transparency is generally maintained through contract award databases and public reporting, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Federal Law Enforcement Training Center Facilities
Department of Homeland Security Infrastructure Projects
Government Dormitory Construction
Large-Scale Commercial Building Projects

Risk Flags

Potential for construction delays
Risk of cost overruns (though mitigated by FFP)
Quality control during construction
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.4 million to KORTE CONSTRUCTION COMPANY. DESIGN BUILD 400 ROOM DORMITORY, FLETC, CHARLESTON

Who is the contractor on this award?

The obligated recipient is KORTE CONSTRUCTION COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $34.4 million.

What is the period of performance?

Start: 2009-11-10. End: 2012-10-29.

What is Korte Construction Company's track record with federal contracts, particularly for dormitory or similar large-scale construction projects?

Korte Construction Company has a history of performing large-scale construction projects, including those for government entities. A review of federal procurement data would reveal the number and types of contracts they have been awarded, their performance ratings on past projects, and any history of contract disputes or modifications. Their experience with similar dormitory or barracks construction for federal agencies would be a key indicator of their capability to successfully execute this FLETC project. Analyzing their past performance on projects of comparable size and complexity would provide insight into their reliability and efficiency.

How does the awarded price of $34.4 million compare to similar dormitory construction projects for federal agencies?

To benchmark the value, we would compare the cost per square foot or cost per room of this dormitory against similar projects awarded by agencies like the Department of Defense, GSA, or other federal training facilities. Factors such as location, specific amenities, construction materials, and prevailing labor costs in Charleston, SC, would need to be considered for a fair comparison. Without access to detailed cost breakdowns and a database of comparable projects with similar specifications, a precise value assessment is challenging. However, the firm-fixed-price nature and the high number of bidders suggest an effort to achieve competitive pricing.

What are the primary risks associated with this large-scale construction contract, and how were they mitigated?

Key risks for a project of this magnitude include potential construction delays due to weather, material shortages, or unforeseen site conditions; cost overruns if the fixed-price contract doesn't adequately account for all contingencies; and quality control issues. Mitigation strategies typically involve robust contract terms, detailed project management plans, regular site inspections, and performance bonds. The firm-fixed-price structure aims to transfer cost risk to the contractor, while the government's oversight and inspection processes are crucial for ensuring quality and adherence to schedule. The long duration (over 1000 days) suggests that potential risks were factored into the planning and pricing.

How effective has the Federal Law Enforcement Training Center (FLETC) been in managing its construction and infrastructure projects historically?

Assessing the historical effectiveness of FLETC's project management requires analyzing past construction projects, their adherence to budget and schedule, and the long-term performance of the completed facilities. Data on project close-out reports, any litigation or disputes, and user satisfaction surveys (if available) would provide insights. The successful completion of this dormitory project, within the terms of the contract, would be a positive indicator. Conversely, a history of significant overruns or delays on similar projects might raise concerns about FLETC's oversight capabilities.

What has been the historical spending trend for dormitory construction or similar facilities at FLETC or DHS?

Analyzing historical spending for dormitory construction at FLETC or within DHS would involve reviewing past contract awards for similar facilities. This would help establish a baseline for costs and identify any significant increases or decreases in spending over time. Understanding these trends can reveal patterns in investment, potential shifts in construction needs, or changes in the cost of building such facilities. For instance, a consistent increase in spending might indicate rising construction costs or an expansion of training facilities, while a sudden spike could warrant further investigation into specific project requirements or market conditions.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFLCS-09-R-00003

Offers Received: 41

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5700 OAKLAND AVE SUITE 200, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,404,567

Exercised Options: $34,404,567

Current Obligation: $34,404,567

Contract Characteristics

Cost or Pricing Data: NO

Timeline