DoD's $15.2M Commercial Building Contract Awarded to IKHANA-CHOATE-1 LLC
Contract Overview
Contract Amount: $15,230,721 ($15.2M)
Contractor: Ikhana-Choate-1 LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-27
End Date: 2012-01-29
Contract Duration: 946 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE BID
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542
Plain-Language Summary
Department of Defense obligated $15.2 million to IKHANA-CHOATE-1 LLC for work described as: BASE BID Key points: 1. Contract value of $15.2M for commercial and institutional building construction. 2. Awarded by the Department of the Navy, part of the DoD. 3. Utilized full and open competition after exclusion of sources. 4. Contract type is Firm Fixed Price, indicating price certainty.
Value Assessment
Rating: fair
The contract value of $15.2M appears to be within a reasonable range for a large-scale commercial construction project. Benchmarking against similar DoD construction contracts would provide a more precise assessment of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to a more efficient use of funds compared to non-competitive awards.
Public Impact
Taxpayers benefit from a competitive bidding process for construction projects. The Department of the Navy's investment in infrastructure supports its operational readiness. The project contributes to the commercial and institutional building sector in North Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for detailed analysis.
- The 'exclusion of sources' clause warrants further examination to ensure full competition was truly achieved.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition is generally a positive indicator for value.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of government spending. Benchmarks for similar DoD construction projects would be necessary for a precise comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The award was made under a definitive contract, suggesting it is a formal agreement. Oversight would focus on project execution, adherence to contract terms, and final delivery quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Long contract duration increases risk for fixed-price contracts.
- Lack of detailed cost breakdown hinders granular value analysis.
- No explicit mention of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to IKHANA-CHOATE-1 LLC. BASE BID
Who is the contractor on this award?
The obligated recipient is IKHANA-CHOATE-1 LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2009-06-27. End: 2012-01-29.
What specific construction services were included in this $15.2M contract, and how do they align with typical market rates for similar projects?
The provided data identifies the contract as being for 'Commercial and Institutional Building Construction' but lacks specific details on the services rendered. To assess market alignment, a breakdown of costs by construction phase (e.g., design, materials, labor, specific trades) and comparison with industry cost indices or bids on comparable government and private sector projects would be essential.
What was the rationale for excluding certain sources during the 'full and open competition' process, and did this exclusion potentially limit competitive pricing?
The rationale for excluding sources in a 'full and open competition after exclusion of sources' scenario typically involves specific technical requirements, past performance, or unique capabilities that only a limited number of entities possess. While intended to ensure the best fit, such exclusions can inadvertently reduce the number of bidders, potentially impacting the intensity of price competition and the ultimate price achieved for the government.
How effectively did the firm fixed price structure protect the government from cost overruns, given the contract duration of nearly three years?
A firm fixed price (FFP) contract places the majority of cost risk on the contractor, which is generally effective in protecting the government from overruns, especially for projects with well-defined scopes. However, the nearly three-year duration of this contract increases the contractor's exposure to market fluctuations in material and labor costs. Robust contract management and change order controls would have been crucial to ensure the FFP structure remained advantageous.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008509R3209
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1671 BELLE ISLE AVE STE 100A, MOUNT PLEASANT, SC, 29464
Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,230,721
Exercised Options: $15,230,721
Current Obligation: $15,230,721
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-06-27
Current End Date: 2012-01-29
Potential End Date: 2012-01-29 00:00:00
Last Modified: 2021-07-29
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