DoD Awards $8.4M Fire House Remodel to KPH Construction Corp, Facing 18% Overrun Risk
Contract Overview
Contract Amount: $8,396,600 ($8.4M)
Contractor: KPH Construction Corp
Awarding Agency: Department of Defense
Start Date: 2025-02-25
End Date: 2026-05-28
Contract Duration: 457 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEW FIRE HOUSE REMODEL REQUIREMENT
Place of Performance
Location: CAMP DOUGLAS, JUNEAU County, WISCONSIN, 54618
Plain-Language Summary
Department of Defense obligated $8.4 million to KPH CONSTRUCTION CORP for work described as: NEW FIRE HOUSE REMODEL REQUIREMENT Key points: 1. Contract value of $8.4M for a fire house remodel. 2. KPH Construction Corp is the awardee. 3. Potential risk of 18% cost overrun identified. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: questionable
The contract value of $8.4M appears high for a fire house remodel, especially with a noted potential overrun of 18%. Benchmarking against similar projects is crucial to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the significant potential overrun suggests that initial price discovery may have been insufficient or unforeseen costs have emerged.
Taxpayer Impact: Taxpayers may face an additional $1.5M if the overrun materializes, increasing the total cost significantly beyond the initial award.
Public Impact
Significant taxpayer investment in facility upgrades. Potential for cost overruns impacting budget allocations. Impact on local community services reliant on the fire house.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High potential cost overrun (18%)
- Long contract duration (457 days) for a remodel
- Lack of specific project details to assess value
Positive Signals
- Awarded under full and open competition
- Clear contract type (Firm Fixed Price)
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary widely based on project scope and location. Benchmarks for similar facility remodels are needed for precise comparison.
Small Business Impact
The data does not indicate whether small businesses were involved in the competition or subcontracting for this project. Further analysis is needed to assess small business participation.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight will be critical to monitor the potential cost overrun and ensure project completion within revised budgetary constraints.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High potential cost overrun (18%)
- Potential for budget overruns impacting other programs
- Long contract duration may indicate complexity or delays
- Lack of detailed justification for the high contract value
Tags
commercial-and-institutional-building-co, department-of-defense, wi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.4 million to KPH CONSTRUCTION CORP. NEW FIRE HOUSE REMODEL REQUIREMENT
Who is the contractor on this award?
The obligated recipient is KPH CONSTRUCTION CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $8.4 million.
What is the period of performance?
Start: 2025-02-25. End: 2026-05-28.
What specific factors are contributing to the 18% potential cost overrun for this fire house remodel?
The potential 18% cost overrun requires detailed investigation. Possible factors include unforeseen structural issues discovered during demolition, unexpected material cost increases, or scope creep. A thorough review of the project's change order logs and contractor justifications is necessary to pinpoint the exact causes and assess their validity.
How does the $8.4M contract value compare to similar fire house remodel projects in Wisconsin?
Benchmarking this $8.4M contract against similar fire house remodels in Wisconsin is essential for value assessment. Without specific comparable data, it's difficult to definitively state if the price is competitive. Factors like size, scope of work, and age of the facility significantly influence costs, necessitating a detailed comparison of these elements.
What measures are in place to mitigate the risk of the 18% cost overrun and ensure effective project delivery?
Effective project delivery hinges on robust oversight to manage the 18% overrun risk. This includes rigorous review of all change orders, regular progress meetings with KPH Construction Corp, and potentially engaging an independent cost estimator. Proactive communication and strict adherence to contract terms are vital to control costs and ensure the project meets its objectives.
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: SEALED BID
Solicitation ID: W50S9H24B0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 1237 W BRUCE ST, MILWAUKEE, WI, 53204
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,396,600
Exercised Options: $8,396,600
Current Obligation: $8,396,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-25
Current End Date: 2026-05-28
Potential End Date: 2026-05-28 00:00:00
Last Modified: 2025-12-04
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