Department of the Army awards $64.4M for Camp Hero construction, highlighting long-term infrastructure investment

Contract Overview

Contract Amount: $64,358,636 ($64.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-08-24

End Date: 2018-09-28

Contract Duration: 2,592 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KANDAKS (EAST) CAMP HERO

Plain-Language Summary

Department of Defense obligated $64.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: KANDAKS (EAST) CAMP HERO Key points: 1. The contract's duration of nearly 7 years suggests a significant, long-term infrastructure project. 2. A firm-fixed-price contract indicates that cost risks were largely borne by the contractor. 3. The award was made under full and open competition, implying a robust bidding process. 4. The absence of specific small business set-asides warrants further investigation into subcontracting opportunities. 5. The project falls under commercial and institutional building construction, a vital sector for military readiness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and the nature of the construction at Camp Hero. However, a $64.4 million award over nearly seven years for construction services suggests a substantial investment. The firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be beneficial for the government if the contractor manages costs effectively. Without comparable project data or detailed cost breakdowns, a precise value-for-money assessment is difficult, but the scale of the award indicates a significant commitment to infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the Army sought the best value through a competitive process. While the number of bidders is not specified, full and open competition generally leads to more competitive pricing and a wider range of potential solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices and encourage innovation among contractors, leading to better use of public funds.

Public Impact

The primary beneficiaries are likely military personnel and their families stationed at or utilizing Camp Hero, who will benefit from improved facilities. The services delivered include the construction and potentially renovation of buildings and infrastructure at the Camp Hero site. The geographic impact is localized to the Camp Hero installation, contributing to its operational capabilities and living conditions. Workforce implications include job creation for construction workers, engineers, and project managers involved in the execution of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to assess if the $64.4M award represents optimal value.
The long contract duration (nearly 7 years) could introduce risks related to changing construction costs or technological obsolescence if not managed carefully.
No explicit mention of small business participation or subcontracting goals requires further scrutiny to ensure broad economic impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment and a fair selection process.
The firm-fixed-price contract type transfers cost overrun risks to the contractor, providing budget certainty for the government.
The substantial award amount indicates a significant investment in critical infrastructure, potentially enhancing base capabilities and quality of life.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which encompasses the building of non-residential structures like barracks, administrative buildings, and support facilities. The Department of Defense is a major consumer of construction services, with significant annual spending on infrastructure projects to maintain and upgrade its global installations. This award represents a portion of that broader investment, aiming to ensure facilities are modern, safe, and conducive to military operations. Comparable spending benchmarks would typically involve analyzing other large-scale construction contracts awarded by the military or federal agencies for similar types of facilities.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside category for this award (ss: false, sb: false). This means the contract was not exclusively reserved for small businesses. While full and open competition was utilized, it is crucial to understand if there were subcontracting opportunities made available to small businesses by the prime contractor. Without explicit subcontracting plans or goals documented, the direct impact on the small business ecosystem is unclear, and it warrants further inquiry to ensure opportunities were disseminated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Long contract duration may increase risk of cost escalation or obsolescence if not managed proactively.
Lack of specific small business subcontracting goals requires verification of opportunities for small businesses.
Limited public detail on scope of work hinders precise value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.4 million to DOMESTIC AWARDEES (UNDISCLOSED). KANDAKS (EAST) CAMP HERO

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $64.4 million.

What is the period of performance?

Start: 2011-08-24. End: 2018-09-28.

What specific types of buildings or infrastructure were constructed or renovated under this contract?

The provided data indicates the contract is for 'KANDAKS (EAST) CAMP HERO' and falls under the 'Commercial and Institutional Building Construction' (NAICS 236220) category. While specific details are not itemized in the summary data, this typically includes the construction of non-residential buildings such as administrative facilities, barracks, training centers, maintenance shops, or other support structures essential for base operations. The 'KANDAKS (EAST)' designation might refer to specific barracks or living quarters, often associated with Kandahar Airfield in Afghanistan, suggesting a significant construction effort for troop housing or related facilities. Further details would require accessing the contract's statement of work or associated documentation.

How does the $64.4 million award compare to similar construction projects for military bases of comparable size and scope?

Comparing the $64.4 million award requires context on the specific scope of work, location, and duration. For a nearly seven-year project involving significant construction at a military installation, this figure could represent a reasonable investment, especially if it includes multiple facilities or extensive infrastructure development. However, without detailed breakdowns of the construction elements (e.g., square footage, materials, specific facility types), direct comparisons are difficult. Generally, large-scale military construction projects can range from tens to hundreds of millions of dollars, depending on complexity and scale. The firm-fixed-price nature suggests the government sought cost certainty, which can sometimes lead to higher initial bids compared to cost-reimbursement contracts, but protects against budget overruns.

What were the key performance indicators (KPIs) or milestones established for this contract, and how was contractor performance measured?

The provided summary data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. Typically, for construction contracts of this magnitude and duration, KPIs would be established in the contract's Statement of Work (SOW) and could include adherence to project schedules, quality of workmanship, safety compliance, and completion of specific construction phases. Performance measurement would likely involve regular site inspections, progress reports from the contractor, and potentially third-party quality assurance checks. The contracting officer's final determination of contract completion and acceptance of deliverables would serve as the ultimate measure of performance.

Given the contract's duration (2011-2018), what are the potential implications of its completion on current military infrastructure at Camp Hero?

The completion of this $64.4 million construction contract in September 2018 suggests that the infrastructure developed or improved during that period should be relatively modern and functional as of today. If the contract involved building new facilities or significantly upgrading existing ones, it would have directly contributed to the operational readiness and quality of life at Camp Hero. The long duration implies a substantial project, likely addressing critical needs. However, the current state of that infrastructure would depend on subsequent maintenance, further investments, and the evolving operational requirements of the base since the contract's conclusion. Without knowing the specific nature of the construction, it's hard to pinpoint exact current implications, but it likely provided a foundational upgrade.

Were there any notable challenges or disputes encountered during the performance of this contract, and how were they resolved?

The summary data provided does not contain information regarding specific challenges, disputes, or their resolutions for this contract. Large-scale construction projects, especially those spanning several years and potentially involving complex logistics or environmental factors, can often encounter unforeseen issues. These might include design changes, material availability problems, site conditions, or contractor performance issues. Resolution mechanisms typically involve contract modifications, negotiation, or formal dispute resolution processes as outlined in the contract terms. Accessing contract performance reports or agency procurement records would be necessary to identify any such issues.

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: W5J9LE11B0005

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $68,877,537

Exercised Options: $64,375,265

Current Obligation: $64,358,636

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline