Army Awards $19.7M for Alaska Family Housing, Construction Sector Sees Moderate Activity
Contract Overview
Contract Amount: $35,650,986 ($35.7M)
Contractor: Osborne Construction CO
Awarding Agency: Department of Defense
Start Date: 2006-02-27
End Date: 2007-09-02
Contract Duration: 552 days
Daily Burn Rate: $64.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200606!600258!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0004 !A!N! !N! ! !20060227!20070902!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!26430!090!02!FORT WAINWRIGHT !FAIRBANKS NORTH STAR !ALASKA !+000035697600!N!N!000035697600!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $35.7 million to OSBORNE CONSTRUCTION CO for work described as: 200606!600258!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0004 !A!N! !N! ! !20060227!20070902!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!26430!090!02!FORT WAINWRIGHT !FAIR… Key points: 1. The contract awarded to Osborne Construction Company for family housing facilities in Alaska is valued at $19.7 million. 2. The construction sector is a significant area of federal spending, with this contract falling under 'New Single-Family Housing Construction'. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 552 days, indicating a medium-term project.
Value Assessment
Rating: good
The contract value of $19.7 million for family housing construction appears reasonable given the project scope and duration. Benchmarking against similar projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing. The use of a firm-fixed-price contract further incentivizes cost control by the contractor.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the funds expended on this housing project.
Public Impact
Provides new family housing facilities, directly impacting military personnel and their families stationed in Alaska. Supports the local economy in Alaska through construction jobs and material procurement. The project contributes to the Department of Defense's infrastructure readiness and quality of life initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise in Alaska's climate.
- Dependence on a single contractor for project completion.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract structure.
- Addresses critical infrastructure needs for military families.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Federal spending in construction is substantial, supporting infrastructure development and military readiness. Benchmarks for similar housing projects would be necessary for a detailed comparison.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The award was made by the Department of the Army, indicating oversight by a major federal agency. The contract type and competitive award process suggest standard oversight mechanisms are in place.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Alaska's environment.
- Contractor performance risk.
- Logistical challenges impacting project timeline.
- Limited visibility into small business subcontracting.
Tags
new-single-family-housing-construction-e, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.7 million to OSBORNE CONSTRUCTION CO. 200606!600258!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0004 !A!N! !N! ! !20060227!20070902!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!26430!090!02!FORT WAINWRIGHT !FAIRBANKS NORTH STAR !ALASKA !+000035697600!N!N!000035697600!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236115!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is OSBORNE CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $35.7 million.
What is the period of performance?
Start: 2006-02-27. End: 2007-09-02.
What is the estimated cost per housing unit, and how does it compare to industry averages for similar construction in remote or challenging environments?
The total contract value is $19,678,944.00 for an unspecified number of housing units. Without knowing the exact number of units, a precise per-unit cost cannot be calculated. However, if we assume a typical number of units for a family housing project of this scale, the cost per unit would likely be substantial, reflecting the complexities of construction in Alaska, including logistics, climate, and specialized labor.
What are the specific risks associated with constructing family housing in Alaska, and what mitigation strategies were included in the contract?
Key risks in Alaska construction include extreme weather, permafrost, logistical challenges for material delivery, and potential labor shortages. The contract's firm-fixed-price nature shifts some cost risk to the contractor. However, specific mitigation strategies for environmental or logistical challenges would need to be detailed within the contract's statement of work and any associated appendices.
How effectively does this contract contribute to the Army's overall family housing goals and readiness in the region?
This contract directly addresses the need for new family housing, which is crucial for military readiness and personnel retention. By providing modern, adequate housing, it improves the quality of life for service members and their families stationed at Fort Wainwright, potentially enhancing morale and reducing personnel turnover. The success hinges on timely completion and quality of construction.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10602 NE 38TH PL STE 100, KIRKLAND, WA, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-02-27
Current End Date: 2007-09-02
Potential End Date: 2007-09-02 00:00:00
Last Modified: 2010-08-20
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