Army Awards $196.7M for Alaska Family Housing Construction to Osborne Construction

Contract Overview

Contract Amount: $73,456,679 ($73.5M)

Contractor: Osborne Construction CO

Awarding Agency: Department of Defense

Start Date: 2006-04-06

End Date: 2008-09-30

Contract Duration: 908 days

Daily Burn Rate: $80.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200607!600414!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0012 !A!N! !N! ! !20060406!20080930!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!24230!090!02!FAIRBANKS !FAIRBANKS NORTH STAR !ALASKA !+000073837234!N!N!000073837234!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236116!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! !N! ! ! ! !0001! !

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99701

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $73.5 million to OSBORNE CONSTRUCTION CO for work described as: 200607!600414!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0012 !A!N! !N! ! !20060406!20080930!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!24230!090!02!FAIRBANKS !FAIR… Key points: 1. The contract awarded to Osborne Construction Company for $196.7 million focuses on new multifamily housing construction in Alaska. 2. This represents a significant investment in military family housing infrastructure, potentially impacting quality of life for service members. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The project duration is approximately 908 days, indicating a substantial construction timeline.

Value Assessment

Rating: fair

The contract value of $196.7 million appears substantial for multifamily housing construction. Benchmarking against similar projects would be necessary to definitively assess its fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing.

Taxpayer Impact: The substantial award amount suggests a significant taxpayer investment in military housing infrastructure.

Public Impact

Enhances quality of life for military families stationed in Alaska by providing new housing. Supports the local economy in Fairbanks, Alaska, through construction jobs and related services. Addresses potential housing shortages or outdated facilities for service members and their families.

Waste & Efficiency Indicators

Waste Risk Score: 81 / 10

Warning Flags

  • Potential for cost overruns on large, long-term construction projects.
  • Geographic challenges in Alaska could impact construction timelines and costs.
  • Dependence on a single contractor for a large-scale project.

Positive Signals

  • Awarded through full and open competition, indicating a potentially competitive price.
  • Addresses a critical need for military family housing.
  • Long-term investment in infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically for new multifamily housing. Construction projects of this magnitude often involve significant government investment and can be subject to various economic and logistical factors.

Small Business Impact

While the primary awardee is Osborne Construction Company, the scale of this project may involve subcontracting opportunities for smaller businesses in the region.

Oversight & Accountability

The Department of Defense and Army Corps of Engineers are responsible for overseeing this contract to ensure timely completion, adherence to specifications, and responsible use of funds.

Related Government Programs

  • New Multifamily Housing Construction (except For-Sale Builders)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Large contract value increases financial risk.
  • Long project duration (908 days) increases exposure to market fluctuations and unforeseen issues.
  • Geographic location in Alaska presents logistical and environmental challenges.
  • Potential for scope creep or change orders over the project lifecycle.
  • Dependence on a single contractor for a critical infrastructure project.

Tags

new-multifamily-housing-construction-exc, department-of-defense, ak, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.5 million to OSBORNE CONSTRUCTION CO. 200607!600414!2100!W911KB!USA ENGR DISTR ALASKA !W911KB06C0012 !A!N! !N! ! !20060406!20080930!196789440!196789440!196789440!N!OSBORNE CONSTRUCTION COMPANY !10602 NE 38TH PL STE 100 !KIRKLAND !WA!98033!24230!090!02!FAIRBANKS !FAIRBANKS NORTH STAR !ALASKA !+000073837234!N!N!000073837234!Y161!FAMILY HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236116!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 $73.5 million.

What is the period of performance?

Start: 2006-04-06. End: 2008-09-30.

What specific housing unit types and amenities are included in this $196.7 million contract, and how do they align with current military family housing standards?

The data indicates 'FAMILY HOUSING FACILITIES' and 'New Multifamily Housing Construction'. Specific unit types (e.g., number of bedrooms/bathrooms per unit) and amenities (e.g., playgrounds, community centers) are not detailed in the provided information. A thorough review of the contract's SOW would be required to ascertain these specifics and their compliance with modern military housing standards.

What risk mitigation strategies are in place to address potential construction delays or cost increases due to Alaska's unique environmental and logistical challenges?

The contract duration of 908 days suggests an allowance for potential weather-related delays common in Alaska. However, specific risk mitigation strategies, such as contingency funds, phased construction schedules, or provisions for expedited material delivery, are not explicitly detailed in the summary data. Further investigation into the contract's clauses would be necessary to identify these measures.

How will the effectiveness of this housing project be measured in terms of improving military family satisfaction and retention rates in Alaska?

Effectiveness is typically measured post-occupancy through resident satisfaction surveys, feedback mechanisms, and potentially by tracking retention rates of service members in the area. While the contract itself focuses on construction, the ultimate success will be evaluated by the end-users – the military families residing in the new facilities and their overall experience.

Industry Classification

NAICS: ConstructionResidential Building ConstructionNew Multifamily Housing Construction (except For-Sale Builders)

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - CONSTRUCTION

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: 2006-04-06

Current End Date: 2008-09-30

Potential End Date: 2008-09-30 00:00:00

Last Modified: 2008-04-10

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