DOD Awards $117.9M Contract for Alaska Housing Construction to Osborne Construction Co
Contract Overview
Contract Amount: $117,908,151 ($117.9M)
Contractor: Osborne Construction CO
Awarding Agency: Department of Defense
Start Date: 2007-04-24
End Date: 2009-12-09
Contract Duration: 960 days
Daily Burn Rate: $122.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FTW297 CONSTRUCT FHU'S W/I 5' LINES.
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $117.9 million to OSBORNE CONSTRUCTION CO for work described as: FTW297 CONSTRUCT FHU'S W/I 5' LINES. Key points: 1. Contract awarded for new single-family housing construction in Alaska. 2. Full and open competition was utilized for this award. 3. The contract value is substantial at over $117 million. 4. Osborne Construction Co. is the sole awardee. 5. The project duration is 960 days.
Value Assessment
Rating: good
The contract value of $117.9 million for housing construction appears reasonable given the scale and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: Taxpayer funds are being used for military family housing, which is a standard and necessary expenditure. The competitive award process aims to maximize the value for taxpayer dollars.
Public Impact
Enhances quality of life for military families stationed in Alaska. Supports local economy through construction jobs and material procurement. Addresses housing shortages or upgrades for military personnel. Long-term asset for the Department of Defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in remote Alaska construction.
- Weather-related delays impacting project timeline.
- Limited local labor pool for specialized construction skills.
Positive Signals
- Addresses critical infrastructure need for military families.
- Utilizes full and open competition for best value.
- Long-term asset with potential for future use.
Sector Analysis
Construction spending in remote or challenging environments like Alaska often incurs higher costs due to logistics, labor, and weather. This contract falls within the broader category of government infrastructure development.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Larger construction firms with the capacity for major projects were likely the primary participants in the full and open competition.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Standard government procurement oversight processes would apply to ensure contract compliance and performance.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geographic location (Alaska) may increase costs and logistical challenges.
- Long contract duration (960 days) increases exposure to market fluctuations.
- Sole awardee may limit future competitive opportunities for similar projects.
- Lack of small business participation noted.
Tags
new-single-family-housing-construction-e, department-of-defense, ak, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.9 million to OSBORNE CONSTRUCTION CO. FTW297 CONSTRUCT FHU'S W/I 5' LINES.
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 $117.9 million.
What is the period of performance?
Start: 2007-04-24. End: 2009-12-09.
What was the specific breakdown of costs within the $117.9 million contract, and how did it compare to initial estimates?
The provided data does not detail the cost breakdown. A thorough analysis would require access to the contract's financial statements and comparison against the original solicitation's estimated costs. Understanding the variance, if any, is crucial for assessing financial management and potential cost efficiencies or overruns.
What were the key performance indicators (KPIs) for this housing construction project, and how was contractor performance measured against them?
Specific KPIs are not detailed in the provided summary. Typically, for construction, KPIs would include adherence to schedule, quality of workmanship, safety compliance, and budget management. Performance would be monitored through site inspections, progress reports, and potentially user feedback upon completion.
Beyond the initial award, what mechanisms are in place for ongoing oversight and potential modifications to this long-term contract?
Ongoing oversight would likely involve contract officers, project managers, and potentially quality assurance representatives from the Department of the Army. Contract modifications would follow established federal procurement regulations, requiring justification and potentially further negotiation or competition depending on the nature of the change.
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
Solicitation ID: W911KB06R0014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10602 N.E. 38TH PL., SUITE 100, KIRKLAND, WA, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $117,930,132
Exercised Options: $117,930,132
Current Obligation: $117,908,151
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-24
Current End Date: 2009-12-09
Potential End Date: 2009-12-09 00:00:00
Last Modified: 2009-05-21
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