DoD Awards $17M for Temporary Dormitory Services to Red Point Construction, LLC

Contract Overview

Contract Amount: $17,086,851 ($17.1M)

Contractor: RED Point Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-29

End Date: 2026-05-31

Contract Duration: 1,797 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TEMPORARY DORMITORY SERVICES

Place of Performance

Location: CLEAR, DENALI County, ALASKA, 99704

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to RED POINT CONSTRUCTION, LLC for work described as: TEMPORARY DORMITORY SERVICES Key points: 1. Contract awarded to Red Point Construction, LLC for $17.09M. 2. Services are for temporary dormitory facilities. 3. The contract is a definitive contract with a firm fixed price. 4. The contract duration is 1797 days, ending May 31, 2026. 5. The contract was not available for competition.

Value Assessment

Rating: fair

The contract value of $17.09M over nearly 5 years suggests a moderate annual spend. Without comparable contracts for similar temporary dormitory services in Alaska, a precise pricing assessment is difficult. The firm fixed price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This method may lead to higher prices compared to a fully open and competitive process, as potential bidders are restricted.

Taxpayer Impact: The $17.09M awarded represents taxpayer funds allocated to facilities support. The lack of full competition raises concerns about whether the most cost-effective solution was secured for the government.

Public Impact

Military personnel in Alaska will benefit from the temporary dormitory services. The contract supports the Department of the Army's infrastructure needs. Local economy in Alaska may see some benefit from contract execution. Ensuring adequate and timely housing for service members is crucial for morale and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises cost concerns.
Lack of detailed performance metrics.
Potential for cost overruns if scope changes.

Positive Signals

Firm fixed price contract provides cost certainty.
Long-term contract ensures service continuity.
Supports military personnel needs.

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services for maintaining and managing buildings and grounds. Spending in this sector can vary significantly based on the type and scale of facilities. This contract for temporary dormitories represents a specific niche within the broader facilities management landscape.

Small Business Impact

The data indicates that the contract was awarded to RED POINT CONSTRUCTION, LLC, and there is no specific indication of small business participation or set-asides in the provided information. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. Regular performance reviews and audits would be essential to ensure accountability and taxpayer value.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of full and open competition.
Potential for inflated pricing due to limited competition.
No clear indication of small business participation.
Need for detailed performance monitoring.
Geographic location (Alaska) may increase costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to RED POINT CONSTRUCTION, LLC. TEMPORARY DORMITORY SERVICES

Who is the contractor on this award?

The obligated recipient is RED POINT CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2021-06-29. End: 2026-05-31.

What was the specific justification for limiting competition on this contract, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., urgent need, sole source capability). Adequate documentation is crucial to ensure the government received fair value and followed procurement regulations.

How does the per-unit cost of these temporary dormitory services compare to industry benchmarks for similar accommodations in remote or challenging environments like Alaska?

Without specific details on the number of units, duration of occupancy, and amenities provided, a direct per-unit cost comparison is challenging. However, given the location (Alaska) and the nature of temporary facilities, costs are likely to be higher than standard accommodations. Benchmarking against similar government or commercial contracts in comparable regions would be necessary.

What performance metrics are in place to ensure the quality and timeliness of the temporary dormitory services provided by Red Point Construction, LLC?

The provided data does not detail specific performance metrics. A review of the contract's statement of work and performance clauses is required. Effective oversight would involve tracking key performance indicators related to facility condition, maintenance, safety, and responsiveness to ensure the services meet the Department of the Army's requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911KB21R0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 561 E STEEL LOOP, PALMER, AK, 99645

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,158,877

Exercised Options: $17,086,851

Current Obligation: $17,086,851

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,807,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline