DoD Awards $12.5M Facility Construction Contract to PAUG VIK & GHEMM COMPANY
Contract Overview
Contract Amount: $12,486,153 ($12.5M)
Contractor: Paug VIK & Ghemm Company Joint Venture II, LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-22
End Date: 2025-11-22
Contract Duration: 610 days
Daily Burn Rate: $20.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FTW428A CONSTRUCT CRREL OPS FACILITY
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $12.5 million to PAUG VIK & GHEMM COMPANY JOINT VENTURE II, LLC for work described as: FTW428A CONSTRUCT CRREL OPS FACILITY Key points: 1. Contract awarded to PAUG VIK & GHEMM COMPANY JOINT VENTURE II, LLC for facility construction. 2. The contract is valued at $12,486,152.8 and has a duration of 610 days. 3. Competition was full and open after exclusion of sources, indicating a structured procurement process. 4. The sector is Commercial and Institutional Building Construction, a significant area of government spending.
Value Assessment
Rating: good
The contract value of $12.5M for facility construction appears reasonable given the scope and duration. Benchmarking against similar construction projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated but specific sources were excluded. This method aims for fair pricing while potentially streamlining the process.
Taxpayer Impact: The firm fixed price contract type provides cost certainty for taxpayers, minimizing the risk of cost overruns.
Public Impact
Taxpayers benefit from a firm fixed price contract, ensuring costs are established upfront. The construction project in Alaska will likely create local jobs and stimulate economic activity. The facility's purpose (CRREL OPS FACILITY) suggests it will support critical research or operational functions for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost increases if excluded sources had offered significantly lower bids.
- Dependence on a single joint venture for project completion.
- Geographic location in Alaska may present logistical challenges and higher operational costs.
Positive Signals
- Firm Fixed Price contract provides budget predictability.
- Clear contract duration and start/end dates.
- Awarded by the Department of Defense, indicating a need for essential infrastructure.
Sector Analysis
The Commercial and Institutional Building Construction sector is vital for infrastructure development. Spending in this area is often driven by defense, research, and operational needs, with typical contract values varying widely based on project complexity.
Small Business Impact
The contract was awarded to a joint venture, PAUG VIK & GHEMM COMPANY JOINT VENTURE II, LLC. Analysis is needed to determine the extent of small business participation within this joint venture or through subcontracting.
Oversight & Accountability
The Department of Defense's procurement process, including full and open competition after source exclusion, suggests established oversight. Further review of the specific justification for source exclusion and post-award monitoring would confirm accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for higher costs due to Alaska's location.
- Limited transparency on source exclusion justification.
- Need to verify small business participation.
- Contract duration is substantial, increasing risk exposure over time.
Tags
commercial-and-institutional-building-co, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to PAUG VIK & GHEMM COMPANY JOINT VENTURE II, LLC. FTW428A CONSTRUCT CRREL OPS FACILITY
Who is the contractor on this award?
The obligated recipient is PAUG VIK & GHEMM COMPANY JOINT VENTURE II, 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 $12.5 million.
What is the period of performance?
Start: 2024-03-22. End: 2025-11-22.
What was the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' procurement, and did this exclusion impact the final price?
The justification for excluding sources is critical to understanding the procurement's integrity and potential impact on price. If specific capabilities or past performance were criteria, it could limit competition but ensure specialized needs are met. Without this information, it's difficult to definitively assess if taxpayers received the best possible price or if the exclusion led to a higher cost than might have been achieved with broader competition.
What are the potential risks associated with constructing a facility in Alaska, particularly concerning logistical challenges and environmental factors, and how are these mitigated in the contract?
Constructing in Alaska presents significant logistical hurdles due to remote locations, harsh weather, and limited infrastructure, potentially increasing costs and timelines. Environmental regulations are also stringent. Mitigation strategies likely involve detailed planning, specialized equipment, and potentially higher contingency budgets within the contract. The firm fixed price nature suggests these risks were assessed and incorporated into the initial bid.
How effectively will the CRREL OPS FACILITY support the operational or research mission of the Department of Defense, and what are the key performance indicators for this contract?
The effectiveness of the CRREL OPS FACILITY hinges on its design, construction quality, and timely completion to meet the specific needs of the Cold Regions Research and Engineering Laboratory (CRREL) or other DoD operations. Key performance indicators would likely include adherence to schedule, budget, quality standards, and functional performance post-occupancy. Successful delivery is crucial for enabling the intended research or operational outcomes.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911KB24R0017
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6250 TUTTLE PL STE 5, ANCHORAGE, AK, 99507
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,445,084
Exercised Options: $12,486,153
Current Obligation: $12,486,153
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-03-22
Current End Date: 2025-11-22
Potential End Date: 2025-11-22 00:00:00
Last Modified: 2025-11-03
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