Fort Hood TEMF contract awarded to Afogank Diversified Services for over $18.4M, highlighting construction needs

Contract Overview

Contract Amount: $18,400,625 ($18.4M)

Contractor: Afognak Diversified Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-03-30

End Date: 2016-06-01

Contract Duration: 1,524 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NUMBER: 154198, TWO TACTICAL EQUIPMENT MAINTENANCE FACILITIES (TEMF) WEST&EAST, PN 154198, FORT HOOD, KILLEEN, TX

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to AFOGNAK DIVERSIFIED SERVICES, INC. for work described as: PROJECT NUMBER: 154198, TWO TACTICAL EQUIPMENT MAINTENANCE FACILITIES (TEMF) WEST&EAST, PN 154198, FORT HOOD, KILLEEN, TX Key points: 1. The contract value of $18.4 million for two tactical equipment maintenance facilities suggests significant investment in military infrastructure. 2. A firm fixed-price contract type indicates that cost risks were largely borne by the contractor, potentially leading to more predictable final costs. 3. The award to Afogank Diversified Services, Inc. represents a specific instance of defense contracting within the construction sector. 4. The duration of 1524 days (approximately 4.2 years) points to a substantial, long-term construction project. 5. The contract was awarded under full and open competition, implying a broad search for qualified bidders. 6. The North American Industry Classification System (NAICS) code 236220 categorizes this as Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

Benchmarking the value of $18.4 million for two tactical equipment maintenance facilities requires specific cost data for similar military construction projects. Without direct comparisons, it's difficult to definitively assess value for money. However, the firm fixed-price nature of the contract suggests a degree of cost control, assuming the contractor priced competitively and managed risks effectively. The duration of over four years for construction also implies a significant scope of work, which could justify the overall expenditure if executed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army sought bids from all responsible sources. The presence of 7 bidders (as indicated by 'no': 7) suggests a reasonably competitive environment for this type of construction project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality by allowing a wide range of contractors to compete.

Public Impact

The primary beneficiaries are the U.S. Army units stationed at Fort Hood, Killeen, Texas, who will gain improved facilities for maintaining tactical equipment. The services delivered include the construction of two specialized maintenance facilities, crucial for operational readiness. The geographic impact is concentrated at Fort Hood, Killeen, Texas, supporting military operations in that region. Workforce implications include employment opportunities for construction workers, engineers, and project managers during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Risk of schedule delays impacting the operational readiness of the units relying on the new facilities.
Quality control challenges inherent in large-scale construction projects to ensure durability and functionality of the maintenance facilities.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor, potentially leading to greater cost certainty.
Award under full and open competition suggests a robust selection process and potential for competitive pricing.
The substantial investment indicates a commitment to improving military infrastructure and support capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The market for military construction is substantial, driven by the Department of Defense's continuous need to build, renovate, and maintain facilities worldwide. Comparable spending benchmarks would involve analyzing other large-scale military construction projects, particularly those for vehicle and equipment maintenance facilities, to gauge cost-effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside (ss: false, sb: false). Therefore, the direct impact on small businesses through set-aside provisions is unlikely. However, the prime contractor, Afogank Diversified Services, Inc., may engage small businesses as subcontractors for specialized services or material supply, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices at Fort Hood. Accountability measures would include adherence to contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction may be involved in cases of fraud, waste, or abuse.

Related Government Programs

Fort Hood Infrastructure Projects
Tactical Equipment Maintenance Facilities
Department of Defense Construction Contracts
Army Base Improvement Programs
Firm Fixed Price Construction Awards

Risk Flags

Potential for cost overruns due to fixed-price nature and long duration.
Risk of schedule delays impacting military readiness.
Quality assurance challenges in large construction projects.
Contractor performance history needs verification.
Unforeseen site conditions could impact budget and schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to AFOGNAK DIVERSIFIED SERVICES, INC.. PROJECT NUMBER: 154198, TWO TACTICAL EQUIPMENT MAINTENANCE FACILITIES (TEMF) WEST&EAST, PN 154198, FORT HOOD, KILLEEN, TX

Who is the contractor on this award?

The obligated recipient is AFOGNAK DIVERSIFIED SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2012-03-30. End: 2016-06-01.

What is the track record of Afogank Diversified Services, Inc. in completing similar large-scale military construction projects on time and within budget?

Assessing the track record of Afogank Diversified Services, Inc. requires a review of their past performance on contracts of similar size, scope, and complexity. This would involve examining contract databases for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of delays, cost overruns, or disputes. Without specific historical data on this contractor's performance on comparable projects, it is difficult to definitively assess their reliability for this particular Fort Hood TEMF contract. However, the fact that they were awarded this significant contract suggests they met the minimum qualification criteria during the competitive bidding process.

How does the awarded amount of $18.4 million compare to the estimated cost or budget for constructing two tactical equipment maintenance facilities of this size and scope?

To compare the awarded amount of $18.4 million to the estimated cost, one would need access to the government's independent government cost estimate (IGCE) or the contractor's initial proposal breakdown. This information is often not publicly available. However, the fact that the contract was awarded under full and open competition with 7 bidders suggests that the awarded price was deemed competitive and represented good value relative to the bids received. If the awarded price was significantly below the IGCE, it might indicate aggressive bidding by the contractor or potential scope reductions. Conversely, if it was close to or exceeded the IGCE, it could suggest a more challenging construction environment or higher-than-anticipated costs.

What are the key risk indicators associated with this firm fixed-price contract for building maintenance facilities?

Key risk indicators for a firm fixed-price contract of this nature include potential for contractor default if the fixed price proves insufficient to cover costs, leading to project abandonment or significant delays. There's also a risk of the contractor cutting corners on quality to maintain profitability, necessitating robust government quality assurance oversight. Furthermore, unforeseen site conditions (e.g., soil issues, hazardous materials) or significant, unmitigable escalation in material and labor costs beyond what was reasonably foreseeable could strain the fixed price. The long duration (over 4 years) increases the exposure to market fluctuations in material prices and labor availability.

How effective is the competition level (7 bidders) in ensuring optimal price discovery and value for taxpayers on this construction project?

A competition level of 7 bidders is generally considered healthy for a large-scale construction project like the Fort Hood TEMF facilities. This number suggests that the opportunity was attractive enough to draw a reasonable number of qualified firms, increasing the likelihood that the government received competitive bids. A higher number of bidders typically leads to more aggressive pricing as contractors vie for the award. While 7 bidders provide a good basis for price discovery, the ultimate value for taxpayers also depends on the thoroughness of the government's solicitation requirements, the clarity of specifications, and the effectiveness of the source selection evaluation process in identifying the best overall value, not just the lowest price.

What are the historical spending patterns for tactical equipment maintenance facilities at Army bases, and how does this $18.4M contract fit within that trend?

Historical spending patterns for tactical equipment maintenance facilities (TEMFs) at Army bases can vary significantly based on location, size, specific equipment requirements, and the year of construction due to inflation and evolving military technology. An $18.4 million contract for two such facilities suggests a substantial investment, potentially indicative of a modernization effort or expansion of capabilities at Fort Hood. To place this in context, one would need to analyze average costs per square foot or per facility for similar projects over the past decade. This contract's value might be considered moderate to high depending on the scale and complexity of the facilities, fitting within the broader trend of the Army investing in infrastructure to support its operational readiness and modernization goals.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126G12R0024

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 360 C QUALITY CIR STE 300, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $18,400,625

Exercised Options: $18,400,625

Current Obligation: $18,400,625

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,793

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline