Korte Construction Company awarded $22.9M for Fort Carson barracks and company operations facility complex

Contract Overview

Contract Amount: $22,932,730 ($22.9M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-05-31

End Date: 2009-03-02

Contract Duration: 641 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: M O'CONNELL BLVD BARRACKS AND COMPANY OPERATIONS FACILITY COMPLEX FORT CARSON, CO

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to KORTE CONSTRUCTION COMPANY for work described as: M O'CONNELL BLVD BARRACKS AND COMPANY OPERATIONS FACILITY COMPLEX FORT CARSON, CO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract was a firm fixed-price type, which shifts cost risk to the contractor. 3. Project duration was 641 days, indicating a significant construction timeline. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The project falls under Commercial and Institutional Building Construction, a key sector for infrastructure development. 6. The contract was awarded in 2007, providing historical context for construction costs and timelines.

Value Assessment

Rating: fair

The contract value of $22.9 million for a barracks and company operations facility complex at Fort Carson appears to be within a reasonable range for a project of this scale and complexity. Without specific details on the facility's size, scope, and amenities, a direct comparison is challenging. However, construction projects of this nature, especially within military installations, often involve significant costs due to security, specialized requirements, and site preparation. The firm fixed-price contract type suggests that the initial bid was considered competitive and that the contractor assumed the risk for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection. The agency's decision to proceed with full and open competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and a better value for the government's investment.

Public Impact

Service members at Fort Carson will benefit from improved living and operational facilities. The project delivers essential infrastructure for military readiness and personnel support. The geographic impact is localized to Fort Carson, Colorado. The construction activities likely involved a significant local workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occurred, though mitigated by firm fixed-price contract.
Delays in construction could impact troop readiness and operational efficiency.
Ensuring compliance with military construction standards and security protocols requires diligent oversight.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor, potentially protecting the government from budget overruns.
Full and open competition suggests a robust bidding process aimed at securing competitive pricing.
The project addresses a critical need for infrastructure at a military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as government facilities, educational institutions, and healthcare buildings. The market for military construction is substantial, driven by the need to maintain and upgrade aging infrastructure and build new facilities to support evolving defense needs. Benchmarks for similar military barracks or operational facilities would typically consider factors like square footage, specific amenities, site conditions, and regional labor costs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information available regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific contract is not discernible from the data. However, large construction projects often involve subcontracting opportunities, which could potentially benefit small businesses if they were engaged by the prime contractor.

Oversight & Accountability

Oversight for this Department of the Army construction project would typically be managed by the Army Corps of Engineers or a designated contracting officer's representative (COR). Accountability measures would include adherence to the contract terms, specifications, and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Barracks and Company Operations Facilities
Department of Defense Facilities Construction
General Building Construction

Risk Flags

Potential for cost overruns if unforeseen issues arise, though mitigated by contract type.
Construction delays could impact operational readiness.
Need for diligent oversight to ensure compliance with military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to KORTE CONSTRUCTION COMPANY. M O'CONNELL BLVD BARRACKS AND COMPANY OPERATIONS FACILITY COMPLEX FORT CARSON, CO

Who is the contractor on this award?

The obligated recipient is KORTE CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2007-05-31. End: 2009-03-02.

What was the specific scope of work and square footage for the barracks and company operations facility complex?

The provided data does not specify the exact scope of work or the total square footage of the barracks and company operations facility complex. This information is crucial for a detailed cost analysis and comparison with similar projects. Typically, such facilities include living quarters, administrative spaces, common areas, and potentially training or support facilities. The total cost of $22.9 million would need to be evaluated against the size and complexity of these components to determine if it represents good value for money.

How did the final cost compare to the initial bid or estimated cost?

The data indicates the award amount was $22,932,730. As this was a firm fixed-price contract awarded in 2007, the expectation is that the contractor would absorb any cost overruns beyond the awarded price, unless significant change orders were issued due to unforeseen circumstances or scope changes approved by the government. Without access to the original bid or estimate, or post-award financial reports, it's impossible to definitively state how the final cost compared to the initial projections. However, the award amount itself represents the agreed-upon price for the defined scope.

What were the key performance metrics or quality standards required for this construction project?

Key performance metrics and quality standards for military construction projects are typically detailed in the contract's Statement of Work (SOW) and associated specifications. These would likely include adherence to specific building codes (e.g., UFCs - Unified Facilities Criteria), material quality, construction timelines, safety protocols, and final inspection and acceptance criteria. For barracks, standards would focus on habitability, durability, and functionality to support military personnel. The firm fixed-price nature of the contract incentivizes the contractor to meet these standards efficiently to maximize profit.

Were there any significant change orders or modifications issued during the contract period?

The provided data does not include information on contract modifications or change orders. For a project of this duration (641 days), it is not uncommon for some modifications to be issued, especially if unforeseen site conditions arise, design clarifications are needed, or minor scope adjustments are mutually agreed upon. However, significant changes could impact the overall cost and timeline, and would need to be carefully scrutinized to ensure they were justified and represented good value.

What is the historical spending trend for similar barracks and company operations facilities at Fort Carson or within the Department of the Army?

Analyzing historical spending trends for similar facilities requires access to a broader dataset of past contracts. This specific contract award of $22.9 million in 2007 provides a single data point. To establish a trend, one would need to examine awards for comparable projects over several years, adjusting for inflation and changes in construction costs. Factors like the size of the facility, specific requirements (e.g., single-occupancy rooms vs. multi-person barracks), and regional economic conditions would influence cost comparisons. Without this broader context, it's difficult to place this single award within a larger spending pattern.

What is the track record of Korte Construction Company on similar government contracts?

The provided data identifies Korte Construction Company as the awardee but does not offer details on their past performance or track record with government contracts. A comprehensive assessment would require reviewing their contract history, including past performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), any past disputes or claims, and their experience with similar types of construction projects, particularly within military environments. This information is critical for evaluating the contractor's reliability and capability.

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: TWO STEP

Solicitation ID: W9128F07R0014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 SAINT LOUIS UNION STA # 200, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,932,730

Exercised Options: $22,932,730

Current Obligation: $22,932,730

Contract Characteristics

Cost or Pricing Data: NO

Timeline