Army awards $27.1M for Garrison Switchyard construction, a definitive contract with fixed pricing

Contract Overview

Contract Amount: $27,118,223 ($27.1M)

Contractor: Koontz Electric Company, Incorporated

Awarding Agency: Department of Defense

Start Date: 2011-09-22

End Date: 2016-12-16

Contract Duration: 1,912 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CIVIL - GARRISON SWITCHYARD CONSTRUCTION PROJECT

Place of Performance

Location: RIVERDALE, MCLEAN County, NORTH DAKOTA, 58565

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to KOONTZ ELECTRIC COMPANY, INCORPORATED for work described as: CIVIL - GARRISON SWITCHYARD CONSTRUCTION PROJECT Key points: 1. The contract utilized full and open competition, suggesting a competitive bidding process. 2. The award was a definitive contract, indicating a commitment to a specific scope of work. 3. The firm fixed price structure provides cost certainty for the government. 4. The project duration of 1912 days (over 5 years) suggests a significant construction undertaking. 5. The contract was awarded to Koontz Electric Company, Inc. 6. The project is categorized under 'Other Heavy and Civil Engineering Construction'.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable project data. The total award amount of $27.1 million for a multi-year heavy civil engineering project in North Dakota appears within a reasonable range for such undertakings. However, the lack of detailed cost per unit or comparison to similar projects makes a definitive value-for-money assessment difficult. The firm fixed price does offer predictability, which is a positive aspect for cost management.

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 bids. The data shows 5 bids were received, suggesting a healthy level of competition for this project. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid, potentially saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel at the Garrison facility, who will receive improved electrical infrastructure. The service delivered is heavy and civil engineering construction, specifically related to a switchyard. The geographic impact is localized to North Dakota, where the Garrison facility is located. The project likely involved a significant construction workforce, including electricians, engineers, and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 5 years) could introduce risks related to cost escalation if not managed tightly, despite fixed pricing.
The specific nature of 'Other Heavy and Civil Engineering Construction' can sometimes involve unforeseen site conditions that impact project timelines and costs.
Reliance on a single contractor for such a long-duration project necessitates robust oversight to ensure performance and quality.

Positive Signals

Firm fixed price contract provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition with multiple bidders suggests a competitive environment that should drive value.
The definitive contract structure implies a clear scope of work was established upfront.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which encompasses a wide range of infrastructure projects. The market for such services is typically characterized by large, established firms capable of undertaking complex, multi-year projects. The $27.1 million award is a substantial sum, indicative of a significant infrastructure upgrade. Comparable spending benchmarks would depend heavily on the specific type of switchyard and its complexity, but this award is consistent with major construction contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Koontz Electric Company, Inc., would determine any subcontracting opportunities based on their own business practices and project needs.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the project management team within the Department of the Army. Accountability measures would be tied to the contract's performance clauses, delivery schedules, and quality standards. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight activities are internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Base Infrastructure Modernization
Defense Infrastructure Projects
Electrical Grid Upgrades
Heavy Civil Engineering Contracts
Department of Defense Construction Contracts

Risk Flags

Long project duration may increase risk of cost escalation or performance degradation if not managed proactively.
Potential for unforeseen site conditions in heavy civil engineering projects.
Need for sustained government oversight over a multi-year contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to KOONTZ ELECTRIC COMPANY, INCORPORATED. CIVIL - GARRISON SWITCHYARD CONSTRUCTION PROJECT

Who is the contractor on this award?

The obligated recipient is KOONTZ ELECTRIC COMPANY, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2011-09-22. End: 2016-12-16.

What is the track record of Koontz Electric Company, Inc. with the Department of Defense?

Information regarding Koontz Electric Company, Inc.'s specific track record with the Department of Defense is not detailed in the provided data. However, being awarded a definitive contract of this magnitude suggests they have met the necessary qualifications and demonstrated capability to perform the required construction services. A deeper dive into their past performance ratings, previous contracts with the DoD, and any reported issues or successes would provide a more comprehensive understanding of their reliability and expertise in executing similar projects.

How does the $27.1 million award compare to similar Garrison switchyard projects?

Direct comparison of the $27.1 million award for the Garrison Switchyard project to similar projects is difficult without specific details on the scope, complexity, and location of those comparable projects. Switchyard construction costs can vary significantly based on factors such as voltage requirements, capacity, land acquisition, environmental mitigation, and the specific technologies employed. The duration of over five years (1912 days) suggests a substantial undertaking. To benchmark effectively, one would need to identify other military or large-scale civilian switchyard projects of comparable size and technical specifications completed around the same timeframe.

What are the primary risks associated with a firm fixed-price contract for a 5-year construction project?

While a firm fixed-price (FFP) contract offers cost certainty, a significant risk for a long-duration project like this (over 5 years) is the potential for unforeseen circumstances to impact the contractor's profitability, potentially leading to disputes or performance issues. These could include unexpected material cost escalations beyond what was reasonably foreseeable, significant labor market fluctuations, or changes in regulatory requirements. Although the FFP structure aims to place risk on the contractor, extreme market volatility or unforeseen site conditions could strain the contractor's ability to deliver without compromising quality or seeking contract modifications.

How effective was the full and open competition in achieving competitive pricing?

The fact that the contract was awarded under full and open competition and received 5 bids suggests a competitive environment was established. This process generally promotes competitive pricing by allowing multiple qualified contractors to submit proposals, driving down costs as they vie for the award. While the provided data doesn't include the bid amounts or the government's cost estimate, the presence of multiple bids is a strong indicator that the competition likely contributed to achieving a reasonable and competitive price for the government. Further analysis would require comparing the winning bid against an independent government estimate or other bids received.

What is the historical spending pattern for Garrison switchyard maintenance and upgrades?

The provided data pertains to a specific construction contract awarded in 2011 and ending in 2016. It does not offer insights into the historical spending patterns for the Garrison switchyard's maintenance or upgrades prior to or following this project. To understand historical spending, one would need to access historical contract databases and analyze all awards related to the Garrison facility's electrical infrastructure over a longer period, looking for trends in maintenance costs, repair expenditures, and previous upgrade projects.

What are the potential performance implications of the 1912-day contract duration?

A duration of 1912 days (approximately 5.25 years) for a construction project implies a large-scale, complex undertaking. Potential performance implications include the need for sustained project management and oversight from the government to ensure continuity and adherence to the contract over an extended period. For the contractor, it requires long-term resource allocation and planning. Risks associated with such a long duration include potential changes in technology, personnel turnover, and the need to manage scope creep effectively. However, it also allows for phased construction and integration, potentially minimizing disruption.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128F11R0044

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1223 E BROADWAY ST, MORRILTON, AR, 72110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,118,223

Exercised Options: $27,118,223

Current Obligation: $27,118,223

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline