DoD Awards $36.8M for OSS/SERE Facility Construction in Nebraska
Contract Overview
Contract Amount: $36,773,641 ($36.8M)
Contractor: Medvolt Tepa EC JV
Awarding Agency: Department of Defense
Start Date: 2022-12-23
End Date: 2024-10-27
Contract Duration: 674 days
Daily Burn Rate: $54.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT OSS/SERE FACILITY
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $36.8 million to MEDVOLT TEPA EC JV for work described as: CONSTRUCT OSS/SERE FACILITY Key points: 1. The contract value of $36.8M is significant for a single construction project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project is located in Nebraska, potentially impacting local construction firms. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of $36.8M appears reasonable for a large-scale facility construction project. Benchmarking against similar Department of Defense construction contracts would provide further context on pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process that aimed to solicit bids from a broad range of qualified contractors. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is expected to yield a fair market price, maximizing taxpayer value for this significant construction investment.
Public Impact
Construction of this facility will create jobs in the Nebraska region. The facility will support critical military training operations (OSS/SERE). The project represents a substantial investment in military infrastructure. Local and national construction companies had the opportunity to bid on this project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on contractor's ability to meet strict construction timelines.
- Geographic concentration of the project may limit local subcontractor availability.
Positive Signals
- Firm Fixed Price contract mitigates cost escalation risk for the government.
- Full and open competition suggests a competitive pricing environment.
- Project supports essential military training capabilities.
Sector Analysis
The construction sector is a significant area of government spending. This project falls under commercial and institutional building construction, a common category for federal infrastructure development. Benchmarks for similar-sized military construction projects would be relevant for a detailed cost analysis.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business set-asides or participation in the provided data. Further analysis would be needed to determine the extent of small business involvement as subcontractors.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, are expected to be in place to ensure quality and adherence to schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep if requirements are not clearly defined.
- Contractor performance risk, especially regarding schedule adherence.
- Unforeseen site conditions impacting cost and timeline.
- Dependency on specialized materials or labor.
Tags
commercial-and-institutional-building-co, department-of-defense, ne, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.8 million to MEDVOLT TEPA EC JV. CONSTRUCT OSS/SERE FACILITY
Who is the contractor on this award?
The obligated recipient is MEDVOLT TEPA EC JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $36.8 million.
What is the period of performance?
Start: 2022-12-23. End: 2024-10-27.
What is the specific purpose of the OSS/SERE facility and how does its functionality impact its cost?
The OSS/SERE facility is likely for Operations, Survival, Evasion, Resistance, and Escape training. The specialized nature of such facilities, requiring specific safety features, simulation capabilities, and durable construction for realistic training scenarios, can significantly influence project costs compared to standard commercial buildings. Detailed specifications would reveal unique cost drivers.
What are the key performance indicators and potential risks associated with the firm fixed price contract for this construction project?
Key performance indicators would include adherence to the construction schedule, quality of workmanship, and meeting all specified design and functional requirements. Risks with a firm fixed price contract primarily lie with the contractor; they bear the burden of cost overruns due to unforeseen issues or poor management. The government's risk is primarily related to potential contractor default or quality compromises if not adequately overseen.
How does the 'Full and Open Competition After Exclusion of Sources' method compare to other competitive bidding strategies in terms of achieving value for this specific project?
This method allows for broad competition while potentially excluding sources that do not meet specific pre-qualification criteria, ensuring a baseline of capability. Compared to unrestricted full and open competition, it might slightly narrow the pool but still fosters significant price discovery. It aims to balance competition with ensuring only capable firms participate, potentially leading to better-executed projects and value, though it could exclude innovative smaller firms.
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: W9128F22R0047
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5045 LIST DRIVE, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, 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: $36,773,641
Exercised Options: $36,773,641
Current Obligation: $36,773,641
Actual Outlays: $9,689,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-23
Current End Date: 2024-10-27
Potential End Date: 2024-10-27 00:00:00
Last Modified: 2025-08-20
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