Fort Leonard Wood facility construction awarded to KCI Construction for $32.9M under full and open competition

Contract Overview

Contract Amount: $32,856,196 ($32.9M)

Contractor: KCI Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-08-23

End Date: 2016-09-15

Contract Duration: 1,484 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN64365 TEMF WITH SITE WORK - NEW CONSTRUCTION OF TACTICAL EQUIPMENT MAINTENANCE FACILITY LOCATED AT FORT LEONARD WOOD, MISSOURI

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to KCI CONSTRUCTION CO for work described as: PN64365 TEMF WITH SITE WORK - NEW CONSTRUCTION OF TACTICAL EQUIPMENT MAINTENANCE FACILITY LOCATED AT FORT LEONARD WOOD, MISSOURI Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility. 4. Project duration of nearly four years indicates a complex undertaking. 5. Geographic concentration in Missouri may have local economic impacts. 6. The project falls within the broad category of commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $32.9 million for a Tactical Equipment Maintenance Facility (TEMF) at Fort Leonard Wood appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar military construction projects would provide a more precise assessment of value for money. The firm fixed-price structure, while offering budget predictability, means that any cost overruns due to unforeseen issues would likely be borne by the contractor, potentially impacting quality if not managed carefully. The duration of the contract (1484 days) suggests a substantial project scope.

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 12 bids suggests a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and better value for the government, as contractors strive to offer the most attractive proposals. The specific details of the bidding process and evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces. The 12 bids received suggest that the government likely secured a competitive price for the construction services.

Public Impact

The primary beneficiaries are the U.S. Army personnel and units stationed at Fort Leonard Wood, Missouri, who will utilize the new facility. The project delivers essential infrastructure for the maintenance and readiness of tactical equipment. The geographic impact is concentrated in Missouri, specifically at Fort Leonard Wood. The construction activities likely created temporary employment opportunities for skilled trades and laborers in the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1484 days) increases the risk of cost escalation due to inflation or material price fluctuations.
Firm Fixed Price contracts can sometimes lead to contractor pressure to cut corners on quality if unforeseen issues arise.
Reliance on a single contractor for a large project carries inherent performance risks.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Multiple bidders (12) indicate market interest and potential for competitive pricing.
The project addresses a clear need for tactical equipment maintenance infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports military bases, government facilities, and public infrastructure. The market size for federal construction is substantial, with significant annual outlays. This specific project represents a capital investment in military readiness and operational support infrastructure, aligning with government priorities for maintaining and upgrading defense facilities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While KCI Construction Co. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on KCI's procurement practices and the specific requirements outlined in the contract, if any. Further analysis would be needed to determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, which places financial responsibility on the contractor. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Military Base Construction
Tactical Equipment Maintenance Facilities
Department of Defense Infrastructure Projects
Federal Building Construction Contracts

Risk Flags

Potential for cost overruns due to long duration and fixed-price contract.
Risk of quality compromise if contractor faces financial pressure.
Dependence on a single contractor for a critical infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to KCI CONSTRUCTION CO. PN64365 TEMF WITH SITE WORK - NEW CONSTRUCTION OF TACTICAL EQUIPMENT MAINTENANCE FACILITY LOCATED AT FORT LEONARD WOOD, MISSOURI

Who is the contractor on this award?

The obligated recipient is KCI CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2012-08-23. End: 2016-09-15.

What is the track record of KCI Construction Co. on similar federal contracts?

A review of KCI Construction Co.'s federal contract history would be necessary to assess their track record on similar projects. This would involve examining past performance evaluations, any history of contract disputes or terminations, and their experience with large-scale military construction. Without specific data on their past performance, it is difficult to definitively assess their reliability and capability for this project. Federal procurement databases and past performance information systems are key resources for this type of analysis. A contractor with a history of successful, on-time, and within-budget delivery of comparable projects would be considered a lower risk.

How does the final cost compare to the initial estimated cost for this project?

The provided data indicates an award amount of $32,856,196. To compare this to the initial estimated cost, we would need access to the original project estimates or solicitations. If the award amount is significantly higher than the initial estimate, it could suggest issues with the initial budgeting, unforeseen project complexities, or a less competitive bidding environment than anticipated. Conversely, if the award is below the estimate, it might indicate successful cost control or a highly competitive bidding process. Without the initial estimate, a direct comparison is not possible.

What are the potential risks associated with the firm fixed-price contract type for this project?

The firm fixed-price (FFP) contract type, while offering cost certainty to the government, can introduce risks for both parties. For the contractor (KCI Construction Co.), unforeseen issues like material price increases, labor shortages, or design changes not covered by contract modifications could lead to reduced profit margins or even losses. This pressure might incentivize cost-cutting measures that could potentially impact the quality of the construction. For the government, the risk is that the contractor might deliver a product that meets the minimum contractual requirements but lacks optimal quality or features if they are focused solely on cost minimization. Effective oversight and clear contract specifications are crucial to mitigate these risks.

What is the historical spending trend for Tactical Equipment Maintenance Facilities (TEMFs) by the Department of the Army?

Analyzing historical spending trends for TEMFs by the Department of the Army would require accessing comprehensive federal procurement data over several fiscal years. This would involve identifying all contracts awarded for similar facilities, their values, durations, and the specific Army commands or branches that procured them. Such an analysis could reveal patterns in contract values, the average cost per square foot, typical project durations, and the prevalence of different contract types. It could also highlight any significant increases or decreases in investment in TEMF infrastructure, potentially indicating shifts in military readiness priorities or budget allocations. Without access to this historical data, specific trend analysis is not feasible.

How does the number of bidders (12) compare to the average number of bids for similar federal construction projects?

The 12 bids received for this contract suggest a reasonably competitive procurement process. To determine if this is high or low compared to similar federal construction projects, one would need to analyze a dataset of comparable contracts. Factors influencing the number of bidders include the project's complexity, geographic location, contract value, and the availability of qualified contractors in the market. A higher number of bidders generally indicates greater market interest and potentially better price competition. If the average for similar projects is significantly higher, it might suggest specific market conditions or contract characteristics that deterred some potential bidders. Conversely, if the average is lower, 12 bids would represent strong competition.

What are the key performance indicators (KPIs) used to evaluate the success of this construction project?

Key performance indicators (KPIs) for a construction project like this typically focus on schedule adherence, cost control, quality of workmanship, and safety compliance. For this specific contract, KPIs might include meeting key milestones within the 1484-day duration, staying within the $32.9 million budget (especially relevant given the FFP structure), achieving specified quality standards for materials and construction, and maintaining an excellent safety record throughout the project lifecycle. Post-occupancy evaluations assessing the facility's functionality and durability would also serve as important indicators of success. The contracting officer's final performance evaluation would formally document the contractor's adherence to these KPIs.

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: W912DQ12R4005

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10315 LAKE BLUFF DR, SAINT LOUIS, MO, 63123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,856,196

Exercised Options: $32,856,196

Current Obligation: $32,856,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline