DoD's $25.4M Ft. Leavenworth Renovation Awarded to OROCON - CAROTHERS JV2 Under Full and Open Competition

Contract Overview

Contract Amount: $25,374,203 ($25.4M)

Contractor: Orocon - Carothers JV2

Awarding Agency: Department of Defense

Start Date: 2014-09-29

End Date: 2018-11-30

Contract Duration: 1,523 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF HISTORICAL BUILDING RENOVATION LOCATED AT FT. LEAVENWORTH, KANSAS.

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to OROCON - CAROTHERS JV2 for work described as: IGF::OT::IGF HISTORICAL BUILDING RENOVATION LOCATED AT FT. LEAVENWORTH, KANSAS. Key points: 1. The contract value of $25.4 million falls within typical ranges for large-scale building renovations. 2. Competition was conducted under a 'full and open competition after exclusion of sources' method, suggesting a potentially limited but still competitive field. 3. The use of a Firm Fixed Price contract indicates a defined scope and risk allocation. 4. The sector is Commercial and Institutional Building Construction, a significant area of federal spending.

Value Assessment

Rating: good

The contract value of $25.4 million for a historical building renovation appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' method implies that while the competition was open, certain sources may have been excluded prior to the main solicitation. This could impact the breadth of price discovery.

Taxpayer Impact: The competitive bidding process aims to secure the best value for taxpayers, though the exclusion of sources warrants scrutiny to ensure optimal pricing.

Public Impact

Taxpayers benefit from a competitive process aimed at securing fair pricing for essential infrastructure upgrades. The renovation of historical buildings like those at Ft. Leavenworth preserves national heritage while modernizing facilities. The project's duration of over 1500 days suggests a complex undertaking with potential for long-term impact on military readiness and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexity of renovating historical structures.
The 'exclusion of sources' clause in the competition method could limit the number of bidders and potentially impact price competitiveness.
Long project duration increases exposure to market fluctuations and potential delays.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a joint venture may indicate specialized capabilities for complex projects.
Project addresses critical infrastructure needs at a military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is a substantial part of federal procurement. Spending in this sector often involves large, complex projects requiring specialized expertise and significant investment.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The award was made by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams ensuring adherence to terms, quality, and budget throughout the project lifecycle.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for unforeseen conditions in historical building renovation.
Long contract duration increases risk exposure.
Limited competition due to 'exclusion of sources' clause.
Firm Fixed Price contract may lead to costly change orders if scope is not well-defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to OROCON - CAROTHERS JV2. IGF::OT::IGF HISTORICAL BUILDING RENOVATION LOCATED AT FT. LEAVENWORTH, KANSAS.

Who is the contractor on this award?

The obligated recipient is OROCON - CAROTHERS JV2.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2014-09-29. End: 2018-11-30.

What was the rationale behind excluding specific sources in the 'full and open competition after exclusion of sources' method, and did this exclusion limit competitive pricing?

The rationale for excluding sources typically relates to specific technical requirements, past performance issues, or security clearances. While intended to streamline the process or ensure suitability, such exclusions can inadvertently limit the bidder pool. This reduction in competition might lead to less aggressive pricing than a truly open solicitation, potentially impacting the final cost to taxpayers. A review of the solicitation documents would clarify the specific exclusions and their justification.

Given the long duration (1523 days), what are the primary risks associated with cost escalation or scope creep for this historical building renovation?

The extended duration significantly increases the risk of cost escalation due to inflation, material price volatility, and unforeseen site conditions common in historical renovations. Scope creep is also a major concern, as initial assessments may not capture all necessary repairs or upgrades. Robust change order management and contingency planning are crucial to mitigate these risks and maintain the project within budget.

How effectively did the Firm Fixed Price contract structure manage the inherent uncertainties of renovating a historical building at Ft. Leavenworth?

A Firm Fixed Price (FFP) contract aims to transfer risk to the contractor, providing cost certainty for the government. For historical renovations, this structure can be effective if the scope is well-defined and potential issues are thoroughly assessed upfront. However, unexpected discoveries common in older structures can lead to costly change orders, potentially negating the FFP benefits. The success hinges on the contractor's ability to accurately estimate and manage these risks within the fixed price.

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: TWO STEP

Solicitation ID: W912DQ14R4026

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31 HWY 328, OXFORD, MS, 38655

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,192,003

Exercised Options: $25,374,203

Current Obligation: $25,374,203

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $4,914,426

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline