Army's $16.5M Fort Detrick Logistics Facility Contract Awarded to Arrow Kinsley Joint Venture II

Contract Overview

Contract Amount: $20,230,845 ($20.2M)

Contractor: Arrow Kinsley Joint Venture II

Awarding Agency: Department of Defense

Start Date: 2011-07-10

End Date: 2014-11-15

Contract Duration: 1,224 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF CONSOLIDATED LOGISTICS FAC FT. DETRICK, MD

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to ARROW KINSLEY JOINT VENTURE II for work described as: CONSTRUCTION OF CONSOLIDATED LOGISTICS FAC FT. DETRICK, MD Key points: 1. Contract awarded for construction of a consolidated logistics facility, indicating a need for improved infrastructure. 2. The contract was competed under 'full and open competition after exclusion of sources,' suggesting a controlled but potentially competitive process. 3. A definitive contract type was used, which typically outlines specific terms and conditions for a defined scope of work. 4. The project duration of 1224 days (approximately 3.4 years) points to a significant construction undertaking. 5. The firm-fixed-price nature of the contract shifts cost risk to the contractor. 6. The contract was awarded in 2011, with completion in 2014, providing historical context for construction costs and timelines.

Value Assessment

Rating: fair

The contract value of $16.5 million for a logistics facility in Maryland appears within a reasonable range for a project of this scale and duration. However, without specific details on the facility's size, scope, and complexity, a precise value-for-money assessment is challenging. Benchmarking against similar military construction projects would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the bidder pool. The number of bidders (15) suggests a moderate level of competition, which is generally positive for price discovery, but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The exclusion of certain sources, even with 15 bidders, may have limited the potential for the most competitive pricing, potentially impacting taxpayer savings. A truly open competition without exclusions could have yielded more bids and potentially lower costs.

Public Impact

The primary beneficiaries are the Department of the Army and military personnel stationed at Fort Detrick, Maryland, who will utilize the new logistics facility. The project delivers a consolidated logistics facility, improving operational efficiency and supply chain management for the base. The geographic impact is localized to Fort Detrick, Maryland, enhancing its infrastructure capabilities. The construction project likely involved a significant workforce, including skilled trades and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'full and open competition after exclusion of sources' raises questions about the fairness and breadth of the competition.
Lack of detailed scope and specifications makes it difficult to fully assess value for money.
The definitive contract type, while specific, may not fully capture all potential project evolutions without careful management.

Positive Signals

The award to a joint venture suggests a capacity to handle complex construction projects.
The firm-fixed-price contract provides cost certainty for the government.
The project was completed within a defined timeframe, indicating project management execution.

Sector Analysis

The construction sector, particularly for government and military facilities, is characterized by large-scale projects requiring specialized expertise and adherence to stringent regulations. This contract falls within the commercial and institutional building construction subsector. Comparable spending benchmarks for military construction projects of similar size and scope would provide context for the $16.5 million award, considering factors like inflation and material costs over the project's duration.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements for this particular award. The focus was likely on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though detailed project execution reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Logistics and Supply Chain Facilities
Department of Defense Construction Contracts
Fort Detrick Infrastructure Projects

Risk Flags

Competition Limitation
Potential for Unforeseen Site Conditions
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to ARROW KINSLEY JOINT VENTURE II. CONSTRUCTION OF CONSOLIDATED LOGISTICS FAC FT. DETRICK, MD

Who is the contractor on this award?

The obligated recipient is ARROW KINSLEY JOINT VENTURE II.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2011-07-10. End: 2014-11-15.

What specific factors led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' procurement method?

The rationale behind excluding specific sources in a 'full and open competition after exclusion of sources' procurement typically involves reasons such as national security, proprietary technology, or the need for specialized capabilities that only a limited number of contractors possess. Without access to the specific solicitation documents and pre-award justifications, it is difficult to determine the exact reasons for exclusion in this case. However, such exclusions are generally intended to ensure that the awarded contract meets unique government requirements that cannot be fulfilled by all potential offerors. This method aims to balance competition with the need for specialized solutions, but it requires careful justification to ensure it does not unduly restrict competition.

How does the $16.5 million cost compare to similar logistics facility construction projects for the Department of Defense?

Benchmarking the $16.5 million cost requires comparing it to similar Department of Defense (DoD) logistics facility construction projects awarded around the same period (2011-2014) and in similar geographic locations. Factors such as the facility's square footage, specific functionalities (e.g., climate control, specialized storage), site preparation requirements, and the prevailing construction market conditions in Maryland during that timeframe are crucial. Generally, military construction projects can be more expensive than commercial equivalents due to heightened security, durability, and specific operational requirements. A detailed analysis would involve reviewing databases of DoD construction contracts to identify comparable projects and analyze their cost per square foot or per functional unit.

What were the primary risks identified for this construction project, and how were they mitigated?

Construction projects of this magnitude typically face risks such as cost overruns, schedule delays, unforeseen site conditions, labor shortages, material price fluctuations, and contractor performance issues. For this project, the firm-fixed-price contract structure inherently transfers significant cost risk to the contractor, Arrow Kinsley Joint Venture II. Mitigation strategies likely included detailed project planning, robust contract oversight by the Army Corps of Engineers, pre-qualification of subcontractors, and contingency planning for potential site issues. The 1224-day duration also suggests that schedule risks were factored into the planning, allowing for potential delays without jeopardizing the overall project timeline significantly.

What is the historical spending pattern for logistics facility construction at Fort Detrick or similar Army installations?

Analyzing historical spending patterns for logistics facility construction at Fort Detrick and comparable Army installations provides context for the $16.5 million award. This involves examining previous contracts for similar facilities, noting their size, scope, cost, and duration. Trends in construction costs, technological advancements in logistics, and evolving military operational needs would influence spending. For instance, if Fort Detrick had previously relied on dispersed or outdated logistics infrastructure, this consolidated facility represents a strategic investment. Understanding the frequency and scale of such investments across the Army helps assess whether this contract aligns with broader infrastructure modernization efforts.

What was the track record of Arrow Kinsley Joint Venture II prior to this award?

Assessing the track record of Arrow Kinsley Joint Venture II prior to the 2011 award is crucial for understanding their capability to execute this $16.5 million contract. Information regarding their past performance on similar government or large-scale construction projects, their financial stability, safety records, and client satisfaction would be key indicators. Joint ventures often form to pool resources and expertise, suggesting that the individual entities within the venture likely had relevant experience. A review of their contract history, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and competence.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DR11R0027

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 WATER ST, YORK, PA, 17403

Business Categories: Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,230,845

Exercised Options: $20,230,845

Current Obligation: $20,230,845

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline