Dormitory Construction at Thule Air Base Awarded for $24.6M Under Full and Open Competition
Contract Overview
Contract Amount: $24,634,997 ($24.6M)
Contractor: Pilegaard-Henriksen A/S
Awarding Agency: Department of Defense
Start Date: 2013-05-30
End Date: 2015-05-17
Contract Duration: 717 days
Daily Burn Rate: $34.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF NEW DORMITORY, THULE AIR BASE, GREENLAND
Plain-Language Summary
Department of Defense obligated $24.6 million to PILEGAARD-HENRIKSEN A/S for work described as: CONSTRUCTION OF NEW DORMITORY, THULE AIR BASE, GREENLAND Key points: 1. Contract awarded to Pilegaard-Henriksen A/S for $24.6M. 2. Full and open competition was utilized. 3. Project duration was 717 days. 4. The contract type was Firm Fixed Price. 5. No small business participation was reported.
Value Assessment
Rating: good
The contract value of $24.6M appears reasonable for a large construction project of this nature. Benchmarking against similar dormitory construction projects for military bases would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for soliciting bids and achieving competitive pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for the construction of essential military infrastructure.
Public Impact
Enhances military housing infrastructure at a strategic Arctic location. Supports personnel stationed at Thule Air Base. Project completion contributes to operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Potential for cost overruns in remote, Arctic environments.
- Contract awarded in 2013, potential for outdated pricing benchmarks.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type limits cost risk.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on geopolitical needs and base modernization efforts.
Small Business Impact
The data indicates no small business participation in this contract. Further investigation may be needed to understand if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, suggesting established oversight mechanisms for large construction projects. Contract closeout and final audits would be key oversight points.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Potential for higher costs due to remote Arctic location.
- Contract awarded several years ago, requiring updated market analysis for current relevance.
- No specific performance metrics or quality assurance details provided.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to PILEGAARD-HENRIKSEN A/S. CONSTRUCTION OF NEW DORMITORY, THULE AIR BASE, GREENLAND
Who is the contractor on this award?
The obligated recipient is PILEGAARD-HENRIKSEN A/S.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2013-05-30. End: 2015-05-17.
What was the final cost compared to the initial award amount?
The provided data reflects the initial award amount of $24.6M. To assess the final cost and identify any potential overruns or savings, the contract's final delivery and payment records would need to be reviewed. This would offer insight into the contractor's performance and the effectiveness of the firm fixed-price structure in controlling costs.
Were there any significant delays or challenges during the construction period?
The contract duration was 717 days. While this indicates a substantial project timeline, it does not inherently signal delays without comparison to the original schedule or industry standards for similar projects in Greenland. Factors like weather, logistics, and unforeseen site conditions could have impacted the schedule and required management attention.
How does the cost per square foot compare to similar military dormitory projects?
Without specific details on the dormitory's square footage or cost per square foot, a direct comparison is not possible. However, construction costs in remote locations like Thule Air Base are typically higher due to logistical challenges and specialized labor requirements. A detailed cost analysis would be needed to benchmark against comparable projects.
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: SEALED BID
Solicitation ID: W912DS13B0003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BO Jorgensen Holding APS (UEI: 365624246)
Address: CIKORIEVEJ 4, ODENSE S?
Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,634,997
Exercised Options: $24,634,997
Current Obligation: $24,634,997
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-30
Current End Date: 2015-05-17
Potential End Date: 2015-05-17 00:00:00
Last Modified: 2021-06-04
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