DoD awards $28.8M contract for Thule Air Base dormitory renovation to Adserballe & Knudsen Greenland A/S
Contract Overview
Contract Amount: $28,820,025 ($28.8M)
Contractor: Adserballe & Knudsen Greenland A/S
Awarding Agency: Department of Defense
Start Date: 2016-06-29
End Date: 2020-06-30
Contract Duration: 1,462 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RENOVATE DORMITORY BUILDING 97 AT THULE AIR BASE, GREENLAND. IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $28.8 million to ADSERBALLE & KNUDSEN GREENLAND A/S for work described as: RENOVATE DORMITORY BUILDING 97 AT THULE AIR BASE, GREENLAND. IGF::OT::IGF Key points: 1. The contract value of $28.8 million is significant for a single building renovation. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project duration of 1462 days (nearly 4 years) raises questions about efficiency and potential delays. 4. Construction sector spending can be volatile; this project falls within commercial and institutional building construction.
Value Assessment
Rating: fair
The contract value of $28.8 million for renovating a dormitory building appears substantial. Benchmarking against similar large-scale construction projects would be necessary to definitively assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among contractors.
Public Impact
Military personnel stationed at Thule Air Base will benefit from improved living quarters. The long duration of the project may cause temporary disruptions to base operations. The significant investment in infrastructure at a remote location like Thule highlights its strategic importance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended project duration (1462 days)
- High contract value for a single building renovation
- Remote location may present logistical challenges and increase costs
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type can provide cost certainty
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can be influenced by infrastructure needs, military base upgrades, and geopolitical considerations, especially for remote locations like Thule.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The firm fixed price contract type provides a degree of cost control. However, the extended duration warrants oversight to ensure project milestones are met and costs remain within expectations.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended project duration
- High contract value
- Remote and harsh operating environment
- Potential for logistical challenges
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 $28.8 million to ADSERBALLE & KNUDSEN GREENLAND A/S. RENOVATE DORMITORY BUILDING 97 AT THULE AIR BASE, GREENLAND. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is ADSERBALLE & KNUDSEN GREENLAND 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 $28.8 million.
What is the period of performance?
Start: 2016-06-29. End: 2020-06-30.
What factors contributed to the nearly four-year duration for this dormitory renovation project?
The extended duration could be attributed to several factors, including the remote and harsh environmental conditions at Thule Air Base, logistical challenges in transporting materials and personnel, potential scope creep, or unforeseen construction complexities. A detailed project timeline and progress reports would be needed to pinpoint the exact reasons.
How does the $28.8 million cost compare to similar dormitory renovation projects in comparable geographic or environmental conditions?
Without specific benchmarks for dormitory renovations in Arctic or similarly remote locations, it's difficult to definitively assess cost-effectiveness. However, the value is substantial, suggesting that the unique challenges of the Thule environment likely contributed to higher costs compared to projects in more accessible areas.
What measures were in place to ensure accountability and efficient use of funds given the project's long duration and remote location?
The firm fixed price contract offers some cost certainty. Oversight likely involved regular progress reviews, milestone tracking, and potentially penalties for delays. The remote location necessitates robust logistical planning and management to prevent cost overruns and ensure efficient resource allocation.
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: W912DS14R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: NUUKULLAK 35, 1., NUUK
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $29,785,178
Exercised Options: $28,820,025
Current Obligation: $28,820,025
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-29
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2019-09-18
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