Department of the Army awards $18.5M contract for new multifamily housing construction

Contract Overview

Contract Amount: $18,521,970 ($18.5M)

Contractor: Kamisli Insaat Ticaret VE Sana

Awarding Agency: Department of Defense

Start Date: 2006-03-01

End Date: 2012-08-31

Contract Duration: 2,375 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Plain-Language Summary

Department of Defense obligated $18.5 million to KAMISLI INSAAT TICARET VE SANA for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2375 days indicates a long-term project. 3. The fixed-price contract type aims to control costs for the government. 4. The North American Industry Classification System (NAICS) code 236116 points to new residential construction. 5. The award was made by the Department of the Army, a component of the Department of Defense. 6. The contract was awarded by DCA, likely a contracting activity within the Army.

Value Assessment

Rating: fair

Without specific cost breakdowns or benchmarks for multifamily housing construction in the relevant geographic area, it is difficult to definitively assess value for money. The fixed-price nature of the contract provides some cost certainty. However, the total award amount of $18.5 million over a period of nearly seven years suggests a significant investment. Further analysis would require comparing this project's cost per unit or square foot to similar government or private sector projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 10 bids suggests a healthy level of interest and competition for this project. This broad competition is generally favorable for price discovery and potentially leads to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

This contract will provide new housing units, likely for military personnel and their families stationed at the relevant Army installation. The construction project will create jobs in the construction sector, benefiting the local workforce. The geographic impact is localized to the area where the housing is being constructed. The successful completion of this project will contribute to improved living conditions for service members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in construction could impact the availability of housing for military families.
Quality control during a long-term construction project requires consistent oversight.

Positive Signals

The fixed-price contract type offers cost predictability.
Full and open competition suggests a robust bidding process.
The long duration allows for phased construction and potential learning curve improvements.

Sector Analysis

The construction industry, particularly new multifamily housing, is a significant sector within the broader economy. Government contracts for housing, especially for military installations, represent a consistent demand. This contract fits within the residential construction sub-sector, focusing on building multi-unit dwellings. Comparable spending benchmarks would typically involve analyzing the cost per unit or square foot for similar housing projects in the region.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem through this primary contract is likely minimal, though subcontractors could potentially be small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting activity (DCA) within the Department of the Army. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Housing Privatization Initiative
Department of Defense Family Housing Construction
General Services Administration (GSA) Public Buildings Service

Risk Flags

Long project duration may increase exposure to market fluctuations.
Lack of specific cost-per-unit data hinders value assessment.
Contractor's past performance data not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to KAMISLI INSAAT TICARET VE SANA. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is KAMISLI INSAAT TICARET VE SANA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2006-03-01. End: 2012-08-31.

What is the specific location and purpose of the new multifamily housing?

The provided data does not specify the exact geographic location or the intended occupants (e.g., enlisted, officers, families) of the new multifamily housing. However, given it is a Department of the Army contract, the housing is likely intended for military personnel and their families stationed at a particular Army installation. The purpose is to provide adequate and modern living quarters, contributing to military readiness and quality of life for service members.

How does the cost per unit for this contract compare to market rates for similar housing?

Without the number of units constructed or the total square footage, calculating a precise cost per unit is not possible from the provided data. To compare with market rates, one would need to know the total award amount ($18.5 million) divided by the number of units. Additionally, market rates vary significantly by location. A comprehensive analysis would involve benchmarking against private sector multifamily construction costs in the same geographic region, considering factors like material costs, labor rates, and developer profit margins.

What are the key performance indicators (KPIs) for this construction contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for construction projects of this nature would include adherence to the project schedule, quality of construction meeting specified standards, compliance with safety regulations, and completion within the agreed-upon budget (especially relevant for fixed-price contracts). The contract's duration (2375 days) suggests that milestones and phased completions would likely be part of the performance monitoring.

What is the track record of the contractor, KAMISLI INSAAT TICARET VE SANA, on similar government projects?

The provided data only includes the contractor's name and does not offer any information regarding their past performance, track record, or experience with government contracts, particularly in multifamily housing construction. A thorough assessment would require reviewing the contractor's performance history, including any past performance evaluations, past disputes, or awards on similar projects. This information is typically available through government contract databases or past performance information repositories.

What are the potential risks associated with a long-duration construction contract like this?

Long-duration construction contracts, such as this one spanning 2375 days (nearly 7 years), carry several potential risks. These include fluctuations in material costs over time, potential changes in labor availability and rates, unforeseen site conditions (e.g., environmental issues, soil instability), and the risk of design changes or scope creep. For the government, there's also the risk of project delays impacting operational needs. The fixed-price nature helps mitigate cost escalation for the government, but contractor performance and project management are critical.

How does this contract fit into the broader context of military family housing initiatives?

This contract aligns with the Department of Defense's ongoing efforts to provide adequate and modern housing for service members and their families. Many military installations face housing shortages or have aging housing stock. Contracts like this contribute to improving the quality of life for military personnel, which is considered crucial for recruitment, retention, and overall morale. It may be part of a larger initiative to upgrade or expand housing capacity at specific Army bases.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: PALMIYE APT, 32/ A ZIYAPA, ADANA

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline