DoD Awards $19.2M Design-Build Contract for AFRC and FMS to Intersteel, Inc
Contract Overview
Contract Amount: $19,229,070 ($19.2M)
Contractor: Intersteel, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-21
End Date: 2012-07-27
Contract Duration: 1,771 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT AFRC AND FMS
Place of Performance
Location: RICHMOND, MADISON County, KENTUCKY, 40475
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to INTERSTEEL, INC. for work described as: DESIGN AND CONSTRUCT AFRC AND FMS Key points: 1. Contract awarded for design and construction services. 2. Intersteel, Inc. secured the contract. 3. The Department of the Army is the contracting agency. 4. The contract falls under Commercial and Institutional Building Construction. 5. Full and open competition was utilized.
Value Assessment
Rating: fair
The contract value of $19.2 million for design and construction is within a reasonable range for large-scale institutional projects. Benchmarking against similar DoD construction contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust process for price discovery. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.
Public Impact
Construction projects of this scale can impact local economies through job creation and material sourcing. The facilities constructed will serve specific military functions, contributing to operational readiness. Long-term maintenance and operational costs of the new facilities are a consideration for ongoing taxpayer burden.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1771 days (nearly 5 years) is lengthy for a design-build project, potentially increasing risk of cost escalation or scope creep.
- Lack of specific performance metrics or award fee details makes assessing contractor performance difficult.
- Small business participation is not explicitly mentioned, which could be a missed opportunity for economic inclusion.
Positive Signals
- Full and open competition indicates a commitment to leveraging market forces for cost efficiency.
- The contract is firm fixed price, providing cost certainty for the government.
- The project is located in Kentucky, potentially benefiting the regional economy.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of government spending. Benchmarks for similar DoD construction projects would be necessary for a precise comparison.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting goals were established or met.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the DoD. Standard oversight mechanisms for federal construction projects would apply, including contract administration and quality assurance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended contract duration increases risk of cost overruns and schedule delays.
- Lack of explicit performance metrics makes oversight challenging.
- Potential for scope creep given the long performance period.
- No clear indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to INTERSTEEL, INC.. DESIGN AND CONSTRUCT AFRC AND FMS
Who is the contractor on this award?
The obligated recipient is INTERSTEEL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2007-09-21. End: 2012-07-27.
What specific performance metrics were established to ensure the quality and timeliness of the design and construction services?
The provided data does not specify performance metrics. Typically, federal construction contracts include detailed performance standards, quality assurance plans, and inspection protocols. These would be outlined in the contract's statement of work and associated clauses to ensure the contractor meets requirements for design, materials, and construction, as well as adherence to schedules and safety regulations.
How does the final cost compare to the initial estimated cost, and were there significant change orders during the contract period?
The data shows the awarded amount ($19.2M) but does not provide an initial estimate or details on change orders. A comparison would require access to the contract's baseline cost estimate and a log of any modifications. Significant deviations could indicate issues with initial planning, unforeseen site conditions, or scope adjustments impacting the overall value.
What is the long-term operational and maintenance cost projection for the completed AFRC and FMS facilities?
Information on long-term operational and maintenance costs is not included in the provided data. These costs are critical for a full lifecycle assessment of the project's financial impact. They would typically be estimated during the planning phase and factored into the overall budget, but are separate from the initial design and construction award.
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: TWO STEP
Solicitation ID: W912KZ06R0006
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: HZE
Contractor Details
Address: 819 PORTER PLACE, LEXINGTON, KY, 06
Business Categories: Asian Pacific American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,229,070
Exercised Options: $19,229,070
Current Obligation: $19,229,070
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-21
Current End Date: 2012-07-27
Potential End Date: 2012-07-27 00:00:00
Last Modified: 2013-04-09
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