Korte Construction awarded $30.1M for Ft. Huachuca electrical facility, highlighting significant investment in military infrastructure

Contract Overview

Contract Amount: $30,101,189 ($30.1M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2021-09-10

End Date: 2024-07-12

Contract Duration: 1,036 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JITC ELECTICAL FACILITY, FT. HUACHCA

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85670

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $30.1 million to KORTE CONSTRUCTION COMPANY for work described as: JITC ELECTICAL FACILITY, FT. HUACHCA Key points: 1. The contract value represents a substantial commitment to upgrading essential military facilities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance risk is moderate, given the project's scope and duration. 4. This award situates within the broader context of ongoing modernization efforts for defense installations. 5. The project falls under the commercial and institutional building construction sector, a key area for infrastructure development.

Value Assessment

Rating: good

The contract value of $30.1 million for an electrical facility at Ft. Huachuca appears reasonable for a project of this scale and complexity. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control, assuming the initial price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 8 bidders, the level of competition suggests a robust market response. This broad competition is generally favorable for price discovery and achieving a competitive market rate for the construction services.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently, leading to a more favorable price for the government compared to less competitive scenarios.

Public Impact

The primary beneficiaries are the U.S. Army and the personnel stationed at Ft. Huachuca, who will gain access to a modernized and reliable electrical infrastructure. The services delivered include the construction of a new electrical facility, crucial for the operational readiness and security of the base. The geographic impact is localized to Ft. Huachuca, Arizona, but the improved infrastructure supports national defense objectives. The project will likely create employment opportunities for skilled construction labor in the Arizona region during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Ensuring adherence to stringent military construction standards and specifications.
Managing the complexity of integrating new electrical systems with existing base infrastructure.

Positive Signals

Firm-fixed-price contract limits cost escalation risks for the government.
Award to an established construction company with experience in large-scale projects.
Competitive bidding process likely secured a fair market price.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry focused on non-residential structures. The market for military construction is substantial, driven by the need to maintain and modernize aging facilities and adapt to evolving operational requirements. Comparable spending benchmarks would involve analyzing other large-scale military infrastructure projects awarded by the Department of Defense.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor, Korte Construction Company, is a significant entity, the lack of explicit set-aside information means direct subcontracting opportunities for small businesses are not detailed here. However, large prime contractors often engage small businesses for specialized services or labor, which would be a secondary impact.

Oversight & Accountability

The contract is subject to standard federal procurement oversight, including reviews by the Department of the Army and potentially the Department of Defense's Inspector General. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases, though specific project execution details may be less public.

Related Government Programs

Military Base Infrastructure Modernization
Department of Defense Facilities Construction
Electrical Grid Upgrades
Army Corps of Engineers Projects

Risk Flags

Potential for schedule slippage
Ensuring compliance with military specifications
Integration with existing base infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to KORTE CONSTRUCTION COMPANY. JITC ELECTICAL FACILITY, FT. HUACHCA

Who is the contractor on this award?

The obligated recipient is KORTE CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2021-09-10. End: 2024-07-12.

What is Korte Construction Company's track record with similar Department of Defense contracts?

Korte Construction Company has a history of working with the Department of Defense on various construction projects. While specific details on past electrical facility projects are not provided in this data snippet, their involvement in military construction suggests familiarity with the rigorous requirements and security protocols of such contracts. A deeper analysis would involve reviewing their past performance evaluations, contract history, and any reported issues or successes on similar DoD projects to gauge their reliability and expertise in executing large-scale, critical infrastructure developments.

How does the awarded amount compare to the estimated cost or initial solicitations?

The provided data shows the awarded amount of $30,101,189. To assess value, this figure should be compared against the government's initial cost estimates, if available, and the bids submitted by the other seven competitors. A significant difference between the awarded amount and the estimate could indicate issues with the initial budgeting or the competitiveness of the bids. Conversely, if the awarded amount is well below the estimate and competitive among bidders, it suggests efficient procurement and good value for taxpayer money. Without the initial estimates or a full bid tabulation, a definitive comparison is not possible.

What are the primary risks associated with the construction of a military electrical facility?

Key risks in constructing a military electrical facility include potential delays due to unforeseen site conditions, weather, or supply chain disruptions. Technical risks involve ensuring the new system's compatibility with existing infrastructure and meeting stringent military-grade specifications for reliability and security. There's also the risk of cost overruns, although mitigated by the firm-fixed-price contract, and performance risks related to the contractor's ability to deliver quality work on time. Furthermore, ensuring operational continuity of existing base power during construction presents a significant logistical challenge.

What is the expected impact of this facility upgrade on the operational readiness of Ft. Huachuca?

The upgrade to a new electrical facility is expected to significantly enhance the operational readiness of Ft. Huachuca. A modern, reliable electrical infrastructure is fundamental for supporting all base operations, from communication systems and data centers to barracks and training facilities. Improved power stability and capacity can reduce downtime, prevent disruptions caused by aging equipment failures, and potentially support increased energy demands from new technologies or expanded operations. This investment directly contributes to the base's ability to execute its mission effectively and securely.

How has federal spending on military construction projects in Arizona trended over the past five years?

Analyzing federal spending trends on military construction in Arizona over the past five years would require accessing historical contract award data from agencies like the Army Corps of Engineers, NAVFAC, and Air Force Civil Engineer Center. Generally, federal spending on military construction is influenced by congressional appropriations, military readiness needs, and infrastructure modernization priorities. Arizona, hosting significant Army and Air Force installations, likely sees consistent investment. Trends could show increases driven by specific modernization initiatives or shifts in defense strategy. A detailed analysis would involve aggregating contract data by fiscal year and project type for Arizona-based military installations.

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: W912PL21R0007

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5700 OAKLAND AVE STE 275, SAINT LOUIS, MO, 63110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,101,189

Exercised Options: $30,101,189

Current Obligation: $30,101,189

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $54,997,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline