Dormitory Construction Contract Awarded for $20.5M to MacNack Korte Team LLC by Department of the Army
Contract Overview
Contract Amount: $20,525,317 ($20.5M)
Contractor: Macnak Korte Team LLC
Awarding Agency: Department of Defense
Start Date: 2014-06-30
End Date: 2016-08-03
Contract Duration: 765 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY14 DESIGN/BUILD DORMITORY ROOM 144
Place of Performance
Location: CLOVIS, CURRY County, NEW MEXICO, 88101
Plain-Language Summary
Department of Defense obligated $20.5 million to MACNAK KORTE TEAM LLC for work described as: IGF::OT::IGF FY14 DESIGN/BUILD DORMITORY ROOM 144 Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The project aims to construct 144 dormitory rooms, a significant infrastructure development. 3. The award value of $20.5M suggests a substantial investment in military housing. 4. The project duration of 765 days highlights the complexity and scale of the construction.
Value Assessment
Rating: fair
The contract value of $20.5M for 144 dormitory rooms appears reasonable given the scope. However, without specific per-unit cost benchmarks for similar military dormitory construction, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting an initial exclusion followed by a broader competition. This method can impact price discovery if the initial exclusion was not justified.
Taxpayer Impact: Taxpayers funded the $20.5M contract, with the expectation of receiving value through the construction of essential military housing.
Public Impact
Provides improved living quarters for service members, potentially boosting morale and retention. Supports military readiness by ensuring adequate housing infrastructure. Contributes to the local economy through construction jobs and material procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the long project duration.
- Risk of delays impacting military housing availability.
- The 'exclusion of sources' clause warrants further scrutiny regarding its impact on competition.
Positive Signals
- Awarded through full and open competition, suggesting a competitive price.
- Addresses a clear need for improved dormitory facilities.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for infrastructure development, particularly for government facilities like military bases. Benchmarks for similar projects would be needed for a more precise comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve contract management by the Department of the Army to ensure timely completion, adherence to specifications, and quality control. Accountability rests with the contractor to deliver the project as per the contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Risk of project delays impacting operational readiness.
- Ambiguity in 'exclusion of sources' clause.
- Lack of detailed cost breakdown for benchmarking.
Tags
commercial-and-institutional-building-co, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to MACNAK KORTE TEAM LLC. IGF::OT::IGF FY14 DESIGN/BUILD DORMITORY ROOM 144
Who is the contractor on this award?
The obligated recipient is MACNAK KORTE TEAM LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2014-06-30. End: 2016-08-03.
What was the rationale for the 'exclusion of sources' prior to the full and open competition, and did it impact the final contract price?
The rationale for excluding sources before opening the competition to all is not detailed in the provided data. This exclusion could potentially limit the initial pool of bidders and may have influenced the final price discovery. Further investigation into the justification for this exclusion is warranted to ensure maximum competition and value for taxpayer funds.
How does the awarded price per square foot or per room compare to industry benchmarks for similar dormitory construction, especially within military contexts?
Without specific details on the size of the rooms or the total square footage, a precise per-unit cost comparison is challenging. However, the total award of $20.5M for 144 rooms suggests a significant investment. Benchmarking against similar military dormitory projects would be necessary to assess if the price is competitive and represents good value for the government.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful and timely completion of this 765-day construction project?
The provided data does not specify the KPIs or oversight mechanisms. Typically, such long-term projects would involve regular progress reviews, quality inspections, and milestone tracking by the contracting officer's representative. Effective oversight is crucial to mitigate risks associated with delays, cost overruns, and quality issues inherent in large-scale construction.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912PP14R0001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2624 112TH ST S STE A1, LAKEWOOD, WA, 98499
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $21,191,823
Exercised Options: $20,555,982
Current Obligation: $20,525,317
Subaward Activity
Number of Subawards: 99
Total Subaward Amount: $91,053,035
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-30
Current End Date: 2016-08-03
Potential End Date: 2016-08-03 00:00:00
Last Modified: 2016-06-30
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