Department of the Army awards $21.6M construction contract to IKHANA-CHOATE-1 LLC for Joint Armed Services Reserve facility

Contract Overview

Contract Amount: $21,576,896 ($21.6M)

Contractor: Ikhana-Choate-1 LLC

Awarding Agency: Department of Defense

Start Date: 2009-11-01

End Date: 2012-09-11

Contract Duration: 1,045 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOINT ARMED SERVICES RESERVE

Place of Performance

Location: EASTOVER, RICHLAND County, SOUTH CAROLINA, 29044

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to IKHANA-CHOATE-1 LLC for work described as: JOINT ARMED SERVICES RESERVE Key points: 1. Contract value of $21.6M for construction services. 2. Awarded under full and open competition. 3. Firm Fixed Price contract type suggests predictable costs. 4. Contract duration of 1045 days indicates a significant project. 5. The project is located in South Carolina. 6. The contractor, IKHANA-CHOATE-1 LLC, is a key player in this award. 7. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of $21.6 million for a large-scale construction project appears reasonable given the scope. Benchmarking against similar large institutional building projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. With 8 bidders, the competition level was robust, suggesting that the government likely received competitive pricing. This process generally leads to better price discovery and value for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received a fair price for the construction services.

Public Impact

The primary beneficiaries are the military personnel who will utilize the Joint Armed Services Reserve facility. The contract delivers essential construction services for a critical military infrastructure project. The geographic impact is focused on South Carolina, where the facility will be located. The project will likely create or sustain jobs in the construction sector within the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Ensuring compliance with all building codes and environmental regulations.
Managing the complexity of a large-scale construction project.

Positive Signals

Award to a single contractor for a significant project provides clear accountability.
Firm Fixed Price contract limits cost escalation risks.
Robust competition suggests a well-defined requirement and market interest.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of Defense is a major client for construction services, with substantial annual spending on infrastructure projects. This award represents a typical investment in military readiness and facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the contract was not set aside for small businesses and the contractor is not explicitly identified as a small business. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided information. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military Construction
Defense Infrastructure Projects
Federal Building Construction
General Services Administration (GSA) Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays impacting facility operational readiness.
Ensuring contractor compliance with all federal regulations and building codes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to IKHANA-CHOATE-1 LLC. JOINT ARMED SERVICES RESERVE

Who is the contractor on this award?

The obligated recipient is IKHANA-CHOATE-1 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 $21.6 million.

What is the period of performance?

Start: 2009-11-01. End: 2012-09-11.

What is the track record of IKHANA-CHOATE-1 LLC with federal contracts, particularly in construction?

A comprehensive review of IKHANA-CHOATE-1 LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the types and values of previous contracts awarded. Without specific data on their past performance, it is difficult to definitively assess their reliability and capability for this project. However, being awarded a contract of this magnitude by the Department of the Army suggests a level of established capability and a positive past performance record, at least to the satisfaction of the contracting officials.

How does the $21.6 million contract value compare to similar construction projects for military reserve facilities?

Benchmarking the $21.6 million contract value against similar projects requires access to a database of comparable federal construction contracts. Factors such as facility size, complexity, location, and specific requirements (e.g., specialized equipment installation, security features) significantly influence cost. Generally, large-scale institutional or military facility construction projects can range from tens to hundreds of millions of dollars. The value of this contract appears to be within a reasonable range for a substantial reserve facility, but a precise comparison would necessitate detailed analysis of project scope and market conditions for similar endeavors.

What are the primary risks associated with this firm fixed-price construction contract?

While a Firm Fixed Price (FFP) contract is designed to mitigate cost overrun risks for the government, potential risks remain. For the contractor, underestimating costs or facing unforeseen site conditions (e.g., environmental hazards, unexpected soil issues) could lead to financial losses if not adequately accounted for in their bid. For the government, the primary risk shifts from cost to schedule and performance. If the contractor struggles financially or operationally, project delays or quality issues could arise, impacting the facility's readiness. Robust oversight and clear performance metrics are crucial to manage these risks.

What is the expected effectiveness of the completed Joint Armed Services Reserve facility?

The effectiveness of the completed facility is directly tied to its ability to support the training, readiness, and operational needs of the Joint Armed Services Reserve components in South Carolina. A well-constructed and adequately equipped facility should enhance training capabilities, improve personnel morale, and provide a secure and functional base of operations. Its effectiveness will be measured by its timely completion, adherence to specifications, and its long-term utility in supporting reserve component missions, contributing to overall military readiness.

How has federal spending on similar construction projects evolved over the past five years?

Analyzing federal spending trends on similar construction projects requires access to historical contract data. Generally, spending on military construction and infrastructure has remained a significant priority for the Department of Defense, often fluctuating based on geopolitical needs, modernization efforts, and budget allocations. Factors like inflation, material costs, and labor availability also influence spending patterns. A detailed analysis would involve tracking the number and value of construction contracts awarded by the DoD and other agencies for similar types of facilities over the specified period to identify any upward or downward trends.

What are the implications of awarding this contract under 'full and open competition after exclusion of sources'?

The designation 'full and open competition after exclusion of sources' indicates that the solicitation was broadly advertised, but certain sources were initially excluded based on specific criteria (e.g., pre-qualification, specific capabilities). However, the subsequent 'full and open' aspect implies that all responsible sources were permitted to submit offers. This approach aims to balance the benefits of broad competition with the need for specialized capabilities or to streamline the bidding process. It suggests that while there might have been initial considerations for specific types of contractors, the final award was made after a thorough evaluation of all eligible proposals, likely resulting in the best value for the government.

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: W912QG09R0001

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1671 BELLE ISLE AVE STE 100A, MOUNT PLEASANT, SC, 29464

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,379,553

Exercised Options: $27,379,553

Current Obligation: $21,576,896

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline