Dorm Construction at Scott AFB Awarded for $18.4M Under Full and Open Competition

Contract Overview

Contract Amount: $18,377,947 ($18.4M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-03-29

End Date: 2008-11-26

Contract Duration: 608 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION AN UNACCOMPANIED ENLISTED DORM AT SCOTT AIR FORCE BASE, IL

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN AND CONSTRUCTION AN UNACCOMPANIED ENLISTED DORM AT SCOTT AIR FORCE BASE, IL Key points: 1. The $18.4 million contract for dorm construction at Scott AFB was awarded to Korte Construction Company. 2. The project falls under the Commercial and Institutional Building Construction sector. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Fixed Price, which shifts cost risk to the contractor. 5. The duration of the contract was 608 days.

Value Assessment

Rating: fair

The contract value of $18.4 million for a dorm at Scott AFB appears within a reasonable range for such construction projects. Benchmarking against similar military construction projects would provide a more precise assessment.

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. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages multiple bids and potentially drives down costs.

Public Impact

Provides housing for unaccompanied enlisted personnel at Scott Air Force Base. Supports military readiness by ensuring adequate living conditions for service members. Contributes to the local economy through construction activities and employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for benchmarking.
No clear indication of small business participation.
Fixed Price contract may not fully account for unforeseen construction complexities.

Positive Signals

Awarded under full and open competition.
Fixed Price contract shifts cost risk to the contractor.
Project addresses a clear military housing need.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, including military base development. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). Further investigation would be needed to determine if any subcontracting opportunities were utilized by the prime contractor.

Oversight & Accountability

The award was made by the Department of the Army, a component of the Department of Defense, suggesting established oversight mechanisms. The fixed-price nature of the contract implies a focus on adherence to the agreed-upon scope and budget.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed cost breakdown for analysis.
No explicit mention of small business subcontracting goals.
Potential for cost overruns if unforeseen issues arise not covered by contract clauses.
Limited transparency on the specific evaluation criteria used in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to KORTE CONSTRUCTION COMPANY. DESIGN AND CONSTRUCTION AN UNACCOMPANIED ENLISTED DORM AT SCOTT AIR FORCE BASE, IL

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 $18.4 million.

What is the period of performance?

Start: 2007-03-29. End: 2008-11-26.

What was the average cost per square foot for this dorm construction, and how does it compare to similar projects in the region?

Without specific square footage data for the dorm, calculating a precise cost per square foot is not possible. However, the total award of $18.4 million for a significant construction project suggests a substantial investment. A comparison would require detailed project specifications and regional construction cost indices for institutional buildings.

What were the primary risks identified during the bidding process, and how did the fixed-price contract mitigate them?

Potential risks in construction include unforeseen site conditions, material cost fluctuations, and labor availability. A fixed-price contract shifts the financial risk of these issues to Korte Construction Company, incentivizing them to manage these factors effectively to maintain profitability. The government's risk is primarily limited to ensuring the contractor meets quality and schedule requirements.

How effectively did the full and open competition process ensure the best value for taxpayer dollars in this instance?

Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices. While the $18.4 million award itself doesn't inherently indicate 'best value' without further analysis, the process itself is a strong indicator that competitive pressures were applied, likely resulting in a more favorable outcome than a sole-source or limited competition 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR07R0026

Offers Received: 5

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 ST. LOUIS UNION STATION, SAINT LOUIS, MO, 63103

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,377,947

Exercised Options: $18,377,947

Current Obligation: $18,377,947

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline