DoD's $151M Granite City MCAR contract awarded to K & S Associates, LLC for construction services

Contract Overview

Contract Amount: $15,134,532 ($15.1M)

Contractor: K & S Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2007-06-29

End Date: 2009-09-30

Contract Duration: 824 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C0120 GRANITE CITY MCAR CONTRACT PN

Place of Performance

Location: GRANITE CITY, MADISON County, ILLINOIS, 62040

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to K & S ASSOCIATES, LLC for work described as: C0120 GRANITE CITY MCAR CONTRACT PN Key points: 1. The contract value of $151.3 million represents a significant investment in infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. The duration of 824 days indicates a substantial construction project. 5. The contract was awarded by the Department of the Army, a major DoD component. 6. The project is located in Illinois, impacting the regional construction market.

Value Assessment

Rating: fair

Benchmarking the value of this $151.3 million contract is challenging without specific project scope details. However, for a large-scale construction project of this magnitude, the price appears within a typical range for significant infrastructure development. The firm fixed-price structure suggests an attempt to lock in costs, but the ultimate value-for-money depends on the quality of execution and adherence to the original scope. Without comparable project data or detailed cost breakdowns, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant construction project. While two bidders are better than one, a higher number of bids could potentially lead to more aggressive pricing and a wider range of innovative solutions. The competition level here likely provided a reasonable basis for price discovery.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, receiving upgraded or new facilities. The contract delivers essential construction and maintenance services for military infrastructure. The geographic impact is concentrated in Granite City, Illinois, potentially boosting the local economy. The project likely created numerous jobs in the construction sector, benefiting skilled trades and laborers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Risk of delays impacting military readiness if the project timeline is not met.
Quality control concerns inherent in large-scale construction projects.
Dependence on a single contractor (K & S Associates, LLC) for project completion.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, K & S Associates, LLC, has experience in commercial and institutional building construction.
The project is located in Illinois, potentially leveraging local construction expertise and resources.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, factories, and government facilities. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in infrastructure. This specific contract represents a significant portion of spending within its sub-sector, contributing to the overall economic activity and employment within the construction industry.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). As a large-value contract awarded under full and open competition, it is unlikely that significant subcontracting opportunities for small businesses were mandated. The primary focus would have been on the prime contractor's ability to execute the project. While K & S Associates, LLC may engage small businesses as subcontractors, there's no explicit indication of a small business set-aside strategy influencing the award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, responsible for monitoring performance, quality, and compliance. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms and Inspector General jurisdiction would depend on the specific terms and conditions outlined in the contract documents.

Related Government Programs

Department of Defense Military Construction
General Services Administration (GSA) Public Buildings Service
Army Corps of Engineers Construction Contracts
Federal Buildings Fund Projects

Risk Flags

Long project duration increases risk of cost escalation and unforeseen issues.
Firm Fixed Price contract places cost risk primarily on the contractor.
Limited competition (2 bidders) may have reduced potential for optimal pricing.
Contract awarded prior to 2010; current market conditions and pricing may differ significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to K & S ASSOCIATES, LLC. C0120 GRANITE CITY MCAR CONTRACT PN

Who is the contractor on this award?

The obligated recipient is K & S ASSOCIATES, 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 $15.1 million.

What is the period of performance?

Start: 2007-06-29. End: 2009-09-30.

What is the track record of K & S Associates, LLC with federal contracts, particularly within the Department of Defense?

Information on K & S Associates, LLC's specific track record with federal contracts, especially within the Department of Defense, would require a detailed search of federal procurement databases like SAM.gov or FPDS. Generally, for a contract of this magnitude ($151.3 million), the award suggests the contractor possesses the necessary experience, financial capacity, and past performance to undertake such a project. However, without access to specific past performance reviews or a history of their awards and performance ratings, it's difficult to provide a definitive assessment. Federal agencies typically evaluate past performance as a key factor in source selection, so the award itself implies a satisfactory or better rating for relevant prior work.

How does the awarded amount of $151.3 million compare to similar construction contracts for military facilities?

Comparing the $151.3 million award requires context regarding the scope, complexity, and location of the project. Large-scale military construction projects, such as barracks, training facilities, or infrastructure upgrades, can easily reach or exceed this figure. For instance, major barracks renovations or new construction projects at large bases often run into the tens or hundreds of millions of dollars. The 'MCAR' designation might refer to a specific type of facility or renovation, which could have its own cost benchmarks. Without knowing the exact nature of the 'Granite City MCAR Contract,' a precise comparison is difficult, but the amount is substantial and consistent with significant infrastructure investments within the Department of Defense.

What are the primary risks associated with a firm fixed-price contract for a project of this duration (824 days)?

The primary risk for the contractor in a firm fixed-price (FFP) contract is the potential for cost overruns if actual expenses exceed the agreed-upon price. For a long-duration project like this (824 days), risks are amplified due to the increased likelihood of unforeseen issues, material price fluctuations, labor cost changes, and scope creep. The contractor bears the burden of managing these risks to maintain profitability. For the government, the primary risk is that the contractor might cut corners on quality or scope to control costs, potentially leading to a less durable or functional facility. However, FFP contracts are generally favored by the government for their cost predictability.

What does the 'Commercial and Institutional Building Construction' NAICS code (236220) imply about the nature of this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' indicates that the contract involves the construction of buildings that are not primarily residential. This includes a wide range of structures such as office buildings, retail stores, warehouses, educational facilities, hospitals, government buildings, and other public or private institutions. For this Department of Defense contract, it suggests the project likely involves the construction or major renovation of facilities like administrative buildings, barracks, training centers, maintenance facilities, or other non-housing structures essential for military operations and support.

Given the contract was awarded in 2007 and ended in 2009, what historical spending patterns does this represent for the Department of the Army?

This contract, awarded in 2007 and completed in 2009, falls within a period of significant military activity and infrastructure investment, particularly related to ongoing operations and base modernization. The Department of the Army consistently allocates substantial funds to construction and facilities maintenance to support its global mission. Contracts like this reflect the ongoing need to build, upgrade, and maintain the physical infrastructure required for training, housing, and operational readiness. Spending patterns during this era were often influenced by wartime needs and efforts to improve facilities at domestic and overseas bases. This specific award highlights the Army's commitment to infrastructure development within the continental United States.

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: W912QR07R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 516 HANLEY INDUSTRIAL CT, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,134,532

Exercised Options: $15,134,532

Current Obligation: $15,134,532

Contract Characteristics

Cost or Pricing Data: NO

Timeline