Forestry Lab Modernization Contract Awarded for $19.7M to Kraemer Brothers LLC

Contract Overview

Contract Amount: $19,674,438 ($19.7M)

Contractor: Kraemer Brothers LLC

Awarding Agency: Department of Defense

Start Date: 2007-08-01

End Date: 2009-10-15

Contract Duration: 806 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: U. S. FORESTRY SERVICE FOREST PRODUCTS LABORATORY MODERNIZATION, MADISON, WI

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53726

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to KRAEMER BROTHERS LLC for work described as: U. S. FORESTRY SERVICE FOREST PRODUCTS LABORATORY MODERNIZATION, MADISON, WI Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract was a firm-fixed-price type, which typically transfers risk to the contractor. 3. The duration of the contract was approximately 806 days. 4. The project involved industrial building construction. 5. The award was made by the Department of the Army. 6. The contract value represents a significant investment in federal laboratory infrastructure.

Value Assessment

Rating: fair

The contract value of $19.7 million for industrial building construction is difficult to benchmark without specific details on the scope of work and the facility's size and complexity. However, the firm-fixed-price nature of the contract suggests that the price was determined upfront, which can be advantageous if the contractor accurately estimated costs. Comparing this to similar federal building construction projects would require detailed cost breakdowns and project specifications. The absence of readily available per-unit cost data makes a precise value-for-money assessment challenging.

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 bids suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria are not provided, which limits a deeper analysis of the competitive dynamics.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiary is the U.S. Forestry Service, which will gain modernized facilities at the Forest Products Laboratory. The project delivers improved infrastructure for research and development in forest products. The geographic impact is concentrated in Madison, Wisconsin, where the laboratory is located. The construction work likely involved a local or regional workforce, contributing to economic activity in the area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it hard to assess if the price was truly competitive.
Limited number of bidders (2) may indicate potential for higher costs than a more competitive scenario.
Firm-fixed-price contracts can sometimes lead to change orders if the scope is not perfectly defined upfront.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Contract awarded to a specific entity (Kraemer Brothers LLC) implies they met technical and financial requirements.

Sector Analysis

This contract falls within the construction sector, specifically industrial building construction, for a federal research facility. The market for federal construction projects is substantial, with agencies like the Department of Defense and others frequently awarding contracts for infrastructure upgrades and new builds. Benchmarking this specific project's value is challenging without detailed project scope, but it represents a significant investment in specialized government facilities. The Forest Products Laboratory's modernization is crucial for advancing research in sustainable forestry and wood utilization.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature and value of industrial building construction, it is possible that larger firms like Kraemer Brothers LLC would be the primary awardees. Further investigation into subcontracting opportunities would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant agency within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon budget. Transparency regarding the contract's performance and any potential issues would depend on the agency's reporting practices and the availability of contract data.

Related Government Programs

Federal Laboratory Construction Projects
Department of Agriculture Research Facilities
Industrial Building Modernization Contracts
Forestry Research and Development Programs

Risk Flags

Potential for cost overruns if scope was not fully defined.
Limited competition may have resulted in a higher price than optimal.
Contract performance data not readily available to assess quality and timeliness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to KRAEMER BROTHERS LLC. U. S. FORESTRY SERVICE FOREST PRODUCTS LABORATORY MODERNIZATION, MADISON, WI

Who is the contractor on this award?

The obligated recipient is KRAEMER BROTHERS 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 $19.7 million.

What is the period of performance?

Start: 2007-08-01. End: 2009-10-15.

What was the specific scope of work for the Forest Products Laboratory modernization?

The provided data indicates the contract was for 'Industrial Building Construction' related to the 'U. S. FORESTRY SERVICE FOREST PRODUCTS LABORATORY MODERNIZATION, MADISON, WI'. However, the precise scope of work, such as the extent of renovation, new construction, specific systems to be upgraded (e.g., HVAC, electrical, laboratory equipment installation), and square footage involved, is not detailed in the summary data. This level of detail is crucial for understanding the complexity and value of the $19.7 million award. Without this, it's difficult to assess if the cost is commensurate with the work performed.

How did Kraemer Brothers LLC's bid compare to the government's cost estimate?

The provided data does not include information on the government's cost estimate or the specific bid amounts of the two competing contractors. Knowing how Kraemer Brothers LLC's winning bid of $19,674,438 compared to the estimate and the other bid is essential for evaluating the competitiveness of the procurement. If the winning bid was significantly below the estimate, it might suggest aggressive pricing or potential risks. Conversely, if it was close to or exceeded the estimate, it could indicate a less competitive market or a thorough understanding of project costs by the bidders.

What are the key performance indicators (KPIs) for this construction contract?

Specific Key Performance Indicators (KPIs) for this industrial building construction contract are not detailed in the provided summary. Typically, for construction projects, KPIs would include adherence to schedule (on-time completion), quality of workmanship (meeting building codes and specifications), safety performance (incident rates), and budget management (staying within the firm-fixed-price). The contract duration of 806 days suggests a multi-year project, making schedule adherence a critical KPI. The firm-fixed-price nature implies that cost control is primarily the contractor's responsibility, but the government would still monitor progress and quality.

What is the historical spending trend for the Forest Products Laboratory modernization?

The provided data pertains to a single contract award of $19,674,438 for the modernization of the Forest Products Laboratory, with a start date of August 1, 2007, and an end date of October 15, 2009. This data point does not provide a historical spending trend. To establish a trend, one would need to examine spending on this specific modernization effort over time, including any prior planning, design, or related contracts, as well as any subsequent phases or related investments. Without additional contract data or budget information, a historical spending analysis is not possible.

What is the track record of Kraemer Brothers LLC with federal contracts, particularly in construction?

The provided data identifies Kraemer Brothers LLC as the contractor for this $19.7 million industrial building construction project for the Forest Products Laboratory. However, it does not offer details on their broader track record with federal contracts. To assess their performance history, one would need to review their past federal contract awards, including contract values, types, agencies involved, and performance ratings (if available through systems like the Contractor Performance Assessment Reporting System - CPARS). A review of their history would help determine their experience with similar projects, their reliability, and their capacity to handle large-scale federal construction.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W912QR07R0043

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 925 PARK AVENUE, PLAIN, WI, 53577

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,674,438

Exercised Options: $19,674,438

Current Obligation: $19,674,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline