DoD's $13.5M FPL Phase 2 Contract Awarded to Kraemer Brothers LLC for Construction
Contract Overview
Contract Amount: $13,587,232 ($13.6M)
Contractor: Kraemer Brothers LLC
Awarding Agency: Department of Defense
Start Date: 2008-11-21
End Date: 2015-01-23
Contract Duration: 2,254 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FPL PHASE 2 CONTRACT
Place of Performance
Location: MADISON, DANE County, WISCONSIN, 53703
Plain-Language Summary
Department of Defense obligated $13.6 million to KRAEMER BROTHERS LLC for work described as: FPL PHASE 2 CONTRACT Key points: 1. The contract value is $13,587,232. 2. Awarded under full and open competition. 3. The contract duration is 2254 days. 4. The contract type is Firm Fixed Price. 5. The awarding agency is the Department of Defense.
Value Assessment
Rating: fair
The contract value of $13.5M for commercial and institutional building construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar DoD construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market-driven pricing and potentially lower costs compared to non-competitive methods.
Public Impact
Construction services for a significant federal project. Potential impact on local employment and businesses in Wisconsin. Ensures infrastructure development for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is lengthy (2254 days).
- No specific small business set-aside mentioned.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can control costs.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector by the DoD is substantial, supporting military infrastructure and operational readiness. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no specific information provided on the participation of small businesses as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms for construction contracts would apply, focusing on quality, schedule, and budget adherence.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lengthy contract duration may increase risk of cost escalation or delays.
- Lack of specific small business participation data.
- Contract value is substantial, requiring diligent oversight.
- Potential for scope creep over the extended performance period.
Tags
commercial-and-institutional-building-co, department-of-defense, wi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.6 million to KRAEMER BROTHERS LLC. FPL PHASE 2 CONTRACT
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 $13.6 million.
What is the period of performance?
Start: 2008-11-21. End: 2015-01-23.
What specific construction project does 'FPL PHASE 2 CONTRACT' refer to, and what is its strategic importance to the Department of the Army?
The specific nature of 'FPL PHASE 2 CONTRACT' is not detailed in the provided data. However, given it's a DoD construction contract, it likely pertains to facility upgrades, new construction, or infrastructure maintenance critical for military operations or support services at a specific installation. Its strategic importance would be tied to enhancing readiness, improving living or working conditions for personnel, or supporting specific mission requirements.
How does the $13.5M contract value compare to industry benchmarks for similar-sized construction projects in Wisconsin?
Without specific details on the project's scope (e.g., square footage, type of facility, complexity), a precise comparison is difficult. However, $13.5 million for a multi-year construction project is a significant investment. Industry benchmarks for commercial and institutional building construction vary greatly by region and project type. A detailed cost analysis would be needed, comparing labor, material, and overhead costs against regional averages for similar federal contracts.
What are the potential risks associated with a 2254-day (over 6 years) construction contract, and what mitigation strategies were likely employed?
Long-duration contracts carry risks such as cost escalation due to inflation, material availability issues, design changes, and contractor performance degradation over time. Mitigation strategies likely included robust contract clauses for price adjustments (if applicable, though this is FFP), clear performance metrics, regular progress reviews, and contingency planning for unforeseen circumstances. The Firm Fixed Price nature aims to cap cost overruns for the government, shifting some risk to the contractor.
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: W912QR08R0092
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 925 PARK AVE, PLAIN, WI, 53577
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,587,232
Exercised Options: $13,587,232
Current Obligation: $13,587,232
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-11-21
Current End Date: 2015-01-23
Potential End Date: 2015-01-23 00:00:00
Last Modified: 2020-10-03
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