Army Awards $24.1M Design-Build Contract for AFRC in Round Rock, TX to Korte Construction
Contract Overview
Contract Amount: $24,117,801 ($24.1M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2009-07-13
End Date: 2011-10-16
Contract Duration: 825 days
Daily Burn Rate: $29.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BUILD ROUND ROCK AFRC, TX
Place of Performance
Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78664
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN BUILD ROUND ROCK AFRC, TX Key points: 1. Contract awarded to Korte Construction Company for $24.1 million. 2. Full and open competition was utilized for this procurement. 3. The project involves design and construction of an AFRC facility. 4. The contract duration was 825 days.
Value Assessment
Rating: good
The contract value of $24.1 million appears reasonable for a design-build project of this nature, considering the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust process for price discovery and selection of the most advantageous offer. This method typically leads to competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value and competitive pricing.
Public Impact
Supports military readiness and personnel welfare through facility construction. Provides economic stimulus through construction jobs and material procurement in Texas. Enhances community infrastructure with a new facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in design-build projects if not managed tightly.
- Schedule delays can impact facility readiness and increase costs.
Positive Signals
- Full and open competition likely ensured competitive pricing.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on government needs and economic conditions. Benchmarks for similar projects are essential for detailed analysis.
Small Business Impact
The data indicates the prime contractor is Korte Construction Company. There is no specific information provided regarding subcontracting to small businesses on this particular award.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction contracts would apply.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep in design-build projects.
- Dependency on contractor's financial stability and performance.
- Unforeseen site conditions could impact cost and schedule.
- Changes in military requirements could necessitate contract modifications.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to KORTE CONSTRUCTION COMPANY. DESIGN BUILD ROUND ROCK AFRC, TX
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 $24.1 million.
What is the period of performance?
Start: 2009-07-13. End: 2011-10-16.
What was the specific scope of work for the AFRC facility, and how does the $24.1 million price align with industry standards for similar facilities?
The provided data specifies a 'DESIGN BUILD ROUND ROCK AFRC, TX' contract. The scope likely includes architectural design and construction of an Armed Forces Reserve Center. While $24.1 million is the awarded value, a precise alignment with industry standards requires detailed project specifications, square footage, and regional cost indices. Without these, it's difficult to definitively assess value beyond the competitive award process.
What were the key performance indicators and risk mitigation strategies employed during the execution of this contract to ensure timely completion and quality?
The contract was Firm Fixed Price, which inherently shifts some cost risk to the contractor. The 825-day duration suggests a significant project. Key performance indicators would likely include adherence to design specifications, construction quality standards, and schedule milestones. Risk mitigation would involve proactive project management, regular site inspections, and clear communication channels between the Army and Korte Construction.
How effectively did the full and open competition process identify and select the most capable contractor at a competitive price for this construction project?
The utilization of full and open competition is a strong indicator of an effective process aimed at maximizing competition and achieving best value. This method allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and encourages contractors to demonstrate their capabilities. The award to Korte Construction suggests they presented the most advantageous offer based on price and technical merit.
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: W912QR09R0014
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE SUITE 200, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,117,801
Exercised Options: $24,117,801
Current Obligation: $24,117,801
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-07-13
Current End Date: 2011-10-16
Potential End Date: 2011-10-16 00:00:00
Last Modified: 2011-05-05
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