Korte Construction Company awarded $14.86M for Fort Allen facility construction in Puerto Rico

Contract Overview

Contract Amount: $14,862,393 ($14.9M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2009-06-05

End Date: 2012-10-31

Contract Duration: 1,244 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DB AFRC FT ALLEN PUERTO RICO

Place of Performance

Location: JUANA DIAZ, JUANA DÍAZ County, PUERTO RICO, 00795

Plain-Language Summary

Department of Defense obligated $14.9 million to KORTE CONSTRUCTION COMPANY for work described as: DB AFRC FT ALLEN PUERTO RICO Key points: 1. Contract value represents a significant investment in regional infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type generally offers cost certainty. 4. Project duration of over three years indicates a substantial undertaking. 5. Geographic focus on Puerto Rico highlights specific regional needs. 6. Contract awarded by the Department of the Army points to defense-related infrastructure.

Value Assessment

Rating: fair

The contract value of $14.86 million for commercial and institutional building construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar Department of Defense construction projects in similar geographic regions would provide a more precise assessment of value for money. The firm fixed-price nature of the contract suggests that the contractor assumed the primary risk for cost overruns, which can be a positive indicator of value if the final price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 17 bids received, the competition level was substantial, suggesting a healthy market response. This level of competition is generally expected to drive prices down and encourage efficiency from the bidders, leading to a more favorable outcome for the government.

Taxpayer Impact: A high number of bidders in a full and open competition typically translates to better pricing for taxpayers, as contractors compete to win the award.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Allen, Puerto Rico, who will gain improved facilities. The contract delivers construction services for commercial and institutional buildings. The geographic impact is concentrated in Puerto Rico, specifically at Fort Allen. The project likely created temporary construction jobs in the region, supporting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Delays in construction could impact operational readiness at Fort Allen.
Quality control during construction is crucial to ensure long-term durability.

Positive Signals

Firm fixed-price contract provides cost predictability.
Extensive competition suggests a competitive bid and potentially good value.
Award to an established construction company with experience in government contracts.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The Department of Defense is a significant client in this sector, frequently awarding contracts for military base infrastructure, housing, and support facilities. The market for such construction is competitive, with numerous firms capable of undertaking large-scale projects. Spending benchmarks for similar military construction projects can vary widely based on location, complexity, and specific requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and scope, it is unlikely that significant subcontracting opportunities for small businesses were mandated, though the prime contractor may have utilized them. The lack of a small business set-aside means the primary competition was likely among larger, established construction firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting office and potentially the Army Corps of Engineers. Accountability measures would include adherence to the contract's terms, specifications, and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Construction
Fortifications and Defense Infrastructure
Government Building Projects
Puerto Rico Infrastructure Development

Risk Flags

Potential for schedule delays due to weather or logistical issues.
Risk of unforeseen site conditions impacting cost and timeline.
Ensuring quality of construction for long-term durability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to KORTE CONSTRUCTION COMPANY. DB AFRC FT ALLEN PUERTO RICO

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 $14.9 million.

What is the period of performance?

Start: 2009-06-05. End: 2012-10-31.

What is the track record of Korte Construction Company with the Department of Defense?

Korte Construction Company has a history of working with the Department of Defense and other federal agencies. Reviewing their past performance on similar projects, particularly those involving military construction or facilities in challenging environments, would provide insight into their capabilities and reliability. Data on past performance, including any awards, penalties, or disputes, is crucial for assessing their suitability for this contract. Their experience with firm fixed-price contracts and managing large-scale construction projects is also a key factor in evaluating their track record.

How does the awarded amount compare to similar construction projects at military bases in Puerto Rico?

Comparing the $14.86 million award to similar construction projects at military bases in Puerto Rico requires access to a database of comparable contracts. Factors such as the type of facility (e.g., barracks, administrative buildings, training facilities), square footage, specific site conditions, and the year of award are critical for a meaningful comparison. Without specific benchmark data for similar projects in Puerto Rico, it is difficult to definitively state whether this award represents excellent, good, or fair value. However, the presence of 17 bids suggests a competitive market that likely resulted in a reasonable price.

What are the primary risks associated with a large construction project like this in Puerto Rico?

Key risks for a large construction project in Puerto Rico include potential exposure to hurricanes and tropical storms, which could cause delays and damage. Seismic activity is also a consideration in the region. Logistical challenges related to material procurement and transportation on an island can increase costs and timelines. Furthermore, labor availability and local regulations can pose risks. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, but delays due to unforeseen environmental or logistical issues could still impact the project's overall success and the government's operational needs.

What is the historical spending pattern for Fort Allen facility maintenance and construction?

Analyzing historical spending patterns for Fort Allen facility maintenance and construction would require accessing historical contract databases. This would involve looking at previous awards for construction, renovation, and major repairs at the installation over several years. Understanding the frequency and value of past contracts can reveal trends in infrastructure investment, identify recurring needs, and provide context for the current $14.86 million award. It could also highlight any significant shifts in spending or major capital improvement initiatives.

How does the duration of this contract (1244 days) compare to typical construction timelines for similar military facilities?

A contract duration of 1244 days, approximately 3.4 years, is substantial for a construction project. The typical timeline for similar military facilities can vary significantly based on the project's complexity, size, and specific requirements. For instance, constructing new barracks or administrative buildings might take 1-2 years, while larger, more complex infrastructure projects or those involving extensive site preparation could extend beyond three years. The duration here suggests a significant undertaking, possibly involving multiple phases or complex construction elements.

What are the implications of the contract being awarded by the Department of the Army versus another branch?

The fact that this contract was awarded by the Department of the Army indicates it is likely related to Army operations, training, or personnel support at Fort Allen. While other branches (e.g., Navy, Air Force) also undertake construction projects, the Army often manages extensive land-based installations and infrastructure. This award suggests the facility or its purpose is primarily aligned with Army requirements. The contracting procedures and oversight might be specific to Army regulations and standards, though overall federal procurement laws apply universally.

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: TWO STEP

Solicitation ID: W912QR09R0013

Offers Received: 17

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: $14,862,393

Exercised Options: $14,862,393

Current Obligation: $14,862,393

Contract Characteristics

Cost or Pricing Data: NO

Timeline