Army awards $23.8M construction contract for Battalion Headquarters at Fort Knox, KY
Contract Overview
Contract Amount: $23,838,273 ($23.8M)
Contractor: Orocon - Carothers JV1
Awarding Agency: Department of Defense
Start Date: 2013-05-29
End Date: 2015-02-02
Contract Duration: 614 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF OTHER - BATTALION HEADQUARTERS AT FTC, KY
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223, UNITED STATES OF AMERICA
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to OROCON - CAROTHERS JV1 for work described as: IGF::OT::IGF OTHER - BATTALION HEADQUARTERS AT FTC, KY Key points: 1. Contract awarded to OROCON - CAROTHERS JV1 for $23.8M. 2. Construction sector spending benchmark for similar projects is approximately $38.8M. 3. Full and open competition after exclusion of sources was used. 4. Project duration was 614 days.
Value Assessment
Rating: fair
The contract value of $23.8M is significantly below the benchmark of $38.8M for similar construction projects, suggesting potentially favorable pricing. However, the specific scope and complexity of this project compared to the benchmark are not detailed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value.
Taxpayer Impact: The contract's value being below the benchmark is positive for taxpayers, but the limited competition raises questions about whether the best possible price was achieved.
Public Impact
Military infrastructure development supports operational readiness. Construction projects create jobs and stimulate local economies. Federal spending on facilities impacts long-term asset management and maintenance costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have reduced price competitiveness.
- Contract duration of 614 days is substantial.
Positive Signals
- Award value is significantly below the construction benchmark.
- Project supports critical military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, supporting infrastructure across various government agencies. Benchmarks for similar projects are crucial for assessing value.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management and performance monitoring by the agency to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition method.
- Significant contract duration.
- Potential for unassessed long-term maintenance costs.
- Lack of small business participation data.
Tags
commercial-and-institutional-building-co, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.8 million to OROCON - CAROTHERS JV1. IGF::OT::IGF OTHER - BATTALION HEADQUARTERS AT FTC, KY
Who is the contractor on this award?
The obligated recipient is OROCON - CAROTHERS JV1.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2013-05-29. End: 2015-02-02.
What specific factors contributed to the award value being significantly lower than the benchmark for similar construction projects?
The lower award value could be attributed to several factors, including a highly competitive bidding process despite the limited source exclusion, favorable market conditions for construction materials and labor at the time of bidding, or a potentially narrower scope of work than implied by the benchmark. The specific details of the project's requirements and the bidders' cost proposals would be necessary for a definitive assessment.
How did the 'Full and Open Competition After Exclusion of Sources' method impact the final price and overall value for taxpayers?
This procurement method, while allowing for open competition among a pre-selected group of sources, inherently limits the number of potential bidders compared to unrestricted full and open competition. This limitation could potentially reduce competitive pressure, leading to higher prices than might otherwise be achieved. However, if the excluded sources were not capable or suitable, this method might still yield good value.
What is the long-term operational and maintenance cost implication of this new Battalion Headquarters facility?
The construction of a new facility implies ongoing costs for operation and maintenance over its lifespan. These costs include utilities, routine repairs, periodic renovations, and potential upgrades. The design and materials chosen for this headquarters will influence the efficiency and cost-effectiveness of its long-term upkeep, impacting the total cost of ownership for the Department of the Army.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912QR13R0007
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 31 HWY 328, OXFORD, MS, 38655
Business Categories: Category Business, Emerging Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,838,273
Exercised Options: $23,838,273
Current Obligation: $23,838,273
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $16,258,003
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-29
Current End Date: 2015-02-02
Potential End Date: 2015-02-02 00:00:00
Last Modified: 2015-01-22
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