Army Reserve Center Construction at JBLM Awarded for $28M Under Full and Open Competition
Contract Overview
Contract Amount: $28,027,261 ($28.0M)
Contractor: Sheffield Korte Team LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-29
End Date: 2021-01-14
Contract Duration: 838 days
Daily Burn Rate: $33.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF AN ARMY RESERVE CENTER AT JOINT BASE LEWIS-MCCHORD, WASHINGTON
Place of Performance
Location: LAKEWOOD, PIERCE County, WASHINGTON, 98499
Plain-Language Summary
Department of Defense obligated $28.0 million to SHEFFIELD KORTE TEAM LLC for work described as: DESIGN AND CONSTRUCTION OF AN ARMY RESERVE CENTER AT JOINT BASE LEWIS-MCCHORD, WASHINGTON Key points: 1. The contract for the design and construction of an Army Reserve Center at Joint Base Lewis-McChord was awarded to Sheffield Korte Team LLC. 2. The project falls under the Commercial and Institutional Building Construction sector, a competitive area with established benchmarks. 3. The use of a Firm Fixed Price contract aims to control costs, but potential risks include scope creep and unforeseen construction challenges. 4. While the contract was awarded under full and open competition, the exclusion of sources clause warrants further review for its impact on price discovery.
Value Assessment
Rating: good
The contract value of $28.03 million for a 334,450 sq ft facility appears reasonable when benchmarked against similar government construction projects. The firm fixed price structure provides cost certainty.
Cost Per Unit: $82.00
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources. This method aims for broad market participation, but the exclusion clause suggests specific criteria were applied, potentially limiting the initial pool of bidders and impacting price discovery.
Taxpayer Impact: The competitive bidding process is intended to secure a fair price for taxpayers, with the firm fixed price contract further safeguarding against cost overruns.
Public Impact
Provides essential infrastructure for Army Reserve operations and training at Joint Base Lewis-McChord. Supports local economic activity through construction jobs and material procurement in Washington state. Enhances military readiness by offering a modern facility for personnel and equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of cost overruns if unforeseen site conditions arise.
- Effectiveness of the 'exclusion of sources' clause in ensuring optimal pricing.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under full and open competition, suggesting market responsiveness.
- Project addresses a clear military infrastructure need.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector is substantial and driven by infrastructure needs across government agencies. Benchmarks for similar projects vary based on size, complexity, and location.
Small Business Impact
The contract was awarded to Sheffield Korte Team LLC, which is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine the extent of small business participation as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction projects would apply, including contract administration and quality assurance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays impacting operational readiness.
- Effectiveness of the 'exclusion of sources' clause in ensuring optimal pricing.
- Limited visibility into small business subcontracting participation.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to SHEFFIELD KORTE TEAM LLC. DESIGN AND CONSTRUCTION OF AN ARMY RESERVE CENTER AT JOINT BASE LEWIS-MCCHORD, WASHINGTON
Who is the contractor on this award?
The obligated recipient is SHEFFIELD KORTE TEAM 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 $28.0 million.
What is the period of performance?
Start: 2018-09-29. End: 2021-01-14.
What specific criteria led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?
The exclusion of sources clause typically indicates that while the competition was broadly advertised, only bidders meeting specific pre-qualification criteria were eligible. These criteria might relate to past performance, technical capabilities, or specific security clearances. The impact on price is complex; it could lead to a higher price if it significantly reduced the number of qualified bidders, or a more efficient price if it ensured only highly capable firms competed, reducing risks and potential rework.
What are the primary risks associated with the firm fixed price contract for this construction project, and what mitigation strategies are in place?
The primary risk with a firm fixed price contract is that the contractor bears the burden of cost overruns. This can incentivize the contractor to cut corners on quality or safety if not properly monitored. Mitigation strategies include robust government oversight, detailed contract specifications, regular progress inspections, and a strong quality assurance program to ensure adherence to standards and specifications throughout the construction process.
How does the duration of the contract (838 days) compare to industry standards for similar-sized Army Reserve Center construction projects, and what factors might explain any discrepancies?
An 838-day duration (approximately 2.3 years) for a project of this scope is generally within the expected range for complex government construction. Factors influencing duration include the complexity of design, site preparation requirements, environmental reviews, weather conditions in Washington, and the specific needs for specialized military facilities. Any significant deviation from this norm would warrant investigation into potential delays or efficiencies.
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: TWO STEP
Solicitation ID: W912QR18R0016
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 90 NE 20TH ST, LAWTON, OK, 73507
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $33,116,761
Exercised Options: $28,027,261
Current Obligation: $28,027,261
Actual Outlays: $4,393,940
Subaward Activity
Number of Subawards: 107
Total Subaward Amount: $85,963,900
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-29
Current End Date: 2021-01-14
Potential End Date: 2021-01-14 00:00:00
Last Modified: 2021-01-27
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