DoD Awards $26.4M for Ft. Knox Digital Air/Ground Integration Range Construction

Contract Overview

Contract Amount: $26,442,960 ($26.4M)

Contractor: P & R JV

Awarding Agency: Department of Defense

Start Date: 2019-09-26

End Date: 2023-12-31

Contract Duration: 1,557 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF DIGITAL AIR/ GROUND INTEGRATION RANGE, FT. KNOX, KY.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to P & R JV for work described as: CONSTRUCTION OF DIGITAL AIR/ GROUND INTEGRATION RANGE, FT. KNOX, KY. Key points: 1. Significant investment in military infrastructure for advanced training capabilities. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract type aims to control costs, but duration is long. 4. Construction sector spending benchmark for similar projects needs review.

Value Assessment

Rating: good

The award of $26.4M for construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale institutional building construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically fosters competitive pricing. The use of a definitive contract with two awards suggests a structured procurement process.

Taxpayer Impact: Taxpayer funds are being used for essential military training infrastructure, with competition aiming for cost-effectiveness.

Public Impact

Enhances training capabilities for military personnel. Supports technological advancement in air and ground integration. Potential for job creation in the Kentucky region. Long-term asset for national defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (over 3 years) could lead to cost overruns.
  • Potential for scope creep in complex construction projects.
  • Reliance on a single joint venture for execution.

Positive Signals

  • Full and open competition utilized.
  • Firm fixed price contract type.
  • Investment in critical defense infrastructure.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar military construction projects are generally high due to specialized requirements and security protocols.

Small Business Impact

The data indicates this contract was awarded to P & R JV and does not specify if small businesses were involved as prime contractors or subcontractors. Further investigation is needed to assess small business participation.

Oversight & Accountability

The Department of the Army, under the Department of Defense, managed this procurement. Oversight would typically involve contract management, quality assurance, and financial tracking throughout the project lifecycle.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long contract duration
  • Potential for scope creep
  • Reliance on a specific JV
  • Lack of detailed cost breakdown
  • Unclear small business participation

Tags

commercial-and-institutional-building-co, department-of-defense, ky, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to P & R JV. CONSTRUCTION OF DIGITAL AIR/ GROUND INTEGRATION RANGE, FT. KNOX, KY.

Who is the contractor on this award?

The obligated recipient is P & R JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2019-09-26. End: 2023-12-31.

What is the estimated cost per square foot for this construction project, and how does it compare to industry benchmarks for similar facilities?

The provided data does not include square footage, making a direct cost per square foot calculation impossible. To assess value, this metric would need to be obtained and compared against industry benchmarks for institutional or specialized military construction projects, considering factors like location and specific technological integration requirements.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this digital air/ground integration range?

Key performance indicators would likely focus on the successful completion of construction milestones, adherence to budget and schedule, quality of the finished facility, and its operational readiness for training exercises. Post-construction, effectiveness would be measured by its utility in enhancing pilot and ground crew coordination and tactical scenario training.

Are there any identified risks associated with the long duration of this contract, such as potential material cost escalations or changes in technology requirements?

Yes, a contract duration of over three years presents risks of material cost escalation, especially in fluctuating markets. There's also a risk that technology requirements for a digital integration range could evolve significantly during construction, potentially necessitating costly modifications or rendering parts of the facility obsolete upon completion.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR19R0045

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 342 E DIXIE AVE, ELIZABETHTOWN, KY, 42701

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,442,960

Exercised Options: $26,442,960

Current Obligation: $26,442,960

Actual Outlays: $1,436,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2019-09-26

Current End Date: 2023-12-31

Potential End Date: 2023-12-31 00:00:00

Last Modified: 2025-09-02

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