DoD Awards $198.7M Contract for USFK Operations Center and Facility Construction
Contract Overview
Contract Amount: $198,747,168 ($198.7M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2017-03-18
End Date: 2025-12-31
Contract Duration: 3,210 days
Daily Burn Rate: $61.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF "SOFA" TO CONSTRUCT USFK OPS CTR&PHASE III FACILITY, USAG-HUMPHREY, SCIF PORTION
Plain-Language Summary
Department of Defense obligated $198.7 million to GILBANE FEDERAL for work described as: IGF::OT::IGF "SOFA" TO CONSTRUCT USFK OPS CTR&PHASE III FACILITY, USAG-HUMPHREY, SCIF PORTION Key points: 1. Significant investment in critical infrastructure for US Forces Korea. 2. Gilbane Federal, a large contractor, secured the award. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector spending is substantial, requiring careful oversight.
Value Assessment
Rating: good
The contract value of $198.7 million is substantial for a large-scale construction project. Benchmarking against similar complex facility constructions is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive price discovery. The use of a definitive contract indicates a clear scope.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential military infrastructure.
Public Impact
Enhances operational capabilities and living conditions for USFK personnel. Supports economic activity through construction jobs and material procurement. Represents a long-term commitment to the security posture in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large construction projects.
- Schedule delays are common in complex, multi-year builds.
- Geopolitical factors could impact project execution.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can limit cost uncertainty.
- Long-term duration allows for phased execution.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often cyclical and influenced by government infrastructure needs and economic conditions.
Small Business Impact
While the prime contractor is a large entity, opportunities for small businesses may exist as subcontractors for specialized services or material supply within this large construction project.
Oversight & Accountability
The Department of the Army is responsible for oversight. Given the project's scale and duration, robust oversight mechanisms are crucial to manage risks and ensure contract compliance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Schedule slippage risk
- Cost growth potential
- Scope creep
- Security compliance for SCIF
- Logistical challenges in overseas construction
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $198.7 million to GILBANE FEDERAL. IGF::OT::IGF "SOFA" TO CONSTRUCT USFK OPS CTR&PHASE III FACILITY, USAG-HUMPHREY, SCIF PORTION
Who is the contractor on this award?
The obligated recipient is GILBANE FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $198.7 million.
What is the period of performance?
Start: 2017-03-18. End: 2025-12-31.
What is the projected return on investment for this facility in terms of enhanced operational effectiveness?
The return on investment is primarily measured by the enhanced operational effectiveness and readiness of US Forces Korea. The new facility is expected to consolidate operations, improve security, and provide modern amenities, directly contributing to mission success and personnel well-being. Quantifying this in direct financial terms is challenging but essential for long-term strategic planning.
What are the primary risks associated with the SCIF (Sensitive Compartmented Information Facility) portion of this contract?
Risks for the SCIF portion include stringent security requirements, potential for specialized contractor availability, and the need for rigorous compliance with intelligence community standards. Delays in obtaining necessary clearances or certifications could impact the schedule and overall project cost. Ensuring the integrity and security of classified information throughout construction is paramount.
How will the effectiveness of the completed facility be measured post-construction?
Effectiveness will be measured through post-occupancy evaluations, user feedback from USFK personnel, and assessments of operational efficiency gains. Key metrics may include reduced downtime, improved communication capabilities, enhanced security posture, and the facility's ability to support evolving mission requirements. Regular maintenance and lifecycle cost analyses will also contribute to assessing long-term effectiveness.
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: W912UM16R0009
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $198,747,168
Exercised Options: $198,747,168
Current Obligation: $198,747,168
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-18
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-11-11
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