Army Awards $22.5M Industrial Building Construction Contract to Denali General Contractors
Contract Overview
Contract Amount: $22,549,556 ($22.5M)
Contractor: Denali General Contractors, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-05-20
End Date: 2012-06-01
Contract Duration: 1,108 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FXSB093022 BASE BID
Place of Performance
Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to DENALI GENERAL CONTRACTORS, INC. for work described as: FXSB093022 BASE BID Key points: 1. Contract awarded for industrial building construction services. 2. Denali General Contractors, Inc. secured the $22.5M contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project duration is 1108 days. 5. The contract is firm fixed price.
Value Assessment
Rating: good
The awarded amount of $22.5M appears reasonable for a large-scale industrial building construction project of this duration. Benchmarking against similar large construction contracts would provide a more precise assessment.
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 competitive process but with specific source limitations. This method can impact price discovery by potentially reducing the pool of bidders.
Taxpayer Impact: Taxpayer funds are being utilized for a significant construction project, with the competitive nature of the award aiming to ensure value for money.
Public Impact
Supports military infrastructure development in Alaska. Provides construction jobs and economic activity in the region. Ensures operational readiness through improved facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method could impact final price.
- Potential for cost overruns in remote locations like Alaska.
Positive Signals
- Firm fixed price contract limits cost risk to the government.
- Award to an established contractor with experience.
Sector Analysis
This contract falls within the Industrial Building Construction sector, a critical component of infrastructure development. Spending in this sector is often driven by government needs for facilities supporting various operations.
Small Business Impact
The contract was awarded to Denali General Contractors, Inc., and the data indicates the awardee is not a small business (ss: false). There is no specific information on subcontracting goals for small businesses within this award.
Oversight & Accountability
Oversight would involve monitoring project progress, adherence to specifications, and budget management by the Department of the Army to ensure successful project completion and accountability.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have reduced price competitiveness.
- Construction projects in remote locations can face unforeseen cost increases.
- Potential for scope creep if project requirements are not clearly defined.
- Dependence on a single contractor for a large project.
Tags
industrial-building-construction, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to DENALI GENERAL CONTRACTORS, INC.. FXSB093022 BASE BID
Who is the contractor on this award?
The obligated recipient is DENALI GENERAL CONTRACTORS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.5 million.
What is the period of performance?
Start: 2009-05-20. End: 2012-06-01.
What was the rationale for excluding certain sources in the competition?
The exclusion of sources suggests specific requirements or capabilities were sought, potentially related to specialized construction techniques, security clearances, or prior experience with similar projects in challenging environments. Understanding this rationale is key to assessing if the limited competition truly served the government's best interest or restricted potential cost savings.
How does the awarded price compare to industry benchmarks for similar construction projects in Alaska?
A detailed comparison against industry benchmarks for industrial building construction in Alaska, considering factors like material costs, labor rates, and logistical challenges specific to the region, is necessary. This comparison would help determine if the $22.5M award represents a fair and reasonable price, or if there's potential for overpayment due to the limited competition or location.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators should include on-time project completion, adherence to quality standards and specifications, safety record during construction, and final facility functionality meeting the intended operational needs. Regular progress reviews against these KPIs will be crucial for the Department of the Army to ensure the effectiveness of the awarded contract.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: SEALED BID
Solicitation ID: W91ZRU09B0003
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3237 MOUNTAIN VIEW DR, ANCHORAGE, AK, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Labor Surplus Area Firm, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,549,556
Exercised Options: $22,549,556
Current Obligation: $22,549,556
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-05-20
Current End Date: 2012-06-01
Potential End Date: 2012-06-01 00:00:00
Last Modified: 2012-05-09
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