King Construction Services awarded $11.3M for employee housing, with a 617-day performance period

Contract Overview

Contract Amount: $11,340,032 ($11.3M)

Contractor: King Construction Services Inc

Awarding Agency: Department of the Interior

Start Date: 2024-09-17

End Date: 2026-05-27

Contract Duration: 617 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ACAD 30090; HARDEN FARMS EMPLOYEE HOUSING (PHASE 1A & 1B)

Place of Performance

Location: BAR HARBOR, HANCOCK County, MAINE, 04609

State: Maine Government Spending

Plain-Language Summary

Department of the Interior obligated $11.3 million to KING CONSTRUCTION SERVICES INC for work described as: ACAD 30090; HARDEN FARMS EMPLOYEE HOUSING (PHASE 1A & 1B) Key points: 1. Contract value appears reasonable given the scope of new multifamily housing construction. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Potential risks include project delays given the 617-day duration and fixed-price nature. 4. This contract supports essential infrastructure for National Park Service operations. 5. The project is positioned within the construction sector, specifically housing development. 6. Performance timeline indicates a significant construction undertaking.

Value Assessment

Rating: good

The contract value of $11.3 million for constructing multifamily housing is within a typical range for projects of this scale. Benchmarking against similar federal housing construction contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without detailed cost breakdowns or comparisons to private sector construction of similar units, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of two bidders suggests a moderate level of competition. This approach can sometimes lead to a balance between ensuring a competitive price and leveraging specialized capabilities, but it warrants scrutiny to ensure the exclusion of sources did not unduly limit competition.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure a fair market price for taxpayers. A moderate number of bidders generally supports price discovery, though a more robust competition could potentially yield better pricing.

Public Impact

Benefits National Park Service employees by providing necessary housing. Delivers new multifamily housing units, addressing potential accommodation shortages. Geographic impact is localized to the specific National Park Service site in Maine. Workforce implications include job creation in the construction sector within Maine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on a fixed-price contract if unforeseen issues arise during construction.
Risk of project delays impacting operational readiness if the 617-day schedule is not met.
Ensuring compliance with environmental and building regulations for new construction.
Adequate oversight needed to manage the 'after exclusion of sources' competition aspect.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Clear performance period (617 days) provides a defined project timeline.
Awarded to a single contractor, simplifying management and accountability.
Project addresses a clear need for employee housing, supporting agency operations.

Sector Analysis

This contract falls within the broader construction industry, specifically focusing on residential and multifamily housing development. The market for federal construction projects is substantial, with significant annual spending across various agencies. This project represents a specific investment in infrastructure to support agency personnel, distinct from larger-scale construction initiatives but crucial for operational efficiency. Comparable spending benchmarks would involve analyzing other federal contracts for similar housing projects in different regions or for different agencies.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the primary focus was on securing the best value through the specified competition method. There is no explicit mention of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem would depend on whether King Construction Services utilizes small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Park Service contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms and the defined performance period. Transparency is facilitated through federal contract databases where this award is reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Federal Employee Housing Programs
National Park Service Infrastructure Projects
Multifamily Housing Construction Contracts
Department of the Interior Construction Spending

Risk Flags

Competition level may be limited due to source exclusion.
Fixed-price contract risk for cost overruns or delays.
Contractor performance history not detailed.
Value-for-money assessment requires further benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.3 million to KING CONSTRUCTION SERVICES INC. ACAD 30090; HARDEN FARMS EMPLOYEE HOUSING (PHASE 1A & 1B)

Who is the contractor on this award?

The obligated recipient is KING CONSTRUCTION SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2024-09-17. End: 2026-05-27.

What is the track record of King Construction Services Inc. with federal contracts, particularly for housing projects?

Information regarding King Construction Services Inc.'s specific track record with federal contracts, especially for housing projects, is not detailed in the provided data. A comprehensive analysis would require examining the company's past performance ratings, previous federal awards, and any history of contract disputes or successful project completions. Federal procurement databases and past performance reviews would be essential resources to assess their reliability and experience in delivering similar projects on time and within budget. Without this historical data, it's difficult to definitively gauge their suitability beyond the current award.

How does the awarded amount compare to the estimated cost or benchmark for similar federal employee housing projects?

The provided data does not include the estimated cost or specific benchmarks used by the National Park Service to evaluate the $11.3 million award. To assess value for money, this contract's price would need to be compared against historical data for similar federal employee housing construction projects, considering factors like location, size, complexity, and prevailing construction costs. Additionally, comparing it to private sector construction costs for comparable multifamily units could offer further insights. The 'Full and Open Competition After Exclusion of Sources' method might influence the final price, potentially balancing specialized needs with competitive pressures.

What are the primary risks associated with a firm-fixed-price contract for a 617-day construction project?

The primary risks associated with a firm-fixed-price contract for a 617-day construction project include potential cost overruns for the contractor if material prices escalate unexpectedly or unforeseen site conditions arise, which could lead to quality compromises or contractor default. For the government, the risk lies in the potential for delays if the contractor struggles with cost management or encounters significant issues, impacting the availability of essential employee housing. Additionally, the 'after exclusion of sources' aspect of the competition warrants scrutiny to ensure that the exclusion did not inadvertently limit the pool of qualified bidders, potentially affecting the overall risk profile.

What is the expected effectiveness of this new housing in supporting National Park Service operations?

The effectiveness of this new housing is expected to be high in supporting National Park Service operations by providing adequate and potentially improved living conditions for its employees. Reliable housing can enhance staff morale, retention, and the ability to attract qualified personnel, particularly in remote or desirable park locations. By ensuring that essential staff are housed appropriately, the NPS can maintain operational readiness, facilitate timely responses to park needs, and ensure consistent service delivery. The construction of new multifamily units directly addresses a tangible need, contributing to the overall efficiency and effectiveness of park management.

How has federal spending on similar multifamily housing construction projects trended over the past five years?

Analyzing the trend of federal spending on similar multifamily housing construction projects over the past five years would require access to comprehensive federal procurement data. Generally, spending in this area can fluctuate based on agency priorities, infrastructure needs, and budget allocations. Factors such as increased focus on federal workforce housing, modernization of existing facilities, and specific agency initiatives (like those within the Department of the Interior or Defense) could drive spending up or down. A detailed trend analysis would involve querying databases for contracts categorized under 'New Multifamily Housing Construction' or similar NAICS codes across relevant agencies over the specified period.

What specific criteria were used to exclude certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The provided data does not specify the exact criteria used to exclude certain sources in this 'Full and Open Competition After Exclusion of Sources' award. This procurement method typically involves publicly announcing the intent to exclude specific sources and providing a justification, such as the need for specialized capabilities, proprietary technology, or unique requirements that only certain contractors can meet. The justification for exclusion must be documented and approved. Without this documentation, it is difficult to assess whether the exclusions were appropriate and did not unduly restrict competition, potentially impacting the final price and value achieved for the government.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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: 140P2024R0118

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 63 DUBLIN ST STE 4, MACHIAS, ME, 04654

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,340,032

Exercised Options: $11,340,032

Current Obligation: $11,340,032

Actual Outlays: $8,636,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline