Department of Labor Awards $29.1M for Atlanta Job Corps Campus Construction

Contract Overview

Contract Amount: $29,102,437 ($29.1M)

Contractor: 4K Global-Acc JV, LLC

Awarding Agency: Department of Labor

Start Date: 2017-06-16

End Date: 2019-08-02

Contract Duration: 777 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CL,CT::IGF THIS PROJECT IS TO PROVIDE CONSTRUCTION SERVICES FOR A NEW JOB CORPS CAMPUS TO REPLACE THE EXISTING JOB CORPS CENTER LOCATED IN ATLANTA, GA. THE NEW CAMPUS IS COMPRISED OF APPROXIMATELY 25 ACRES AT THE AFOREMENTIONED LOCATION, AND THE WORK CONSISTS OF THE FOLLOWING: CLEARING, REGARDING, AND PREPARATION OF THE EXISTING SITE, WHICH IS CURRENTLY WOODED. PLACEMENT OF ALL UTILITIES REQUIRED TO SERVE THE BUILDINGS, IN ADDITION TO COORDINATION WITH VARIOUS UTILITIES TO TIE INTO EXISTING SERVICES, AND WITH GEORGIA POWER FOR COORDINATION OF PLACEMENT OF THE PRIMARY ELECTRICAL SYSTEM AND SITE LIGHTING. CONSTRUCTION OF THE SURFACE SITE WORK WILL INCLUDE INSTALLATION OF ALL FENCING, GATES, ROADS, WALKS, LANDSCAPING, AND GRASSED AREAS, IN ADDITION TO CONSTRUCTION OF STORM WATER MANAGEMENT PONDS AND BIO RETENTION AREAS.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30301

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $29.1 million to 4K GLOBAL-ACC JV, LLC for work described as: IGF::CL,CT::IGF THIS PROJECT IS TO PROVIDE CONSTRUCTION SERVICES FOR A NEW JOB CORPS CAMPUS TO REPLACE THE EXISTING JOB CORPS CENTER LOCATED IN ATLANTA, GA. THE NEW CAMPUS IS COMPRISED OF APPROXIMATELY 25 ACRES AT THE AFOREMENTIONED LOCATION, AND THE WORK CONSISTS OF THE FOLLOWIN… Key points: 1. The project involves significant site preparation and utility work for a new Job Corps campus. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 4. The sector is Commercial and Institutional Building Construction, a common area for government infrastructure projects.

Value Assessment

Rating: good

The contract value of $29.1 million for a new campus construction project appears reasonable given the scope of work, which includes site clearing, utilities, and building infrastructure. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

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.' This indicates that while the competition was intended to be broad, certain sources were initially excluded, which could have impacted the final price discovery. However, the 'full and open' aspect suggests multiple bidders were ultimately considered.

Taxpayer Impact: The firm-fixed-price nature of the contract helps protect taxpayers from cost overruns, as the contractor is responsible for managing expenses within the agreed-upon price.

Public Impact

Construction of a new Job Corps campus will provide modern facilities for vocational training. The project will create construction jobs in the Atlanta, Georgia area. Improved facilities may lead to better training outcomes for Job Corps students. The project addresses the need to replace an aging existing facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects.
Coordination with multiple utilities and Georgia Power could present logistical challenges.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition generally leads to better pricing.
Project addresses a clear need for facility replacement.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector by the government is substantial, supporting infrastructure development and facility upgrades across various agencies. Benchmarks for similar campus construction projects would typically consider factors like square footage, site complexity, and regional labor costs.

Small Business Impact

The data indicates that the prime contractor is 4K GLOBAL-ACC JV, LLC. Information regarding small business participation (sb: false) suggests that small businesses were not directly involved as prime contractors on this specific award, though they may have been involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would typically involve monitoring project progress, adherence to contract terms, and quality of construction to ensure taxpayer funds are used effectively and the project meets its objectives.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns despite FFP contract if scope changes.
Coordination challenges with utilities and external agencies.
Long project duration (777 days) increases exposure to market fluctuations.
Initial exclusion of sources may warrant further scrutiny for fairness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $29.1 million to 4K GLOBAL-ACC JV, LLC. IGF::CL,CT::IGF THIS PROJECT IS TO PROVIDE CONSTRUCTION SERVICES FOR A NEW JOB CORPS CAMPUS TO REPLACE THE EXISTING JOB CORPS CENTER LOCATED IN ATLANTA, GA. THE NEW CAMPUS IS COMPRISED OF APPROXIMATELY 25 ACRES AT THE AFOREMENTIONED LOCATION, AND THE WORK CONSISTS OF THE FOLLOWING: CLEARING, REGARDING, AND PREPARATION OF THE EXISTING SITE, WHICH IS CURRENTLY WOODED. PLACEMENT OF ALL UTILITIES REQUIRED TO SERVE THE BUILDINGS, IN ADDITION TO COORDINATION WITH VARIOUS UTILITIES TO TIE INTO EXISTIN

Who is the contractor on this award?

The obligated recipient is 4K GLOBAL-ACC JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2017-06-16. End: 2019-08-02.

What was the rationale for excluding certain sources initially in a 'full and open competition after exclusion of sources' award?

The rationale for excluding sources in such a scenario often relates to specific pre-qualification requirements, past performance issues, or the need for specialized capabilities that only a subset of potential bidders possess. The agency likely determined that these exclusions were necessary to ensure the selection of a contractor best suited for the complex construction needs of the Job Corps campus while still allowing for broad competition among qualified firms.

How does the firm-fixed-price contract mitigate risks associated with potential cost overruns in a long-duration construction project?

A firm-fixed-price (FFP) contract establishes a ceiling price that the government will not exceed. The contractor assumes the primary risk for any cost overruns incurred due to inefficiencies or unforeseen challenges during construction. This structure incentivizes the contractor to manage costs effectively and complete the project within the agreed-upon budget, thereby protecting the government and taxpayers from unexpected increases in expenditure.

What is the expected impact of the new Job Corps campus on student training and program effectiveness?

The construction of a new, modern campus is expected to significantly enhance the Job Corps program's effectiveness by providing state-of-the-art facilities and a more conducive learning environment. Improved infrastructure can support updated vocational training equipment and technologies, potentially leading to better skill development, higher completion rates, and increased employability for students participating in the program.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-17-R-00003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635A NW FRONTAGE RD, AUGUSTA, GA, 30907

Business Categories: Category Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $61,436,769

Exercised Options: $61,436,769

Current Obligation: $29,102,437

Actual Outlays: $18,638,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline