DHS awards $1.9M contract for pool renovation, exceeding initial estimates by 36%

Contract Overview

Contract Amount: $1,919,866 ($1.9M)

Contractor: K-Con, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-10

End Date: 2026-08-24

Contract Duration: 136 days

Daily Burn Rate: $14.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF OUTDATED POOL EQUIPMENT AND RESURFACING OF INDOOR POOL

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.9 million to K-CON, INC. for work described as: REPLACEMENT OF OUTDATED POOL EQUIPMENT AND RESURFACING OF INDOOR POOL Key points: 1. Contract value of $1.9M for pool renovation and resurfacing. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Contract duration of 136 days suggests a focused scope of work. 4. Firm Fixed Price contract type aims to control costs. 5. Geographic location in Georgia may influence labor and material costs. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $1.9M for pool renovation and resurfacing appears to be within a reasonable range for such projects, though specific benchmarks are unavailable without detailed scope information. The award amount is approximately 36% higher than the reported benchmark of $1.41M, suggesting potential cost overruns or scope expansion. Further analysis would require comparing the specific deliverables against similar federal or large-scale commercial pool renovation projects to ascertain true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process among multiple bidders. With 4 bids received, the level of competition appears adequate for this contract size, likely contributing to price discovery. However, the extent to which the full market was reached under SAP is unknown.

Taxpayer Impact: The competitive bidding process under SAP for this contract is expected to have yielded a fair market price for taxpayers, preventing excessive costs.

Public Impact

Federal law enforcement personnel at the Federal Law Enforcement Training Center will benefit from improved recreational facilities. The project will deliver essential upgrades including pool equipment replacement and resurfacing. The geographic impact is localized to the Federal Law Enforcement Training Center in Georgia. The contract will likely support local construction jobs and businesses in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation beyond the initial $1.9M award due to unforeseen site conditions or scope creep.
Reliance on a single contractor, K-CON, INC., for the entire project scope.
The 36% difference between the award and benchmark price warrants scrutiny for cost efficiency.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Competitive bidding process with 4 offers suggests a healthy market response.
The project addresses necessary infrastructure upgrades for a federal training facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for facility upgrades. The construction market for public facilities is substantial, with significant government spending allocated annually to maintain and improve infrastructure. This project represents a typical investment in essential facility maintenance and modernization within the federal government's real property portfolio.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if K-CON, INC. is a small business. Therefore, the direct impact on the small business ecosystem and subcontracting opportunities for small businesses remains unknown without further information.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Homeland Security's Federal Law Enforcement Training Center. Standard contract administration procedures, including performance monitoring and payment verification, will be in place. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Federal Building and Facilities Construction
Government Infrastructure Maintenance
Law Enforcement Training Facilities
Pool and Recreation Facility Construction

Risk Flags

Potential cost variance exceeding benchmark.
Contract value at the upper end of SAP applicability.
Need for detailed review of K-CON, INC.'s past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.9 million to K-CON, INC.. REPLACEMENT OF OUTDATED POOL EQUIPMENT AND RESURFACING OF INDOOR POOL

Who is the contractor on this award?

The obligated recipient is K-CON, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $1.9 million.

What is the period of performance?

Start: 2026-04-10. End: 2026-08-24.

What is the track record of K-CON, INC. with federal contracts, particularly in construction and facility renovation?

A review of federal contract databases would be necessary to fully assess K-CON, INC.'s track record. This would involve examining past performance on similar projects, including contract values, timeliness of delivery, and any reported disputes or terminations. Understanding their history with the Department of Homeland Security or other agencies would provide insight into their reliability and capability for executing this specific pool renovation project. Without access to this detailed historical data, it is difficult to definitively assess their suitability beyond the current award.

How does the $1.9M award compare to the $1.41M benchmark, and what factors might explain the 36% difference?

The 36% difference between the $1.9M award and the $1.41M benchmark suggests a significant variance that warrants further investigation. Potential explanations include an outdated benchmark, an increase in the project's scope or complexity after the benchmark was set, fluctuations in material and labor costs since the benchmark's establishment, or a more competitive bidding environment than initially anticipated, leading to higher bids. It is also possible that the benchmark did not fully capture all necessary components of the project, such as specialized equipment or unforeseen site remediation.

What are the specific risks associated with replacing outdated pool equipment and resurfacing an indoor pool?

Replacing outdated pool equipment carries risks related to the discovery of hidden structural damage, electrical or plumbing issues not immediately apparent, and the compatibility of new equipment with existing infrastructure. Resurfacing an indoor pool involves risks such as ensuring proper ventilation and drying times to prevent mold or mildew, achieving a durable and aesthetically pleasing finish, and potential disruption to adjacent facilities due to noise and dust. The age of the facility and the specific materials used for both equipment and resurfacing will influence the overall risk profile.

How effective are Firm Fixed Price contracts in managing costs for construction projects of this nature?

Firm Fixed Price (FFP) contracts are generally effective in managing costs for construction projects when the scope of work is well-defined and risks are understood. They shift the risk of cost overruns to the contractor, providing the government with cost certainty. However, if the scope is not precisely defined or unforeseen issues arise, contractors may build in higher contingencies, potentially leading to a higher initial price. For projects like pool renovation, where unforeseen conditions can occur, an FFP contract requires meticulous planning and clear specifications to be most effective.

What is the historical spending pattern for pool maintenance and renovation at the Federal Law Enforcement Training Center?

Analyzing historical spending data for pool maintenance and renovation at the Federal Law Enforcement Training Center would provide crucial context for the current $1.9M award. This would involve examining the frequency and cost of past projects, identifying any recurring issues, and understanding the typical lifecycle of pool equipment and surfaces. If similar renovations have been significantly less expensive in the past, it would raise questions about the current project's cost-effectiveness. Conversely, if past projects were also substantial, it might indicate a consistent need for significant investment in these facilities.

What are the implications of the contract being competed under Simplified Acquisition Procedures (SAP) for a $1.9M award?

Competing a $1.9M award under Simplified Acquisition Procedures (SAP) is unusual, as SAP is typically intended for acquisitions valued at $250,000 or less (with some exceptions up to $7.5 million for construction). This suggests that either the agency has specific justifications for using SAP for this amount, or the initial estimated cost was significantly lower, and the final award increased. While SAP aims for efficiency, it may involve less stringent documentation and public notice compared to full and open competition, potentially limiting broader market participation and transparency for larger sums.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70LGLY26RSSB00002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: K-Con Inc.

Address: 6543 FAIN ST LOWR, CHARLESTON, SC, 29406

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,919,866

Exercised Options: $1,919,866

Current Obligation: $1,919,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline