DoD's $60.7M DLA Troop Support HQ Construction Contract Awarded to Daniel J Keating Co
Contract Overview
Contract Amount: $60,706,733 ($60.7M)
Contractor: Daniel J Keating CO
Awarding Agency: Department of Defense
Start Date: 2016-09-26
End Date: 2020-09-21
Contract Duration: 1,456 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF P1501, DLA TROOP SUPPORT HEADQUARTERS FACILITY, NSA PHILADELPHIA
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111
Plain-Language Summary
Department of Defense obligated $60.7 million to DANIEL J KEATING CO for work described as: IGF::OT::IGF P1501, DLA TROOP SUPPORT HEADQUARTERS FACILITY, NSA PHILADELPHIA Key points: 1. The contract, valued at $60.7 million, was awarded for construction of the DLA Troop Support Headquarters Facility. 2. Daniel J Keating Co. secured the award under full and open competition. 3. The project duration was 1456 days, indicating a significant construction undertaking. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract value of $60.7 million for a headquarters facility construction appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust process for price discovery and selection of the most advantageous offer. This method typically leads to competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this significant construction project.
Public Impact
Construction of a key facility for DLA Troop Support Headquarters. Supports military readiness and operational efficiency through improved infrastructure. Potential for job creation in the construction sector within Pennsylvania. Ensures a modern and secure working environment for military and civilian personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise.
- Contract duration is lengthy, increasing exposure to market fluctuations.
Positive Signals
- Firm Fixed Price contract provides cost control.
- Full and open competition likely secured a competitive price.
- Awarded to a single contractor, potentially streamlining project management.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for federal facilities can vary significantly based on infrastructure needs and modernization efforts. Benchmarks for similar projects are essential for detailed analysis.
Small Business Impact
The data indicates that neither small business set-aside nor subcontracting goals were explicitly met or tracked for this specific contract award. Further investigation into subcontracting opportunities would be needed to assess small business participation.
Oversight & Accountability
The award was made under a definitive contract, suggesting a structured procurement process. Oversight would typically involve contract administration by the Department of the Navy to ensure compliance with terms and conditions.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is substantial, increasing risk exposure.
- No explicit small business participation noted in award data.
- Potential for cost escalation in a long-term construction project.
Tags
commercial-and-institutional-building-co, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.7 million to DANIEL J KEATING CO. IGF::OT::IGF P1501, DLA TROOP SUPPORT HEADQUARTERS FACILITY, NSA PHILADELPHIA
Who is the contractor on this award?
The obligated recipient is DANIEL J KEATING CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $60.7 million.
What is the period of performance?
Start: 2016-09-26. End: 2020-09-21.
What was the basis for the bid price of $60.7 million, and how does it compare to industry standards for similar facilities?
The basis for the $60.7 million bid price would stem from Daniel J Keating Co.'s detailed cost estimation, including labor, materials, overhead, and profit, tailored to the specific requirements of the DLA Troop Support Headquarters Facility. A comprehensive comparison to industry standards would involve analyzing the square footage, complexity of systems (HVAC, electrical, security), site conditions, and prevailing wage rates for similar institutional or commercial building construction projects in the Philadelphia area.
What are the primary risks associated with a 1456-day construction project, and what mitigation strategies were likely employed?
Primary risks for a 1456-day construction project include significant cost escalation due to material price volatility, labor shortages or disputes, unforeseen site conditions (e.g., environmental hazards, subsurface issues), design changes, and weather delays. Mitigation strategies likely employed by the contractor and overseen by the government would include robust contingency planning, detailed scheduling with buffer times, proactive material procurement, strong subcontractor management, and clear change order processes.
How effectively does a Firm Fixed Price contract manage cost and scope for a project of this magnitude and duration?
A Firm Fixed Price (FFP) contract is designed to provide maximum cost certainty for the government, shifting most of the risk to the contractor. For a project of this magnitude and duration, FFP is effective in controlling the base cost, provided the initial scope is well-defined and the contractor accurately estimates all potential costs. However, it can lead to disputes or claims if unforeseen issues necessitate scope changes, and the contractor may build in higher contingencies, potentially increasing the initial price.
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: N4008516R3000
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 134 N NARBERTH AVE, NARBERTH, PA, 19072
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,706,733
Exercised Options: $60,706,733
Current Obligation: $60,706,733
Actual Outlays: $2,278,103
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-26
Current End Date: 2020-09-21
Potential End Date: 2020-09-21 00:00:00
Last Modified: 2021-02-03
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