DoD's $25.5M EA-18G Facility Upgrade Contract Awarded to Korte Construction Company
Contract Overview
Contract Amount: $25,477,925 ($25.5M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2014-08-25
End Date: 2017-05-26
Contract Duration: 1,005 days
Daily Burn Rate: $25.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF BASE BID: P-239 EA 18G FACILITY UPGRADES
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $25.5 million to KORTE CONSTRUCTION COMPANY for work described as: IGF::OT::IGF BASE BID: P-239 EA 18G FACILITY UPGRADES Key points: 1. Contract awarded for facility upgrades to support EA-18G aircraft. 2. Korte Construction Company secured the definitive contract. 3. The contract was awarded under full and open competition. 4. Spending is within the construction sector, specifically commercial and institutional building. 5. The project duration was 1005 days.
Value Assessment
Rating: fair
The contract value of $25.5M for facility upgrades appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military facilities would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Taxpayer funds were utilized for this procurement, with the competitive nature aiming to ensure efficient use of resources for necessary facility upgrades.
Public Impact
Supports critical military aviation infrastructure, ensuring operational readiness. Invests in construction sector, potentially creating jobs and stimulating local economies. Enhances facilities for specialized aircraft, contributing to national defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the nature of upgrades.
- Potential for cost overruns in large construction projects.
- Long project duration could indicate complexity or potential delays.
Positive Signals
- Awarded under full and open competition.
- Definitive contract provides clarity on terms.
- Supports essential military assets.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar military facility upgrades are typically high due to specialized requirements and security protocols.
Small Business Impact
The contract was awarded to Korte Construction Company, and there is no indication of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities were offered.
Oversight & Accountability
The definitive contract structure implies a degree of oversight. However, the long duration and significant value warrant close monitoring of project progress and expenditures to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep in construction projects.
- Long project duration increases risk of unforeseen issues.
- Dependence on a single contractor for significant upgrades.
- Lack of detailed performance metrics in the provided data.
Tags
commercial-and-institutional-building-co, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to KORTE CONSTRUCTION COMPANY. IGF::OT::IGF BASE BID: P-239 EA 18G FACILITY UPGRADES
Who is the contractor on this award?
The obligated recipient is KORTE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2014-08-25. End: 2017-05-26.
What specific upgrades were performed, and how do they directly enhance the EA-18G's operational capabilities?
The provided data lacks specifics on the nature of the facility upgrades. Understanding the exact improvements (e.g., specialized maintenance bays, enhanced power infrastructure, upgraded environmental controls) is crucial to assess their direct impact on EA-18G operational readiness and maintenance efficiency. This detail would clarify the value proposition beyond general infrastructure improvement.
What were the key factors that led to the selection of Korte Construction Company, and were there any significant deviations from the initial bid?
While awarded under full and open competition, the data doesn't detail the selection criteria beyond the final award. Understanding the evaluation process (technical merit, past performance, price) and whether the final price of $25.5M represented the lowest bid or a best-value selection is important. Any significant deviations from initial bids or cost changes during the project's execution would also be critical for assessing value and risk.
How effectively did the project management and oversight ensure the timely completion and quality of the facility upgrades within the allocated budget?
The project spanned 1005 days, indicating a substantial duration. Assessing the effectiveness of oversight requires examining project milestones, any reported delays or cost overruns, and the final quality assessment of the completed upgrades. Effective management would ensure the facility meets its intended purpose without undue expenditure or schedule slippage, maximizing the return on taxpayer investment.
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: TWO STEP
Solicitation ID: N4425513R4008
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE STE 275, SAINT LOUIS, MO, 63110
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: $26,107,925
Exercised Options: $25,477,925
Current Obligation: $25,477,925
Subaward Activity
Number of Subawards: 182
Total Subaward Amount: $133,234,449
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-08-25
Current End Date: 2017-05-26
Potential End Date: 2017-05-26 00:00:00
Last Modified: 2017-04-17
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