DoD Awards $13M Corrosion Control Facility Contract to Olgoonik Enterprises, LLC
Contract Overview
Contract Amount: $13,040,260 ($13.0M)
Contractor: Olgoonik Enterprises, LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-24
End Date: 2026-10-27
Contract Duration: 733 days
Daily Burn Rate: $17.8K/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: CONSTRUCT CORROSION CONTROL FACILITY CRWU 13-3039
Place of Performance
Location: AURORA, ARAPAHOE County, COLORADO, 80011
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to OLGOONIK ENTERPRISES, LLC for work described as: CONSTRUCT CORROSION CONTROL FACILITY CRWU 13-3039 Key points: 1. Contract awarded for corrosion control facility construction. 2. Olgoonik Enterprises, LLC, a large business, is the prime contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The estimated value is $13.04 million with a duration of 733 days. 5. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: good
The contract value of $13.04 million for a 733-day construction project appears reasonable for a corrosion control facility. 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 using full and open competition after the exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the construction services.
Public Impact
Enhances military readiness by providing a dedicated facility for corrosion control. Supports infrastructure development within the Department of Defense. Creates construction jobs and economic activity in Colorado. Ensures the longevity and maintenance of military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Dependence on a single large business prime contractor.
- Limited visibility into specific construction material costs.
Positive Signals
- Competitive award process.
- Clear project scope for facility construction.
- Long-term benefit to military asset maintenance.
Sector Analysis
The Commercial and Institutional Building Construction sector involves significant capital investment. DoD construction projects often involve specialized requirements and stringent quality standards, potentially leading to higher costs compared to standard commercial builds.
Small Business Impact
The prime contractor, Olgoonik Enterprises, LLC, is a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.
Oversight & Accountability
The Department of the Army's contracting process, including the use of full and open competition, provides a level of oversight. Further review of performance metrics and payment schedules would offer deeper insight into accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Specialized construction type.
- Sole large business prime contractor.
- Potential for cost escalation.
Tags
commercial-and-institutional-building-co, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to OLGOONIK ENTERPRISES, LLC. CONSTRUCT CORROSION CONTROL FACILITY CRWU 13-3039
Who is the contractor on this award?
The obligated recipient is OLGOONIK ENTERPRISES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2024-10-24. End: 2026-10-27.
What is the specific breakdown of costs within the $13.04 million award, and how does it compare to industry standards for similar facilities?
The provided data does not detail the cost breakdown. A comprehensive analysis would require access to the contract's line-item details, including labor, materials, overhead, and profit. Comparing these to industry benchmarks for specialized construction like corrosion control facilities is crucial for validating value for money.
What are the potential risks associated with constructing a specialized facility like this, and what mitigation strategies are in place?
Risks include construction delays, unforeseen site conditions, material price fluctuations, and contractor performance issues. Mitigation strategies typically involve robust contract management, performance bonds, liquidated damages clauses, and regular progress reviews by the contracting officer's representative.
How will the effectiveness of this new corrosion control facility be measured post-construction to ensure it meets its intended purpose?
Effectiveness will likely be measured by its operational readiness, throughput of vehicles/equipment for treatment, reduction in corrosion-related maintenance costs for assets, and compliance with environmental and safety standards. Performance metrics should be established during the contract finalization phase.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 411 S TEJON ST STE G, COLORADO SPRINGS, CO, 80903
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,502,820
Exercised Options: $13,040,260
Current Obligation: $13,040,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA251720D0004
IDV Type: IDC
Timeline
Start Date: 2024-10-24
Current End Date: 2026-10-27
Potential End Date: 2026-10-27 00:00:00
Last Modified: 2025-10-02
More Contracts from Olgoonik Enterprises, LLC
- Tdka 22-1007 Project AT Peterson Space Force Base, CO., to Convert/Repair Building 845 to Operational Testing and Training Infrastructure (otti) Mission Space, Delta Beddown — $36.6M (Department of Defense)
- C109652/C115970 Description - Base Award Building 49 Replacement of Reheat Water Piping & Associated Components CO - DAN Burk CS - Dave Seid COR - Earl Johnson Vendor POC - David Frederick — $19.7M (Department of Health and Human Services)
- Renovate Hanger 140 — $11.8M (Department of Defense)
- Bldg 1 Wing 2 Utility Project — $7.4M (Department of Commerce)
- Award of Construction Contract to Repair and Replace Bridges AT the Denver Federal Center — $6.7M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)