DoD awards $13.1M contract for barracks repair to North Wind General Contractors, LLC

Contract Overview

Contract Amount: $13,126,275 ($13.1M)

Contractor: North Wind General Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-24

End Date: 2025-09-03

Contract Duration: 741 days

Daily Burn Rate: $17.7K/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: REPAIR BARRACKS B3207

Place of Performance

Location: NORTH POLE, FAIRBANKS NORTH STAR County, ALASKA, 99705

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to NORTH WIND GENERAL CONTRACTORS, LLC for work described as: REPAIR BARRACKS B3207 Key points: 1. Contract awarded for essential facility maintenance, ensuring operational readiness. 2. Competition level indicates a robust bidding process for this construction project. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Project duration of over two years suggests a significant scope of work. 5. Geographic focus on Alaska may present unique logistical challenges and costs. 6. Contractor has experience in government contracting, but specific performance data is needed.

Value Assessment

Rating: fair

The contract value of $13.1 million for barracks repair appears within a reasonable range for a project of this nature, especially considering the location in Alaska. Benchmarking against similar military construction projects in remote or challenging environments would provide a clearer picture of value for money. The firm fixed-price structure is a positive indicator for cost control, but the absence of detailed cost breakdowns makes a precise value assessment difficult without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while the competition was intended to be broad, specific criteria or exclusions were applied. With three bidders, the competition level is moderate, which can still lead to competitive pricing. However, it's less robust than a purely full and open competition with a larger number of participants.

Taxpayer Impact: A moderate level of competition can still yield fair pricing for taxpayers, but a wider pool of bidders might have driven prices lower. The exclusion of certain sources warrants further investigation to ensure no potential cost savings were foregone.

Public Impact

Service members stationed in Alaska will benefit from improved living quarters. The contract delivers essential repair and maintenance services for critical infrastructure. The geographic impact is concentrated in Alaska, supporting local military installations. The project is expected to support jobs in the construction sector within Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions arise in Alaska's challenging environment.
Limited competition may not have secured the absolute lowest price.
Contract duration of over two years could be subject to delays.
Dependence on a single contractor for a significant repair project.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost overruns.
Contractor has experience with government contracts.
Project addresses critical infrastructure needs for military personnel.
Awarded by the Department of the Army, indicating alignment with defense priorities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector often supports infrastructure development and maintenance for government facilities, including military bases. The market size for federal construction is substantial, with significant annual outlays. This specific contract represents a portion of the Department of Defense's ongoing investment in maintaining its facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small business participation may be limited unless North Wind General Contractors, LLC voluntarily includes them in their subcontracting plans. The impact on the small business ecosystem is neutral to potentially negative if they are excluded from prime or significant subcontracting roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified repairs within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and cost breakdowns are not always readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Department of Defense Contracts
Construction Services
Barracks Modernization

Risk Flags

Potential for cost overruns due to environmental factors in Alaska.
Moderate competition level may not yield the lowest possible price.
Contract duration exceeds two years, increasing risk of delays.
Lack of detailed performance data for the selected contractor on similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to NORTH WIND GENERAL CONTRACTORS, LLC. REPAIR BARRACKS B3207

Who is the contractor on this award?

The obligated recipient is NORTH WIND GENERAL CONTRACTORS, 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 $13.1 million.

What is the period of performance?

Start: 2023-08-24. End: 2025-09-03.

What is the track record of North Wind General Contractors, LLC with the Department of Defense?

North Wind General Contractors, LLC has a history of securing contracts with the Department of Defense and other federal agencies. Their portfolio often includes construction, renovation, and maintenance services for government facilities. While specific performance ratings for this particular contract are not yet available due to its recent award, their presence in the federal contracting space suggests they possess the necessary clearances and experience. A deeper dive into past performance reviews, any past disputes, or contract modifications on previous DoD projects would offer a more comprehensive understanding of their reliability and execution capabilities.

How does the awarded price compare to similar barracks repair projects in Alaska?

Benchmarking the $13.1 million award against similar barracks repair projects in Alaska is challenging without access to a comprehensive database of comparable contracts. Factors such as the specific scope of work (e.g., structural repairs, HVAC upgrades, modernization), the condition of the existing facilities, and the remote location significantly influence costs. Projects in Alaska often incur higher logistical expenses due to climate and accessibility. While the firm fixed-price nature provides cost certainty, a detailed comparison would require analyzing project specifications, square footage, and the extent of renovations for other DoD barracks projects in similar geographic and climatic conditions.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions common in Alaska's challenging environment, such as permafrost issues or extreme weather impacting construction schedules. Delays are also a risk, given the project's duration of over two years and the logistical complexities of operating in a remote location. While the firm fixed-price contract mitigates financial risk for the government, contractor performance issues or material availability could still lead to schedule slippage. The moderate competition level also presents a risk that the price may not be as competitive as it could have been under broader competition.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined, such as building repairs. It shifts the risk of cost overruns to the contractor, North Wind General Contractors, LLC, who is obligated to complete the work for the agreed-upon price. This provides the Department of the Army with cost certainty. However, the effectiveness can be diminished if the initial scope is underestimated or if significant unforeseen issues arise that necessitate contract modifications, which can add costs and complexity. Robust oversight and clear contract administration are crucial to ensure the FFP structure achieves its intended cost-control benefits.

What is the historical spending trend for barracks repair at this specific military installation?

Analyzing historical spending trends for barracks repair at the specific military installation where this contract will be executed is crucial for context. Without knowing the exact installation, a precise trend cannot be determined. However, generally, military installations require continuous investment in facility maintenance and upgrades due to the demanding usage and the need to maintain operational readiness and quality of life for service members. Spending patterns can fluctuate based on budget allocations, deferred maintenance backlogs, and modernization initiatives. Understanding past spending levels can help assess whether this $13.1 million award represents a typical investment, an increase due to specific needs, or a one-time major repair.

What are the implications of awarding to North Wind General Contractors, LLC under 'Full and Open Competition After Exclusion of Sources'?

The award to North Wind General Contractors, LLC under 'Full and Open Competition After Exclusion of Sources' implies that the solicitation was initially open to all responsible sources, but certain potential bidders were excluded based on specific criteria defined in the solicitation. This could be due to requirements for specialized experience, security clearances, or geographic presence. While it aims for broad competition, the exclusion means not all interested and capable parties may have participated. This approach can be justified if it ensures the selection of a contractor best suited for unique project requirements, but it warrants scrutiny to ensure the exclusions were necessary and did not unduly limit competition, potentially impacting price discovery and overall value for the government.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB23R0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2525 C ST, ANCHORAGE, AK, 99503

Business Categories: 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: $13,126,275

Exercised Options: $13,126,275

Current Obligation: $13,126,275

Actual Outlays: $2,819,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline