J Kokolakis Contracting Awarded $49M DoD Contract for Commercial Building Construction

Contract Overview

Contract Amount: $49,040,351 ($49.0M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2014-06-20

End Date: 2019-02-28

Contract Duration: 1,714 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF MAC ARTHUR SHORT - CONSTRUCTION

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to J KOKOLAKIS CONTRACTING INC for work described as: IGF::CT::IGF MAC ARTHUR SHORT - CONSTRUCTION Key points: 1. Contract value of $49M suggests a significant project scope. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Contract duration of 1714 days points to a long-term construction project. 5. Awarded by the Department of the Army, indicating a defense-related infrastructure need. 6. Contractor J Kokolakis Contracting Inc. has secured a substantial federal award.

Value Assessment

Rating: fair

The contract value of $49 million for commercial and institutional building construction appears substantial. Without specific project details or comparable project costs, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the contractor is experienced and efficient. Benchmarking against similar large-scale construction projects awarded by the Department of Defense would provide further insight into whether this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With 6 bidders participating, this suggests a reasonably competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The fact that 6 firms competed indicates that the market for this type of construction service is active and that the government was able to solicit a good number of offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging efficiency among contractors, ultimately leading to better use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive improved or new facilities. The contract delivers commercial and institutional building construction services, likely involving the building or renovation of significant structures. The contract is geographically located in New York (NY), impacting the local economy and workforce in that region. This project will likely create or sustain jobs for construction workers, engineers, architects, and related trades in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Risk associated with contractor performance and adherence to construction timelines and quality standards.
Dependence on the financial stability and operational capacity of J Kokolakis Contracting Inc. for project completion.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
The substantial contract value indicates the contractor's capacity to handle large-scale projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, schools, hospitals, and government facilities. The Department of Defense is a major client for construction services, frequently awarding large contracts for infrastructure development and maintenance. Comparable spending benchmarks would involve analyzing other large federal construction awards for similar types of buildings and project scopes.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. The presence of 6 bidders suggests that larger, established firms likely participated. There is no explicit information on subcontracting plans for small businesses within this data. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes lead to subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Department of Defense Construction Contracts
Federal Building and Infrastructure Projects
Commercial Construction Services
Fixed-Price Construction Contracts
Army Corps of Engineers Projects

Risk Flags

Potential for cost escalation over the long contract duration.
Contractor performance risk on a large-scale construction project.
Adequacy of the fixed-price bid to cover all project contingencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to J KOKOLAKIS CONTRACTING INC. IGF::CT::IGF MAC ARTHUR SHORT - CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is J KOKOLAKIS CONTRACTING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $49.0 million.

What is the period of performance?

Start: 2014-06-20. End: 2019-02-28.

What is the track record of J Kokolakis Contracting Inc. with federal contracts, particularly with the Department of Defense?

J Kokolakis Contracting Inc. has a history of federal contract awards, including significant work with the Department of Defense. Analyzing their past performance on similar construction projects, including adherence to schedule, budget, and quality standards, is crucial. A review of their contract history would reveal if they have a pattern of successful project completion or if there are any past performance issues, such as disputes, delays, or quality deficiencies. Understanding their experience with firm fixed-price contracts and large-scale projects provides insight into their capability to execute this $49 million award effectively and efficiently for the government.

How does the $49 million contract value compare to similar Department of Defense construction projects awarded in the same period?

The $49 million award for commercial and institutional building construction by the Department of the Army is a substantial figure. To benchmark its value, one would compare it against other definitive contracts for similar construction types (e.g., barracks, administrative buildings, training facilities) awarded by the DoD around the 2014-2019 timeframe. Factors like project scope, complexity, location, and specific requirements would need to be considered. If comparable projects were awarded for significantly less or more, it would indicate whether this contract represents a potentially good or questionable value. The number of bidders (6) suggests a competitive market, which typically aids in achieving fair pricing.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this?

A firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a long-duration project (1714 days), the primary risks include unforeseen escalation in material and labor costs, unexpected site conditions, design changes, and potential contractor inefficiencies. If the initial price estimate does not adequately account for these factors over the extended period, the contractor may incur losses, potentially impacting project quality or completion. Conversely, if the contractor is highly efficient and manages risks well, the government benefits from cost certainty. Robust contract administration and clear scope definition are critical to mitigating these risks.

How effective was the full and open competition process in ensuring competitive pricing for this contract?

The fact that this contract was awarded under full and open competition with 6 bidders is a positive indicator for competitive pricing. This process allows any responsible contractor to submit an offer, maximizing the pool of potential bidders. With 6 bids received, the government had a reasonable basis for comparison to determine a fair and reasonable price. The effectiveness is further assessed by analyzing the bid spread – the difference between the highest and lowest bids. A narrow bid spread might suggest a highly competitive and efficient market, while a wide spread could indicate differing interpretations of the scope or varying levels of contractor confidence in their pricing.

What is the historical spending pattern for commercial and institutional building construction by the Department of the Army?

The Department of the Army consistently spends significant amounts on construction projects to maintain and expand its infrastructure. Historical spending patterns reveal a continuous need for building new facilities, renovating existing ones, and performing general maintenance across numerous bases and installations. This $49 million contract fits within a broader category of spending aimed at ensuring operational readiness and providing adequate facilities for personnel. Analyzing past annual expenditures on similar construction projects would provide context on the scale and frequency of such awards, helping to determine if this specific contract represents a typical investment or an outlier.

Are there any specific performance concerns or positive signals from J Kokolakis Contracting Inc.'s past federal contract performance?

A thorough review of J Kokolakis Contracting Inc.'s past performance on federal contracts is essential to assess potential risks and positive signals for this $49 million award. This would involve examining contract close-out data, any past performance evaluations (e.g., CPARS reports), and records of contract modifications, claims, or disputes. Positive signals might include a history of on-time and on-budget project completion, strong quality ratings, and effective communication. Conversely, concerns could arise from documented instances of delays, cost overruns (even on fixed-price contracts if scope changes occurred), quality issues, or contractor-initiated disputes. Understanding their specific experience with large-scale DoD construction is key.

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: W911SD14R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 OCEAN AVE STE A, BOHEMIA, NY, 11716

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: $51,083,413

Exercised Options: $51,083,413

Current Obligation: $49,040,351

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline