J KOKOLAKIS CONTRACTING INC awarded $65.8M for construction services, with a 799-day duration

Contract Overview

Contract Amount: $65,821,371 ($65.8M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2015-07-27

End Date: 2017-10-03

Contract Duration: 799 days

Daily Burn Rate: $82.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $65.8 million to J KOKOLAKIS CONTRACTING INC for work described as: IGF::OT::IGF Key points: 1. The contract's firm fixed-price structure suggests a defined scope and cost control. 2. With 3 bidders, competition was present but could potentially be enhanced for better price discovery. 3. The contract's duration of 799 days indicates a significant, long-term project. 4. Awarded by the Department of the Army, this contract falls within the defense sector's infrastructure spending. 5. The absence of small business set-aside flags suggests a focus on larger prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar construction projects of comparable scale and complexity. The total award amount of $65.8 million for a 799-day duration suggests a substantial investment. Without specific performance metrics or a breakdown of costs per unit of work (e.g., per square foot, per building), a precise value-for-money assessment is challenging. However, the firm fixed-price nature implies the contractor bears the risk of cost overruns, which can be a positive indicator if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders, there was a degree of competition, which is generally favorable for price discovery. However, a higher number of bidders often leads to more competitive pricing. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with a moderate number of bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and terms to secure the contract.

Public Impact

The primary beneficiaries are likely the Department of the Army and its personnel, who will utilize the constructed facilities. The services delivered involve commercial and institutional building construction, implying the creation or renovation of essential infrastructure. The geographic impact is centered in New York (ST: NY, SN: NEW YORK), suggesting local economic benefits through job creation and material sourcing. Workforce implications include employment opportunities for construction workers, project managers, and support staff in the New York region.

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.
The duration of the contract (799 days) could lead to schedule delays impacting operational readiness.
Limited transparency on the specific cost components within the firm fixed-price award.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, suggesting a broad search for qualified bidders.
Contractor J KOKOLAKIS CONTRACTING INC has experience in this sector, indicated by the award.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, schools, hospitals, and government facilities. Federal spending in this area is crucial for maintaining and expanding government infrastructure. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar government building projects in the Northeast region and the typical contract values for projects of this scale and duration.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of mandatory small business subcontracting goals. This suggests that the primary contract was likely awarded to a large business capable of undertaking a project of this magnitude. The absence of specific subcontracting requirements means that opportunities for small businesses to participate in this project may be limited to those that can secure work directly from the prime contractor on a voluntary basis.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally provided through contract award databases, but detailed project progress and financial reporting may be internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Infrastructure Projects

Risk Flags

Potential for cost escalation not captured in fixed price.
Schedule risk due to long project duration.
Limited visibility into contractor's cost structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.8 million to J KOKOLAKIS CONTRACTING INC. IGF::OT::IGF

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 $65.8 million.

What is the period of performance?

Start: 2015-07-27. End: 2017-10-03.

What is the track record of J KOKOLAKIS CONTRACTING INC with the Department of Defense?

J KOKOLAKIS CONTRACTING INC has a history of receiving federal contracts, including this significant award from the Department of the Army. Analyzing their past performance on similar construction projects for the DoD would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of past contract awards, modifications, and any reported performance issues or disputes would be necessary for a comprehensive assessment. This specific contract, valued at over $65 million and spanning nearly two years, suggests a capacity to handle large-scale projects. Further investigation into their contract completion rates and any contract terminations or penalties would offer a clearer picture of their performance history.

How does the cost per day of this contract compare to similar construction projects?

The total contract value is $65,821,371 over a duration of 799 days. This equates to an average daily cost of approximately $82,380 ($65,821,371 / 799 days). To benchmark this, one would need to compare this figure against the average daily costs of similar commercial and institutional building construction projects undertaken by the federal government, particularly within the Department of Defense and in the New York region. Factors such as project complexity, specific construction type (e.g., new build vs. renovation), material costs, labor rates, and prevailing economic conditions significantly influence daily costs. Without access to a database of comparable project daily expenditures, a precise comparison is difficult, but this figure provides a starting point for further analysis.

What are the primary risks associated with a firm fixed-price contract of this duration?

The primary risks associated with a firm fixed-price contract of this duration (799 days) primarily fall on the contractor. These include the risk of underestimating costs due to fluctuating material prices, labor shortages, or unforeseen site conditions that could arise over the extended project timeline. For the government, the main risk is that the fixed price might not represent the best possible value if competition was weak or if the contractor inflates their bid to cover potential risks. Schedule delays are also a risk, as the contractor may face challenges in completing the project within the specified timeframe, potentially impacting the agency's operational needs. Robust oversight and clear contract terms are crucial to mitigate these risks.

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

Historical spending patterns for commercial and institutional building construction by the Department of the Army are substantial, reflecting the continuous need to maintain and upgrade military infrastructure. The Army invests billions annually in facilities that support training, housing, operations, and administrative functions. This spending fluctuates based on military readiness requirements, modernization initiatives, and infrastructure replacement cycles. Analyzing past budgets and contract awards within the 'Commercial and Institutional Building Construction' (NAICS 236220) category would reveal trends in contract values, types of projects awarded, and geographic distribution of spending. This specific $65.8 million contract represents one component of that larger historical spending picture.

How effective is the competition level (3 bidders) in ensuring competitive pricing for large construction projects?

A competition level with three bidders is generally considered adequate but not optimal for ensuring the most competitive pricing on large construction projects. While it indicates that multiple firms were interested and capable of undertaking the work, a higher number of bidders (e.g., five or more) typically drives prices down further as firms compete more aggressively to win the contract. The effectiveness also depends on the nature of the bidders – whether they are direct competitors with similar cost structures and capabilities. If the three bidders were all highly qualified and submitted aggressive bids, the pricing could still be competitive. However, there's a possibility that with more bidders, even lower prices might have been achievable, potentially saving taxpayer dollars.

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: W911SD15R0002

Offers Received: 3

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: $65,821,371

Exercised Options: $65,821,371

Current Obligation: $65,821,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline