Department of Defense awarded Okland Construction $10.6M for commercial building construction in Utah
Contract Overview
Contract Amount: $10,655,494 ($10.7M)
Contractor: Okland Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-12-21
End Date: 2008-09-30
Contract Duration: 1,379 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $10.7 million to OKLAND CONSTRUCTION COMPANY, INC. for work described as: Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The contract duration of approximately 3.8 years suggests a significant project scope. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The project is located in Utah, providing geographic context for the construction work.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the construction project. However, a $10.6 million contract for commercial and institutional building construction over nearly four years suggests a moderate-sized project. The firm fixed-price nature shifts cost risk to the contractor, which can be favorable for the government if managed well. Further analysis would require comparing the scope and quality of work to similar DoD construction projects awarded around the same period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a reasonable level of competition for this construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.
Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel who will utilize the constructed facilities. The services delivered involve the construction of commercial and institutional buildings. The geographic impact is concentrated in Utah, supporting local economic activity and employment. The contract supports the construction workforce in Utah, including skilled trades and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm fixed-price contract does not adequately account for all project contingencies.
- Ensuring the quality of construction meets DoD standards throughout the project lifecycle.
- Managing the contractor's performance over the extended contract duration.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor.
- Full and open competition with multiple bidders suggests a competitive pricing environment.
- Award to Okland Construction Company, Inc., a known entity in the construction sector.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The Department of Defense is a major client for construction services, often requiring specialized facilities. Benchmarking this $10.6 million award would involve comparing it to other DoD construction contracts of similar scope and complexity awarded during the mid-2000s, considering regional construction cost variations.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited, though the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting activity. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified construction within the agreed price. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may vary in public accessibility.
Related Government Programs
- Department of Defense Military Construction
- General Services Administration (GSA) Public Buildings Service Construction
- Army Corps of Engineers Construction Contracts
Risk Flags
- Contract awarded during a period of significant military engagement, potentially impacting resource availability and costs.
- Firm Fixed Price contracts can lead to disputes if unforeseen conditions arise.
- Construction projects inherently carry risks related to site conditions, materials, and labor.
Tags
construction, department-of-defense, department-of-the-army, utah, firm-fixed-price, full-and-open-competition, commercial-building, institutional-building, medium-contract-value, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to OKLAND CONSTRUCTION COMPANY, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is OKLAND CONSTRUCTION COMPANY, 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 $10.7 million.
What is the period of performance?
Start: 2004-12-21. End: 2008-09-30.
What was the specific nature and scope of the commercial and institutional building constructed under this contract?
The provided data does not specify the exact nature or scope of the commercial and institutional building constructed. It falls under NAICS code 236220, which covers the construction of commercial and institutional buildings. This could range from administrative facilities, barracks, training centers, or other types of non-residential structures. Without further details, it's impossible to ascertain the specific purpose, size (square footage), or complexity of the facility built. Understanding the scope is crucial for a comprehensive value assessment and comparison to similar projects.
How does the $10.6 million award compare to the average cost of similar DoD construction projects during the 2004-2008 period?
Comparing the $10.6 million award requires context on the project's scope, size, and location. During the 2004-2008 period, the DoD undertook numerous construction projects. The average cost would vary significantly based on the type of facility (e.g., barracks vs. a specialized research facility), square footage, materials used, and labor costs in the specific region (Utah, in this case). A $10.6 million project could be considered moderate to large depending on these factors. To provide a meaningful comparison, one would need to identify similar DoD construction projects awarded within that timeframe and region, analyze their scope, and then benchmark the cost per square foot or per functional unit.
What were the key performance indicators (KPIs) and quality assurance measures established for this construction contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. However, for a construction project of this magnitude awarded by the Department of the Army, it is standard practice to include stringent QA/QC (Quality Assurance/Quality Control) clauses. These typically involve regular site inspections, material testing, adherence to architectural and engineering specifications, safety compliance, and progress reporting. Performance would likely be evaluated based on schedule adherence, budget management (within the fixed price), and the final quality and functionality of the completed structure according to contract specifications.
What is Okland Construction Company, Inc.'s track record with the Department of Defense and similar federal construction projects?
The data indicates Okland Construction Company, Inc. was awarded this $10.6 million contract by the Department of the Army. To assess their track record, one would need to examine their past performance on other federal contracts, particularly with the DoD and other agencies like the General Services Administration (GSA) or the Army Corps of Engineers. Key aspects to review would include their history of on-time and on-budget project completion, any past performance issues or disputes, their experience with similar types of construction, and their overall rating in federal contractor performance databases. Without this historical data, it's difficult to definitively assess their suitability and reliability for this specific project.
Were there any significant cost variances or change orders associated with this contract during its execution?
The provided data does not contain information regarding cost variances or change orders for this contract. As it was a firm fixed-price contract, the expectation is that the contractor would absorb any cost overruns. However, change orders can still occur if the scope of work is modified by the government or due to unforeseen site conditions that were not reasonably foreseeable. Analyzing contract modification history, if available, would reveal if any changes were issued and their financial impact, which could deviate from the initial $10.6 million award amount.
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1978 S WEST TEMPLE, SALT LAKE CITY, UT, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-12-21
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2008-08-12
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