Army Corps of Engineers awards $37.3M contract for miscellaneous building construction to Okland Construction Company
Contract Overview
Contract Amount: $37,268,339 ($37.3M)
Contractor: Okland Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-02-15
End Date: 2009-05-29
Contract Duration: 1,199 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIXED PRICE
Sector: Construction
Official Description: 200606!600457!2100!W91238!USA ENGINEER DIST SACRAMENTO !W9123806C0008 !A!N! !N! ! !20060215!20080930!056090319!056090319!056090319!N!OKLAND CONSTRUCTION COMPANY IN!1978 S WEST TEMPLE !SALT LAKE CITY !UT!84115!35410!011!49!HILL AFB !DAVIS !UTAH !+000017452000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!B! !D!N!C! ! !N!C!N! ! ! !D!D!A!A!000!A!B!Y! !N! ! ! ! !0001! !
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to OKLAND CONSTRUCTION COMPANY, INC. for work described as: 200606!600457!2100!W91238!USA ENGINEER DIST SACRAMENTO !W9123806C0008 !A!N! !N! ! !20060215!20080930!056090319!056090319!056090319!N!OKLAND CONSTRUCTION COMPANY IN!1978 S WEST TEMPLE !SALT LAKE CITY !UT!84115!35410!011!49!HILL AFB !DAVI… Key points: 1. The contract value of $37.3 million is within the typical range for large-scale construction projects. 2. Competition was full and open, suggesting a competitive bidding process. 3. The fixed-price contract type shifts risk to the contractor. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: fair
The contract value of $37.3 million for a definitive contract is substantial. Without specific details on the scope of work, it's difficult to benchmark precisely against similar contracts. However, the fixed-price nature suggests a defined scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for necessary construction services.
Public Impact
Construction projects can lead to job creation and economic activity in the local area. Federal infrastructure investments contribute to national security and operational readiness. The project's completion will provide updated or new facilities for military personnel or government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the scope of work makes detailed value assessment challenging.
- Potential for cost overruns if unforeseen issues arise, despite fixed-price contract.
- Long contract duration (1199 days) increases exposure to market fluctuations.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Fixed-price contract type provides cost certainty for the government.
- Award to an established company with a long history.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending for infrastructure development and facility maintenance. Benchmarks for similar projects would depend heavily on the specific type and scale of the building.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating oversight by a federal agency. The definitive contract type suggests a clear scope and deliverables, facilitating accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep if 'miscellaneous buildings' are not clearly defined.
- Contract duration of nearly 3.5 years increases exposure to economic volatility.
- Limited information on specific building types hinders detailed risk assessment.
- No explicit mention of small business subcontracting goals.
Tags
commercial-and-institutional-building-co, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to OKLAND CONSTRUCTION COMPANY, INC.. 200606!600457!2100!W91238!USA ENGINEER DIST SACRAMENTO !W9123806C0008 !A!N! !N! ! !20060215!20080930!056090319!056090319!056090319!N!OKLAND CONSTRUCTION COMPANY IN!1978 S WEST TEMPLE !SALT LAKE CITY !UT!84115!35410!011!49!HILL AFB !DAVIS !UTAH !+000017452000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !999
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 $37.3 million.
What is the period of performance?
Start: 2006-02-15. End: 2009-05-29.
What specific type of 'other miscellaneous buildings' are being constructed or renovated under this contract?
The provided data classifies the project under 'OTHER MISCELLANEOUS BUILDINGS' (NAICS 236220) and 'Commercial and Institutional Building Construction'. Without further details, the exact nature of these buildings remains unspecified. This could range from administrative offices, barracks, storage facilities, or specialized operational structures, each carrying different cost implications and functional requirements.
How does the fixed-price contract structure mitigate risks for the government given the project's duration?
A fixed-price contract shifts the risk of cost overruns to the contractor, Okland Construction Company. While the government has cost certainty, the contractor must absorb any unexpected expenses related to labor, materials, or unforeseen site conditions. However, the long duration (1199 days) still presents risks for the contractor, potentially impacting their profit margin if market prices increase significantly.
What is the expected impact of this construction project on the local economy in Utah?
This $37.3 million contract is likely to have a positive impact on the local economy in Utah through job creation in construction trades, material sourcing, and related support services. The project's duration suggests sustained economic activity. The specific economic multiplier effect would depend on the extent to which local labor and materials are utilized.
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: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1978 S WEST TEMPLE, SALT LAKE CITY, UT, 84115
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-02-15
Current End Date: 2009-05-29
Potential End Date: 2009-05-29 00:00:00
Last Modified: 2021-02-25
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