DoD's $616M USSTRATCOM Facility Contract Awarded to Kiewit Phelps Under Full and Open Competition
Contract Overview
Contract Amount: $616,467,976 ($616.5M)
Contractor: Kiewit Phelps
Awarding Agency: Department of Defense
Start Date: 2012-08-16
End Date: 2018-09-18
Contract Duration: 2,224 days
Daily Burn Rate: $277.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF M - USSTRATCOM REPLACEMENT FACILITY
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $616.5 million to KIEWIT PHELPS for work described as: IGF::OT::IGF M - USSTRATCOM REPLACEMENT FACILITY Key points: 1. The contract awarded to Kiewit Phelps for the USSTRATCOM Replacement Facility represents a significant investment in defense infrastructure. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The project's duration and firm-fixed-price nature indicate a focus on cost control and predictable outcomes. 4. The construction sector is highly competitive, and this project's scale places it among major infrastructure developments.
Value Assessment
Rating: good
The award amount of $616.47 million for a definitive contract suggests a substantial project. Benchmarking against similar large-scale institutional building construction projects would be necessary for a precise value assessment, but the firm-fixed-price structure aims for cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The use of a definitive contract with multiple awards (5) suggests a structured approach to managing the project's scope and cost over its lifecycle.
Taxpayer Impact: The competitive bidding process inherent in full and open competition is designed to secure the best value for taxpayers by driving down costs through market forces.
Public Impact
Enhances critical national security infrastructure for USSTRATCOM. Supports economic activity through construction jobs and material procurement. Demonstrates government commitment to modernizing strategic command facilities. Potential for long-term operational efficiencies due to new facility design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large, long-duration construction projects.
- Risk of schedule delays impacting operational readiness.
- Dependence on a single contractor for a critical facility.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition promotes market-driven pricing.
- Awarded by the Department of the Army, indicating established procurement processes.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is cyclical and influenced by government infrastructure needs, economic conditions, and defense priorities. Benchmarks for similar large-scale military construction projects would provide further context.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). While Kiewit Phelps is a large prime contractor, subcontracting opportunities for small businesses may exist within the project's execution, though this is not explicitly detailed.
Oversight & Accountability
The use of a definitive contract with multiple awards and a firm-fixed-price structure suggests a degree of oversight in defining scope and managing costs. However, the long duration of the contract necessitates ongoing monitoring to ensure compliance and prevent cost creep.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to project scale and duration.
- Risk of schedule delays impacting critical defense operations.
- Contractor performance and quality control.
- Changes in strategic requirements impacting facility use.
- Economic fluctuations affecting material and labor costs.
Tags
commercial-and-institutional-building-co, department-of-defense, ne, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $616.5 million to KIEWIT PHELPS. IGF::OT::IGF M - USSTRATCOM REPLACEMENT FACILITY
Who is the contractor on this award?
The obligated recipient is KIEWIT PHELPS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $616.5 million.
What is the period of performance?
Start: 2012-08-16. End: 2018-09-18.
What was the initial estimated cost versus the final award amount, and how did competition influence this?
The provided data does not include the initial estimated cost, only the award amount of $616.47 million. Full and open competition is intended to drive the award amount down from initial estimates by fostering a competitive bidding environment. Without the estimate, a direct comparison of competitive impact on price is not possible.
What are the key performance indicators (KPIs) for this contract, and how are they monitored to mitigate risks?
Specific KPIs are not detailed in the provided data. However, for a large construction project with a firm-fixed-price contract, KPIs likely focus on schedule adherence, quality of construction, safety compliance, and adherence to specifications. Oversight by the Department of the Army would involve regular progress reviews and inspections to monitor these aspects.
How does the operational effectiveness of the new USSTRATCOM facility compare to the previous one, and what is the projected ROI?
The data focuses on the procurement and construction aspects, not the operational effectiveness or return on investment (ROI) of the facility itself. The replacement facility is presumed to offer improved capabilities and efficiency, but a detailed analysis of its operational impact and financial ROI would require separate assessments beyond contract data.
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: W9128F11R0023
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peter Kiewit Sons Inc (UEI: 070729517)
Address: 302 S 36TH ST STE 500-2004, OMAHA, NE, 68131
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $616,467,976
Exercised Options: $616,467,976
Current Obligation: $616,467,976
Subaward Activity
Number of Subawards: 150
Total Subaward Amount: $361,380,984
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-16
Current End Date: 2018-09-18
Potential End Date: 2018-09-18 00:00:00
Last Modified: 2020-03-19
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