DoD Awards $62.8M Contract for Grand Forks Aircraft Maintenance Facility
Contract Overview
Contract Amount: $62,795,252 ($62.8M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2024-10-10
End Date: 2026-10-31
Contract Duration: 751 days
Daily Burn Rate: $83.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF DRP AIRCRAFT MAINTENANCE FACILITY, GRAND FORKS BLDG. 649
Place of Performance
Location: GRAND FORKS AFB, GRAND FORKS County, NORTH DAKOTA, 58204
Plain-Language Summary
Department of Defense obligated $62.8 million to KORTE CONSTRUCTION COMPANY for work described as: CONSTRUCTION OF DRP AIRCRAFT MAINTENANCE FACILITY, GRAND FORKS BLDG. 649 Key points: 1. Significant investment in critical military infrastructure. 2. Korte Construction Company secured the award. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector faces material cost volatility and labor shortages.
Value Assessment
Rating: good
The contract value of $62.8 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar military facility construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is expected to maximize taxpayer value by ensuring the government receives the best possible price for the construction services.
Public Impact
Enhances operational readiness for the Air Force at Grand Forks. Supports local economic development through construction jobs and related services. Long-term asset for military aviation maintenance and training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of unforeseen site conditions or material cost increases.
- Limited small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Project addresses a critical military infrastructure need.
Sector Analysis
This contract falls within the broader construction sector, specifically institutional building construction. Spending benchmarks for similar military facilities vary widely based on size, complexity, and location, but $62.8M is a substantial investment.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that the prime contractor, Korte Construction Company, will likely handle the majority of the work, potentially with limited subcontracting to small businesses.
Oversight & Accountability
The award was made by the Department of the Army, indicating established oversight processes for military construction projects. The firm fixed-price nature of the contract should help in managing costs, but ongoing monitoring will be crucial to ensure adherence to schedule and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction delays.
- Risk of unforeseen site conditions.
- Material cost volatility.
- Limited small business involvement.
Tags
commercial-and-institutional-building-co, department-of-defense, nd, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.8 million to KORTE CONSTRUCTION COMPANY. CONSTRUCTION OF DRP AIRCRAFT MAINTENANCE FACILITY, GRAND FORKS BLDG. 649
Who is the contractor on this award?
The obligated recipient is KORTE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $62.8 million.
What is the period of performance?
Start: 2024-10-10. End: 2026-10-31.
What is the projected impact of the new facility on the operational efficiency of the DRP aircraft maintenance units?
The new facility is expected to significantly enhance operational efficiency by providing modern, purpose-built infrastructure. This includes state-of-the-art maintenance bays, improved logistics, and better environmental controls, all contributing to faster turnaround times and increased aircraft readiness.
What are the primary risks associated with the construction timeline and potential cost escalations?
Key risks include potential weather delays in North Dakota, unforeseen subsurface conditions, and fluctuations in material and labor costs. The firm fixed-price contract mitigates direct cost escalation for the government, but delays could still impact overall program timelines and readiness.
How effectively does this contract leverage competition to ensure value for taxpayer dollars?
The contract was awarded through full and open competition, which is a strong indicator of effective value realization. This process allows multiple qualified contractors to bid, driving down prices and ensuring the government selects the most cost-effective and capable offer.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9128F24R0013
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE STE 275, SAINT LOUIS, MO, 63110
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: $63,571,954
Exercised Options: $62,795,252
Current Obligation: $62,795,252
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $4,774,005
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-10
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-11-18
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