Tinker AFB KC-46A Hangar Contract Awarded to Korte Construction for $65.3M Under Full and Open Competition
Contract Overview
Contract Amount: $65,296,480 ($65.3M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2019-08-28
End Date: 2023-01-09
Contract Duration: 1,230 days
Daily Burn Rate: $53.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF THE KC-46A DEPOT MAINTENANCE HANGAR ON THE KC-46A CAMPUS AT TINKER AFB, OKLAHOMA.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73141
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $65.3 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN AND CONSTRUCTION OF THE KC-46A DEPOT MAINTENANCE HANGAR ON THE KC-46A CAMPUS AT TINKER AFB, OKLAHOMA. Key points: 1. The contract is for the design and construction of a depot maintenance hangar for the KC-46A aircraft. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The project is located at Tinker AFB, Oklahoma, a significant military installation. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of $65.3 million for a large-scale industrial facility like a depot maintenance hangar appears reasonable given the scope. Benchmarking against similar large construction projects for military aviation infrastructure would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to result in a fair price for taxpayers, avoiding inflated costs associated with less competitive procurement methods.
Public Impact
Supports the operational readiness of the KC-46A tanker fleet by providing essential maintenance facilities. Contributes to the local economy in Oklahoma through construction jobs and related services. Enhances the infrastructure at Tinker AFB, a critical hub for Air Force logistics and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise.
- Schedule delays could impact KC-46A maintenance timelines.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty for the government.
- Full and open competition likely secured a competitive price.
- Project supports a critical national defense asset.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for large-scale government projects can vary significantly based on infrastructure needs and defense priorities. The $65.3M value is substantial for a single facility.
Small Business Impact
While the prime contractor is Korte Construction Company, the contract details do not specify any subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, as the procuring agency, is responsible for oversight. The Firm Fixed Price contract structure provides a degree of cost accountability, but monitoring progress and quality is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Schedule slippage risk
- Cost overrun potential (despite FFP)
- Quality control challenges
- Dependency on specific construction materials/labor
Tags
commercial-and-institutional-building-co, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.3 million to KORTE CONSTRUCTION COMPANY. DESIGN AND CONSTRUCTION OF THE KC-46A DEPOT MAINTENANCE HANGAR ON THE KC-46A CAMPUS AT TINKER AFB, OKLAHOMA.
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 $65.3 million.
What is the period of performance?
Start: 2019-08-28. End: 2023-01-09.
What is the estimated cost per square foot for this hangar, and how does it compare to industry benchmarks for similar facilities?
The provided data does not include the square footage of the hangar, making a per-square-foot cost calculation impossible. To assess value, this metric would need to be obtained and compared against industry averages for military aviation depot maintenance hangars, considering factors like specialized equipment and structural requirements.
What are the key performance indicators (KPIs) being tracked for this project, and what are the potential risks associated with not meeting them?
Specific KPIs are not detailed in the provided data. However, typical KPIs for such a project would include schedule adherence, quality of construction, safety compliance, and adherence to design specifications. Risks of not meeting these include project delays impacting KC-46A readiness, costly rework due to quality issues, and potential safety incidents.
How does the awarded price compare to the government's independent cost estimate (ICE) for this project?
The provided data does not include the government's Independent Cost Estimate (ICE). Comparing the awarded price of $65.3 million to the ICE is essential for a thorough value assessment. A significant difference could indicate issues with the bidding process, the contractor's proposal, or the accuracy of the government's estimate.
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: TWO STEP
Solicitation ID: W912BV18R0050
Offers Received: 4
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: $65,296,480
Exercised Options: $65,296,480
Current Obligation: $65,296,480
Subaward Activity
Number of Subawards: 207
Total Subaward Amount: $341,725,666
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-08-28
Current End Date: 2023-01-09
Potential End Date: 2023-01-09 00:00:00
Last Modified: 2025-12-03
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