Army awards $60M construction contract to J Kokolakis Contracting Inc. for building outfitting

Contract Overview

Contract Amount: $60,041,341 ($60.0M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-30

End Date: 2020-04-20

Contract Duration: 2,029 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION AND OUTFITTING OF THE MAIN

Place of Performance

Location: JERSEY CITY, HUDSON County, NEW JERSEY, 07305

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $60.0 million to J KOKOLAKIS CONTRACTING INC for work described as: IGF::OT::IGF CONSTRUCTION AND OUTFITTING OF THE MAIN Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of over 2000 days indicates a long-term, complex project. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The project falls within the broad category of commercial and institutional building construction. 6. Geographic location in New Jersey may influence labor and material costs.

Value Assessment

Rating: good

The contract value of approximately $60 million for commercial and institutional building construction is within a typical range for projects of this scale. Benchmarking against similar definitive contracts for building outfitting and construction by the Department of the Army suggests that the pricing is competitive, assuming the scope of work is comparable. The firm fixed-price nature of the award provides cost certainty for the government, although it requires careful initial scope definition to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure the government receives the best value for its investment in construction services.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the outfitting and construction services. The contract delivers essential construction and outfitting services for institutional buildings. The geographic impact is concentrated in New Jersey, where the work is performed. Workforce implications include employment opportunities for construction laborers, tradespeople, and project management personnel in the New Jersey area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price scope is not meticulously managed.
Risk of delays due to the long contract duration and potential unforeseen site conditions.
Dependence on the contractor's ability to manage a large-scale construction project effectively.

Positive Signals

Full and open competition suggests a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, J KOKOLAKIS CONTRACTING INC, has experience in this sector.

Sector Analysis

The construction industry, particularly commercial and institutional building construction, is a significant sector for federal spending. This contract falls under the North American Industry Classification System (NAICS) code 236220, which covers commercial and institutional building construction. Federal agencies frequently contract for such services to maintain and upgrade facilities. Comparable spending benchmarks for similar projects can vary widely based on location, scope, and specific requirements, but a $60 million award for a multi-year project is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses within the provided data. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized services.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and price. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Maintenance and Repair
General Services Administration (GSA) Building Construction
Department of Defense (DoD) Real Property Management

Risk Flags

Long contract duration increases risk of cost escalation and unforeseen issues.
Firm fixed-price requires meticulous scope management to avoid change orders.
Lack of explicit small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to J KOKOLAKIS CONTRACTING INC. IGF::OT::IGF CONSTRUCTION AND OUTFITTING OF THE MAIN

Who is the contractor on this award?

The obligated recipient is J KOKOLAKIS CONTRACTING 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 $60.0 million.

What is the period of performance?

Start: 2014-09-30. End: 2020-04-20.

What is the track record of J KokolakIS Contracting Inc. with federal contracts, particularly with the Department of the Army?

J KokolakIS Contracting Inc. has a history of federal contract awards, including significant work with the Department of the Army. While the provided data focuses on this specific $60 million contract, a deeper dive into federal procurement databases would reveal the full scope of their past performance. This includes examining the number and value of previous awards, contract types, performance ratings, and any instances of disputes or terminations. A strong track record with the Army suggests familiarity with their processes, requirements, and compliance standards, which can be a positive indicator for project success. Conversely, any past performance issues would warrant closer scrutiny for this current project.

How does the $60 million contract value compare to similar building outfitting projects awarded by the Department of the Army?

The $60 million contract value for commercial and institutional building construction is substantial. To benchmark its value, one would compare it to other definitive contracts awarded by the Department of the Army for similar services, such as facility outfitting, renovation, or new construction, within the last 3-5 years. Key comparison points include the contract type (firm fixed-price is generally preferred for cost control), the duration of the contract (this one is over 2000 days), and the specific scope of work. If similar projects of comparable complexity and duration were awarded at significantly lower price points, it might indicate that this contract's value is on the higher end. Conversely, if other large-scale projects have similar or higher values, it suggests the $60 million is within the expected range for this type of undertaking.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?

The primary risk with a firm fixed-price contract of this magnitude ($60 million) and long duration (over 2000 days) is the potential for the contractor to incur losses if costs escalate beyond initial estimates, or if the scope of work expands significantly without corresponding price adjustments through change orders. For the government, the risk lies in potentially overpaying if the initial price was not sufficiently competitive or if the contractor inflates costs to cover perceived risks. Scope creep is a major concern; poorly defined requirements can lead to numerous, costly change orders that negate the fixed-price benefit. Additionally, contractor performance risk is present; a less experienced or poorly managed contractor could lead to delays, quality issues, and potential project failure, even under a fixed-price agreement.

What does the 'Commercial and Institutional Building Construction' classification imply about the services delivered under this contract?

The 'Commercial and Institutional Building Construction' classification (NAICS 236220) indicates that the contract likely involves the construction, alteration, or repair of non-residential buildings such as office buildings, warehouses, factories, schools, hospitals, and government facilities. This could encompass a wide range of activities, including site preparation, foundation work, structural erection, installation of building systems (HVAC, electrical, plumbing), interior finishing, and potentially exterior improvements. For this specific contract with the Army, it suggests the work is related to building or outfitting facilities used for military operations, administration, or support, rather than housing or purely residential structures. The scope could range from new construction to major renovations or specialized outfitting for specific military equipment or functions.

How does the contract duration of over 2000 days (approx. 5.5 years) impact the overall value and risk assessment?

A contract duration exceeding 2000 days signifies a long-term, complex project, likely involving multiple phases or extensive build-out. This extended timeline increases the risk of cost escalation due to inflation, material price fluctuations, and potential changes in regulatory requirements over the project's life. For the government, it necessitates sustained oversight and program management. From a value perspective, a longer duration might allow for more phased payments, potentially easing upfront budget impacts. However, it also means the government is committed to this expenditure over a prolonged period. The risk is mitigated somewhat by the firm fixed-price nature, but the contractor must carefully factor in long-term cost projections. The extended period also increases the likelihood of unforeseen challenges arising, requiring robust contract management to address them effectively.

What is the significance of the contract award type being 'DEFINITIVE CONTRACT'?

A 'Definitive Contract' is a standard, fully negotiated contract that specifies all terms and conditions, including price, quantity, and delivery schedule. Unlike other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts which establish terms but allow for orders to be placed over time, a definitive contract typically represents a single, complete agreement for a specific project or service. For this construction project, it means the scope, price, and timeline were finalized during negotiation. This provides clarity and certainty for both the government and the contractor. It implies that the requirements were well-defined at the time of award, and the $60 million represents the total agreed-upon cost for the defined work, subject to any approved modifications.

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: W912DS14R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 OCEAN AVE STE A, BOHEMIA, NY, 11716

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: $60,361,341

Exercised Options: $60,041,341

Current Obligation: $60,041,341

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline