Department of the Army awards $48.8M contract for Cullum Hall renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $48,815,591 ($48.8M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2021-08-25

End Date: 2025-11-29

Contract Duration: 1,557 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE RENOVATION OF THE CULLUM HALL

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to J KOKOLAKIS CONTRACTING INC for work described as: THE RENOVATION OF THE CULLUM HALL Key points: 1. Contract value of $48.8 million represents a significant investment in facility upgrades. 2. The project falls under commercial and institutional building construction, a key segment of the infrastructure market. 3. A firm-fixed-price contract type suggests defined scope and cost certainty for the government. 4. The duration of 1557 days indicates a substantial, long-term renovation project. 5. Awarded by the Department of the Army, this contract supports military infrastructure maintenance and improvement. 6. The geographic location in New York may have implications for local construction workforce utilization.

Value Assessment

Rating: good

The contract value of $48.8 million for the renovation of Cullum Hall appears within a reasonable range for a large-scale institutional building project. Without specific benchmarks for similar historical renovations of Army facilities, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure aims to control costs. Further analysis would require comparing the scope of work and final cost to similar projects within the Department of Defense or other federal agencies undertaking comparable construction.

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 presence of six bidders suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition for this significant renovation project is beneficial for taxpayers, as it likely drove down the final contract price through multiple bids and encouraged efficient cost proposals from contractors.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the renovated Cullum Hall. The contract delivers essential renovation and construction services to improve a key facility. The geographic impact is concentrated in New York, potentially benefiting the local economy through job creation and material sourcing. The project will likely involve a significant construction workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive renovation period.
Dependence on the contractor's ability to manage a complex, multi-year project effectively.
Risk of schedule delays impacting the facility's availability for its intended purpose.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition suggests a competitive bidding process that likely secured a fair market price.
The contractor, J Kokolakis Contracting Inc., has experience in government contracting, potentially indicating a lower execution risk.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building, alteration, or repair of nonresidential structures. Federal spending in this area is crucial for maintaining and upgrading government facilities, including administrative buildings, barracks, and training centers. Comparable spending benchmarks would involve analyzing other large-scale construction and renovation contracts awarded by federal agencies for similar types of buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. The absence of specific small business set-aside provisions means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor, J Kokolakis Contracting Inc. The impact on the small business ecosystem depends on the prime's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified renovation within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed project progress and specific oversight activities may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization (FSRM)
General Services Administration (GSA) Public Buildings Service Contracts
Department of Defense Construction Contracts

Risk Flags

Long project duration increases risk of unforeseen issues and cost escalation.
Potential for scope creep if requirements are not clearly defined or evolve.
Dependence on contractor's capacity to manage a large-scale, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to J KOKOLAKIS CONTRACTING INC. THE RENOVATION OF THE CULLUM HALL

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 $48.8 million.

What is the period of performance?

Start: 2021-08-25. End: 2025-11-29.

What is the track record of J Kokolakis Contracting Inc. with federal contracts, particularly in construction and renovation?

J Kokolakis Contracting Inc. has a history of federal contracting, with this award representing a significant value. Analyzing their past performance on similar projects, especially those with the Department of Defense or involving large-scale building renovations, would provide insight into their capabilities and reliability. Past contract awards, completion records, and any reported performance issues or awards for excellence would inform an assessment of their track record. A review of their federal contract history would reveal the types of projects they have undertaken, their success rates, and their adherence to timelines and budgets on previous government engagements.

How does the $48.8 million contract value compare to similar large-scale building renovations undertaken by the Department of the Army or other federal agencies?

Benchmarking the $48.8 million contract value requires comparing it against similar projects in terms of scope, complexity, and facility type. Large-scale renovations of institutional or military buildings can vary significantly in cost based on factors like structural integrity, historical significance, required upgrades (e.g., HVAC, electrical, seismic), and location. Without specific data on comparable projects, it's difficult to definitively state if this value is high or low. However, for a project spanning over 1500 days, a value in the tens of millions is not unusual for substantial renovations of significant federal facilities.

What are the primary risks associated with a multi-year renovation project of this magnitude, and how are they mitigated?

The primary risks for a project of this scale and duration include unforeseen site conditions (e.g., hazardous materials, structural issues), potential for scope creep, contractor performance issues, and schedule delays. Mitigation strategies typically involve thorough pre-award site assessments, detailed contract specifications, robust project management by the government, contingency planning, and performance bonds. The firm-fixed-price contract structure itself is a risk mitigation tool for the government, placing the onus on the contractor to manage costs within the agreed-upon price, though change orders can still impact the total cost if scope changes.

What is the expected impact of this renovation on the operational readiness or functionality of the facility it serves?

The renovation of Cullum Hall is expected to significantly enhance its operational readiness and functionality. By addressing aging infrastructure, modernizing systems, and potentially improving layout or capacity, the project aims to create a more efficient, safe, and suitable environment for its intended use. This could range from improved living quarters for personnel, enhanced training capabilities, or more effective administrative spaces. The long duration suggests a comprehensive overhaul, implying a substantial positive impact on the facility's long-term utility and service delivery.

How has federal spending on commercial and institutional building construction trended in recent years, and where does this contract fit?

Federal spending on commercial and institutional building construction has generally seen fluctuations influenced by infrastructure initiatives, military readiness needs, and broader economic conditions. This $48.8 million contract represents a significant single award within this category. Analyzing trends would involve looking at aggregate spending data from agencies like the Army Corps of Engineers, GSA, and other departments with substantial real estate portfolios. This contract fits within the ongoing federal effort to maintain, modernize, and upgrade its vast inventory of buildings and facilities across the country and overseas.

What are the implications of the 'Firm Fixed Price' contract type for cost control and potential for change orders?

A Firm Fixed Price (FFP) contract type is designed to provide the government with cost certainty. The contractor assumes the risk of cost overruns, and the price remains fixed unless the contract scope is formally changed through a modification or change order. For this project, it means the $48.8 million is the target cost, and the contractor must deliver the specified renovation within that budget. Potential for change orders exists if unforeseen conditions arise or if the government requests modifications to the original scope. Each change order would typically involve a negotiation of cost and schedule impacts, potentially increasing the total contract value.

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: W912DS21R0003

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J. Kokolakis Contracting, Inc.

Address: 202 E CENTER ST, TARPON SPRINGS, FL, 34689

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: $48,815,591

Exercised Options: $48,815,591

Current Obligation: $48,815,591

Actual Outlays: $2,895,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline