Korte Construction awarded $18.2M contract for Fort Lewis medical clinic construction

Contract Overview

Contract Amount: $18,180,697 ($18.2M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2008-09-18

End Date: 2010-07-15

Contract Duration: 665 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT MEDICAL/DENTAL CLINIC, FORT LEWIS, WASHINGTON

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to KORTE CONSTRUCTION COMPANY for work described as: CONSTRUCT MEDICAL/DENTAL CLINIC, FORT LEWIS, WASHINGTON 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. Project duration of 665 days indicates a significant construction timeline. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic focus on Washington state. 6. Contract awarded by the Department of the Army.

Value Assessment

Rating: good

The contract value of approximately $18.2 million for constructing a medical/dental clinic at Fort Lewis is within a reasonable range for a project of this scale and complexity. Benchmarking against similar federal construction projects for medical facilities of comparable size and scope would provide further context. The firm fixed-price nature of the contract suggests that the contractor assumed the primary risk for cost overruns, which can be a positive indicator of value if the final cost is well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this project. This competitive environment is generally expected to drive down prices and encourage efficiency from the awarded contractor.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring that the government receives the best possible price and quality through a wide range of offers.

Public Impact

Military personnel and their families at Fort Lewis will benefit from improved medical and dental facilities. The construction project will likely create temporary jobs in the local Washington state area. Enhanced healthcare infrastructure at a key military installation. The project contributes to the readiness and operational capabilities of the U.S. Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of unforeseen site conditions affecting cost or schedule.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm fixed-price contract limits cost escalation for the government.
Full and open competition likely resulted in a competitive price.
Award to an experienced construction company (Korte Construction Company).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending in this area supports military readiness, healthcare infrastructure, and other government functions. The market for federal construction is competitive, with many firms capable of undertaking large-scale projects. This specific contract represents a substantial investment in military healthcare infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger firm, and the impact on the small business ecosystem would depend on whether Korte Construction Company utilizes small business subcontractors.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the Department of the Army contracting officers and project managers. Quality assurance surveillance plans (QASPs) are standard for such projects to monitor progress, quality, and compliance. Transparency is generally maintained through contract award databases like FPDS. Inspector General involvement would be contingent on any reported issues of fraud, waste, or abuse.

Related Government Programs

Military Construction
Healthcare Facility Construction
Department of Defense Contracts
General Building Construction

Risk Flags

Potential for cost overruns if unforeseen conditions arise, despite fixed-price contract.
Risk of construction delays impacting facility operational timelines.
Ensuring compliance with stringent healthcare facility construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to KORTE CONSTRUCTION COMPANY. CONSTRUCT MEDICAL/DENTAL CLINIC, FORT LEWIS, WASHINGTON

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 $18.2 million.

What is the period of performance?

Start: 2008-09-18. End: 2010-07-15.

What is the track record of Korte Construction Company with federal contracts, particularly in healthcare facility construction?

Korte Construction Company has a history of securing federal contracts, including those with the Department of Defense and other agencies. While specific details on their healthcare facility construction track record require deeper database analysis, their involvement in a project of this magnitude suggests they possess the necessary experience and qualifications. Reviewing past performance evaluations and project completion records for Korte Construction Company on similar federal projects would provide a more comprehensive understanding of their reliability and quality of work in this specific domain. Their ability to successfully complete this $18.2 million clinic construction project would be a key indicator of their capabilities.

How does the awarded price of $18.2 million compare to similar medical/dental clinic construction projects by the Department of Defense?

To benchmark the $18.2 million award, a comparative analysis with similar Department of Defense medical/dental clinic construction projects is necessary. Factors such as square footage, complexity of medical equipment installation, geographic location (which influences labor and material costs), and the year of award are crucial for a fair comparison. Without access to a detailed database of comparable projects and their costs, it's difficult to definitively state if this price is high or low. However, given the firm fixed-price nature and full and open competition, it suggests the government aimed for and likely achieved a competitive price point relative to market conditions at the time of award.

What are the primary risks associated with a large-scale construction project like this, and how were they mitigated?

Large-scale construction projects inherently carry risks such as unforeseen site conditions (e.g., soil issues, hazardous materials), weather delays, labor shortages, material price fluctuations, and design changes. For this project, the firm fixed-price contract shifts the primary financial risk of cost overruns to Korte Construction Company. Mitigation strategies likely included thorough site investigations prior to bidding, detailed project scheduling with contingency for weather, robust contract clauses addressing changes and unforeseen conditions, and potentially performance bonds to ensure project completion. The Department of the Army's oversight and quality assurance would also play a role in managing risks.

What is the expected impact of this new medical/dental clinic on the healthcare services available to military personnel and their families at Fort Lewis?

The construction of this new medical/dental clinic is expected to significantly enhance the healthcare services available to military personnel and their families stationed at Fort Lewis. It likely represents an expansion or modernization of existing facilities, potentially offering more specialized services, improved patient capacity, and updated medical technology. This upgrade contributes to the overall well-being and readiness of the force by ensuring access to quality healthcare. The specific impact will depend on the clinic's size, scope of services, and integration with the broader military healthcare network.

How has federal spending on military construction projects, specifically healthcare facilities, trended over the past decade?

Federal spending on military construction, including healthcare facilities, has historically fluctuated based on geopolitical needs, modernization efforts, and budget appropriations. Following periods of extensive overseas operations, there has often been a focus on reinvesting in domestic infrastructure, including upgrading existing bases and building new facilities. Healthcare facility construction is a critical component of maintaining military readiness and supporting personnel. Analyzing historical spending data would reveal trends in the volume and value of such contracts, influenced by defense budgets and strategic priorities over the last ten years.

What does the duration of 665 days (approximately 22 months) suggest about the complexity and scope of the clinic construction?

A construction duration of 665 days, equating to roughly 22 months, suggests a project of considerable complexity and scope. This timeline is typical for constructing a substantial facility like a medical or dental clinic, which involves intricate systems (HVAC, plumbing, electrical, specialized medical gas lines), adherence to strict building codes and healthcare regulations, and potentially extensive site preparation or foundation work. The duration also implies a significant amount of labor and material management required, and it provides a clear timeframe for the Department of the Army to plan for the facility's operational readiness.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW08R0030

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 SAINT LOUIS UNION STA # 200, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $18,180,697

Exercised Options: $18,180,697

Current Obligation: $18,180,697

Contract Characteristics

Cost or Pricing Data: NO

Timeline