DoD awards $23.1M for facility renovation, with 2 bidders competing for the firm-fixed-price contract

Contract Overview

Contract Amount: $23,120,740 ($23.1M)

Contractor: 4K Global-Acc JV, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-05

End Date: 2025-06-12

Contract Duration: 981 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF THE FACILITY .

Place of Performance

Location: FORT GORDON, RICHMOND County, GEORGIA, 30905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to 4K GLOBAL-ACC JV, LLC for work described as: RENOVATION OF THE FACILITY . Key points: 1. The contract value of $23.1 million for facility renovation appears reasonable given the scope and duration. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, a positive indicator for the government. 4. The project is situated in Georgia, potentially impacting local construction workforce and material suppliers. 5. The contractor, 4K GLOBAL-ACC JV, LLC, is performing work for the Department of the Army. 6. The contract duration of 981 days indicates a significant, long-term renovation project.

Value Assessment

Rating: good

The contract value of $23.1 million for facility renovation is within a typical range for projects of this scale and complexity. Benchmarking against similar Department of Defense renovation contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government, as it caps the contractor's potential earnings and transfers cost overrun risks.

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. With two bidders, the competition level is moderate. While more bidders could potentially drive prices lower, two bidders still suggest a degree of market interest and price discovery. The government received multiple proposals to evaluate.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a competitive bidding process, preventing a single vendor from dictating terms and potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the renovated facility. The services delivered include comprehensive renovation of an unspecified facility, likely improving its functionality and safety. The geographic impact is concentrated in Georgia, where the renovation work will take place. The project will likely have implications for the local construction workforce, requiring skilled labor for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of delays due to unforeseen site conditions common in renovation projects.
Dependence on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risk for the government.
Full and open competition suggests a robust bidding process.
The contractor has been awarded a definitive contract, implying a structured agreement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of firms, from large general contractors to specialized subcontractors. Federal spending in this area often supports infrastructure modernization and facility upgrades across various government agencies. The market size for federal construction is substantial, with significant annual outlays for building and renovation projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement strategies and the availability of specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. 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 generally maintained through contract award databases and reporting requirements, though specific project details may be limited.

Related Government Programs

Military Construction
Facility Maintenance and Repair
General Services Administration (GSA) Contracts
Department of Defense Construction Projects

Risk Flags

Moderate competition level (2 bidders) may limit price discovery.
Extended contract duration (981 days) increases oversight requirements and risk of changes.
Potential for unforeseen site conditions in renovation projects.
Contractor's past performance and financial stability should be thoroughly vetted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to 4K GLOBAL-ACC JV, LLC. RENOVATION OF THE FACILITY .

Who is the contractor on this award?

The obligated recipient is 4K GLOBAL-ACC JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2022-10-05. End: 2025-06-12.

What is the track record of 4K GLOBAL-ACC JV, LLC with federal contracts, particularly in facility renovation?

A review of federal contract databases would be necessary to fully assess 4K GLOBAL-ACC JV, LLC's track record. Information such as past performance ratings, previous contract values, and the types of projects they have successfully completed would provide insight into their capabilities and reliability. Specifically, examining their history with similar-sized renovation projects for the Department of Defense or other agencies would be most relevant. Without specific past performance data, it is difficult to definitively assess their suitability beyond the current award.

How does the awarded amount of $23.1 million compare to similar facility renovation projects by the Department of Defense?

Benchmarking this $23.1 million contract against similar Department of Defense facility renovation projects requires access to a comprehensive database of federal contracts. Factors such as the size and type of facility, the extent of renovation (e.g., structural, cosmetic, systems upgrades), and the geographic location significantly influence project costs. Generally, firm-fixed-price contracts for large-scale renovations can range from tens to hundreds of millions of dollars. The number of bidders (two in this case) and the competition dynamics also play a role in the final awarded price. A detailed comparison would involve analyzing contracts with similar scopes, durations, and performance periods.

What are the primary risks associated with a firm-fixed-price contract for a large-scale renovation project?

While firm-fixed-price (FFP) contracts are generally favorable to the government by capping costs, they can introduce risks for the contractor. For a large-scale renovation, the primary risk is the contractor underestimating the complexity or cost of the work, leading to potential financial losses if unforeseen issues arise (e.g., asbestos, structural problems, outdated systems). The government's risk is primarily related to the contractor's ability to perform and the quality of the work. If the contractor faces significant financial distress due to underestimation, project delays or performance issues could occur. Robust contractor pre-qualification and clear contract specifications are crucial to mitigate these risks.

What is the significance of the contract being awarded under 'full and open competition' with only two bidders?

Awarding a contract under 'full and open competition' signifies that the government solicited proposals from all eligible sources, ensuring a broad market reach. However, having only two bidders suggests a moderately competitive environment for this specific requirement. While this is better than a sole-source award, a higher number of bidders typically leads to more robust price competition and potentially better value for the government. The moderate competition level means the government likely received competitive proposals, but there might have been fewer alternatives considered than in a more crowded field. This could influence the final price and the range of innovative solutions proposed.

What are the potential implications of the 981-day contract duration on project management and oversight?

A contract duration of 981 days (approximately 2.7 years) for a facility renovation project indicates a substantial undertaking. This extended timeline necessitates robust project management and continuous oversight from the government. Key implications include the need for sustained government personnel to monitor progress, manage changes, and ensure compliance over an extended period. It also increases the potential for scope creep, changes in requirements, and the need for adaptive management strategies. Furthermore, the contractor must maintain consistent resources and focus for the entire duration, which can be challenging for large projects. Regular progress reviews and clear communication channels are critical to ensure successful completion within the stipulated timeframe.

How does the 'definitive contract' type influence the structure and execution of this renovation project?

A definitive contract is a formal, legally binding agreement that outlines the precise terms, conditions, scope of work, price, and schedule for the project. In the context of this $23.1 million facility renovation, it signifies a well-defined agreement between the Department of the Army and 4K GLOBAL-ACC JV, LLC. This structure provides clarity and reduces ambiguity regarding expectations and deliverables. It implies that the government has thoroughly defined the requirements and the contractor has committed to fulfilling them under the specified terms. The definitive nature of the contract supports accountability and provides a clear framework for resolving any disputes that may arise during the project's execution.

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: SEALED BID

Solicitation ID: W912HN22B3003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635A NW FRONTAGE RD, AUGUSTA, GA, 30907

Business Categories: Category Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,120,740

Exercised Options: $23,120,740

Current Obligation: $23,120,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline