DoD awards $24.1M for building repair, with 5 bidders competing for firm-fixed-price contract

Contract Overview

Contract Amount: $24,149,862 ($24.1M)

Contractor: 4K Global-Acc JV, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2025-11-24

Contract Duration: 1,153 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR CONSTRUCTION WORK (BLDG. H4445)

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to 4K GLOBAL-ACC JV, LLC for work described as: REPAIR CONSTRUCTION WORK (BLDG. H4445) Key points: 1. The contract value of $24.1 million for building repair appears reasonable given the scope and duration. 2. Full and open competition after exclusion of sources suggests a deliberate effort to maximize bidder participation. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially leading to cost savings for the government. 4. The contract duration of 1153 days indicates a significant, long-term project requiring substantial contractor resources. 5. The award to 4K GLOBAL-ACC JV, LLC, a joint venture, may indicate a specialized capability required for this project. 6. The North Carolina location for the work suggests a regional focus for this specific repair project.

Value Assessment

Rating: good

The contract value of $24.1 million for building repair and construction work is within a typical range for projects of this scale and duration. Benchmarking against similar Department of Defense construction contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps the contractor's potential earnings and incentivizes efficient project completion. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, certain sources were initially excluded. With five bidders participating, the competition level appears adequate, suggesting that multiple firms were interested and capable of performing the work. This level of competition is generally expected to drive competitive pricing and ensure a fair market value for the services rendered. The specific reasons for excluding certain sources would be critical to fully understanding the competition dynamics.

Taxpayer Impact: The presence of five bidders in a full and open competition suggests that taxpayers are likely to benefit from competitive pricing. This scenario typically leads to a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential repair and construction services for its facilities. The contract ensures the continued operational readiness and structural integrity of Building H4445. The project's geographic impact is concentrated in North Carolina, potentially supporting local construction labor and material suppliers. The duration of the contract implies a sustained need for skilled construction labor, potentially creating or maintaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants further investigation to understand if it limited potential competition unnecessarily.
The long contract duration (1153 days) could present risks related to cost escalation if not managed effectively, despite the fixed-price nature.
Without specific details on the nature of the repairs, it's difficult to assess if the $24.1M is fully justified against potential unforeseen issues.

Positive Signals

The award to a joint venture (4K GLOBAL-ACC JV, LLC) may indicate a strategic approach to leveraging specialized expertise for complex construction tasks.
The firm-fixed-price contract type is a positive signal for cost control, as it places the financial risk on the contractor.
The participation of five bidders suggests a healthy level of market interest and capability for this type of construction work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is characterized by a wide range of firms, from small local contractors to large national construction companies. Federal spending in this sector is substantial, supporting infrastructure maintenance, upgrades, and new construction across various government agencies. The market size is significant, with numerous opportunities for specialized construction services. This specific contract for building repair fits within the broader category of facility sustainment and modernization efforts common in government contracting.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The award to a joint venture, 4K GLOBAL-ACC JV, LLC, suggests that the prime contractor may be a larger entity or a consortium formed to meet specific project requirements. There is no explicit information regarding subcontracting plans for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often include subcontracting goals that benefit smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. The firm-fixed-price nature of the contract shifts much of the performance risk to the contractor, but oversight would still focus on ensuring adherence to contract terms, quality standards, and timely completion. Transparency is facilitated by contract databases like FPDS, which provide basic award information. Specific Inspector General (IG) involvement would depend on any reported issues, fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Military Construction
Facility Maintenance and Repair
Base Realignment and Closure (BRAC) related construction
General Services Administration (GSA) Public Buildings Service contracts

Risk Flags

Competition Type Ambiguity
Potential for Cost Overruns (Contractor Risk)
Quality Control Concerns (Long Duration Project)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to 4K GLOBAL-ACC JV, LLC. REPAIR CONSTRUCTION WORK (BLDG. H4445)

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 $24.1 million.

What is the period of performance?

Start: 2022-09-28. End: 2025-11-24.

What is the track record of 4K GLOBAL-ACC JV, LLC in performing similar federal construction contracts?

A review of federal contract databases would be necessary to ascertain the track record of 4K GLOBAL-ACC JV, LLC. As a joint venture, its performance history might be a composite of its member companies or specific to projects undertaken as a JV. Key metrics to examine would include past performance ratings, any history of contract disputes or terminations, and the successful completion of projects of similar size, scope, and complexity. Understanding their experience with firm-fixed-price contracts and Department of Defense projects would be particularly relevant for assessing their capability to execute this specific award effectively and within budget.

How does the awarded price of $24.1 million compare to similar building repair contracts awarded by the Department of Defense?

To benchmark the $24.1 million award, one would compare it against similar firm-fixed-price contracts for building repair and construction issued by the Department of Defense or other federal agencies over the past 2-3 years. Key comparison points would include the square footage repaired, the type and extent of repairs (e.g., structural, HVAC, electrical), the geographic location (as regional labor and material costs vary), and the contract duration. Analyzing the price per square foot or price per major repair category for comparable contracts would help determine if this award represents good value for money or if it appears unusually high or low.

What are the primary risks associated with a firm-fixed-price contract for a multi-year building repair project?

The primary risk with a firm-fixed-price contract, especially for a long-duration project like this 1153-day building repair, is the potential for the contractor to cut corners on quality or materials to maintain profitability if costs exceed initial estimates. While the government is protected from cost overruns, inadequate oversight could lead to subpar work. Conversely, if the contractor significantly underestimates costs or encounters unforeseen complexities (e.g., hazardous materials, structural issues not initially identified), they bear the financial loss, which could lead to contractor default or disputes. Effective government oversight is crucial to mitigate these risks by ensuring quality control and adherence to specifications throughout the project lifecycle.

What specific building systems or structural components are included in the 'REPAIR CONSTRUCTION WORK (BLDG. H4445)'?

The provided data summary 'REPAIR CONSTRUCTION WORK (BLDG. H4445)' is too general to specify the exact building systems or structural components involved. A detailed breakdown would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would likely include specifications for structural repairs (foundation, walls, roof), mechanical systems (HVAC), electrical systems, plumbing, interior finishes, and potentially exterior envelope work. Understanding the specific scope is critical for assessing the appropriateness of the $24.1 million cost and the contractor's qualifications.

What is the historical spending trend for building repair and construction at the specific Department of the Army installation where Building H4445 is located?

To analyze historical spending trends for building repair and construction at the relevant Army installation, one would need to query federal procurement data (like FPDS) for contracts awarded to that specific installation or base over several fiscal years. This analysis would involve identifying all contracts categorized under relevant NAICS codes (e.g., 236220) and filtering them by the awarding agency (Department of the Army) and the specific installation. Examining the total annual spending, the average contract size, and the frequency of repair contracts would reveal patterns and indicate whether the current $24.1 million award is consistent with historical investment in facility maintenance and upgrades at that location.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W912HN22B4012

Offers Received: 5

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: $24,149,862

Exercised Options: $24,149,862

Current Obligation: $24,149,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline