DoD's $27M building repair contract awarded to 4K Global-Acc JV, LLC for a 793-day duration

Contract Overview

Contract Amount: $26,977,242 ($27.0M)

Contractor: 4K Global-Acc JV, LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2026-12-17

Contract Duration: 793 days

Daily Burn Rate: $34.0K/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 BUILDING 2831

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to 4K GLOBAL-ACC JV, LLC for work described as: REPAIR BUILDING 2831 Key points: 1. The contract's value appears reasonable given the scope of building repair and construction services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 793 days indicates a significant, long-term project. 4. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code. 6. The award was made by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: good

The contract value of $26,977,242 for building repair is within a typical range for projects of this scale. Benchmarking against similar large-scale construction and repair contracts within the Department of Defense suggests that the pricing is competitive. The firm-fixed-price contract type helps to control costs by transferring most of the financial risk to the contractor, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the remaining pool was competed openly. With 5 bidders participating, the level of competition suggests a healthy market response. This degree of competition is generally favorable for achieving fair market prices and ensuring that the government receives competitive proposals.

Taxpayer Impact: The open competition among multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. A competitive process reduces the likelihood of overpayment and promotes the selection of the most capable and cost-effective contractor.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the repaired facilities. The contract delivers essential repair and maintenance services for a critical military infrastructure asset. The geographic impact is localized to the facility where Building 2831 is located, likely within a military installation in Georgia. The contract supports jobs in the construction sector, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair assessments are incomplete.
Risk of delays due to unforeseen site conditions or material availability.
Ensuring contractor compliance with all safety and environmental regulations.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risks for the government.
Multiple bidders indicate a competitive market and potential for quality solutions.
Long-term duration allows for thorough execution and quality assurance.

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 of non-residential structures such as offices, warehouses, and government facilities. Spending in this area by federal agencies is crucial for maintaining and upgrading infrastructure. Comparable spending benchmarks for large-scale federal construction projects often run into tens of millions of dollars, making this contract's value consistent with similar endeavors.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a joint venture, further analysis would be needed to determine if subcontracting opportunities exist for small businesses. The absence of explicit set-aside goals means that small businesses would need to compete for subcontracts directly with the prime or its partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring adherence to contract terms and quality standards. The firm-fixed-price nature provides a degree of accountability by fixing the total cost. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Maintenance
Federal Building Construction and Repair
Department of Defense Facilities Management
Large-Scale Construction Contracts
Firm Fixed Price Contracts

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance over a long duration requires sustained oversight.
Ensuring compliance with all environmental and safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to 4K GLOBAL-ACC JV, LLC. REPAIR BUILDING 2831

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 $27.0 million.

What is the period of performance?

Start: 2024-10-15. End: 2026-12-17.

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

A review of federal procurement data indicates that 4K GLOBAL-ACC JV, LLC has been awarded multiple federal contracts, primarily within the construction and facilities maintenance domains. The specific performance history, including on-time delivery, quality of work, and adherence to budget on previous projects, would require a deeper dive into contract performance reports and past performance evaluations. However, being awarded a definitive contract of this magnitude by the Department of the Army suggests a level of established capability and trust within the federal contracting space. Further investigation into past performance metrics and any documented issues or commendations would provide a more comprehensive understanding of their track record.

How does the value of this contract compare to similar building repair projects within the Department of Defense?

The contract value of approximately $27 million for repairing Building 2831 is substantial and aligns with the typical scale of major infrastructure repair projects undertaken by the Department of Defense. Benchmarking against similar projects reveals that costs for large-scale renovations, structural repairs, and system upgrades in federal buildings can range from several million to tens of millions of dollars, depending on the size, complexity, and age of the facility. The firm-fixed-price nature of this contract also suggests a focus on cost certainty, which is a common objective in DoD procurement for predictable budgeting. Without specific details on the scope of 'repair' for Building 2831, a precise comparison is difficult, but the overall value appears consistent with industry standards for significant federal construction contracts.

What are the primary risks associated with a contract of this duration and type?

Contracts with a duration of 793 days (over two years) and a firm-fixed-price structure present specific risks. For the government, the primary risk is ensuring the contractor maintains quality and performance over the extended period, especially if unforeseen issues arise that were not fully anticipated during the initial bidding. Scope creep, if not managed tightly, could lead to disputes or requests for contract modifications, although the fixed-price nature aims to limit this. For the contractor, the risk lies in accurately estimating all costs and potential challenges over the project's lifespan. Unexpected material price increases, labor shortages, or complex site conditions could impact their profitability. Robust oversight and clear communication channels are crucial to mitigate these risks for both parties.

What is the significance of 'Full and Open Competition After Exclusion of Sources' for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' indicates a specific procurement strategy. Initially, certain potential sources may have been excluded from consideration, perhaps due to specific requirements, past performance issues, or other pre-qualification criteria. However, the remaining pool of eligible sources was then subjected to a full and open competitive process. This means that all responsible sources meeting the stated criteria were allowed to submit proposals. The participation of 5 bidders suggests that this approach successfully generated adequate competition among the qualified entities, which is generally beneficial for achieving competitive pricing and selecting the best value solution for the government.

How does the firm-fixed-price (FFP) contract type impact cost control and risk allocation?

The Firm Fixed Price (FFP) contract type is designed to provide price certainty for the government and allocate most of the cost risk to the contractor. Under an FFP contract, the contractor agrees to perform a specified scope of work for a predetermined, fixed price, regardless of the actual costs incurred. This incentivizes the contractor to manage their costs efficiently and effectively to maximize profit. For the government, it means the total cost of the contract is known upfront, simplifying budgeting and financial planning. The primary risk for the contractor is that actual costs may exceed the fixed price, leading to a loss. Conversely, if costs are lower than anticipated, the contractor benefits from higher profit margins. This structure is often preferred for projects with well-defined scopes of work where cost predictability is paramount.

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: ALTERNATIVE SOURCES

Solicitation ID: W912HN24R4001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 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: $26,977,242

Exercised Options: $26,977,242

Current Obligation: $26,977,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline