Department of the Army awards $82M construction contract to J Kokolakis Contracting Inc. for reception complex

Contract Overview

Contract Amount: $82,079,352 ($82.1M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2025-05-05

Contract Duration: 1,465 days

Daily Burn Rate: $56.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE: CONSTRUCTION RECEPTION COMPLEX PHASE I

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29212

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $82.1 million to J KOKOLAKIS CONTRACTING INC for work described as: BASE: CONSTRUCTION RECEPTION COMPLEX PHASE I Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The duration of 1465 days indicates a long-term, significant construction project. 4. The base value of the contract is over $82 million. 5. The contract is categorized under Commercial and Institutional Building Construction. 6. The award was made to J Kokolakis Contracting Inc. 7. The project is located in South Carolina.

Value Assessment

Rating: fair

The base value of $82,079,351.94 for a multi-year construction project of this scale appears within a reasonable range for a large federal building project. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is difficult. Benchmarking against similar large-scale federal construction projects in the region would provide a clearer picture of whether the pricing is competitive and represents good value. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government.

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 5 bidders suggests a healthy level of competition for this significant construction project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more competitive bid landscape, potentially saving taxpayer dollars through aggressive pricing from multiple contractors vying for the award.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the new reception complex. The contract will deliver construction services for a reception complex, a critical facility for military operations. The geographic impact is concentrated in South Carolina, where the construction will take place. The project will likely create numerous jobs in the construction sector in South Carolina, benefiting the local workforce and economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Dependence on the contractor's ability to manage a large-scale, multi-year project effectively.
Risk of delays impacting the operational readiness of the reception complex.
Potential for supply chain disruptions affecting material availability and project timelines.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
The contractor, J Kokolakis Contracting Inc., has experience in federal construction projects.
The project duration is clearly defined, allowing for structured planning and execution.

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 is substantial, driven by the need for new facilities and upgrades across various government agencies. The market for large federal construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. Benchmarks for similar reception or administrative complex construction for federal agencies can vary widely based on size, complexity, and location, but an $82 million award suggests a project of considerable scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, J Kokolakis Contracting Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside means that opportunities for small businesses would primarily depend on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant personnel within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Military Construction
Federal Building Construction
Department of Defense Facilities
Army Corps of Engineers Projects

Risk Flags

Long project duration may increase exposure to market volatility.
Firm-fixed-price contracts can incentivize cost-cutting if not properly monitored.
Potential for unforeseen site conditions in construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.1 million to J KOKOLAKIS CONTRACTING INC. BASE: CONSTRUCTION RECEPTION COMPLEX PHASE I

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 $82.1 million.

What is the period of performance?

Start: 2021-05-01. End: 2025-05-05.

What is the track record of J Kokolakis Contracting Inc. with federal construction contracts?

J Kokolakis Contracting Inc. has a history of performing federal construction contracts. While specific details on past performance metrics, such as on-time delivery or adherence to budget on previous projects, are not provided in this summary, their selection for an $82 million Department of the Army contract suggests they possess the necessary qualifications and experience. Further investigation into their contract history, including any past performance reviews or awards/debarments, would be necessary for a comprehensive assessment of their track record. Federal procurement databases often contain information on past performance ratings and contract awards for companies like J Kokolakis Contracting Inc.

How does the $82 million contract value compare to similar federal reception complex projects?

The $82 million contract value for the Construction Reception Complex Phase I is substantial. To benchmark this effectively, one would need to compare it against similar-sized reception, administrative, or barracks construction projects awarded by the Department of Defense or other federal agencies in recent years. Factors such as square footage, complexity of design, specific site requirements, and prevailing labor and material costs in the region (South Carolina, in this case) would influence comparability. Generally, projects of this magnitude are awarded through competitive processes, and the number of bidders (5 in this instance) suggests a market capable of undertaking such work. A detailed comparison would involve analyzing the scope of work, contract type, and duration of comparable projects.

What are the primary risks associated with a firm-fixed-price construction contract of this duration?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can expose the contractor to significant risks, especially on long-duration projects like this 1465-day contract. Key risks for the contractor include unforeseen site conditions (e.g., unexpected soil issues, hazardous materials), fluctuations in material prices (especially for long-lead items), labor availability and cost increases, and design changes or scope creep initiated by the government. If these risks materialize and are not adequately managed by the contractor, it could lead to financial losses for the contractor or, in extreme cases, project delays or disputes. For the government, the primary risk is that the contractor may cut corners on quality or safety to protect their profit margin if unforeseen issues arise, although robust oversight can mitigate this.

What is the expected program effectiveness or outcome of this reception complex?

The effectiveness of this reception complex will be measured by its ability to fulfill its intended purpose for the Department of the Army. This likely includes providing efficient and secure processing facilities for personnel, potentially for new recruits, returning units, or other operational needs. A successful outcome would mean the facility is completed on time, within budget (as per the firm-fixed-price agreement), and meets all specified quality and functional requirements. Its effectiveness will also be judged by its contribution to the overall operational readiness and logistical support capabilities of the Army units it serves. Post-occupancy evaluations and user feedback would provide further insights into its long-term effectiveness.

How does this contract fit into the Department of the Army's overall construction spending patterns?

This $82 million contract represents a significant investment within the Department of the Army's broader construction portfolio. The Army, through entities like the Army Corps of Engineers, manages a vast array of construction projects annually, ranging from barracks and training facilities to infrastructure and specialized operational buildings. Awards of this magnitude are typical for major facility construction or upgrades. Analyzing this contract in the context of historical Army construction spending would reveal trends in facility modernization, capacity expansion, and geographic distribution of investments. It signifies a commitment to enhancing or establishing critical reception infrastructure in South Carolina.

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: W912HP19R2000

Offers Received: 5

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: $82,079,352

Exercised Options: $82,079,352

Current Obligation: $82,079,352

Actual Outlays: $4,654,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline