DoD awards $17.2M for liquid oxygen facility construction in Kentucky, with 3 bidders
Contract Overview
Contract Amount: $17,243,294 ($17.2M)
Contractor: Brasfield & Gorrie LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-10
End Date: 2026-09-01
Contract Duration: 1,118 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FABRICATION AND DELIVERY OF LIQUID OXYGEN FACILITY
Place of Performance
Location: JAMESTOWN, RUSSELL County, KENTUCKY, 42629
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to BRASFIELD & GORRIE LLC for work described as: FABRICATION AND DELIVERY OF LIQUID OXYGEN FACILITY Key points: 1. Contract value appears reasonable given the scope of industrial building construction. 2. Full and open competition suggests a healthy market for this type of facility. 3. Definitive contract type indicates a clear scope of work and pricing. 4. Fixed-price contract shifts risk to the contractor, potentially stabilizing costs. 5. Project duration of nearly three years suggests a complex and significant undertaking. 6. Location in Kentucky may indicate regional defense infrastructure development.
Value Assessment
Rating: good
The contract value of $17.2 million for a liquid oxygen facility is within a reasonable range for industrial construction projects of this scale. Benchmarking against similar Department of Defense construction contracts for specialized facilities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has adequately estimated costs and risks, which is generally favorable for the government in terms of cost certainty.
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 offers. With three bidders, the competition level suggests a moderately competitive environment. This level of competition is generally sufficient to drive reasonable pricing and encourage efficient performance from the selected contractor.
Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it promotes a competitive marketplace, leading to potentially lower prices and better quality services compared to sole-source or limited competition scenarios.
Public Impact
The primary beneficiary is the Department of Defense, which will receive a critical liquid oxygen facility. The facility will support military operations by ensuring a reliable supply of liquid oxygen. The geographic impact is concentrated in Kentucky, potentially creating local jobs during construction. Workforce implications include employment opportunities for construction workers and specialized trades in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price.
- Delays in construction could impact operational readiness for the supported military units.
- Ensuring compliance with environmental regulations during construction of a chemical facility.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust market and potential for good pricing.
- Experienced contractor (Brasfield & Gorrie LLC) likely has a track record in similar projects.
- Clear project timeline with defined start and end dates.
Sector Analysis
This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities for industrial processes. The market for constructing such specialized defense infrastructure is often characterized by a limited number of highly qualified contractors capable of meeting stringent military requirements. Comparable spending benchmarks would involve analyzing other DoD contracts for similar industrial facilities, such as fuel storage, chemical processing, or manufacturing plants.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors, which is common in large construction projects.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the facility within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project oversight details are not provided.
Related Government Programs
- Military Base Construction
- Defense Infrastructure Modernization
- Industrial Facility Development
- Specialized Chemical Storage Facilities
Risk Flags
- Potential for construction delays.
- Safety risks associated with cryogenic liquid handling.
- Ensuring long-term operational reliability of the facility.
Tags
defense, department-of-defense, department-of-the-army, industrial-building-construction, definitive-contract, firm-fixed-price, full-and-open-competition, kentucky, large-project, specialized-facility
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to BRASFIELD & GORRIE LLC. FABRICATION AND DELIVERY OF LIQUID OXYGEN FACILITY
Who is the contractor on this award?
The obligated recipient is BRASFIELD & GORRIE 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 $17.2 million.
What is the period of performance?
Start: 2023-08-10. End: 2026-09-01.
What is the track record of Brasfield & Gorrie LLC in constructing similar defense-related industrial facilities?
Brasfield & Gorrie LLC is a large, well-established general contractor with a significant history of undertaking complex construction projects across various sectors, including defense and industrial facilities. While specific details on their past liquid oxygen facility projects for the DoD are not immediately available in this data, their extensive experience in building large-scale infrastructure suggests a capability to manage such a contract. A deeper dive into their project portfolio, particularly projects involving specialized industrial processes or hazardous materials handling for government clients, would provide a clearer picture of their relevant expertise and past performance.
How does the awarded price compare to similar liquid oxygen facility construction projects for the DoD or other government agencies?
Benchmarking the $17.2 million award requires comparing it to similar projects in terms of size, complexity, location, and specific requirements. Without access to a database of comparable liquid oxygen facility contracts, a precise comparison is difficult. However, the presence of three bidders under full and open competition suggests that the pricing was likely competitive within the market for such specialized industrial construction. Factors like prevailing labor rates in Kentucky, material costs, and the specific technical requirements of the facility would influence the final price.
What are the primary risks associated with the construction of this liquid oxygen facility, and how are they being mitigated?
Key risks include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, and the inherent safety risks associated with constructing a facility for cryogenic liquids. The firm fixed-price contract shifts much of the cost risk to the contractor, Brasfield & Gorrie LLC. Mitigation strategies likely involve detailed project planning, robust safety protocols, experienced project management, and contingency planning by the contractor. The government's oversight will focus on ensuring adherence to the contract terms, safety standards, and quality of work.
What is the expected impact of this facility on the operational readiness and capabilities of the supported military units?
The construction of a dedicated liquid oxygen facility is critical for ensuring a reliable and readily available supply of liquid oxygen for military operations. Liquid oxygen is essential for various applications, including aircraft operations (e.g., high-altitude flight), medical support, and potentially certain industrial processes within military installations. By providing this facility, the DoD aims to reduce reliance on external or less secure supply chains, enhance logistical support, and ensure that supported units have the necessary resources for sustained operations, thereby directly improving operational readiness and capability.
What has been the historical spending pattern for industrial building construction by the Department of the Army in Kentucky?
Analyzing historical spending patterns for industrial building construction by the Department of the Army in Kentucky would require accessing historical contract databases and filtering by agency, location, and North American Industry Classification System (NAICS) code (236210 for Industrial Building Construction). This data is not provided here. However, such an analysis could reveal trends in contract values, types of facilities procured, and the level of competition over time, providing context for the current $17.2 million award and indicating whether this represents a typical or unusually large investment in the region.
What specific technical specifications or requirements make this facility unique or complex?
The data provided does not detail the specific technical specifications or unique requirements of the liquid oxygen facility. However, facilities handling cryogenic liquids like liquid oxygen typically involve complex engineering for storage tanks, piping systems, safety controls, and environmental containment. Requirements often include adherence to stringent safety standards (e.g., NFPA codes), precise temperature and pressure controls, specialized materials to prevent embrittlement, and robust emergency response systems. The complexity arises from the hazardous nature of the substance and the need for high reliability.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: W912P523R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,318,294
Exercised Options: $17,243,294
Current Obligation: $17,243,294
Actual Outlays: $9,642,969
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-10
Current End Date: 2026-09-01
Potential End Date: 2026-09-01 00:00:00
Last Modified: 2025-11-17
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