Border Patrol Station Construction Awarded to Okland Construction for $26.4M

Contract Overview

Contract Amount: $26,385,664 ($26.4M)

Contractor: Okland Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-01-07

End Date: 2020-02-07

Contract Duration: 3,683 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW BORDER PATROL STATION, WELLTON, AZ

Place of Performance

Location: WELLTON, YUMA County, ARIZONA, 85356

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to OKLAND CONSTRUCTION COMPANY, INC. for work described as: NEW BORDER PATROL STATION, WELLTON, AZ Key points: 1. Contract value represents a significant investment in border infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for similar projects. 3. Project duration of over 10 years warrants scrutiny of cost overruns and schedule adherence. 4. Fixed-price contract type aims to control costs, but scope creep could impact final price. 5. Geographic location in Arizona highlights the strategic importance of border security. 6. The award falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $26.4 million for a new Border Patrol station in Wellton, AZ, appears substantial. Benchmarking against similar federal construction projects for border facilities would be necessary for a precise value-for-money assessment. The duration of the contract (over 10 years) raises concerns about potential cost escalation beyond the initial award, even with a firm-fixed-price structure. Without comparable project data, it's difficult to definitively assess if this represents excellent value, but the long timeline suggests a need for careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially less competitive environment than true full and open competition. The number of bidders is not specified, but the exclusion of sources could limit the range of potential offers and impact price discovery. Further details on the reasons for exclusion would clarify the competitive landscape.

Taxpayer Impact: The exclusion of sources may have limited the potential for the lowest possible price to be achieved, potentially costing taxpayers more than if all qualified bidders had been allowed to compete.

Public Impact

Benefits the U.S. Customs and Border Protection agency by providing essential infrastructure for operations. Delivers a new Border Patrol station, enhancing operational capacity and personnel support in the region. Geographic impact is concentrated in Wellton, Arizona, a key area along the U.S.-Mexico border. Workforce implications include construction jobs during the project and long-term employment for Border Patrol personnel at the new facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 10 years) increases risk of cost overruns and schedule delays.
Limited competition due to exclusion of sources could lead to suboptimal pricing.
Lack of specific performance metrics makes it difficult to assess project efficiency.
Firm-fixed-price contract may not fully account for unforeseen site conditions or material cost fluctuations over a decade.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base scope.
Award to a single contractor streamlines project management.
Construction in a strategic border location addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often supports critical infrastructure, including government facilities, military installations, and public service buildings. The market for large-scale construction projects is competitive, but specialized requirements, such as those for border security facilities, can influence the number and type of bidding firms. The $26.4 million award is a substantial sum, indicative of a large-scale construction undertaking.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting goals for small businesses (sb: false). This suggests that the prime contractor, Okland Construction Company, Inc., likely handled the majority of the work internally or with larger subcontractors. The impact on the small business ecosystem is minimal in terms of direct set-aside opportunities for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense and the Department of the Army, as indicated by the awarding agencies. The firm-fixed-price nature of the contract implies a focus on adherence to the defined scope and schedule. Accountability measures would be tied to contractual milestones and final delivery. Transparency is generally facilitated through contract award databases, but detailed project oversight reports are not publicly available through this data alone. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Infrastructure Projects
Federal Building Construction
Department of Homeland Security Facilities
Military Construction Projects
General Services Administration (GSA) Construction Contracts

Risk Flags

Extended contract duration
Limited competition
Potential for cost escalation
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to OKLAND CONSTRUCTION COMPANY, INC.. NEW BORDER PATROL STATION, WELLTON, AZ

Who is the contractor on this award?

The obligated recipient is OKLAND CONSTRUCTION COMPANY, 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 $26.4 million.

What is the period of performance?

Start: 2010-01-07. End: 2020-02-07.

What is the track record of Okland Construction Company, Inc. on similar federal construction projects?

Okland Construction Company, Inc. has a history of engaging in large-scale construction projects. While this specific data point doesn't detail their entire federal portfolio, their involvement in a $26.4 million Border Patrol station suggests they possess the capacity and experience for significant government contracts. A deeper dive into their past performance, including any awards, penalties, or disputes on federal projects, would provide a more comprehensive understanding of their reliability and expertise in delivering government infrastructure on time and within budget. Examining their project history with the Department of Defense and other federal agencies would be crucial for assessing their suitability and risk profile for future contracts.

How does the $26.4 million cost compare to similar Border Patrol station construction projects?

Benchmarking the $26.4 million cost against similar Border Patrol station construction projects is essential for evaluating value for money. Without access to a database of comparable projects, including their size, scope, location, and construction timelines, a direct comparison is difficult. Factors such as regional labor costs, material prices, site complexity, and specific security requirements can significantly influence project costs. If similar, recently completed stations of comparable size and complexity were built for substantially less, it would raise questions about the cost-effectiveness of this award. Conversely, if costs are in line with or lower than comparable projects, it suggests reasonable pricing.

What are the primary risks associated with a construction project spanning over 10 years?

A construction project with a duration exceeding 10 years carries several significant risks. Firstly, material costs and labor rates can fluctuate considerably over such a long period, potentially impacting the final cost even under a fixed-price contract if scope changes or unforeseen escalation clauses are triggered. Secondly, technological advancements in construction methods or building materials might render aspects of the design or chosen materials obsolete by completion. Thirdly, regulatory changes related to environmental standards, building codes, or security protocols could necessitate costly redesigns or modifications. Finally, long project timelines increase the likelihood of personnel turnover within the contracting team and the overseeing agency, potentially leading to knowledge gaps and project management challenges.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for cost and quality?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a nuanced competitive landscape. While the intent is to solicit offers from all responsible sources, the explicit exclusion of certain sources suggests that specific capabilities, past performance issues, or other criteria led to their removal from consideration. This can limit the pool of potential bidders, potentially reducing the intensity of competition compared to unrestricted full and open competition. A smaller pool of bidders might lead to less downward pressure on pricing, potentially resulting in higher costs for taxpayers. However, if the excluded sources were known to be high-risk or incapable, the exclusion could be a strategic move to ensure a higher quality outcome and reduce the risk of project failure, even at a potentially higher initial price.

What is the historical spending trend for Border Patrol station construction by the Department of Defense?

Analyzing historical spending trends for Border Patrol station construction by the Department of Defense (DoD) is crucial for contextualizing this $26.4 million award. The DoD's involvement in constructing facilities for agencies like Customs and Border Protection (CBP) often occurs when leveraging military construction expertise or resources. Understanding the volume and value of similar projects awarded by the DoD over the past 5-10 years would reveal patterns in contract types, average project costs, and typical contractor performance. This historical data can help identify whether this award is an outlier, part of a larger trend, or representative of typical spending for such infrastructure. It also aids in assessing whether spending has increased or decreased, potentially influenced by policy changes or border security priorities.

Are there specific performance metrics or KPIs associated with this contract to measure success?

The provided data does not specify any Key Performance Indicators (KPIs) or detailed performance metrics associated with this contract. Typically, federal construction contracts include clauses related to timely completion, adherence to specifications, quality of workmanship, and safety standards. However, the specific metrics used to evaluate Okland Construction Company's performance on this Border Patrol station project are not detailed here. Without explicit KPIs, assessing the contractor's success beyond meeting the basic contractual requirements (delivery of the station) is challenging. A thorough review of the contract's statement of work and performance clauses would be necessary to identify any defined metrics for success and the associated evaluation criteria.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: W912PL09R0032

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1978 S WEST TEMPLE, SALT LAKE CITY, UT, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,385,664

Exercised Options: $26,385,664

Current Obligation: $26,385,664

Contract Characteristics

Cost or Pricing Data: NO

Timeline