DoD's $30.7M Virtual Warfare Facility contract awarded to Korte Construction Company for 854 days
Contract Overview
Contract Amount: $30,761,116 ($30.8M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2018-07-13
End Date: 2020-11-13
Contract Duration: 854 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FY 18 VIRTUAL WARFARE OPERATIONS FACILITY, NELLIS AFB, NV POP 720 CALENDAR DAYS
Place of Performance
Location: NELLIS AFB, CLARK County, NEVADA, 89191
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to KORTE CONSTRUCTION COMPANY for work described as: IGF::OT::IGF FY 18 VIRTUAL WARFARE OPERATIONS FACILITY, NELLIS AFB, NV POP 720 CALENDAR DAYS Key points: 1. The contract value of $30.7 million for a virtual warfare facility appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for such construction services. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The project's duration of 854 days indicates a complex construction undertaking. 5. The contract falls under the broad category of commercial and institutional building construction. 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 $30.7 million for the construction of a virtual warfare facility over 854 days seems within a reasonable range for a project of this nature. Benchmarking against similar large-scale construction projects for military facilities suggests that the pricing is competitive, especially considering the specialized requirements for a 'virtual warfare' environment which may include advanced technological infrastructure. The firm fixed-price nature of the contract also indicates that the contractor has assumed the risk for cost overruns, which is generally favorable 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. Six bids were received, suggesting a competitive environment for this type of construction. The level of competition is generally positive as it allows for price discovery and encourages contractors to offer their best pricing and technical solutions to win the award.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that government funds are used efficiently by leveraging market forces.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel who will utilize the virtual warfare facility for training and operational planning. The services delivered include the construction of a specialized facility designed to support advanced simulation and virtual training environments. The geographic impact is localized to Nellis Air Force Base in Nevada. The project likely involved a significant construction workforce, contributing to employment in the local Nevada economy during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if 'virtual warfare' requirements are not precisely defined.
- Construction delays could impact the operational readiness of the facility.
- Ensuring the specialized technological infrastructure meets future warfare simulation needs.
Positive Signals
- Full and open competition suggests a competitive market and potentially good value.
- Firm fixed-price contract shifts cost risk to the contractor.
- Award to an established construction company with experience in government projects.
Sector Analysis
The construction sector, particularly for government and institutional buildings, is a significant part of the economy. This contract falls within the Commercial and Institutional Building Construction industry. Spending on military facilities, including specialized training and operational centers, is a consistent area of government expenditure. Comparable spending benchmarks would involve analyzing the cost per square foot or cost per duration for similar military construction projects, adjusted for inflation and specific technological requirements.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific prime contract is likely minimal unless Korte Construction Company actively engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified facility within the agreed-upon terms. Transparency is generally provided through contract award databases, though detailed project progress and specific oversight reports may not always be publicly available.
Related Government Programs
- Military Construction Projects
- Department of Defense Facilities
- Virtual Training Systems
- Construction Services Contracts
- Nellis Air Force Base Projects
Risk Flags
- Potential for technological obsolescence in specialized facilities.
- Complexity of integrating advanced simulation and virtual reality systems.
- Ensuring long-term relevance of 'virtual warfare' capabilities.
Tags
construction, department-of-defense, department-of-the-army, nellis-air-force-base, nevada, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, military-construction, simulation-facility
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to KORTE CONSTRUCTION COMPANY. IGF::OT::IGF FY 18 VIRTUAL WARFARE OPERATIONS FACILITY, NELLIS AFB, NV POP 720 CALENDAR DAYS
Who is the contractor on this award?
The obligated recipient is KORTE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2018-07-13. End: 2020-11-13.
What is the track record of Korte Construction Company with Department of Defense contracts?
Korte Construction Company has a history of working with the Department of Defense and other federal agencies. While specific details on past performance for similar 'virtual warfare' facilities are not provided in this data snippet, their experience in large-scale construction projects, including those for government entities, suggests a capacity to handle complex builds. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and any prior issues or commendations would provide a more comprehensive understanding of their reliability and expertise for this specific project.
How does the cost per day for this contract compare to similar military construction projects?
The total contract value is approximately $30.7 million over 854 days, equating to roughly $36,000 per day. Comparing this 'cost per day' directly to other military construction projects can be misleading due to variations in project scope, complexity, location, and inflation. However, for large-scale institutional or specialized facility construction, this daily rate is not inherently excessive. A more accurate benchmark would involve analyzing cost per square foot or cost per functional unit (e.g., cost per training simulator bay) for comparable projects, considering the unique technological requirements of a 'virtual warfare' facility.
What are the primary risks associated with the 'virtual warfare operations facility' aspect of this contract?
The primary risks associated with a 'virtual warfare operations facility' stem from the integration of advanced technology and the evolving nature of virtual warfare itself. Risks include the potential for technological obsolescence before the facility is fully operational or shortly thereafter, the complexity of integrating diverse simulation systems, cybersecurity vulnerabilities within the virtual environment, and the difficulty in precisely defining 'virtual warfare' requirements which can be fluid. Ensuring the facility's design remains relevant and adaptable to future technological advancements and strategic shifts is a key challenge.
What is the historical spending pattern for virtual warfare or simulation facilities within the DoD?
Historical spending on virtual warfare and simulation facilities within the DoD has generally been on an upward trend, driven by the need for cost-effective and realistic training solutions that reduce reliance on live exercises. While specific aggregate spending figures for 'virtual warfare facilities' are not readily available as a distinct category, investments in simulation and training infrastructure, including virtual environments, flight simulators, and combat training centers, represent billions of dollars annually. This contract represents a specific investment within that broader trend towards technologically advanced training capabilities.
What is the significance of the 'definitive contract' award type in this context?
A definitive contract, such as the firm fixed-price contract awarded here, is a standard type used for procurement when the scope and requirements are well-defined. Unlike an 'undefinitized contract' (UCA), a definitive contract has all its terms and conditions finalized, including price, delivery schedule, and specifications, at the time of award. This provides greater certainty for both the government and the contractor, minimizing ambiguity and establishing clear expectations for project completion and payment, which is crucial for a project of this scale and duration.
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: W912PL18R0008
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE STE 275, SAINT LOUIS, MO, 63110
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: $30,761,116
Exercised Options: $30,761,116
Current Obligation: $30,761,116
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $62,564,039
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-07-13
Current End Date: 2020-11-13
Potential End Date: 2020-11-13 00:00:00
Last Modified: 2021-03-12
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