Edwards AFB Joint Simulation Facility contract awarded to Korte Construction Company for $35.9M

Contract Overview

Contract Amount: $35,895,949 ($35.9M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2020-08-06

End Date: 2023-11-09

Contract Duration: 1,190 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF A TWO STORY 72,140 SQUARE FOOT JOINT SIMULATION ENVIRONMENT (JSE) FACILITY AT EDWARDS AFB, CA.

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93523

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN AND CONSTRUCTION OF A TWO STORY 72,140 SQUARE FOOT JOINT SIMULATION ENVIRONMENT (JSE) FACILITY AT EDWARDS AFB, CA. Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The project involves the design and construction of a significant simulation facility, indicating a need for specialized construction capabilities. 3. The firm-fixed-price contract type helps mitigate cost overruns for the government. 4. The duration of the contract (1190 days) suggests a complex and lengthy construction project. 5. The project is located at Edwards AFB, California, a key military installation. 6. The absence of small business set-aside indicates the primary contractor is not a small business, and subcontracting opportunities for small businesses are not guaranteed by this contract's structure.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction contract is challenging without comparable data for similar joint simulation environment facilities. However, the firm-fixed-price structure provides cost certainty. The total award amount of $35.9 million for a 72,140 square foot facility translates to approximately $497 per square foot. This figure needs to be compared against regional construction costs for similar specialized facilities to determine true value for money. Factors like specialized equipment integration and site-specific requirements could influence this cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 3 bidders for this contract. A competitive process with multiple bidders generally leads to better price discovery and potentially more favorable pricing for the government, as contractors vie for the award.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to participate, driving down costs through market forces and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the military requiring advanced simulation capabilities. The contract delivers a new 72,140 square foot Joint Simulation Environment (JSE) facility. The geographic impact is concentrated at Edwards Air Force Base in California. The project will likely involve a significant construction workforce, including skilled trades, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Cost overruns are possible if unforeseen site conditions or design changes occur, despite the fixed-price nature.
Dependence on a single prime contractor for a critical facility.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Award to an established construction company may indicate a lower risk of performance issues.

Sector Analysis

The construction sector, particularly for specialized government facilities, is a significant market. This contract falls under commercial and institutional building construction. The market for military construction is driven by defense spending and the need for updated infrastructure and specialized training facilities. Comparable spending benchmarks would typically be found in reports on military construction projects or large-scale institutional building costs, factoring in regional labor and material prices.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This means that while the prime contractor, Korte Construction Company, may choose to subcontract portions of the work to small businesses, there is no contractual obligation to do so. The impact on the small business ecosystem is therefore indirect and depends on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army, overseeing the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Simulation and Training Facilities
Department of Defense Facilities Management
Edwards Air Force Base Infrastructure

Risk Flags

Potential for schedule delays impacting military readiness.
Risk of unforeseen site conditions affecting cost and timeline.
Integration complexity of simulation technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to KORTE CONSTRUCTION COMPANY. DESIGN AND CONSTRUCTION OF A TWO STORY 72,140 SQUARE FOOT JOINT SIMULATION ENVIRONMENT (JSE) FACILITY AT EDWARDS AFB, CA.

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 $35.9 million.

What is the period of performance?

Start: 2020-08-06. End: 2023-11-09.

What is Korte Construction Company's track record with large federal construction projects, particularly military facilities?

Korte Construction Company has a history of working on federal projects, including military installations. A detailed review of their past performance on similar-sized contracts, especially those involving specialized facilities or simulation environments, would be necessary to fully assess their track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and their experience with the specific requirements of military construction. Their ability to manage complex projects on time and within budget on previous federal contracts is a key indicator of their capability for this project.

How does the $497 per square foot cost compare to similar military simulation facility construction projects?

The cost of approximately $497 per square foot for the Joint Simulation Environment (JSE) facility needs careful benchmarking. Without specific data on comparable JSE facilities, a direct comparison is difficult. However, general construction costs for institutional or specialized commercial buildings in California can range significantly. Factors such as the complexity of the simulation technology to be integrated, specialized HVAC, power, and IT infrastructure requirements, security features, and the specific site conditions at Edwards AFB will heavily influence the per-square-foot cost. A thorough analysis would require comparing this figure against recent awards for similar military training or simulation facilities in comparable geographic regions, adjusting for inflation and project-specific complexities.

What are the primary risks associated with the construction of this specialized facility?

The primary risks associated with constructing a specialized facility like the Joint Simulation Environment (JSE) include potential design complexities, integration challenges with advanced simulation technology, unforeseen site conditions at Edwards AFB, and the availability of specialized labor and materials. Given the firm-fixed-price contract, cost escalation due to these risks would primarily impact the contractor, but delays could affect the government's operational readiness. Managing these risks requires robust project management, clear communication between the government and contractor, and proactive identification and mitigation strategies throughout the project lifecycle.

What is the expected effectiveness of the Joint Simulation Environment (JSE) facility once completed?

The effectiveness of the JSE facility will be measured by its ability to support advanced military training, mission rehearsal, and operational planning. Its success hinges on the successful integration of simulation hardware and software, its capacity to replicate realistic operational environments, and its reliability. The facility is expected to enhance training realism, reduce the need for costly live exercises, and improve warfighter preparedness. Post-construction evaluations and user feedback will be crucial in assessing its actual effectiveness in meeting the intended military objectives.

How has federal spending on military construction and simulation facilities trended in recent years?

Federal spending on military construction and simulation facilities has generally remained robust, driven by modernization efforts and evolving geopolitical landscapes. Budgets allocated to the Department of Defense for facilities, infrastructure, and training systems fluctuate based on strategic priorities and overall defense appropriations. Recent trends may show an increased emphasis on technologically advanced training solutions, including virtual and augmented reality simulations, which require specialized infrastructure. Analyzing historical spending patterns within the relevant military branches and agencies can provide context for the scale and importance of this particular JSE facility contract.

Are there any specific performance metrics or milestones tied to this contract that indicate success?

While the provided data does not detail specific performance metrics or milestones, firm-fixed-price construction contracts typically include key performance indicators related to schedule adherence, quality of workmanship, adherence to design specifications, and safety compliance. Milestones would likely be tied to phases of construction, such as design completion, foundation work, structural completion, interior fit-out, and final acceptance. The government's contracting officer and technical representatives would monitor progress against these milestones and specifications to ensure successful project delivery.

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: SEALED BID

Solicitation ID: W912PL20R0003

Offers Received: 3

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: $35,895,949

Exercised Options: $35,895,949

Current Obligation: $35,895,949

Subaward Activity

Number of Subawards: 107

Total Subaward Amount: $94,522,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline