DoD Awards $40.7M Construction Contract to Korte Construction for Nevada Facility
Contract Overview
Contract Amount: $40,726,371 ($40.7M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2022-05-19
End Date: 2025-02-14
Contract Duration: 1,002 days
Daily Burn Rate: $40.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PRIMARY FACILITY(53WG OPS-TEST FACILITY)
Place of Performance
Location: NELLIS AFB, CLARK County, NEVADA, 89191
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $40.7 million to KORTE CONSTRUCTION COMPANY for work described as: PRIMARY FACILITY(53WG OPS-TEST FACILITY) Key points: 1. The contract is for the construction of a primary facility in Nevada. 2. Korte Construction Company was awarded the contract. 3. The contract was awarded under full and open competition. 4. The contract has a firm-fixed-price structure, indicating defined costs. 5. The project duration is approximately 1002 days.
Value Assessment
Rating: good
The award amount of $40.7 million for a commercial and institutional building construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified contractors vied for the award.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
Construction projects of this magnitude can create local jobs and stimulate economic activity in the Nevada region. The facility's purpose as an operations and test facility suggests it will support critical defense missions. Long-term maintenance and operational costs of the new facility will be a subsequent consideration for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in construction timelines impacting operational readiness.
- Environmental impact during the construction phase.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract limits cost uncertainty.
- Supports critical Department of Defense operations.
Sector Analysis
The construction sector is characterized by significant capital investment and project management complexity. This contract falls within the commercial and institutional building construction sub-sector, which is a common area for government procurement.
Small Business Impact
The data indicates this contract was not awarded to a small business, as the awardee is Korte Construction Company. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, suggests adherence to standard oversight mechanisms. Post-award monitoring will be crucial for ensuring project completion and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value increases financial risk.
- Construction projects are susceptible to delays.
- Potential for unforeseen site conditions.
- Dependence on a single prime contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.7 million to KORTE CONSTRUCTION COMPANY. PRIMARY FACILITY(53WG OPS-TEST FACILITY)
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 $40.7 million.
What is the period of performance?
Start: 2022-05-19. End: 2025-02-14.
What is the specific operational purpose of the 'OPS-TEST FACILITY' and how does its construction align with broader defense objectives?
The 'OPS-TEST FACILITY' likely serves as a critical infrastructure component for testing and operational readiness within the Department of the Army. Its construction supports specific mission requirements, potentially involving advanced technologies or strategic defense initiatives. Understanding the precise nature of these operations would clarify the facility's contribution to national security and justify the investment.
What are the key performance indicators and risk mitigation strategies in place to ensure the timely and budget-compliant completion of this large-scale construction project?
Key performance indicators would likely include adherence to construction schedules, quality control benchmarks, and budget management. Risk mitigation strategies might involve detailed project planning, regular site inspections, contingency planning for unforeseen issues (like weather or material shortages), and robust contract management by the Army Corps of Engineers or relevant oversight body.
Beyond the initial construction cost, what are the projected long-term operational and maintenance expenses associated with this new facility?
Projecting long-term operational and maintenance expenses is crucial for a complete lifecycle cost assessment. These costs could include utilities, staffing, routine repairs, specialized equipment upkeep, and potential upgrades. A thorough analysis would involve estimating these annual expenses over the facility's expected lifespan to understand the total taxpayer burden beyond the initial construction contract.
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: W912PL22R0004
Offers Received: 4
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: $40,726,371
Exercised Options: $40,726,371
Current Obligation: $40,726,371
Actual Outlays: $5,355,969
Subaward Activity
Number of Subawards: 101
Total Subaward Amount: $115,628,310
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-19
Current End Date: 2025-02-14
Potential End Date: 2025-02-14 00:00:00
Last Modified: 2025-09-24
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