DoD awards $106M contract for Disaster Resiliency Program at Creech AFB, Nevada

Contract Overview

Contract Amount: $106,114,818 ($106.1M)

Contractor: Korte Construction Company

Awarding Agency: Department of Defense

Start Date: 2025-10-10

End Date: 2027-10-10

Contract Duration: 730 days

Daily Burn Rate: $145.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DISASTER RESILIENCY PROGRAM (DRP) PHASE 2 CREECH AFB NEVADA

Place of Performance

Location: INDIAN SPRINGS, CLARK County, NEVADA, 89018

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $106.1 million to KORTE CONSTRUCTION COMPANY for work described as: DISASTER RESILIENCY PROGRAM (DRP) PHASE 2 CREECH AFB NEVADA Key points: 1. Contract awarded to Korte Construction Company for a firm-fixed-price definitive contract. 2. Project aims to enhance disaster resiliency at Creech Air Force Base. 3. Duration of the contract is 730 days, ending October 10, 2027. 4. The contract was awarded under full and open competition. 5. This project falls under the Commercial and Institutional Building Construction NAICS code. 6. The base award amount is $106,114,818.

Value Assessment

Rating: good

The contract value of $106.1 million for a disaster resiliency program at a military installation appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar Department of Defense construction contracts for facility upgrades and resilience measures would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and considered. This method generally promotes a competitive environment, allowing for a broader range of potential contractors to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition that should lead to a fair market price.

Taxpayer Impact: Full and open competition typically results in better price discovery and potentially lower costs for taxpayers by encouraging multiple firms to bid competitively.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Creech Air Force Base, Nevada, through enhanced facility resilience. The services delivered include construction and infrastructure improvements to bolster disaster preparedness and response capabilities. The geographic impact is concentrated at Creech Air Force Base in Nevada. Workforce implications include employment opportunities for construction workers and related trades in the Nevada region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Dependence on contractor's ability to meet stringent deadlines for critical infrastructure upgrades.
Risk of supply chain disruptions impacting material availability and project timelines.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process likely yielding a fair price.
Project addresses critical infrastructure needs for disaster resiliency, enhancing operational continuity.
Award to an established construction company with experience in government contracts.

Sector Analysis

This contract falls within the construction sector, specifically Commercial and Institutional Building Construction. The market for military construction and infrastructure resilience projects is substantial, driven by ongoing modernization efforts and the need to adapt to environmental and security challenges. Comparable spending benchmarks would involve looking at other large-scale construction projects awarded by the Department of Defense for base improvements and facility upgrades.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger firm, and the impact on the small business ecosystem will depend on whether the prime contractor utilizes small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, as indicated by the 'sa' field, and potentially the Air Force given the base location. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases, though specific oversight reports or inspector general involvement would depend on project milestones and any identified issues.

Related Government Programs

Military Construction Program
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Modernization

Risk Flags

Potential for scope creep if 'disaster resiliency' requirements are not precisely defined.
Contractor performance risk related to schedule adherence and quality of work.
Dependency on timely delivery of specialized materials and equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.1 million to KORTE CONSTRUCTION COMPANY. DISASTER RESILIENCY PROGRAM (DRP) PHASE 2 CREECH AFB NEVADA

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 $106.1 million.

What is the period of performance?

Start: 2025-10-10. End: 2027-10-10.

What is Korte Construction Company's track record with similar Department of Defense construction projects?

Korte Construction Company has a significant history of working with the Department of Defense on various construction projects, including military installations. Their portfolio often includes design-build projects, barracks, training facilities, and infrastructure upgrades. While specific details on past disaster resiliency projects are not immediately available from this data, their experience with large-scale federal contracts suggests a capacity to handle complex requirements. A deeper dive into their past performance ratings and any past performance issues on similar DoD contracts would provide a more comprehensive assessment of their suitability for this specific project.

How does the $106 million award compare to other disaster resiliency projects at military bases?

The $106 million award for the Disaster Resiliency Program at Creech AFB is a substantial investment, typical for major infrastructure upgrades at military installations. Projects focused on enhancing resilience against natural disasters, climate change impacts, or security threats often involve significant construction, utility upgrades, and protective measures. Comparing this to other similar projects requires access to a database of recent DoD construction awards. However, projects of this scale are generally in the tens to hundreds of millions of dollars, depending on the scope, location, and specific threats being addressed. The firm-fixed-price nature suggests a well-defined scope, which can influence the overall cost compared to cost-plus contracts for less defined projects.

What are the primary risks associated with this firm-fixed-price contract for disaster resiliency?

While firm-fixed-price contracts are generally favorable for the government by capping costs, risks can still exist. For this disaster resiliency project, potential risks include unforeseen site conditions (e.g., geological issues, existing utility conflicts) that could lead to change orders if not adequately identified during the design phase. Contractor performance risk is also present; if Korte Construction Company faces labor shortages, material delays, or management issues, the project timeline could be jeopardized, impacting the base's operational readiness. Furthermore, the definition of 'disaster resiliency' itself can be broad, and ensuring the contractor fully meets the intended resilience standards under the fixed price could require rigorous oversight.

How effective are disaster resiliency programs in ensuring operational continuity for military bases?

Disaster resiliency programs are crucial for ensuring operational continuity at military bases. They aim to mitigate the impact of natural disasters (hurricanes, floods, wildfires, earthquakes) and man-made threats by hardening infrastructure, improving emergency response capabilities, and establishing robust continuity of operations plans. By investing in these programs, bases can reduce downtime, protect critical assets and personnel, and maintain essential functions even under adverse conditions. The effectiveness is measured by the reduction in recovery time, minimized damage, and the ability to resume operations quickly post-event. This specific project at Creech AFB likely focuses on enhancing the base's ability to withstand and recover from specific regional threats.

What has been the historical spending trend for disaster resiliency projects within the Department of Defense?

Historical spending on disaster resiliency within the Department of Defense has seen a notable increase over the past decade. Driven by growing concerns over climate change impacts, aging infrastructure, and evolving security threats, DoD has prioritized investments in hardening facilities, improving energy resilience, and enhancing cybersecurity. While specific figures for 'disaster resiliency' as a standalone category can be difficult to isolate due to its integration into broader infrastructure and modernization budgets, overall military construction and facilities sustainment accounts have consistently allocated significant funds towards these efforts. Congressional appropriations and specific program initiatives often reflect this growing emphasis.

What is the significance of the 730-day duration for this contract?

A 730-day duration (two years) for a $106 million construction project indicates a significant scope of work. This timeframe allows for detailed planning, procurement of specialized materials, execution of complex construction phases, and thorough testing and commissioning of the resiliency measures. It suggests that the project involves more than just superficial upgrades, likely encompassing substantial structural, mechanical, or electrical system enhancements. The duration also implies that the contractor will need to manage resources, labor, and potential weather or logistical delays effectively over an extended period to meet the project's objectives.

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: W912PL25RA012

Offers Received: 1

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: $106,114,818

Exercised Options: $106,114,818

Current Obligation: $106,114,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline