Army's $17M Reserve Center Design/Build Contract Awarded to Korte Construction Company
Contract Overview
Contract Amount: $17,006,862 ($17.0M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2011-10-31
Contract Duration: 885 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD OF A BRAC ARMED FORCES RESERVE CENTER, MCALESTER, OKLAHOMA
Place of Performance
Location: MCALESTER, PITTSBURG County, OKLAHOMA, 74501
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN/BUILD OF A BRAC ARMED FORCES RESERVE CENTER, MCALESTER, OKLAHOMA Key points: 1. Contract awarded for a Design/Build project for a BRAC Armed Forces Reserve Center. 2. The project was awarded under full and open competition. 3. The contract value is $17,006,862. 4. The project duration was 885 days. 5. The contractor is Korte Construction Company.
Value Assessment
Rating: fair
The contract value of $17M for a design/build project of this nature appears within a reasonable range for similar large-scale construction projects. However, without specific details on the scope and complexity, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition is expected to yield a fair price for taxpayers, maximizing value for the investment in military infrastructure.
Public Impact
Enhances military readiness by providing modern facilities for reserve forces. Supports local economy through construction jobs and contractor spending. BRAC initiative aims to optimize military real estate footprint.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Fixed-price contract may not fully account for unforeseen construction challenges.
Positive Signals
- Awarded under full and open competition.
- Project supports critical military infrastructure needs.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector characterized by significant capital investment and project management complexity. Benchmarks for similar government construction projects vary widely based on size, location, and specific requirements.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Future contracts could explore opportunities for small business subcontracting to promote economic diversity.
Oversight & Accountability
The award was managed by the Department of the Army, part of the Department of Defense. Standard oversight procedures for federal construction projects would apply, including progress monitoring and quality assurance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Potential for cost increases with fixed-price contracts if scope changes.
- Limited insight into project performance beyond award and completion dates.
Tags
commercial-and-institutional-building-co, department-of-defense, ok, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to KORTE CONSTRUCTION COMPANY. DESIGN/BUILD OF A BRAC ARMED FORCES RESERVE CENTER, MCALESTER, OKLAHOMA
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 $17.0 million.
What is the period of performance?
Start: 2009-05-29. End: 2011-10-31.
What was the final cost compared to the initial bid, and were there any significant change orders?
The provided data does not include information on the final cost versus the initial bid or details on change orders. Analyzing these aspects would be crucial to fully assess the contract's financial performance and identify any potential cost overruns or efficiencies achieved during the project lifecycle.
Were there any performance issues or disputes during the contract period?
The available data does not specify any performance issues or disputes between the Department of the Army and Korte Construction Company during the contract execution. A thorough review of contract performance reports and any associated documentation would be necessary to ascertain the project's success beyond the initial award and completion dates.
How does the cost per square foot compare to similar BRAC facility constructions?
Calculating a precise cost per square foot benchmark requires the total square footage of the facility, which is not provided in the data. Without this key metric, a direct comparison to similar BRAC facility constructions is not feasible. Further data collection on the facility's size is needed for a meaningful cost analysis.
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: W912QR09R0030
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE SUITE 200, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,006,862
Exercised Options: $17,006,862
Current Obligation: $17,006,862
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-05-29
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2011-01-20
More Contracts from Korte Construction Company
- Disaster Resiliency Program (DRP) Phase 1 — $144.0M (Department of Defense)
- Gbsd CMF — $123.3M (Department of Defense)
- Disaster Resiliency Program (DRP) Phase 2 Creech AFB Nevada — $106.1M (Department of Defense)
- Design and Construction of the KC-46A Fuel Maintenance Hangar on the KC-46A Campus AT Tinker AFB, Oklahoma — $73.2M (Department of Defense)
- Aircraft Maintenance Hangar — $68.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)