Air Force awards $35M runway repair contract to AECOM Technical Services, Inc

Contract Overview

Contract Amount: $34,997,873 ($35.0M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-01

End Date: 2011-02-02

Contract Duration: 731 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR EARECKSON RUNWAY BASIC BID PLUS OPTION 1 AND 2

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to AECOM TECHNICAL SERVICES, INC. for work described as: REPAIR EARECKSON RUNWAY BASIC BID PLUS OPTION 1 AND 2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 731 days indicates a significant, multi-year project. 3. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The base award plus two options suggests potential for scope expansion. 5. The contract is for construction services, a critical infrastructure need for military operations. 6. Awarded to a single contractor, AECOM Technical Services, Inc., for execution.

Value Assessment

Rating: fair

The contract value of $34,997,873 for runway repair over two years appears to be within a reasonable range for large-scale infrastructure projects of this nature. Benchmarking against similar runway repair contracts would provide a more precise assessment of value for money. The firm fixed-price structure suggests that the initial pricing was deemed acceptable, with the contractor bearing the risk of cost overruns. However, without detailed cost breakdowns or comparisons to industry standards for specific repair tasks, a definitive value assessment is challenging.

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. The presence of two bids suggests a moderate level of competition for this project. While two bidders is better than one, a higher number of bids would typically lead to more aggressive pricing and potentially better value for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided, limiting a deeper analysis of the competitive dynamics.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Air Force, ensuring operational readiness and safety of aircraft by maintaining runway infrastructure. The contract delivers essential repair and maintenance services for a critical military asset. The geographic impact is localized to the specific Air Force base in Alaska where the runway is located. The contract supports the construction workforce, likely involving skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price nature.
Dependence on a single contractor for a critical infrastructure repair could pose risks if performance issues emerge.
Scope creep is a possibility with option periods, potentially increasing the total contract value beyond initial estimates.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contractor, AECOM Technical Services, Inc., likely possesses specialized expertise in large-scale construction and infrastructure projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure critical to military operations. The market for large-scale construction and repair services for government facilities is substantial, with numerous firms capable of undertaking such projects. This contract represents a significant investment in maintaining essential operational capabilities for the Air Force. Comparable spending benchmarks for runway construction and repair vary widely based on project scope, location, and specific materials required.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was awarded under full and open competition, it is possible that small businesses were not primary bidders or were not specifically targeted through set-aside provisions. Further investigation into subcontracting opportunities would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting command. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Airfield Pavement Maintenance
Infrastructure Repair Contracts
Department of Defense Construction Projects

Risk Flags

Potential for cost overruns due to fixed-price nature if unforeseen issues arise.
Contract duration and scope could lead to significant operational impact if delays occur.
Limited competition (two bidders) may have resulted in a suboptimal price.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to AECOM TECHNICAL SERVICES, INC.. REPAIR EARECKSON RUNWAY BASIC BID PLUS OPTION 1 AND 2

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2009-02-01. End: 2011-02-02.

What is AECOM Technical Services, Inc.'s track record with similar Air Force runway repair contracts?

AECOM Technical Services, Inc. has a history of performing large-scale construction and engineering projects for various government agencies, including the Department of Defense. While specific details on past runway repair contracts with the Air Force are not immediately available in this data snippet, their general experience in infrastructure development suggests a capacity to handle such projects. A deeper dive into their contract history would reveal the number and scale of similar projects, their performance ratings on those contracts, and any past issues or commendations related to runway maintenance or construction. This would provide crucial context for assessing their suitability and reliability for the current contract.

How does the awarded price compare to industry benchmarks for runway repair of this scale?

The awarded price of approximately $35 million for runway repair over two years is substantial. To benchmark this value effectively, one would need to compare it against similar projects in terms of scope (e.g., square footage of runway repaired, type of repairs like resurfacing, crack sealing, or structural reinforcement), geographic location (which impacts labor and material costs), and the specific requirements of the Air Force base. Industry data from construction cost estimators, government reports on similar projects, or analyses by construction industry associations could provide benchmarks. Without such comparative data, it's difficult to definitively state whether this price represents excellent, fair, or questionable value for money.

What are the primary risks associated with this firm fixed-price contract for runway repair?

The primary risk with a firm fixed-price contract, while beneficial for cost certainty, is that the contractor bears the burden of any cost overruns. If unforeseen subsurface conditions, material price escalations beyond what was anticipated, or labor shortages occur, AECOM Technical Services, Inc. might face reduced profit margins or even losses. Conversely, the government's risk is that the contractor might cut corners on quality to protect profits, although quality assurance measures should mitigate this. Another risk is the potential for delays if the contractor struggles to manage resources or encounters unexpected site conditions, impacting the Air Force's operational readiness.

What is the expected program effectiveness and impact on Air Force operations?

The expected program effectiveness hinges on the successful and timely completion of the runway repairs. Effective execution will ensure the runway meets safety standards, can handle the operational tempo of the assigned aircraft, and minimizes downtime. This directly impacts the Air Force's ability to conduct training, deploy assets, and maintain readiness at the specific base. Poor execution could lead to prolonged disruptions, safety concerns, and reduced operational capacity, negatively impacting the base's mission effectiveness. The contract's success is measured by the restored or improved condition and usability of the runway.

How does this contract's value compare to historical spending on runway maintenance at this Air Force base or similar facilities?

To assess historical spending patterns, one would need to examine previous contracts awarded for runway maintenance or repair at this specific Air Force base or comparable facilities within the Air Force. This $35 million contract represents a significant investment. Comparing it to the average annual spending on runway upkeep, or the cost of previous major repair projects, would reveal if this contract is an outlier, an increase, or consistent with historical trends. Factors like inflation, changes in operational tempo, and evolving maintenance standards would need to be considered in such a comparison.

What specific types of runway repairs are included in this contract, and how do they align with typical maintenance needs?

The contract title 'REPAIR EARECKSON RUNWAY BASIC BID PLUS OPTION 1 AND 2' suggests a comprehensive repair effort. Typical runway repairs can include resurfacing, crack sealing, patching, drainage improvements, lighting system upgrades, and potentially structural repairs to the underlying pavement. The 'basic bid plus option' structure implies that the initial award covers essential repairs, with options for additional work that might be triggered by further inspection findings or evolving needs. Aligning these repairs with typical maintenance needs involves assessing the runway's current condition against established engineering standards and identifying deficiencies that impact safety and operational capability.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA300206R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 300 OCEANGATE, STE 700, LONG BEACH, CA, 90802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,997,873

Exercised Options: $34,997,873

Current Obligation: $34,997,873

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300208D0006

IDV Type: IDC

Timeline