Tutor Perini Corporation awarded $50.8M for Andersen AFB runway repair, highlighting construction sector spending
Contract Overview
Contract Amount: $50,778,447 ($50.8M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-27
End Date: 2010-07-22
Contract Duration: 663 days
Daily Burn Rate: $76.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR SOUTH RUNWAY, ANDERSEN AFB, GUAM
Plain-Language Summary
Department of Defense obligated $50.8 million to TUTOR PERINI CORPORATION for work described as: REPAIR SOUTH RUNWAY, ANDERSEN AFB, GUAM Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. The project falls within the broader commercial and institutional building construction sector. 3. Full and open competition suggests a potentially competitive bidding process. 4. The fixed-price contract type aims to control costs for the government. 5. The duration of the contract indicates a substantial scope of work. 6. The award was made by the Department of the Air Force, a key defense agency.
Value Assessment
Rating: good
The contract value of approximately $50.8 million for runway repair at Andersen AFB appears reasonable given the scope and location. While direct comparisons are difficult without specific project details, major airfield infrastructure projects often run into tens of millions of dollars. The firm-fixed-price structure suggests an effort to establish a clear cost ceiling. Benchmarking against similar large-scale construction projects for military bases would provide further context on value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of contractors and potentially more competitive pricing. The number of bidders is not specified, but the open competition framework is a positive sign for price discovery and ensuring the government receives the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation among contractors.
Public Impact
The primary beneficiaries are the U.S. Air Force and military personnel stationed at Andersen AFB, Guam, who will have access to a repaired and functional runway. The services delivered include the repair of the south runway, essential for flight operations. The geographic impact is concentrated in Guam, a strategic location in the Pacific. The project likely involved a significant construction workforce, potentially including local hires and specialized trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Logistical challenges associated with construction in Guam could impact timelines and costs.
- Ensuring quality of repair work to meet stringent military aviation standards.
Positive Signals
- Award to a large, established contractor like Tutor Perini Corporation suggests capacity and experience.
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition indicates a potentially well-vetted and competitive process.
Sector Analysis
This contract falls within the Construction sector, specifically commercial and institutional building construction, with a focus on heavy civil engineering for airfield infrastructure. The market for large-scale military construction projects is often dominated by a few major players capable of handling complex, geographically dispersed, and high-value contracts. Spending in this area is driven by military readiness requirements, base modernization, and infrastructure upkeep.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Tutor Perini Corporation is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and engineering personnel. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.
Related Government Programs
- Military Base Construction
- Airfield Pavement Repair
- Department of Defense Infrastructure Projects
- Guam Military Construction
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Logistical challenges in remote island locations.
- Ensuring adherence to strict military aviation standards.
Tags
construction, department-of-defense, department-of-the-air-force, andersen-afb, guam, full-and-open-competition, firm-fixed-price, infrastructure, runway-repair, large-contract, heavy-civil-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.8 million to TUTOR PERINI CORPORATION. REPAIR SOUTH RUNWAY, ANDERSEN AFB, GUAM
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
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 $50.8 million.
What is the period of performance?
Start: 2008-09-27. End: 2010-07-22.
What is Tutor Perini Corporation's track record with large federal construction contracts, particularly for the Department of Defense?
Tutor Perini Corporation has a substantial history of securing and executing large federal construction contracts, including numerous projects for the Department of Defense and other government agencies. They are known for undertaking complex projects such as military bases, hospitals, and infrastructure. Their portfolio includes significant airfield construction and repair work, indicating relevant experience for this Andersen AFB contract. Analyzing their past performance on similar projects, including any past performance issues or commendations, would provide a clearer picture of their reliability and capability in executing this specific type of work.
How does the $50.8 million cost compare to similar runway repair projects at other military installations?
Benchmarking the $50.8 million cost requires detailed comparison with similar runway repair projects at other military installations, considering factors like project scope, runway size, materials used, labor costs, and geographic location. Major airfield repairs can vary significantly in price. For instance, a simple resurfacing might cost less than a complete reconstruction involving drainage, lighting, and structural reinforcement. Projects in remote or high-cost-of-living areas like Guam can also command higher prices due to logistical challenges and specialized labor requirements. Without specific comparable project data, it's challenging to definitively state if this contract represents exceptional value, but the amount is within the expected range for significant airfield infrastructure work.
What are the primary risks associated with this specific contract, and how are they being mitigated?
Key risks for this contract include potential unforeseen ground conditions impacting repair costs and timelines, logistical challenges in delivering materials and personnel to Guam, and ensuring the quality of work meets stringent military aviation standards. The firm-fixed-price contract structure mitigates financial risk for the government by setting a ceiling on costs. Mitigation for logistical and quality risks would rely on the contractor's project management expertise, detailed site investigations prior to award, and robust government oversight and quality assurance inspections throughout the project lifecycle. The contractor's experience in similar environments would also be a mitigating factor.
What is the historical spending pattern for runway maintenance and repair at Andersen AFB and similar Pacific-based installations?
Historical spending on runway maintenance and repair at Andersen AFB and similar Pacific-based installations would likely show a pattern of significant, periodic investments rather than continuous high spending. Major repairs or reconstructions are typically undertaken every 10-20 years, depending on usage and material degradation. Smaller, routine maintenance might occur more frequently. Spending levels can fluctuate based on military budget allocations, infrastructure condition assessments, and strategic priorities. Analyzing past contracts for Andersen AFB and other bases in the region would reveal the frequency and average cost of such projects, providing context for the current $50.8 million award.
How effective are firm-fixed-price contracts in ensuring cost control for large-scale construction projects like this runway repair?
Firm-fixed-price (FFP) contracts are generally considered effective in controlling costs for large-scale construction projects when the scope of work is well-defined and risks are understood. The contractor assumes most of the financial risk, incentivizing them to manage costs efficiently and complete the project within budget. However, if unforeseen issues arise that significantly alter the scope or require extensive change orders, the FFP structure can sometimes lead to disputes or higher overall costs if not managed carefully. For a project like runway repair, where subsurface conditions can be unpredictable, robust pre-award site assessments and clear contract language are crucial for the FFP to remain an effective cost-control mechanism.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA300206R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 73 MOUNT WAYTE AVE., FRAMINGHAM, MA, 01702
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,778,447
Exercised Options: $50,778,447
Current Obligation: $50,778,447
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA300208D0011
IDV Type: IDC
Timeline
Start Date: 2008-09-27
Current End Date: 2010-07-22
Potential End Date: 2010-07-22 00:00:00
Last Modified: 2018-10-17
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