DoD's $34M Fallon Air Wing Facility Construction Awarded to Straub Construction, Inc

Contract Overview

Contract Amount: $34,058,465 ($34.1M)

Contractor: Straub Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-16

End Date: 2019-12-19

Contract Duration: 1,555 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN BUILD CONSTRUCTION AIR WING FACILITY NAS FALLON BASE YEAR PERFORMANCE PERIOD

Place of Performance

Location: FALLON, CHURCHILL County, NEVADA, 89496

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to STRAUB CONSTRUCTION, INC. for work described as: IGF::OT::IGF DESIGN BUILD CONSTRUCTION AIR WING FACILITY NAS FALLON BASE YEAR PERFORMANCE PERIOD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's fixed-price nature aims to control costs for the government. 3. Performance period of over 4 years indicates a significant, long-term construction project. 4. The project falls under Commercial and Institutional Building Construction NAICS code. 5. Awarded to a single contractor, Straub Construction, Inc., for the entire project scope. 6. Geographic location in Nevada may influence local construction labor and material costs.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable project data for similar air wing facilities. The firm-fixed-price structure is standard for construction, aiming to transfer risk to the contractor. However, the total award amount of $34 million for a 1555-day performance period needs further analysis against industry standards for construction projects of this scale and complexity to definitively assess value for money.

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 a bid. Six bids were received, suggesting a reasonable level of competition for this construction project. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition with six bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Navy and the Air Wing personnel stationed at NAS Fallon, Nevada, who will gain improved facilities. The project delivers construction services for an air wing facility, likely encompassing hangars, maintenance areas, and administrative spaces. The geographic impact is concentrated in Fallon, Nevada, potentially creating local employment opportunities during the construction phase. Workforce implications include demand for skilled construction labor in the Nevada region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price contract.
Dependence on a single contractor for project completion introduces risk if the contractor faces financial or operational difficulties.
The long performance period increases the possibility of scope creep or changes that could impact the final cost if not managed tightly.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
Awarding under full and open competition with six bidders suggests a competitive market and potentially a well-priced outcome.
The project's focus on facility improvement at a key naval air station indicates strategic investment in operational readiness.

Sector Analysis

This contract falls within the broader construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale government construction projects is often characterized by a mix of large prime contractors and specialized subcontractors. Spending benchmarks for similar military facility constructions can vary significantly based on location, specific requirements, and prevailing market conditions. The Department of Defense is a major client in this sector, with consistent demand for infrastructure development and upgrades.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Straub Construction, Inc., may still engage small businesses as subcontractors as part of their overall project execution strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified facilities within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Air Station Construction Projects
Department of Defense Facility Modernization
Military Airfield Infrastructure
Large-Scale Commercial Construction Contracts

Risk Flags

Long performance period increases risk of market fluctuations.
Potential for unforeseen site conditions impacting cost.
Dependence on a single contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to STRAUB CONSTRUCTION, INC.. IGF::OT::IGF DESIGN BUILD CONSTRUCTION AIR WING FACILITY NAS FALLON BASE YEAR PERFORMANCE PERIOD

Who is the contractor on this award?

The obligated recipient is STRAUB CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2015-09-16. End: 2019-12-19.

What is Straub Construction, Inc.'s track record with similar large-scale federal construction projects?

A review of federal contract databases indicates that Straub Construction, Inc. has a history of performing construction work for various government agencies, including the Department of Defense. While specific details on past air wing facility projects are not immediately available in this summary data, their experience likely includes a range of building construction types. Further investigation into their past performance ratings, contract values, and project types would be necessary to fully assess their suitability and track record for this specific type of facility. Examining awards for similar projects, such as hangars, maintenance facilities, or administrative buildings at military installations, would provide a more direct comparison.

How does the awarded price of $34 million compare to similar air wing facility construction projects?

Directly comparing the $34 million award to similar air wing facility projects is difficult without access to a comprehensive database of comparable projects, including their specific scope, size, location, and construction timelines. Factors such as the complexity of the facility, specific technological requirements (e.g., specialized hangar doors, environmental controls), local labor and material costs in Nevada, and the duration of the performance period (1555 days) all influence project costs. However, given the scale implied by an air wing facility, $34 million appears to be within a plausible range for a significant construction undertaking. A detailed benchmark analysis would require identifying projects with similar square footage, functional requirements, and construction methods.

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

The primary risk for the government with a firm-fixed-price (FFP) contract is that the contractor may seek to reduce costs by compromising quality or using lower-cost materials if oversight is insufficient. While the FFP structure aims to cap the government's financial exposure, the contractor bears the risk of cost overruns. However, if the contractor encounters unforeseen issues (e.g., subsurface conditions, design changes requested by the government), they may seek equitable adjustments or claim delays, potentially increasing the overall cost or schedule. Effective government oversight is crucial to ensure the contractor meets quality standards and adheres to the contract terms without resorting to cost-cutting measures that compromise the facility's integrity or functionality.

How effective is the 'full and open competition' strategy likely to be in ensuring value for this project?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for government projects, as it maximizes the pool of potential bidders and encourages competitive pricing. Receiving six bids indicates that the market was sufficiently interested and that Straub Construction, Inc. likely submitted a competitive offer. This level of competition helps the government achieve a fair market price and reduces the risk of awarding a contract at an inflated cost. The effectiveness is further enhanced by a clear and well-defined scope of work, allowing bidders to accurately price their proposals and minimizing ambiguity that could lead to disputes or change orders later in the project lifecycle.

What are the historical spending patterns for similar construction projects at NAS Fallon or within the Navy?

Historical spending patterns for similar construction projects at NAS Fallon or within the Navy would reveal trends in contract values, types of facilities procured, and the average number of bids received. Analyzing past awards for airfield infrastructure, maintenance facilities, or barracks at NAS Fallon would provide specific local context. Broader Navy spending data on construction would indicate typical contract sizes and the prevalence of different contract types (e.g., fixed-price vs. cost-plus). Understanding these patterns helps in assessing whether the current $34 million award is consistent with historical investments in similar capabilities and locations, and whether competition levels have remained stable or changed over time.

What are the potential implications of the 1555-day performance period on project costs and risks?

A performance period of 1555 days (approximately 4.25 years) for a construction project of this magnitude introduces several cost and risk considerations. Longer durations increase the potential for market fluctuations in material prices (e.g., steel, concrete) and labor rates, which could impact the contractor's profitability and potentially lead to claims if not adequately accounted for in the fixed price. There is also an increased risk of design obsolescence or the need for incorporating new technologies or regulatory requirements during the extended construction phase. Furthermore, the longer timeline necessitates sustained government oversight to ensure consistent progress, quality control, and effective management of any potential changes or unforeseen issues that may arise over the multi-year period.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247312R0263

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 202 W COLLEGE ST STE 201, FALLBROOK, CA, 92028

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,058,465

Exercised Options: $34,058,465

Current Obligation: $34,058,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247315D2427

IDV Type: IDC

Timeline