USDA's $6.5M Hangar Renovation Contract Awarded to AR6 Construction Amidst Full and Open Competition
Contract Overview
Contract Amount: $6,542,179 ($6.5M)
Contractor: AR6 Construction & Engineering, LLC
Awarding Agency: Department of Agriculture
Start Date: 2025-10-01
End Date: 2027-09-30
Contract Duration: 729 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HANGAR RENOVATION
Place of Performance
Location: AMES, STORY County, IOWA, 50010
State: Iowa Government Spending
Plain-Language Summary
Department of Agriculture obligated $6.5 million to AR6 CONSTRUCTION & ENGINEERING, LLC for work described as: HANGAR RENOVATION Key points: 1. The contract value of $6.54 million for hangar renovation falls within typical construction project ranges. 2. AR6 Construction & Engineering, LLC secured the award through a full and open competition process. 3. The firm fixed-price contract type aims to control costs for the Animal and Plant Health Inspection Service. 4. The project falls under the Commercial and Institutional Building Construction sector, a common area for federal spending.
Value Assessment
Rating: good
The contract value of $6.54 million appears reasonable for a hangar renovation project of this scope and duration. Benchmarking against similar federal construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this necessary renovation.
Public Impact
Ensures operational readiness for the Animal and Plant Health Inspection Service by modernizing critical infrastructure. Supports the construction industry through a federal contract, potentially creating jobs and stimulating economic activity. The renovation will likely improve safety and efficiency for personnel and equipment housed in the hangar.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed-price contract type
- Clear project scope and duration defined
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, supporting infrastructure development across various agencies. Benchmarks for similar hangar renovations would typically consider size, complexity, and location.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this specific contract, as 'sb' is false. Future contracts could explore opportunities for small business involvement in specialized construction trades.
Oversight & Accountability
The use of full and open competition and a firm fixed-price contract suggests a degree of oversight in the procurement process. Further review of the solicitation and award documentation would confirm the extent of accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Agriculture Contracting
- Animal and Plant Health Inspection Service Programs
Risk Flags
- Potential for cost overruns if unforeseen construction issues arise under fixed-price contract.
- Limited information on specific sustainability or environmental considerations in the renovation.
- Lack of explicit small business participation noted in the award data.
Tags
commercial-and-institutional-building-co, department-of-agriculture, ia, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $6.5 million to AR6 CONSTRUCTION & ENGINEERING, LLC. HANGAR RENOVATION
Who is the contractor on this award?
The obligated recipient is AR6 CONSTRUCTION & ENGINEERING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2025-10-01. End: 2027-09-30.
What specific improvements does the hangar renovation entail, and how do they align with APHIS's mission objectives?
The renovation likely includes structural repairs, upgrades to electrical and HVAC systems, and potentially enhanced safety features to meet current standards. These improvements are crucial for maintaining the operational capacity of APHIS aircraft and equipment, directly supporting their mission of protecting animal and plant health through timely and effective response capabilities.
Are there any potential risks associated with the firm fixed-price contract type for a project of this duration?
Firm fixed-price contracts can pose risks if unforeseen issues arise during construction that significantly increase costs beyond the initial estimate. While this contract type incentivizes contractor efficiency, the agency should have contingency plans and robust oversight to manage potential change orders or scope creep effectively.
How will the success of this hangar renovation be measured, and what are the key performance indicators?
Success will likely be measured by the project's completion on time and within budget, adherence to quality standards, and the facility's ability to meet the operational needs of APHIS post-renovation. Key performance indicators could include post-occupancy evaluations, reduction in maintenance issues, and improved operational efficiency for the facility.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 12639525R0015
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 26726 ROCKWALL PKWY, NEW BRAUNFELS, TX, 78132
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $6,542,179
Exercised Options: $6,542,179
Current Obligation: $6,542,179
Actual Outlays: $491,032
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-10-01
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-29
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