DoD awards $12.3M for Ascension Auxiliary Airfield wind turbine generators, with limited competition

Contract Overview

Contract Amount: $12,271,085 ($12.3M)

Contractor: Jade Creek Construction LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-21

End Date: 2026-01-30

Contract Duration: 1,654 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: REPLACE WIND TURBINE GENERATORS, ASCENSION AUXILIARY AIRFIELD, SOUTH ATLANTIC OCEAN

Plain-Language Summary

Department of Defense obligated $12.3 million to JADE CREEK CONSTRUCTION LLC for work described as: REPLACE WIND TURBINE GENERATORS, ASCENSION AUXILIARY AIRFIELD, SOUTH ATLANTIC OCEAN Key points: 1. Contract awarded for critical airfield infrastructure, suggesting a need for reliable power generation. 2. The firm-fixed-price contract type aims to control costs, but the limited competition raises concerns about optimal pricing. 3. A single award to Jade Creek Construction LLC indicates potential risks related to contractor performance and market responsiveness. 4. The contract duration of over 4 years suggests a significant, long-term project requirement. 5. The absence of small business set-aside flags potential missed opportunities for smaller contractors. 6. The project's remote location in the South Atlantic Ocean may present logistical and operational challenges.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable projects. The $12.3 million award for wind turbine generators and related construction at a remote airfield suggests a substantial investment. However, the lack of competition makes it difficult to assess if the pricing is competitive or represents fair market value. Further analysis would require comparing the scope of work and unit costs to similar infrastructure projects in comparable environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the solicitation was not broadly advertised or competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgent and compelling circumstances necessitate a sole source award. The limited competition means that the government did not benefit from a wide range of proposals, potentially impacting price negotiation and innovation.

Taxpayer Impact: The limited competition means taxpayers may not have received the most cost-effective solution, as the government did not leverage a competitive bidding process to drive down prices.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, ensuring operational readiness at Ascension Auxiliary Airfield. The contract will deliver essential wind turbine generators and related power infrastructure, enhancing the airfield's capabilities. The geographic impact is localized to Ascension Auxiliary Airfield in the South Atlantic Ocean, a strategically important location. Workforce implications may include specialized construction and engineering roles, potentially sourced locally or brought in for the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of competitive bidding could reduce opportunities for innovation.
Contractor performance risk is concentrated with a single provider.
Remote location poses logistical and potential cost overrun risks.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a critical infrastructure need for military operations.
Long-term duration suggests a commitment to sustained operational capability.

Sector Analysis

The energy sector, specifically renewable energy infrastructure, is a growing area of federal investment. This contract for wind turbine generators falls within the broader category of energy infrastructure development and maintenance. While specific market size data for wind turbine installations at military airfields is not readily available, the Department of Defense has been increasingly focused on energy resilience and renewable energy sources to support its global operations. This contract aligns with that strategic direction.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor, Jade Creek Construction LLC, is not explicitly identified as a small business in this context. This suggests that opportunities for small businesses to participate in this specific contract may be limited to subcontracting roles, if any are offered by the prime. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules. Transparency regarding the specific justification for the limited competition and detailed cost breakdowns would be crucial for a thorough assessment of oversight effectiveness. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Energy Resilience Programs
Air Force Airfield Infrastructure Modernization
Renewable Energy Projects for Military Installations
Construction Contracts for Remote Facilities

Risk Flags

Limited Competition
Potential for Cost Overruns
Contractor Performance Risk
Remote Location Logistics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to JADE CREEK CONSTRUCTION LLC. REPLACE WIND TURBINE GENERATORS, ASCENSION AUXILIARY AIRFIELD, SOUTH ATLANTIC OCEAN

Who is the contractor on this award?

The obligated recipient is JADE CREEK CONSTRUCTION LLC.

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 $12.3 million.

What is the period of performance?

Start: 2021-07-21. End: 2026-01-30.

What is the track record of Jade Creek Construction LLC in performing similar large-scale energy infrastructure projects for the federal government?

Information regarding Jade Creek Construction LLC's specific track record on large-scale energy infrastructure projects for the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Understanding their experience with remote installations and specialized equipment like wind turbine generators is crucial for evaluating their capability to successfully execute this contract. Without this historical data, it is difficult to definitively assess their reliability and expertise for this specific undertaking.

How does the awarded amount of $12.3 million compare to the estimated market value for similar wind turbine generator installations at remote airfields?

Directly comparing the $12.3 million award to market benchmarks for similar projects is challenging without detailed cost breakdowns and specific project scopes. Factors such as the size and type of wind turbines, installation complexity, logistical challenges of the remote location (Ascension Auxiliary Airfield), and associated infrastructure requirements significantly influence pricing. Generally, firm-fixed-price contracts awarded under limited competition can sometimes be higher than those secured through full and open competition. A thorough benchmark analysis would necessitate gathering data on comparable projects, considering their geographic location, technical specifications, and procurement methods.

What are the primary risks associated with awarding this contract on a limited competition basis?

The primary risks associated with awarding this contract on a limited competition basis include potential overpayment due to a lack of price discovery through competitive bidding, reduced incentive for innovation from contractors, and a higher concentration of performance risk on a single entity. Taxpayers may not receive the best value for their money if alternative, more cost-effective solutions were available but not explored. Furthermore, if Jade Creek Construction LLC encounters unforeseen issues or fails to perform adequately, the government's options for recourse or finding a replacement contractor may be limited and time-consuming, potentially delaying critical airfield operations.

What specific performance metrics or milestones will be used to evaluate the success of this contract?

While specific performance metrics are not detailed in the provided summary, typical performance evaluations for construction contracts of this nature would include adherence to project schedules, quality of workmanship, compliance with technical specifications, and successful installation and commissioning of the wind turbine generators. Milestones would likely be tied to key phases of the project, such as site preparation, foundation construction, turbine erection, electrical integration, and final testing. The firm-fixed-price nature of the contract implies that meeting these defined deliverables within the agreed-upon price is a primary measure of success.

What is the historical spending pattern for wind turbine generator procurement and installation by the Department of Defense?

Historical spending patterns for wind turbine generator procurement and installation by the Department of Defense are not explicitly detailed in the provided data. However, there has been a general trend across federal agencies, including the DoD, to invest more in renewable energy sources and energy resilience over the past decade. This includes exploring and implementing wind power at various installations to reduce reliance on traditional energy grids and enhance operational security. Specific aggregate spending figures would require a broader analysis of federal procurement databases and energy-related initiatives within the DoD.

What is the justification provided for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The provided data states the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION). This classification typically implies that the contracting agency determined that full and open competition was not feasible or not in the government's best interest. Common justifications include the existence of only one responsible source capable of meeting the agency's needs, urgent and compelling circumstances that preclude competition, or specific requirements for unique capabilities or technologies. A detailed justification document would normally be required by federal acquisition regulations to support such a determination.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA252119RA025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.,

Address: 10126 RESIDENCY RD STE #200, MANASSAS, VA, 20110

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,271,085

Exercised Options: $12,271,085

Current Obligation: $12,271,085

Actual Outlays: $283,952

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,236,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline