Department of Defense awards $11.8M construction contract to North Wind General Contractors LLC for building repairs

Contract Overview

Contract Amount: $11,826,077 ($11.8M)

Contractor: North Wind General Contractors LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-15

End Date: 2027-10-15

Contract Duration: 730 days

Daily Burn Rate: $16.2K/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: CONSTRUCTION ADDITION AND REPAIR INTERIOR, BLDG 47, 328 WPS, RKMF230064

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to NORTH WIND GENERAL CONTRACTORS LLC for work described as: CONSTRUCTION ADDITION AND REPAIR INTERIOR, BLDG 47, 328 WPS, RKMF230064 Key points: 1. Contract value appears reasonable for a multi-year building repair project. 2. Full and open competition suggests a competitive bidding process. 3. Project duration of two years indicates a significant scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. Location in Nevada may influence labor and material costs. 6. Contractor has experience in construction and facility maintenance.

Value Assessment

Rating: good

The $11.8 million contract for interior building repairs at Building 47, 328 WPS, RKMF230064, appears to be a fair price for the scope of work. While direct comparisons are difficult without specific project details, the firm-fixed-price structure suggests that the contractor has assessed the risks and costs involved. The two-year duration (730 days) for a construction and repair project of this nature is standard, and the awarded amount aligns with typical spending for similar facility maintenance and renovation projects within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the opportunity was broadly advertised, but specific sources may have been excluded based on pre-defined criteria. With five bidders participating, the competition level is moderate, suggesting that while multiple companies vied for the contract, it was not a wide-open bid from all potential offerors. This level of competition generally allows for price discovery but might not achieve the absolute lowest price compared to a truly unrestricted full and open competition.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a competitive price, though potentially not the absolute lowest possible. The exclusion of certain sources warrants further investigation to ensure it did not unduly limit competition and inflate costs.

Public Impact

The Department of the Air Force benefits from the repair and maintenance of critical infrastructure. Services delivered include interior repairs to Building 47, ensuring operational readiness. The geographic impact is localized to the Remote Maintenance Facility (RKMF) in Nevada. Workforce implications include employment opportunities for construction trades in the local Nevada area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price contract.
Dependence on contractor's ability to meet quality standards for building repairs.
Risk of schedule delays impacting facility availability if contractor performance is subpar.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Contractor (North Wind General Contractors LLC) has experience in construction.
Project duration is clearly defined, allowing for planning.
Awarded by a major federal agency (Department of Defense).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading its vast portfolio of facilities. Benchmarks for similar projects vary widely based on location, scope, and specific building requirements, but this $11.8 million award for interior repairs over two years is within a typical range for substantial facility upgrades.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless North Wind General Contractors LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Air Force personnel responsible for facility management at the RKMF. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work to specifications. Transparency is facilitated by the public nature of federal contract awards, though detailed project oversight reports are not always publicly available.

Related Government Programs

Department of Defense Facility Maintenance and Repair
Air Force Base Infrastructure Projects
Federal Building Construction Contracts
Commercial and Institutional Building Construction

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Risk of schedule delays impacting facility readiness.
Quality control concerns inherent in construction projects.
Justification for exclusion of sources in competition needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to NORTH WIND GENERAL CONTRACTORS LLC. CONSTRUCTION ADDITION AND REPAIR INTERIOR, BLDG 47, 328 WPS, RKMF230064

Who is the contractor on this award?

The obligated recipient is NORTH WIND GENERAL CONTRACTORS 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 $11.8 million.

What is the period of performance?

Start: 2025-10-15. End: 2027-10-15.

What is the track record of North Wind General Contractors LLC with the Department of Defense?

North Wind General Contractors LLC has a history of performing work for the Department of Defense and other federal agencies. Their portfolio often includes construction, renovation, and facility support services. Analyzing their past performance on similar-sized projects, particularly those involving building repairs and maintenance, would provide insight into their reliability, quality of work, and ability to manage federal contracts effectively. Past performance evaluations and any documented issues or commendations would be crucial for a comprehensive assessment of their track record.

How does the awarded amount compare to similar construction and repair contracts?

The $11.8 million awarded to North Wind General Contractors LLC for interior building repairs over two years is a substantial sum, indicative of a significant project scope. Benchmarking this against similar federal contracts for building renovations or major repairs in similar geographic regions (Nevada) would be necessary for a precise value-for-money assessment. Factors such as the specific types of repairs (e.g., structural, HVAC, electrical, cosmetic), the size and condition of Building 47, and prevailing labor and material costs in the area would influence comparability. Without these specifics, it's challenging to definitively state if the price is high or low, but it falls within a plausible range for a project of this duration and type.

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

The primary risks with a firm-fixed-price contract, while shifting cost risk to the contractor, still involve potential issues. For the government, risks include the contractor potentially cutting corners on quality to maintain profit margins if unforeseen complications arise, or facing contractor default if they cannot complete the work within the agreed price. For the contractor, the risk is absorbing cost overruns due to inaccurate initial estimates, unexpected site conditions, or material price escalations. Effective government oversight is crucial to ensure quality standards are met and that the contractor is adequately resourced and managed.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?

This type of competition aims to balance broad market access with specific requirements. By excluding certain sources, the agency might be targeting contractors with particular capabilities or security clearances, or perhaps responding to previous performance issues with excluded vendors. While it allows for competition among eligible bidders (five in this case), the exclusion aspect means the price achieved might not be as low as it could have been in a completely unrestricted competition. The effectiveness hinges on whether the exclusions were justified and did not unduly limit the pool of capable and competitive bidders.

What is the historical spending pattern for building repairs and construction at this specific Air Force facility?

Analyzing historical spending for building repairs and construction at the Remote Maintenance Facility (RKMF) or similar Air Force installations would provide context for the $11.8 million award. Understanding the frequency and cost of past projects can reveal trends in facility upkeep, identify potential recurring issues, or highlight significant capital investments. If spending has been consistently low, this award might represent a major upgrade or a response to deferred maintenance. Conversely, if similar large awards have been frequent, it could indicate ongoing facility challenges or a robust maintenance program.

What are the implications of the two-year duration for facility readiness?

A two-year duration for interior building repairs implies a significant scope of work that cannot be completed quickly. This extended timeline could impact the operational readiness or usability of Building 47 and potentially adjacent areas, depending on the nature of the repairs and any necessary disruptions (e.g., noise, access restrictions). The Department of the Air Force would need to have contingency plans in place, such as temporary relocation of functions or phased repairs, to mitigate any negative effects on mission-critical activities during the construction period.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: FA486125B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402

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: $11,826,077

Exercised Options: $11,826,077

Current Obligation: $11,826,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline