Tutor Perini Corp awarded $106M F-15 modernization contract for Saudi Arabia electronic warfare range
Contract Overview
Contract Amount: $106,366,230 ($106.4M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Defense
Start Date: 2017-02-02
End Date: 2020-11-27
Contract Duration: 1,394 days
Daily Burn Rate: $76.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CL::IGF FFP/SATOC SAUDI ARABIA (FMS) F-15 MODERNIZAITON PROGRAM, KHURAIS ELECTRONIC WARFARE RANGE., PSAB 13-0004
Plain-Language Summary
Department of Defense obligated $106.4 million to TUTOR PERINI CORPORATION for work described as: IGF::CL::IGF FFP/SATOC SAUDI ARABIA (FMS) F-15 MODERNIZAITON PROGRAM, KHURAIS ELECTRONIC WARFARE RANGE., PSAB 13-0004 Key points: 1. Contract value represents a significant investment in foreign military sales modernization. 2. The project involves construction for a specialized electronic warfare range, indicating a niche but critical defense capability. 3. The duration of the contract (1394 days) suggests a complex, multi-year undertaking. 4. Fixed-price contract type aims to control costs, but potential for overruns exists in complex construction projects. 5. The award to a single contractor, Tutor Perini Corporation, warrants scrutiny of their capacity and past performance. 6. Geographic location in Saudi Arabia introduces logistical and geopolitical considerations.
Value Assessment
Rating: fair
Benchmarking this contract's value is challenging due to its specific nature (electronic warfare range construction for FMS) and geographic location. The $106 million price tag for a multi-year construction project of this complexity is substantial. Without comparable projects for similar specialized facilities in the region or for FMS programs, a precise value-for-money assessment is difficult. However, the firm-fixed-price structure suggests an attempt to cap costs, which is a positive indicator for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of three bids (as indicated by 'no': 3) suggests a reasonable level of competition for this specialized construction project. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple companies to bid and offer their best terms.
Public Impact
The primary beneficiaries are the Royal Saudi Air Force, receiving modernized electronic warfare training capabilities. The contract delivers essential infrastructure for advanced military training and readiness. The geographic impact is concentrated in Saudi Arabia, specifically at the Khurais Electronic Warfare Range. Workforce implications include employment opportunities for construction labor and specialized technical personnel, both domestically and potentially internationally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex, multi-year construction projects, despite firm-fixed-price.
- Geopolitical risks associated with performing major construction in Saudi Arabia.
- Logistical challenges of managing a large construction project in a foreign country.
- Dependence on a single contractor (Tutor Perini Corporation) for successful project completion.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm-fixed-price contract type helps to establish cost certainty.
- The project addresses a critical modernization need for a key U.S. ally.
- The contractor, Tutor Perini Corporation, is a large, established construction firm with experience in complex projects.
Sector Analysis
This contract falls within the Construction sector, specifically commercial and institutional building construction. The market for defense-related infrastructure, particularly for foreign military sales, is a specialized segment. While general construction benchmarks exist, the unique requirements for electronic warfare ranges make direct comparisons difficult. The global defense construction market is substantial, driven by modernization efforts and geopolitical alliances.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or a primary focus, though some may arise organically. The primary focus is on the prime contractor's ability to execute the large-scale project.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force and potentially the Defense Contract Management Agency (DCMA). As a Foreign Military Sales (FMS) case, additional oversight layers from the FMS program management offices would be involved. Transparency is generally maintained through contract reporting mechanisms, but specific details on ongoing oversight activities are not publicly detailed in this data.
Related Government Programs
- Foreign Military Sales (FMS)
- F-15 Aircraft Modernization Programs
- Defense Infrastructure Construction
- Electronic Warfare Systems
Risk Flags
- Geopolitical Risk
- Logistical Complexity
- Foreign Military Sales Program Specifics
- Specialized Construction Requirements
Tags
construction, defense, foreign-military-sales, f-15, electronic-warfare, saudi-arabia, full-and-open-competition, firm-fixed-price, department-of-defense, air-force, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $106.4 million to TUTOR PERINI CORPORATION. IGF::CL::IGF FFP/SATOC SAUDI ARABIA (FMS) F-15 MODERNIZAITON PROGRAM, KHURAIS ELECTRONIC WARFARE RANGE., PSAB 13-0004
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 $106.4 million.
What is the period of performance?
Start: 2017-02-02. End: 2020-11-27.
What is Tutor Perini Corporation's track record with large-scale international defense construction projects?
Tutor Perini Corporation is a large, publicly traded construction company with a history of undertaking complex projects globally, including significant infrastructure and defense-related construction. They have experience in various international markets. However, specific details on their past performance on FMS electronic warfare range construction projects are not readily available in this dataset. A deeper dive into their project portfolio, including any past issues or successes with similar international defense contracts, would be necessary for a comprehensive assessment of their suitability and risk profile for this specific award.
How does the $106 million cost compare to similar electronic warfare range construction projects?
Direct comparisons for the cost of constructing electronic warfare ranges are difficult due to the highly specialized nature of these facilities and the variability in their scope and technological requirements. Furthermore, the geographic location in Saudi Arabia and the context of a Foreign Military Sales (FMS) program introduce unique cost factors related to logistics, labor, security, and regulatory compliance. While $106 million is a substantial sum for a construction project, without specific benchmarks for comparable FMS EW range projects, it is challenging to definitively assess whether this represents excellent, fair, or questionable value for money. The firm-fixed-price nature of the contract provides some cost control, but the complexity of the undertaking remains a key factor.
What are the primary risks associated with this contract, beyond standard construction risks?
Beyond typical construction risks such as delays, cost overruns, and quality control issues, this contract carries significant geopolitical and logistical risks. Operating in Saudi Arabia involves navigating a complex political landscape, potential security concerns, and specific labor and material sourcing challenges. The nature of electronic warfare ranges also implies the handling of sensitive technology and the need for stringent security protocols. Furthermore, managing a multi-year, high-value project under FMS adds layers of administrative complexity and requires close coordination between the contractor, the U.S. Department of Defense, and the Saudi government.
What is the expected impact of this contract on the F-15 modernization program's overall effectiveness?
This contract is crucial for the overall effectiveness of the F-15 modernization program, specifically concerning the enhancement of electronic warfare capabilities. By providing a dedicated and advanced training range, the Royal Saudi Air Force can more effectively train its pilots and ground crews on the latest electronic warfare systems integrated into their F-15 fleet. This improved training directly translates to enhanced operational readiness, better threat detection and response capabilities, and ultimately, a more potent air force. The successful completion of this range infrastructure is a foundational element for realizing the full benefits of modernized F-15 aircraft.
How has spending on F-15 modernization programs evolved over the past five years?
Spending on F-15 modernization programs has been a consistent feature of defense budgets, driven by the need to maintain the relevance and capability of this aging but capable fighter jet fleet. While specific figures fluctuate annually based on program priorities and congressional appropriations, there has been a sustained investment in upgrades covering avionics, weapons integration, and structural enhancements. Foreign Military Sales (FMS) often represent a significant portion of this spending, as key allies like Saudi Arabia continue to invest in their F-15 fleets. Analyzing historical F-15 modernization spending reveals a trend of ongoing upgrades rather than wholesale fleet replacement, indicating a long-term commitment to the platform.
What is the significance of constructing an electronic warfare range in Saudi Arabia for regional security dynamics?
The construction of a dedicated electronic warfare range in Saudi Arabia signifies a substantial enhancement of their military capabilities and underscores the strategic importance of the U.S.-Saudi defense relationship. Electronic warfare is critical for modern air combat, encompassing jamming enemy radar, protecting friendly aircraft from missile threats, and gathering intelligence. By providing this advanced training infrastructure, the U.S. is enabling Saudi Arabia to better operate and defend its F-15 fleet, which is a cornerstone of its air power. This capability boost contributes to regional stability by strengthening a key U.S. partner's defense posture against potential adversaries and enhancing interoperability with U.S. forces.
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
Offers Received: 3
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: $106,366,230
Exercised Options: $106,366,230
Current Obligation: $106,366,230
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: 2017-02-02
Current End Date: 2020-11-27
Potential End Date: 2020-11-27 00:00:00
Last Modified: 2021-02-05
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