Department of Defense awards $170M for runway facility repairs at Offutt AFB, Nebraska

Contract Overview

Contract Amount: $170,056,328 ($170.1M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2020-06-30

End Date: 2023-04-26

Contract Duration: 1,030 days

Daily Burn Rate: $165.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR OF RUNWAY FACILITIES 6666/667 OFUTT AFB NE

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $170.1 million to GILBANE FEDERAL for work described as: REPAIR OF RUNWAY FACILITIES 6666/667 OFUTT AFB NE Key points: 1. Contract awarded to Gilbane Federal for extensive repairs to runway facilities. 2. The contract was secured through full and open competition, suggesting a competitive bidding process. 3. Performance period spans over 1000 days, indicating a significant and long-term project. 4. The firm-fixed-price structure aims to control costs for the government. 5. This award represents a substantial investment in critical Air Force infrastructure. 6. The project is located in Nebraska, impacting regional construction and labor markets.

Value Assessment

Rating: good

The contract value of $170 million for runway facility repairs appears substantial, but without specific benchmarks for similar large-scale airfield infrastructure projects, a precise value-for-money assessment is challenging. The firm-fixed-price contract type is generally favorable for cost control. Benchmarking against historical Air Force runway repair contracts or similar construction projects of this magnitude would provide a clearer picture of whether the pricing is competitive and represents good value.

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 bids. The presence of two bidders suggests a moderate level of competition for this significant infrastructure project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing. However, a limited number of bidders could mean that taxpayers did not achieve the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Air Force and military personnel stationed at Offutt Air Force Base, who will benefit from improved and safer runway facilities. The services delivered include the repair and maintenance of critical runway infrastructure, essential for flight operations. The geographic impact is concentrated in Nebraska, specifically at Offutt AFB, potentially creating local employment opportunities in the construction sector. Workforce implications include the potential for significant job creation for skilled trades and construction labor in the Nebraska region during the contract performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during extensive runway repairs.
Dependence on a single contractor for a critical infrastructure project carries inherent risks.
The long duration of the contract could lead to challenges in adapting to evolving technological or environmental standards.

Positive Signals

Firm-fixed-price contract helps mitigate cost escalation risks for the government.
Full and open competition, even with limited bidders, aims to secure competitive pricing.
The project addresses critical infrastructure needs, ensuring operational readiness for the Air Force.

Sector Analysis

This contract falls within the construction sector, specifically focusing on large-scale civil engineering and infrastructure projects for government facilities. The market for such specialized construction services is competitive, with a number of large firms capable of undertaking complex projects. The $170 million award is significant and reflects the substantial investment required for maintaining and upgrading critical military airfields, which are vital national assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale infrastructure project awarded to Gilbane Federal, a large contractor, there are implications for subcontracting opportunities. While the primary contract is not a small business set-aside, the prime contractor may engage small businesses for specialized services or materials, contributing to the small business ecosystem. However, the direct award does not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and engineering divisions, ensuring compliance with contract terms and performance standards. Accountability measures are embedded within the firm-fixed-price structure and performance requirements. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Airfield Operations and Maintenance
Federal Infrastructure Projects
Department of Defense Construction Contracts

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance risk on a large-scale, long-duration project.
Dependence on a limited number of bidders for price discovery.
Ensuring quality and safety standards are met throughout extensive repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $170.1 million to GILBANE FEDERAL. REPAIR OF RUNWAY FACILITIES 6666/667 OFUTT AFB NE

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

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 $170.1 million.

What is the period of performance?

Start: 2020-06-30. End: 2023-04-26.

What is Gilbane Federal's track record with similar large-scale Department of Defense construction contracts?

Gilbane Federal has a substantial track record with the Department of Defense, frequently securing contracts for large-scale construction and renovation projects at military installations. Their portfolio includes experience with various facility types, from barracks and training centers to critical infrastructure like airfields and operational support buildings. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving airfield infrastructure, would reveal their ability to manage complex projects, adhere to schedules, and control costs. Past performance reviews and any documented disputes or contract terminations would be key indicators of their reliability and capability in executing projects of this magnitude and complexity.

How does the $170 million award compare to the average cost of similar runway repair projects?

Benchmarking the $170 million award against the average cost of similar runway repair projects requires access to detailed cost data for comparable projects. Factors influencing cost include the scope of repairs (e.g., resurfacing, lighting, drainage, structural integrity), the size and type of the runway, geographic location (affecting labor and material costs), and the specific requirements of the airbase. Without a database of comparable projects with detailed cost breakdowns, it is difficult to definitively state if $170 million is high or low. However, large-scale airfield infrastructure projects are inherently expensive due to the specialized materials, engineering, and stringent safety and operational requirements involved.

What are the primary risks associated with a firm-fixed-price contract for extensive runway repairs?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they carry specific risks for extensive runway repairs. The primary risk is that unforeseen conditions discovered during the repair process (e.g., subsurface issues, unexpected structural damage, environmental contamination) could lead to significant cost growth if not adequately addressed by contract clauses. If the contractor has underestimated the complexity or scope, they may incur losses, potentially impacting their financial stability or willingness to perform diligently. Conversely, if the government has underestimated the scope, the FFP may result in paying a premium if the contractor's initial bid was conservative. Effective risk management requires thorough site investigation prior to bidding and clear contract language for handling unforeseen circumstances.

How effective are the oversight mechanisms for ensuring the quality and timely completion of this runway repair project?

Oversight for this project is expected to be robust, involving multiple layers of review and monitoring by the Department of the Air Force. This typically includes contracting officers, project managers, quality assurance representatives, and potentially engineers specializing in airfield construction. Oversight mechanisms would likely involve regular progress meetings, site inspections, review of material submittals, and performance evaluations against contract milestones. The firm-fixed-price nature incentivizes the contractor to complete the work efficiently, but oversight is crucial to ensure that cost savings do not compromise quality or safety standards. The effectiveness hinges on the diligence and expertise of the government oversight team and the transparency provided by the contractor.

What is the historical spending pattern for runway maintenance and repair at Offutt AFB or similar Air Force installations?

Historical spending patterns for runway maintenance and repair at Offutt AFB or similar Air Force installations can provide context for the $170 million award. Analyzing past expenditures on airfield infrastructure at this base and comparable bases would reveal the frequency and scale of such investments. This data can indicate whether the current award represents a routine maintenance cycle, a major upgrade, or a response to deferred maintenance. Understanding historical spending helps assess if the current investment is consistent with past practices, or if it signifies a shift in priorities or a response to aging infrastructure. It also aids in forecasting future budgetary needs for airfield upkeep.

What are the potential implications of this contract award on the local construction market in Nebraska?

The $170 million contract award for runway repairs at Offutt AFB is likely to have a significant positive impact on the local construction market in Nebraska. It will create demand for skilled labor, including heavy equipment operators, concrete finishers, electricians, and project managers. Furthermore, it will stimulate demand for construction materials, equipment rentals, and related support services. The prime contractor, Gilbane Federal, may also subcontract portions of the work to local construction firms, further distributing the economic benefits. This influx of activity can lead to increased employment, higher wages, and overall economic growth within the region surrounding Offutt AFB.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gilbane AECOM JV

Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $170,056,328

Exercised Options: $170,056,328

Current Obligation: $170,056,328

Actual Outlays: $54,370,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0041

IDV Type: IDC

Timeline