Runway repair contract at Travis AFB awarded to CONTRACK ECC LLC for over $131M

Contract Overview

Contract Amount: $131,381,922 ($131.4M)

Contractor: Contrack ECC LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-10

End Date: 2026-04-08

Contract Duration: 1,490 days

Daily Burn Rate: $88.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR RUNWAY 21R/03L, TRAVIS AIR FORCE BASE, CALIFORNIA

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $131.4 million to CONTRACK ECC LLC for work described as: REPAIR RUNWAY 21R/03L, TRAVIS AIR FORCE BASE, CALIFORNIA Key points: 1. Contract value appears substantial for runway repair, necessitating a close look at value for money. 2. Full and open competition suggests a potentially competitive bidding environment. 3. The contract duration of nearly 5 years indicates a long-term commitment to infrastructure maintenance. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award is for a critical infrastructure component at a major Air Force base. 6. The awarded amount is significantly higher than the benchmarked value, raising concerns about pricing.

Value Assessment

Rating: questionable

The awarded amount of $131.4 million for runway repair at Travis AFB is considerably higher than the benchmarked value of $88.2 million. This represents a significant price difference of over $43 million, or approximately 49% above the benchmark. While runway repairs can be complex and costs can vary, this substantial deviation warrants further investigation into the specific scope of work, material costs, and labor rates to understand the justification for the higher price. Without more detailed cost breakdowns, it is difficult to definitively assess value for money, but the current data suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders participating, the competition level appears moderate. While multiple bidders are generally positive for price discovery, the significant difference between the awarded amount and the benchmark suggests that the competition may not have driven the price down to the lowest possible level, or that the benchmark itself may not fully capture the project's complexities.

Taxpayer Impact: Taxpayers benefit from a competitive process that theoretically should lead to better pricing. However, the substantial difference between the awarded price and the benchmark suggests that the competitive process may not have yielded the most cost-effective outcome in this instance.

Public Impact

The primary beneficiaries are the U.S. Air Force and military operations at Travis AFB, which rely on a functional runway for aircraft deployment and logistics. The contract delivers essential repair and maintenance services for critical aviation infrastructure. The geographic impact is localized to Travis AFB in California, ensuring operational readiness at this key installation. The contract supports the construction and maintenance workforce, likely involving skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost overrun compared to benchmarked value.
Potential for inflated pricing despite full and open competition.
Long contract duration could lead to scope creep or unforeseen cost increases.

Positive Signals

Awarded through full and open competition, allowing for broad market participation.
Fixed-price contract type provides some cost predictability.
Contract addresses critical infrastructure needs for national defense.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on heavy civil construction related to airfields. The market for large-scale airfield construction and repair is specialized, often dominated by a few large firms with the necessary expertise and bonding capacity. Benchmarking such projects can be challenging due to unique site conditions and specific requirements, but general construction cost indices can provide a rough comparison. The total federal spending on construction services is in the billions annually, with airfield infrastructure being a significant component.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor, CONTRACK ECC LLC, is not explicitly identified as a small business, the contract's large value suggests it is likely a mid-to-large-sized firm. There is no information provided regarding subcontracting plans or goals for small businesses. Without specific set-aside requirements or reported subcontracting efforts, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting office at Travis AFB, with potential involvement from the Air Force Installation and Mission Support Center. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work for a set price. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Airfield Pavement Repair
Military Base Infrastructure Modernization
Department of Defense Construction Contracts
Federal Aviation Administration (FAA) Airport Improvement Program (though this is DoD specific)

Risk Flags

Potential for cost overruns relative to benchmark.
Long contract duration increases risk exposure.
Need for detailed justification for price variance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $131.4 million to CONTRACK ECC LLC. REPAIR RUNWAY 21R/03L, TRAVIS AIR FORCE BASE, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is CONTRACK ECC 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 $131.4 million.

What is the period of performance?

Start: 2022-03-10. End: 2026-04-08.

What specific factors contributed to the awarded amount being significantly higher than the benchmarked value for this runway repair contract?

The substantial difference between the awarded amount ($131.4M) and the benchmarked value ($88.2M) for the runway repair at Travis AFB warrants a detailed analysis. Potential contributing factors could include unique geological or soil conditions at the site requiring specialized remediation, the use of advanced or proprietary repair materials, unforeseen environmental mitigation requirements, or a higher-than-anticipated labor cost structure due to local market conditions or specialized skill demands. Additionally, the benchmark itself might not fully capture the specific scope of work, including ancillary services like drainage improvements, lighting upgrades, or safety enhancements that may have been included in the awarded contract but not in the benchmark's comparable projects. A thorough review of the contractor's proposal, cost breakdown, and the government's source selection evaluation would be necessary to pinpoint the exact reasons for the price variance.

How does the performance history of CONTRACK ECC LLC compare to other contractors performing similar runway repair work for the Department of Defense?

Assessing CONTRACK ECC LLC's performance history requires access to contract performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS). Without direct access to these reports, a comparative analysis is limited. However, the fact that they were awarded a contract of this magnitude suggests they possess the necessary qualifications and experience. To provide a comprehensive comparison, one would need to examine their past performance ratings on similar projects, looking for indicators of on-time delivery, adherence to budget (where applicable), quality of work, and overall customer satisfaction. Benchmarking their performance against industry averages for runway construction and repair, and against other prime contractors who bid on or won similar DoD contracts, would offer further insights into their reliability and effectiveness as a contractor.

What are the potential risks associated with a firm-fixed-price contract for a project of this scale and duration?

Firm-fixed-price (FFP) contracts aim to provide cost certainty for the government by establishing a set price for the work. However, for a large-scale, multi-year project like runway repair, risks can emerge. If the contractor underestimated the costs, labor, or material requirements, they bear the loss, potentially leading to quality compromises or contractor default. Conversely, if the contractor significantly overestimated costs, the government may end up paying a premium. For long-duration projects, unforeseen issues like material price escalations, labor shortages, or changes in regulatory requirements can strain the FFP structure. While FFP shifts most risk to the contractor, the government's risk lies in potentially receiving substandard work or facing contractor non-performance if the initial pricing was too aggressive or if unforeseen circumstances make the contract unprofitable for the contractor.

How does the $131.4 million expenditure for this single runway repair project compare to the overall federal spending on airfield infrastructure maintenance and construction?

The $131.4 million awarded to CONTRACK ECC LLC for runway repair at Travis AFB represents a significant investment in a single infrastructure asset. To contextualize this, it's useful to compare it to broader federal spending categories. The Department of Defense, in particular, allocates substantial funds annually towards maintaining and upgrading its vast network of airfields. While specific figures for 'airfield infrastructure maintenance and construction' across all federal agencies are complex to isolate, the DoD alone manages hundreds of airfields. This single contract could represent a notable portion of the annual budget for airfield upkeep at a major command or even a significant fraction of the total budget for a specific type of repair across the Air Force. Understanding the total annual federal outlay for airfield maintenance would provide a clearer picture of whether this contract is an outlier or representative of typical large-scale repair expenditures.

What are the key performance indicators (KPIs) likely being used to measure the success of this runway repair contract?

Key performance indicators (KPIs) for this runway repair contract would likely focus on several critical areas. Firstly, **Schedule Adherence** is paramount; completion by the specified date (April 8, 2026) is crucial for restoring full operational capability at Travis AFB. Secondly, **Quality of Work** is essential, measured through inspections, material testing, and adherence to engineering specifications to ensure the runway's structural integrity and safety. **Cost Control** is also a KPI, particularly within the firm-fixed-price framework, ensuring the project stays within the agreed budget, though the primary risk here lies with the contractor. Finally, **Safety Performance** is critical, monitoring accident rates and compliance with safety regulations during construction. Meeting these KPIs ensures the long-term functionality and safety of the repaired runway, directly supporting military readiness.

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: 1240 BAYSHORE HWY STE 201, BURLINGAME, CA, 94010

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

Financial Breakdown

Contract Ceiling: $131,381,922

Exercised Options: $131,381,922

Current Obligation: $131,381,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0039

IDV Type: IDC

Timeline