DoD's $14.9M Andersen AFB pipeline project awarded to CONTRACK ECC LLC under full and open competition

Contract Overview

Contract Amount: $14,913,809 ($14.9M)

Contractor: Contrack ECC LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-16

End Date: 2026-03-24

Contract Duration: 1,132 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BURY ABOVEGROUND PIPELINES AT ANDERSEN AFB, GUAM

Place of Performance

Location: HAGATNA, GUAM County, GUAM, 96910

Plain-Language Summary

Department of Defense obligated $14.9 million to CONTRACK ECC LLC for work described as: BURY ABOVEGROUND PIPELINES AT ANDERSEN AFB, GUAM Key points: 1. Value for money appears reasonable given the firm-fixed-price contract type and duration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 1132 days indicates a significant, long-term infrastructure project. 4. Performance context is limited, but the project involves critical infrastructure at a key Air Force base. 5. Sector positioning is within commercial and institutional building construction, a vital area for military installations.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. While a direct per-unit cost comparison is not readily available without detailed project specifications, the total award amount of approximately $14.9 million for a multi-year construction project at a remote location like Guam suggests a potentially fair market price. Benchmarking against similar large-scale construction projects on military bases would provide further insight into 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 a bid. The presence of 2 bids suggests a moderate level of competition for this project. A higher number of bidders typically correlates with more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down costs and ensuring the government receives the best possible value.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Andersen AFB, Guam, through improved infrastructure. The project delivers essential underground pipeline construction and related services. Geographic impact is localized to Andersen Air Force Base in Guam. Workforce implications include potential job creation for construction labor in Guam and for the awarded contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive underground construction.
Dependency on CONTRACK ECC LLC for timely and quality completion over a multi-year period.
Logistical challenges associated with construction in Guam could impact project timelines and costs.

Positive Signals

Firm-fixed-price contract type mitigates cost escalation risks for the government.
Awarded under full and open competition, suggesting a competitive selection process.
Long contract duration allows for phased execution and potential learning curve benefits.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure development for a major military installation. The market for such construction services in Guam is influenced by military presence and government spending. Comparable spending benchmarks would involve analyzing other large-scale construction and utility projects awarded by the Department of Defense in similar geographic locations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and project management offices. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Military Construction, Air Force
Base Infrastructure Projects
Guam Defense Projects
Underground Utility Construction
Department of Defense Facilities

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Logistical challenges of construction in Guam.
Contractor performance risk over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to CONTRACK ECC LLC. BURY ABOVEGROUND PIPELINES AT ANDERSEN AFB, GUAM

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 $14.9 million.

What is the period of performance?

Start: 2023-02-16. End: 2026-03-24.

What is CONTRACK ECC LLC's track record with the Department of Defense, particularly on similar infrastructure projects?

CONTRACK ECC LLC has a history of working with the Department of Defense on various construction and engineering projects. Analyzing their past performance on similar firm-fixed-price contracts, especially those involving underground utilities or base infrastructure, would provide insight into their reliability, quality of work, and ability to manage complex projects within budget and schedule. Reviewing past contract awards, performance evaluations (if available), and any past disputes or claims would offer a more comprehensive understanding of their capabilities and potential risks associated with this current award.

How does the awarded amount of $14.9 million compare to similar underground pipeline construction projects in Guam or other Pacific territories?

Benchmarking the $14.9 million award against similar projects is crucial for assessing value for money. Factors such as project scope, complexity, duration, and specific site conditions in Guam (e.g., soil type, environmental regulations, logistical challenges) significantly influence costs. Without detailed project specifications and comparable data, a precise comparison is difficult. However, large-scale infrastructure projects in remote or island locations often incur higher costs due to transportation, specialized labor, and limited local resources. Further analysis would require identifying projects with comparable scope and location to determine if this award represents a competitive market rate.

What are the primary risks associated with a multi-year underground construction project in Guam, and how are they mitigated in this contract?

Key risks for this project include unforeseen subsurface conditions (e.g., encountering unexpected rock formations, groundwater issues, or existing utilities), environmental hazards, logistical challenges inherent to island construction (material sourcing, transportation), potential labor shortages, and weather-related delays. The firm-fixed-price contract type helps mitigate financial risks for the government by capping the total cost. However, the contractor bears the primary risk for cost overruns due to these factors. The contract's duration (1132 days) allows for phased execution, potentially enabling better risk management. Specific mitigation strategies would likely involve detailed site investigations prior to award, robust project management plans, contingency planning, and adherence to strict environmental and safety protocols.

What is the expected impact of this project on Andersen AFB's operational capabilities and long-term infrastructure resilience?

This project is expected to significantly enhance Andersen AFB's operational capabilities by ensuring the reliability and capacity of its essential underground pipeline systems. Modernized or new pipelines reduce the risk of service disruptions, leaks, or failures that could impact critical base functions, including housing, power, water, and fuel distribution. Improved infrastructure contributes to long-term resilience by making the base better equipped to handle environmental stresses, aging systems, and increased demand. The successful completion of this project will support the base's ongoing mission readiness and sustainability.

How has spending on commercial and institutional building construction for the Department of Defense, particularly in the Pacific region, trended in recent years?

Spending on commercial and institutional building construction by the Department of Defense has generally remained robust, driven by the need to modernize aging facilities, enhance operational readiness, and address infrastructure deficits across global installations. In the Pacific region specifically, increased geopolitical focus and the strategic importance of bases like Andersen AFB have likely led to sustained or increased investment in construction and infrastructure projects. Analyzing historical spending data for the Air Force and DoD in NAICS code 236220 (Commercial and Institutional Building Construction) for the Pacific theater would reveal specific trends, budget allocations, and the overall market dynamics influencing contract awards like this one.

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

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: $14,913,809

Exercised Options: $14,913,809

Current Obligation: $14,913,809

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