DoD's $8.57M Fuels Facility Repair Contract Awarded to BHATE Environmental Associates, Inc

Contract Overview

Contract Amount: $8,566,558 ($8.6M)

Contractor: Bhate Environmental Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-06

End Date: 2026-03-16

Contract Duration: 465 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AND UPGRADE OF FUELS FACILITIES AT FE WARREN AFB, WY.

Place of Performance

Location: FE WARREN AFB, LARAMIE County, WYOMING, 82005

State: Wyoming Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to BHATE ENVIRONMENTAL ASSOCIATES, INC. for work described as: REPAIR AND UPGRADE OF FUELS FACILITIES AT FE WARREN AFB, WY. Key points: 1. The contract focuses on essential infrastructure repair and upgrades, indicating a need for facility modernization. 2. Awarded under full and open competition after exclusion of sources, suggesting a potentially competitive but specific procurement process. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 4. The duration of 465 days suggests a substantial scope of work for the facility upgrades. 5. The contract is for repair and upgrade of fuels facilities, a critical component for military base operations. 6. The geographic location in Wyoming may influence labor costs and material availability.

Value Assessment

Rating: good

The contract value of $8.57 million for facility repair and upgrades appears reasonable given the scope and duration. Benchmarking against similar Department of Defense construction projects of this nature would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has negotiated a ceiling price, with the contractor bearing cost overruns. However, without detailed cost breakdowns or comparisons to industry standards for similar repair work, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications or prior relationships. With four bidders, the competition level was moderate, which can still lead to competitive pricing. However, the exclusion of sources might limit the full spectrum of market competition.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a reasonably competitive price, though the exclusion of some potential bidders may have prevented even greater cost savings.

Public Impact

The primary beneficiaries are the Department of the Air Force and military personnel at FE Warren AFB, who will gain access to modernized and reliable fuels facilities. The services delivered include essential repairs and upgrades to critical fuel infrastructure, ensuring operational readiness. The geographic impact is localized to FE Warren Air Force Base in Wyoming. Workforce implications include potential job creation for construction workers and specialized technicians in the Wyoming area during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the firm-fixed-price structure.
Dependence on contractor's ability to source materials and labor in Wyoming, which could impact timelines.
The exclusion of sources in the competition process might limit the range of innovative solutions considered.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Award to a single contractor streamlines project management and execution.
The contract addresses critical infrastructure needs, ensuring operational continuity for the Air Force base.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on industrial facilities. The Department of Defense is a significant client for construction services, with substantial annual spending on infrastructure maintenance, repair, and new builds across its global installations. Benchmarking this contract's value against similar military base construction or repair projects would be necessary for a comprehensive sector analysis. The market for specialized fuel facility construction and repair is niche, requiring specific expertise and adherence to stringent safety and environmental regulations.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as indicated by 'sb': false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, BHATE ENVIRONMENTAL ASSOCIATES, INC., is likely a larger entity, and opportunities for small businesses would primarily depend on their subcontracting decisions. Further investigation into the contractor's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and engineering divisions at FE Warren AFB. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specified standards within the agreed-upon price. Transparency can be assessed through publicly available contract data, though detailed project progress reports and cost breakdowns are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Base Infrastructure Modernization
Department of Defense Facilities Maintenance
Air Force Construction Projects
Fuel Storage and Handling Systems
Federal Building Repair and Renovation

Risk Flags

Potential for cost overruns despite firm-fixed-price.
Environmental and safety risks inherent in fuel facility work.
Limited competition may impact price discovery.
Contractor's specific experience with fuels facilities needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to BHATE ENVIRONMENTAL ASSOCIATES, INC.. REPAIR AND UPGRADE OF FUELS FACILITIES AT FE WARREN AFB, WY.

Who is the contractor on this award?

The obligated recipient is BHATE ENVIRONMENTAL ASSOCIATES, INC..

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 $8.6 million.

What is the period of performance?

Start: 2024-12-06. End: 2026-03-16.

What is the track record of BHATE ENVIRONMENTAL ASSOCIATES, INC. with the Department of Defense for similar facility repair projects?

A review of federal procurement data indicates that BHATE ENVIRONMENTAL ASSOCIATES, INC. has a history of contracts with the Department of Defense, including projects related to environmental remediation and construction. While specific details on past fuels facility repair projects would require deeper analysis, their existing contract portfolio suggests experience with government projects. Assessing the performance history, including any past performance evaluations, contract modifications, or disputes, would provide a clearer picture of their reliability and capability for this specific type of work. Understanding their success rate on similar firm-fixed-price contracts would also be beneficial for evaluating risk.

How does the awarded price of $8.57 million compare to similar fuels facility repair projects at other Air Force bases?

Direct comparison of the $8.57 million award for fuels facility repair at FE Warren AFB to similar projects at other Air Force bases is challenging without access to detailed project scopes, geographic cost variations, and specific repair requirements. However, the contract's duration of 465 days suggests a significant undertaking. Benchmarking against projects of comparable size, complexity, and location would be necessary. Factors such as local labor rates, material costs, and the specific nature of the required repairs (e.g., tank integrity, piping systems, safety upgrades) heavily influence pricing. A preliminary assessment suggests the value is within a plausible range for major infrastructure work, but a definitive value-for-money conclusion requires more granular comparative data.

What are the primary risks associated with the repair and upgrade of fuels facilities, and how are they mitigated in this contract?

Key risks in repairing and upgrading fuels facilities include potential environmental hazards (e.g., soil contamination, fuel leaks), safety concerns during construction, unforeseen structural issues, and disruptions to base operations. This contract, being firm-fixed-price, mitigates financial risk for the government by capping the total cost, placing the burden of cost overruns on the contractor. Mitigation of operational risks relies on the contractor's adherence to strict safety protocols and environmental regulations, likely detailed in the contract's statement of work. The moderate competition level might also imply that bidders factored these risks into their pricing. The contract's duration and specific scope are designed to address the identified repair needs systematically.

What is the expected impact of this contract on the operational readiness and safety of FE Warren AFB's fuel supply?

This contract is expected to significantly enhance the operational readiness and safety of FE Warren AFB's fuel supply by addressing necessary repairs and upgrades to existing facilities. Modernized fuels infrastructure is crucial for ensuring a reliable and safe supply of fuel to aircraft and other vehicles, directly supporting the base's mission. Upgrades likely include improvements to storage tanks, piping, dispensing systems, and safety features, reducing the risk of leaks, contamination, or system failures. By investing in these repairs, the Air Force aims to prevent costly downtime, ensure compliance with environmental and safety standards, and maintain the integrity of its fuel logistics chain, thereby bolstering overall base operational capability.

How has federal spending on similar construction and repair projects for military bases trended over the past five years?

Federal spending on construction and repair projects for military bases has generally remained robust, driven by the need to modernize aging infrastructure, enhance force protection, and adapt to evolving operational requirements. While specific figures fluctuate annually based on budget allocations and emerging needs, the Department of Defense consistently represents a significant portion of federal construction outlays. Trends often show increased investment in areas like energy efficiency, cybersecurity resilience for facilities, and upgrades to specialized infrastructure such as hangars, barracks, and, as in this case, fuel storage and handling systems. Factors like geopolitical conditions and congressional appropriations play a major role in these spending patterns.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1608 13TH AVE S 300, BIRMINGHAM, AL, 35205

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,566,558

Exercised Options: $8,566,558

Current Obligation: $8,566,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0014

IDV Type: IDC

Timeline