DoD awards $47M for RAF Lakenheath Barrier System, with project completion expected in late 2027

Contract Overview

Contract Amount: $47,089,051 ($47.1M)

Contractor: Perini Management Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-20

End Date: 2027-10-18

Contract Duration: 970 days

Daily Burn Rate: $48.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW) DATED 25 OCTOBER 2024, BARRIER SYSTEM PROJECT AT RAF LAKENHEATH, UNITED KINGDOM, PROJECT NUMBERS: MSET 22-3003PA MSET 22-3003.

Plain-Language Summary

Department of Defense obligated $47.1 million to PERINI MANAGEMENT SERVICES, INC. for work described as: THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW) DATED 25 OCTOBER 2024, BARRIER SYSTEM PROJECT AT RAF LAKENHEATH, UNITED KINGDOM, PROJECT NUMBERS: MSET 22-3003PA MSET 22-3003. Key points: 1. The contract focuses on construction services for a barrier system at a UK airbase. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Project duration is estimated at 970 days. 5. The contract is a delivery order under a larger contract vehicle. 6. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

The contract value of $47.09 million for a barrier system project at RAF Lakenheath appears within a reasonable range for large-scale construction and security infrastructure. Benchmarking against similar international military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is standard for mitigating cost overruns in construction, but it relies on accurate initial estimates. Without detailed cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging.

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 3 bidders suggests a moderate level of competition for this specific project. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the actual number of bidders can influence the competitiveness of the final price. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, which aims to secure the best value for government funds. The fact that multiple companies bid suggests that the government is likely to receive a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at RAF Lakenheath, UK, through enhanced security. The project delivers critical infrastructure improvements in the form of a barrier system. Geographic impact is localized to the RAF Lakenheath base in the United Kingdom. The contract supports construction jobs and related services in the region where the work is performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates are inaccurate, despite firm-fixed-price.
Geopolitical risks associated with operating in an international location.
Dependency on timely delivery of materials and labor in the UK.
Scope creep could occur if the Statement of Work is not strictly managed.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive pricing environment.
Experienced contractor likely selected through a rigorous process.
Project is part of a larger, established military base infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for defense infrastructure. The global market for defense construction is substantial, driven by the need for secure and modern facilities for military operations worldwide. Projects like this are crucial for maintaining operational readiness and security at overseas bases. Comparable spending benchmarks would typically involve other large-scale construction projects for military installations, both domestically and internationally, focusing on security enhancements and facility upgrades.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The prime contractor, Perini Management Services, Inc., is a large business. This means that the direct economic impact on the small business ecosystem for this specific award is likely minimal, unless Perini voluntarily engages small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified barrier system within the agreed-upon price and schedule. Transparency is typically maintained through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are not explicitly stated in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Base Infrastructure Modernization
Defense Security Enhancements
Overseas Military Facilities

Risk Flags

Potential for cost overruns if initial estimates are inaccurate.
Geopolitical risks associated with international operations.
Dependency on international supply chains and labor.
Scope creep management is critical for fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.1 million to PERINI MANAGEMENT SERVICES, INC.. THE WORK TO BE PERFORMED WILL BE IN ACCORDANCE WITH THE STATEMENT OF WORK (SOW) DATED 25 OCTOBER 2024, BARRIER SYSTEM PROJECT AT RAF LAKENHEATH, UNITED KINGDOM, PROJECT NUMBERS: MSET 22-3003PA MSET 22-3003.

Who is the contractor on this award?

The obligated recipient is PERINI MANAGEMENT SERVICES, 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 $47.1 million.

What is the period of performance?

Start: 2025-02-20. End: 2027-10-18.

What is the track record of Perini Management Services, Inc. in delivering similar large-scale construction projects for the Department of Defense, particularly overseas?

Perini Management Services, Inc. (PMSI) has a significant history of performing large-scale construction and facilities management projects for the U.S. Department of Defense, including extensive work in overseas locations. They have been involved in numerous projects related to base infrastructure, operational facilities, and security enhancements. For example, PMSI has held contracts for base operations support and construction at various U.S. military installations globally. Their experience often includes navigating complex logistical challenges, adhering to stringent security protocols, and managing projects under various contract types, including firm-fixed-price. A detailed review of their past performance on similar barrier system or force protection projects would be necessary to fully assess their suitability and past success rates for this specific contract, but their general profile suggests a strong capability in this domain.

How does the awarded amount of $47.09 million compare to the estimated cost of similar barrier system projects at international military installations?

Benchmarking the $47.09 million award for the RAF Lakenheath barrier system against similar projects requires access to detailed cost data for comparable international military construction. However, large-scale security infrastructure projects at major overseas bases can range from tens to hundreds of millions of dollars, depending on the scope, complexity, and specific security requirements. Factors influencing cost include the size of the area to be secured, the type of barrier material, integration with existing security systems, labor costs in the host nation, and logistical challenges. Given that this is a significant project at a major airbase, the $47 million figure appears to be within a plausible range for such specialized construction, assuming it covers comprehensive design, materials, installation, and potentially some integrated systems. A precise comparison would necessitate identifying projects with identical or highly similar specifications and locations.

What are the primary risks associated with this firm-fixed-price contract, and what mitigation strategies are likely in place?

The primary risk with a firm-fixed-price (FFP) contract, from the government's perspective, is that the contractor may cut corners on quality or scope to protect their profit margin if their initial cost estimates were too low or unforeseen issues arise. For the contractor, the risk is absorbing cost overruns if their estimates were inaccurate or if unexpected site conditions or material price increases occur. Mitigation strategies likely include a detailed and well-defined Statement of Work (SOW), rigorous government oversight during construction to ensure quality standards are met, clear performance metrics, and potentially liquidated damages clauses for delays. The contractor's own risk management processes, including thorough site investigations and accurate cost estimating, are also crucial mitigation factors. The government's selection of an experienced contractor with a strong performance record further mitigates these risks.

What is the expected impact of this barrier system project on the operational effectiveness and security posture of RAF Lakenheath?

The installation of a new barrier system at RAF Lakenheath is expected to significantly enhance the base's overall security posture and operational effectiveness. Barrier systems are critical components of force protection, designed to deter, delay, and detect unauthorized access, thereby reducing the risk of security breaches, sabotage, or terrorist attacks. By creating a more robust perimeter, the system will improve the safety of personnel, protect critical assets and infrastructure, and ensure the continuity of operations. This enhanced security allows the base to maintain its readiness and fulfill its mission requirements more effectively, contributing to regional stability and U.S. national security interests. The specific design and capabilities of the barrier system will dictate the precise level of security enhancement.

How does the current spending on barrier systems at RAF Lakenheath compare to historical spending patterns for similar security infrastructure at U.S. Air Force bases in Europe?

Analyzing historical spending patterns for similar security infrastructure at U.S. Air Force bases in Europe requires access to comprehensive historical contract data. However, spending on force protection and base security infrastructure, including barrier systems, has generally increased over the past two decades due to evolving threat landscapes. Major upgrades or new installations at key overseas bases like RAF Lakenheath are significant investments. The $47.09 million award represents a substantial, but not necessarily unprecedented, expenditure for a critical security enhancement project. It is likely part of a broader, ongoing effort by the Air Force to modernize and strengthen security measures across its European installations, reflecting a sustained commitment to base security rather than a one-off surge in spending. Specific comparisons would depend on the scale and nature of past projects.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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

Parent Company: Tutor Perini Corporation

Address: 73 MOUNT WAYTE AVE, FRAMINGHAM, MA, 01702

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

Financial Breakdown

Contract Ceiling: $47,995,712

Exercised Options: $47,089,051

Current Obligation: $47,089,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0044

IDV Type: IDC

Timeline