DoD's $45.4M Design/Build Contract for Greenside Aircraft Hangar Awarded to Archer Western Contractors

Contract Overview

Contract Amount: $45,371,013 ($45.4M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-07

End Date: 2012-01-04

Contract Duration: 972 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P517&P495A DESIGN/BUILD GREENSIDE AIRCRAFT HAN

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: P517&P495A DESIGN/BUILD GREENSIDE AIRCRAFT HAN Key points: 1. Contract value represents a significant investment in aviation infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 972 days indicates a substantial construction project. 5. Awarded by the Department of the Navy, highlighting a specific military need. 6. The project falls under commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $45.4 million for a design/build aircraft hangar appears to be within a reasonable range for a project of this scale and complexity, especially considering it includes both design and construction phases. Benchmarking against similar military aviation infrastructure projects would provide a more precise assessment of value for money. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the final cost is well-managed.

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 8 bidders participating, the level of competition appears robust. This suggests that the Navy likely received a range of proposals and pricing, which should have contributed to price discovery and potentially led to a more competitive final award price.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and encouraging efficiency from contractors seeking to win the award.

Public Impact

Benefits military aviation operations by providing necessary hangar facilities. Services delivered include the design and construction of a specialized aircraft hangar. Geographic impact is concentrated in Virginia, where the facility will be located. Workforce implications include employment opportunities for construction workers and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design complexities are underestimated.
Risk of schedule delays due to unforeseen site conditions or weather.
Ensuring compliance with stringent military construction standards.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a competitive award process.
Experienced contractor likely selected through a rigorous evaluation.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by the need for specialized facilities to support defense operations. Projects like this often involve significant capital investment and require contractors with expertise in complex engineering and building requirements. Comparable spending benchmarks would involve analyzing other large-scale military facility construction contracts.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion for this award, as the 'sb' field is false. However, the prime contractor, Archer Western Contractors, LLC, may engage small businesses as subcontractors to fulfill portions of the work. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the project, impacting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments. Accountability measures are embedded in the firm fixed-price contract, requiring the contractor to deliver the specified design and construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Navy
Aircraft Maintenance Facilities
Design-Build Contracts
Naval Air Stations Infrastructure

Risk Flags

Potential for cost escalation if design is not fully defined.
Risk of schedule slippage due to construction complexities.
Ensuring compliance with stringent military specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to ARCHER WESTERN CONTRACTORS, LLC. P517&P495A DESIGN/BUILD GREENSIDE AIRCRAFT HAN

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $45.4 million.

What is the period of performance?

Start: 2009-05-07. End: 2012-01-04.

What is the track record of Archer Western Contractors, LLC on similar government contracts?

Archer Western Contractors, LLC has a history of performing large-scale construction projects, including those for government entities. Analyzing their past performance on similar design-build projects, particularly for the Department of Defense or other federal agencies, would reveal their ability to manage complex scopes, adhere to budgets, and meet delivery schedules. A review of contract performance reports and any past performance evaluations would provide insight into their reliability and quality of work. Specific details on their experience with aviation-related infrastructure would be particularly relevant for assessing their suitability for this hangar project.

How does the awarded price compare to industry benchmarks for similar aircraft hangars?

Determining precise industry benchmarks for aircraft hangars is complex due to variations in size, design complexity, materials, and specific functional requirements (e.g., specialized ventilation, fire suppression, aircraft support systems). However, the $45.4 million contract value for a design/build project of this nature suggests a significant investment. To benchmark effectively, one would need to compare it against data from similar military or large commercial aviation hangar projects, considering factors like square footage, clear span requirements, and specialized equipment integration. Publicly available data on construction costs per square foot for similar facilities, adjusted for inflation and regional cost differences, could offer a comparative perspective.

What are the primary risks associated with this design-build contract, and how are they mitigated?

The primary risks for a design-build contract of this magnitude include potential design errors or omissions, unforeseen site conditions, contractor performance issues, and schedule delays. For this specific contract, the firm fixed-price structure shifts the financial risk of cost overruns to Archer Western Contractors, LLC. Mitigation strategies likely include rigorous design reviews, detailed site investigations prior to construction, performance bonds, liquidated damages clauses for delays, and active government oversight throughout the project lifecycle. The Department of the Navy would have established procedures for managing these risks, including regular progress meetings and inspections.

What is the expected effectiveness of the new Greenside Aircraft Hangar in supporting military operations?

The effectiveness of the Greenside Aircraft Hangar will be directly tied to its ability to meet the operational requirements of the military units it serves. As a design/build project, its effectiveness hinges on the successful integration of design specifications with construction execution to provide a functional, durable, and safe facility. Key performance indicators would likely include its capacity to house specific aircraft types, provide necessary maintenance and support services, and withstand environmental conditions. Its contribution to operational readiness and efficiency will be realized once it is completed and fully operational, supporting flight schedules and maintenance activities.

How has historical spending on similar aviation infrastructure projects by the Department of the Navy trended?

Historical spending on aviation infrastructure by the Department of the Navy has generally been substantial, reflecting the ongoing need to maintain and modernize facilities supporting naval aviation. Trends often show significant investments in airfield upgrades, hangar construction, maintenance facilities, and training infrastructure. Factors influencing spending include fleet size, aircraft technology advancements, geopolitical requirements, and budget allocations. Analyzing past contract awards for similar projects can reveal patterns in contract types (e.g., design-build vs. separate design and construction), competition levels, and average project costs, providing context for the current $45.4 million award.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008008R2035

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 3715 NORTHSIDE PKWY BG 100 STE 550, ATLANTA, GA, 90

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

Financial Breakdown

Contract Ceiling: $45,371,013

Exercised Options: $45,371,013

Current Obligation: $45,371,013

Contract Characteristics

Cost or Pricing Data: NO

Timeline