Naval Auxiliary Landing Field pavement repair contract awarded to The Lane Construction Corporation for over $20 million

Contract Overview

Contract Amount: $20,052,206 ($20.1M)

Contractor: THE Lane Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2011-07-29

End Date: 2013-09-16

Contract Duration: 780 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST167-07, REPAIR AIRFIELD PAVEMENT AND LIGHTING AT NAVAL AUXILIARY LANDING FIELD (NALF) FENTRESS, CHESAPEAKE, VIRGINIA.

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23322

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to THE LANE CONSTRUCTION CORPORATION for work described as: ST167-07, REPAIR AIRFIELD PAVEMENT AND LIGHTING AT NAVAL AUXILIARY LANDING FIELD (NALF) FENTRESS, CHESAPEAKE, VIRGINIA. Key points: 1. The contract focused on essential airfield infrastructure repair, crucial for operational readiness. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. The duration of the contract (780 days) indicates a significant scope of work. 5. The project's location in Chesapeake, Virginia, highlights regional infrastructure investment. 6. The North American Industry Classification System (NAICS) code 237310 points to heavy civil construction.

Value Assessment

Rating: good

The contract value of approximately $20 million for airfield pavement and lighting repair appears reasonable given the scope of work. Benchmarking against similar large-scale airfield construction and repair projects would provide a more precise value-for-money assessment. The firm-fixed-price structure generally offers good value by shifting cost overrun risks to the contractor, provided the initial pricing was competitive.

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 7 bidders suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in taxpayer savings compared to a sole-source or limited competition award, ensuring that the government received the best possible price for the required services.

Public Impact

Naval Auxiliary Landing Field (NALF) Fentress in Chesapeake, Virginia, benefits from improved operational capabilities. The project ensures the continued safe and efficient operation of critical naval aviation training and support functions. Local and regional construction workforce likely benefited from employment opportunities during the contract period. The repair of essential infrastructure supports the broader defense mission and national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Contractor performance history on similar large-scale infrastructure projects should be monitored.
Ensuring timely completion to avoid disruption to NALF Fentress operations is critical.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs for naval aviation readiness.
The contractor, The Lane Construction Corporation, is a known entity in the heavy civil construction sector.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on airfield infrastructure. The market for airfield construction and repair is significant, driven by both military and civilian aviation needs. This project represents a typical investment in maintaining and upgrading critical defense-related infrastructure, aligning with broader government spending on facilities and infrastructure maintenance.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While this contract was not set aside for small businesses, large prime contractors like The Lane Construction Corporation often engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting on this specific project and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. The Department of Defense's Inspector General may also conduct audits or investigations as deemed necessary.

Related Government Programs

Department of Defense Infrastructure Projects
Naval Air Station Construction and Maintenance
Airfield Pavement and Lighting Repair Contracts
Heavy Civil Construction Services

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Ensuring compliance with stringent military specifications for airfield infrastructure.
Monitoring contractor performance to ensure quality and timely completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to THE LANE CONSTRUCTION CORPORATION. ST167-07, REPAIR AIRFIELD PAVEMENT AND LIGHTING AT NAVAL AUXILIARY LANDING FIELD (NALF) FENTRESS, CHESAPEAKE, VIRGINIA.

Who is the contractor on this award?

The obligated recipient is THE LANE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2011-07-29. End: 2013-09-16.

What is the track record of The Lane Construction Corporation on similar federal contracts?

The Lane Construction Corporation has a significant history of performing large-scale civil engineering and construction projects for various federal agencies, including the Department of Defense. Their portfolio often includes highway, bridge, and airfield construction. Analyzing their past performance on similar airfield repair contracts, including on-time delivery, budget adherence, and quality of work, would provide insight into their capability to execute this specific project successfully. Past contract awards and performance evaluations, where publicly available, are key indicators. While specific data for this contract's performance is not detailed here, their general experience suggests a capacity for such work. However, a review of any past disputes, claims, or contract modifications on comparable projects would offer a more nuanced understanding of their reliability.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data shows the awarded amount for the repair of airfield pavement and lighting at NALF Fentress was $20,052,205.98. Without access to the original estimated cost or the specific budget allocated by the Department of the Navy for this project, a direct comparison is not possible. However, the fact that it was awarded under full and open competition with 7 bidders suggests that the awarded price was likely competitive and potentially within the government's expected range. If the awarded amount was significantly lower than estimates, it could indicate strong competition or efficient contractor bidding. Conversely, if it was higher, it might suggest underestimation or unique project complexities. Further investigation into pre-award estimates would be necessary for a definitive value assessment.

What are the primary risks associated with airfield pavement and lighting repair projects of this magnitude?

Primary risks for airfield pavement and lighting repair projects of this magnitude include unforeseen subsurface conditions (e.g., soil instability, underground utilities not previously identified), weather delays impacting construction schedules, material price fluctuations (though mitigated by fixed-price contracts), and potential disruptions to ongoing airfield operations. For this specific contract, ensuring the integrity and longevity of the repaired pavement and lighting systems is critical. Contractor performance and adherence to stringent military specifications are also key risk areas. The firm-fixed-price nature shifts some financial risk to the contractor, but schedule delays or quality issues can still impact operational readiness and require government intervention or remedies.

What is the historical spending pattern for airfield maintenance and repair at NALF Fentress or similar naval facilities?

Historical spending patterns for airfield maintenance and repair at NALF Fentress or similar naval facilities are typically characterized by cyclical investments. Major repair projects like this one often occur after a certain lifespan of the existing infrastructure, interspersed with routine maintenance. Annual spending can fluctuate significantly based on budget allocations, infrastructure condition assessments, and strategic priorities. Analyzing several years of data for NALF Fentress and comparable naval airfields would reveal trends in the frequency and cost of pavement and lighting upgrades. This contract, awarded in 2011 for work completed by 2013, represents a specific investment point. Understanding the preceding and subsequent spending would contextualize its significance within a broader capital improvement plan.

How does the competition level (7 bidders) impact the potential for cost savings for the taxpayer?

A competition level involving 7 bidders for this contract is generally considered robust and is highly beneficial for taxpayers. A larger number of qualified bidders typically intensifies competition, driving down prices as contractors strive to offer the most attractive bids to secure the contract. This scenario increases the likelihood that the government will receive a fair market price for the services rendered. It reduces the risk of inflated pricing that can occur in less competitive environments, such as sole-source or limited-bid situations. Therefore, the 7 bidders suggest that the government likely achieved significant cost savings compared to what might have been paid if fewer companies had competed for the work.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008511R0008

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lane Industries Incorporated (UEI: 101258739)

Address: 90 FIELDSTONE CT, CHESHIRE, CT, 06410

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

Financial Breakdown

Contract Ceiling: $20,052,206

Exercised Options: $20,052,206

Current Obligation: $20,052,206

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline