Navy awards $208M contract for taxiway repairs at NAS Oceana, with Lane Construction winning the bid

Contract Overview

Contract Amount: $207,849,000 ($207.8M)

Contractor: THE Lane Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-18

End Date: 2028-01-14

Contract Duration: 1,275 days

Daily Burn Rate: $163.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR TAXIWAY PAVEMENTS, NAS OCEANA

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23460

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $207.8 million to THE LANE CONSTRUCTION CORPORATION for work described as: REPAIR TAXIWAY PAVEMENTS, NAS OCEANA Key points: 1. The contract value of $208 million represents a significant investment in critical infrastructure at a major naval air station. 2. The use of a firm-fixed-price contract type suggests a clear scope of work and aims to control costs for the government. 3. The duration of the contract, spanning over 1200 days, indicates a substantial and long-term repair and maintenance effort. 4. The award to a single contractor, The Lane Construction Corporation, warrants examination of the competitive landscape and potential for future competition. 5. The absence of small business set-aside flags suggests the primary contractor is likely a large business, with subcontracting opportunities needing further review. 6. The project falls under the broad category of highway, street, and bridge construction, highlighting the extensive civil engineering work involved.

Value Assessment

Rating: good

The contract value of $208 million for taxiway pavement repair at NAS Oceana appears substantial, reflecting the scale of infrastructure needs at a large naval facility. Benchmarking against similar large-scale airfield pavement projects would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control, assuming the scope was well-defined. Without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging, but the competitive award suggests a reasonable market price was achieved.

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 two bids suggests a moderate level of competition for this significant infrastructure project. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with two bidders, is generally beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, aiming to secure the contract.

Public Impact

Naval Air Station Oceana and its operational readiness will benefit from improved taxiway infrastructure, ensuring safer aircraft movement. The project will deliver essential repairs and upgrades to critical airfield pavement, enhancing the longevity and safety of the facility. The primary geographic impact is localized to Virginia Beach, Virginia, where NAS Oceana is located. The construction activities will likely involve a significant workforce, including skilled trades, engineers, and project managers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen subsurface conditions are encountered during extensive pavement work.
Risk of schedule delays due to weather, material availability, or contractor performance on a multi-year project.
Dependence on a single large contractor may limit flexibility if performance issues arise.
The competitive landscape, with only two bids, might indicate barriers to entry for other qualified firms in future similar procurements.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential bidders.
Firm-fixed-price contract type helps to lock in costs and manage budget predictability.
The contractor, The Lane Construction Corporation, has a track record in large-scale civil engineering projects.
The project addresses critical infrastructure needs, ensuring the long-term operational capability of a key naval facility.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and infrastructure development. The market for airfield pavement construction and repair is substantial, driven by the continuous need for maintenance and upgrades at airports and military installations worldwide. The size of this contract, at $208 million, positions it as a major project within this niche. Comparable spending benchmarks for similar large-scale airfield repair projects at military bases would provide further context on the scale and potential value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, The Lane Construction Corporation. While there is no explicit information on subcontracting plans, large infrastructure projects of this magnitude often involve significant subcontracting opportunities. It would be beneficial to ascertain if the prime contractor has a robust plan to engage small businesses for portions of the work, thereby contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering departments, with potential involvement from the Naval Facilities Engineering Command (NAVFAC). The firm-fixed-price contract type provides a degree of cost control. Transparency will depend on the public availability of contract modifications, performance reports, and any associated Inspector General investigations. Accountability measures are inherent in the contract terms, with potential penalties for non-performance or delays.

Related Government Programs

Naval Air Station Infrastructure Modernization Programs
Airfield Pavement Repair and Maintenance Contracts
Department of Defense Civil Engineering Projects
Large-Scale Construction Contracts
Federal Highway and Transportation Infrastructure Spending

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Risk of schedule delays impacting base operations.
Limited competition (2 bidders) may affect long-term pricing.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $207.8 million to THE LANE CONSTRUCTION CORPORATION. REPAIR TAXIWAY PAVEMENTS, NAS OCEANA

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 $207.8 million.

What is the period of performance?

Start: 2024-07-18. End: 2028-01-14.

What is the track record of The Lane Construction Corporation in performing similar large-scale airfield pavement repair contracts for the Department of Defense?

The Lane Construction Corporation is a significant player in the heavy civil construction industry, with extensive experience in infrastructure projects, including airfield construction and repair. They have a history of undertaking large-scale contracts for various government agencies, including the Department of Defense. While specific details on past airfield pavement projects for the Navy are not provided in this data snippet, their general profile suggests they possess the capacity and expertise for such work. A deeper dive into their contract history, performance reviews, and any past issues or commendations related to similar projects would offer a more comprehensive assessment of their suitability and reliability for this specific NAS Oceana contract.

How does the awarded price of $208 million compare to industry benchmarks for similar taxiway repair projects of this scale?

Benchmarking the $208 million contract value requires comparing it to similar large-scale taxiway and airfield pavement repair projects, considering factors like square footage, complexity of repairs (e.g., full depth reconstruction vs. resurfacing), location, and the specific materials used. Without access to a database of comparable projects with detailed cost breakdowns, a precise comparison is difficult. However, for major military airfields, such projects can easily run into tens or hundreds of millions of dollars due to the stringent specifications, security requirements, and the need for minimal operational disruption. The firm-fixed-price nature of this contract suggests the government sought to establish a clear cost ceiling, which is a positive indicator for value, assuming the scope was accurately defined.

What are the primary risks associated with a multi-year, firm-fixed-price contract for extensive pavement repairs at a busy naval air station?

A primary risk with a multi-year, firm-fixed-price contract for extensive pavement repairs is the potential for unforeseen conditions that could significantly increase costs for the contractor, potentially leading to disputes or performance issues if not adequately managed. For example, discovering subsurface issues like inadequate sub-base material or underground utilities not previously identified could necessitate costly changes. Another risk is schedule slippage due to factors like adverse weather, material shortages, or labor availability, which can impact operational readiness at the air station. The firm-fixed-price structure, while beneficial for cost certainty, places the burden of managing these risks primarily on the contractor. The government's risk is mitigated by the fixed price but could be exposed if the contractor struggles to perform or if scope creep occurs without proper change order management.

What is the expected impact of these taxiway repairs on the operational tempo and safety at NAS Oceana?

These extensive taxiway repairs are expected to significantly enhance both the operational tempo and safety at NAS Oceana. Aging or damaged taxiways can lead to slower aircraft ground movement, increased wear and tear on aircraft landing gear, and pose safety hazards such as foreign object debris (FOD) or uneven surfaces. By repairing and modernizing these critical pathways, the Navy aims to ensure smoother, faster, and safer aircraft operations. This includes reducing the risk of accidents during taxiing, takeoffs, and landings, and improving the overall efficiency of flight operations. The project's duration suggests phased work to minimize disruption, but some impact on daily operations is inevitable.

How does the historical spending on airfield maintenance and repair at NAS Oceana compare to this new $208 million award?

To assess historical spending patterns, one would need to examine previous contracts awarded for airfield maintenance and repair specifically at NAS Oceana over several years. This $208 million award represents a substantial, single investment, likely addressing a significant backlog of deferred maintenance or a planned major upgrade cycle. It is probable that annual spending on routine maintenance and smaller repair jobs would have been considerably lower. A comparison would involve aggregating past contract values for similar work to understand if this award is an outlier, a continuation of a trend, or part of a larger, long-term infrastructure revitalization effort at the base.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: N4008524R2510

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6125 TYVOLA CENTRE DR, CHARLOTTE, NC, 28217

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

Financial Breakdown

Contract Ceiling: $207,849,000

Exercised Options: $207,849,000

Current Obligation: $207,849,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline