Naval Air Station Whidbey Island hangar construction contract awarded to Swinerton Builders for $28.3M
Contract Overview
Contract Amount: $28,320,418 ($28.3M)
Contractor: Swinerton Builders
Awarding Agency: Department of Defense
Start Date: 2015-07-29
End Date: 2017-12-01
Contract Duration: 856 days
Daily Burn Rate: $33.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF 1141829 -- P234 C-40 RESERVE MAINTENANCE HANGAR AT NAVAL AIR STATION WHIDBEY ISLAND, WA
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98277
Plain-Language Summary
Department of Defense obligated $28.3 million to SWINERTON BUILDERS for work described as: IGF::OT::IGF 1141829 -- P234 C-40 RESERVE MAINTENANCE HANGAR AT NAVAL AIR STATION WHIDBEY ISLAND, WA Key points: 1. The contract value of $28.3 million for a reserve maintenance hangar represents a significant investment in naval aviation infrastructure. 2. Competition dynamics indicate a full and open bidding process, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Swinerton Builders. 4. Project duration of 856 days (approximately 2.3 years) suggests a substantial construction undertaking. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code, placing it within a standard industry category. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted for small business participation.
Value Assessment
Rating: good
The contract value of $28.3 million for a reserve maintenance hangar at NAS Whidbey Island appears reasonable for a project of this scale and complexity. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government sought cost certainty, which can be advantageous if the contractor's bid accurately reflects costs. Without specific cost breakdowns or comparisons to industry standards for hangar construction, a definitive assessment of pricing efficiency is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific project. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions. However, the specific nature of military construction, especially for specialized facilities like hangars, can sometimes limit the pool of qualified contractors.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The fact that multiple firms bid indicates that taxpayers are likely receiving a fair price due to the pressure of competing offers.
Public Impact
The primary beneficiaries are the U.S. Navy personnel and aviation units stationed at Naval Air Station Whidbey Island, who will gain access to improved maintenance facilities. The contract delivers a critical piece of infrastructure: a reserve maintenance hangar designed to support aircraft operations and readiness. The geographic impact is localized to Oak Harbor, Washington, where NAS Whidbey Island is located, potentially creating temporary local employment opportunities during construction. The project supports the broader mission of naval aviation readiness and operational capability within the Pacific Northwest region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions or construction challenges arise, despite the firm-fixed-price contract.
- Schedule delays could impact operational readiness if the hangar is not completed on time.
- Quality control during construction is crucial to ensure the hangar meets stringent military specifications and longevity requirements.
Positive Signals
- Firm-fixed-price contract structure provides cost certainty for the government.
- Full and open competition suggests a competitive bidding process, likely resulting in a fair market price.
- Award to Swinerton Builders, a known entity in construction, suggests a degree of confidence in their capability.
- Project directly supports critical naval aviation infrastructure needs.
Sector Analysis
The construction sector, particularly for specialized government facilities, is characterized by significant project values and stringent regulatory requirements. This contract for a reserve maintenance hangar falls within the broader category of institutional building construction. The market for such projects is often influenced by defense spending priorities and infrastructure upgrade cycles. Comparable spending benchmarks for similar military hangars can vary widely based on size, complexity, and location, but projects in the tens of millions of dollars are common for new construction or major renovations.
Small Business Impact
The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific preference was given to small businesses for the prime contract. This suggests that the competition was open to all qualified contractors, regardless of size. While Swinerton Builders is a large firm, there may be opportunities for small businesses to participate as subcontractors on this project, contributing to the broader small business ecosystem within the construction industry.
Oversight & Accountability
Oversight for this Department of the Navy contract would typically involve the Naval Facilities Engineering Command (NAVFAC) or a designated contracting officer's representative (COR). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific oversight reports may not always be publicly accessible. The Inspector General for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Naval Air Station Infrastructure Projects
- Military Construction Projects
- Aircraft Maintenance Facilities
- Department of Defense Construction Contracts
- Firm Fixed Price Contracts
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Risk of cost overruns if unforeseen site conditions arise.
- Quality control concerns inherent in large-scale construction projects.
Tags
construction, department-of-defense, department-of-the-navy, naval-air-station-whidbey-island, firm-fixed-price, full-and-open-competition, definitive-contract, commercial-and-institutional-building-construction, washington, large-project, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to SWINERTON BUILDERS. IGF::OT::IGF 1141829 -- P234 C-40 RESERVE MAINTENANCE HANGAR AT NAVAL AIR STATION WHIDBEY ISLAND, WA
Who is the contractor on this award?
The obligated recipient is SWINERTON BUILDERS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.3 million.
What is the period of performance?
Start: 2015-07-29. End: 2017-12-01.
What is Swinerton Builders' track record with large-scale Department of Defense construction projects?
Swinerton Builders has a significant track record of undertaking large-scale construction projects, including those for the Department of Defense. They have experience with various military installations and facility types, often involving complex requirements and demanding timelines. Their portfolio includes projects such as barracks, training facilities, and aviation-related structures. While specific details on all past DoD contracts are not always publicly itemized, their sustained presence and success in winning competitive bids for government work suggest a demonstrated capability to meet the rigorous standards and expectations of federal clients. This experience is a positive indicator for their ability to successfully execute the reserve maintenance hangar project at NAS Whidbey Island.
How does the $28.3 million cost compare to similar reserve maintenance hangar projects?
Benchmarking the $28.3 million cost for this reserve maintenance hangar against similar projects requires careful consideration of project scope, size, location, and specific features. Military hangar construction costs can vary significantly due to factors like aircraft type supported, environmental requirements, security needs, and the complexity of integrated systems (e.g., HVAC, fire suppression, specialized lighting). Generally, large aircraft hangars can range from hundreds to thousands of dollars per square foot. Without the specific square footage and detailed specifications of the NAS Whidbey Island hangar, a precise comparison is difficult. However, for a substantial facility supporting naval aviation, a cost in the tens of millions is not unusual, especially considering the firm-fixed-price nature which often incorporates contingencies.
What are the primary risks associated with this firm-fixed-price construction contract?
The primary risks associated with this firm-fixed-price (FFP) contract, while generally favorable to the government for cost control, still involve potential issues. For the contractor (Swinerton Builders), the risk lies in accurately estimating all costs, including labor, materials, and unforeseen site conditions. If costs exceed their bid, their profit margin shrinks or they incur a loss. For the government, the main risks are related to contractor performance and quality. If the contractor cuts corners to maintain profitability, the quality of the hangar could be compromised, leading to higher maintenance costs or reduced lifespan. Schedule delays, even with an FFP contract, can occur due to factors beyond the contractor's control (e.g., permitting, weather, supply chain disruptions), potentially impacting the Navy's operational readiness. Ensuring robust oversight and clear performance standards are crucial to mitigate these risks.
How effective is a full and open competition in ensuring value for taxpayer money on construction projects of this nature?
A full and open competition is generally considered a highly effective mechanism for ensuring value for taxpayer money on construction projects. By allowing all responsible sources to bid, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing. This competitive pressure incentivizes bidders to offer their best possible price and most efficient solutions to win the contract. Furthermore, it provides transparency and fairness in the procurement process. For a project like the NAS Whidbey Island hangar, where the contract value is substantial, a full and open competition helps to prevent potential price gouging and encourages contractors to be diligent in their cost management and project execution to remain profitable.
What are the historical spending patterns for similar construction projects at Naval Air Station Whidbey Island?
Analyzing historical spending patterns for similar construction projects at Naval Air Station Whidbey Island would provide valuable context for this $28.3 million contract. This would involve examining past awards for hangars, maintenance facilities, or other significant infrastructure upgrades at the base. Key metrics to consider would include contract values, duration, competition levels, and the types of contractors awarded. Understanding whether previous projects came in on budget, faced significant change orders, or were awarded under different competition types can inform the assessment of the current contract's value and risk. Without access to a detailed historical database specific to NAS Whidbey Island construction awards, a precise analysis is not possible, but such data would be crucial for a comprehensive review.
What are the implications of the 856-day duration for the project's impact on naval operations?
The 856-day duration, approximately 2.3 years, for the reserve maintenance hangar project has several implications for naval operations at NAS Whidbey Island. Firstly, it signifies a substantial construction timeline, requiring careful project management to minimize disruptions to ongoing base activities. Secondly, the extended period means that the benefits of the new facility will not be realized immediately, potentially requiring continued reliance on existing, possibly less adequate, maintenance resources. Thirdly, any delays beyond this duration could have a cascading effect on operational readiness, impacting training schedules or deployment capabilities if the hangar is critical for specific aircraft maintenance. Effective phasing of construction and clear communication with base operations are essential to mitigate these impacts.
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: N4425515R6001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Swinerton Incorporated (UEI: 849754288)
Address: 6890 W 52ND AVE STE 201, ARVADA, CO, 80002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,320,418
Exercised Options: $28,320,418
Current Obligation: $28,320,418
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-29
Current End Date: 2017-12-01
Potential End Date: 2017-12-01 00:00:00
Last Modified: 2021-07-30
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