Navy Awards $53.6M Hangar Addition Contract to Straub Construction Amidst Full and Open Competition
Contract Overview
Contract Amount: $53,610,101 ($53.6M)
Contractor: Straub Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-05-31
End Date: 2018-06-16
Contract Duration: 746 days
Daily Burn Rate: $71.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF P-378 HANGAR ADDITION AND MODERNIZATION, NAS LEMOORE, CA
Place of Performance
Location: LEMOORE, KINGS County, CALIFORNIA, 93245
Plain-Language Summary
Department of Defense obligated $53.6 million to STRAUB CONSTRUCTION, INC. for work described as: IGF::OT::IGF P-378 HANGAR ADDITION AND MODERNIZATION, NAS LEMOORE, CA Key points: 1. The contract for NAS Lemoore hangar modernization was awarded to Straub Construction, Inc. for $53.6 million. 2. This project falls under the Commercial and Institutional Building Construction sector, with a Firm Fixed Price contract type. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract duration was 746 days, with a reported bid of $7.18 million below the government estimate.
Value Assessment
Rating: good
The contract value of $53.6 million appears reasonable for a large-scale hangar addition and modernization project. The bid of $7.18 million below the government estimate suggests effective price discovery and potentially good value for taxpayers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive bidding process and the bid coming in significantly under the government estimate suggest a positive impact on taxpayer funds, potentially saving millions.
Public Impact
Enhances critical infrastructure at NAS Lemoore, supporting naval aviation readiness. Modernization efforts are expected to improve operational efficiency and safety for personnel. The project represents a significant investment in military infrastructure in California. Completion of the project contributes to the overall modernization of naval facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Contract duration of 746 days is substantial, increasing exposure to potential delays or cost overruns.
Positive Signals
- Awarded under full and open competition.
- Bid came in significantly under government estimate.
- Firm Fixed Price contract type limits cost risk for the government.
Sector Analysis
This project is within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can vary significantly based on infrastructure needs and modernization programs. Benchmarks would typically be assessed against similar large-scale construction projects for military bases.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss: false, sb: false). This suggests that the scale and complexity of the project may have favored larger construction firms, or that specific set-aside goals were not applicable or met.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve contract management by the Navy's contracting officers and potentially review by the DoD Inspector General for significant issues.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for aggressive contractor pricing.
- Lack of detail on specific modernization benefits.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.6 million to STRAUB CONSTRUCTION, INC.. IGF::OT::IGF P-378 HANGAR ADDITION AND MODERNIZATION, NAS LEMOORE, CA
Who is the contractor on this award?
The obligated recipient is STRAUB CONSTRUCTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $53.6 million.
What is the period of performance?
Start: 2016-05-31. End: 2018-06-16.
What specific modernization improvements does the hangar addition entail, and how do they align with current naval aviation technological requirements?
The provided data does not detail the specific modernization improvements. However, hangar additions and modernizations typically include upgrades to structural integrity, environmental controls, power systems, and potentially specialized equipment for aircraft maintenance. Alignment with naval aviation requirements would necessitate features supporting the latest aircraft types, advanced diagnostic tools, and enhanced safety protocols to ensure operational readiness and technological relevance.
Given the substantial bid savings, were there any potential risks associated with the contractor's pricing strategy that might impact project quality or timeline?
While a bid significantly under the government estimate is generally positive, it can sometimes indicate aggressive pricing that might strain the contractor's resources, potentially leading to quality compromises or schedule delays if not managed effectively. However, the Firm Fixed Price contract type shifts much of this risk to the contractor. Close monitoring by the contracting officer is crucial to ensure adherence to specifications and timely completion.
How does the successful completion of this project contribute to the overall operational effectiveness and readiness of NAS Lemoore?
The hangar addition and modernization are critical for maintaining and enhancing the operational effectiveness of NAS Lemoore. Improved facilities can lead to more efficient aircraft maintenance, better storage, and enhanced safety, all of which directly contribute to the readiness of naval aviation units stationed or operating from the base. This investment supports the long-term capability of the base to fulfill its mission.
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: N6247316R4602
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 202 W COLLEGE ST STE 201, FALLBROOK, CA, 92028
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,616,400
Exercised Options: $53,616,400
Current Obligation: $53,610,101
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $922,305
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-31
Current End Date: 2018-06-16
Potential End Date: 2018-06-16 00:00:00
Last Modified: 2021-07-29
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