Navy's $58.7M Fuel Facility Contract Awarded to APTIM FEDERAL SERVICES, LLC for Lemoore Base

Contract Overview

Contract Amount: $58,721,309 ($58.7M)

Contractor: Aptim Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-30

End Date: 2020-08-21

Contract Duration: 1,240 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIRM FIXED PRICE LUMP SUM IGF::OT::IGF P1508 REPLACE FUEL STORAGE AND DISTRIBUTION FACILITIES NAS LEMOORE

Place of Performance

Location: LEMOORE, KINGS County, CALIFORNIA, 93246

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $58.7 million to APTIM FEDERAL SERVICES, LLC for work described as: FIRM FIXED PRICE LUMP SUM IGF::OT::IGF P1508 REPLACE FUEL STORAGE AND DISTRIBUTION FACILITIES NAS LEMOORE Key points: 1. Contract value represents a significant investment in critical infrastructure at Naval Air Station Lemoore. 2. The firm-fixed-price structure shifts cost risk to the contractor, APTIM FEDERAL SERVICES, LLC. 3. Full and open competition suggests a potentially competitive bidding process, which can benefit price discovery. 4. The contract duration of 1240 days indicates a substantial, multi-year project. 5. The project falls under the 'Oil and Gas Pipeline and Related Structures Construction' NAICS code, highlighting specialized construction needs. 6. The absence of small business set-aside or subcontracting goals warrants further examination of small business participation.

Value Assessment

Rating: good

The contract's firm-fixed-price nature is generally favorable for the government, as it caps the total cost. Benchmarking against similar fuel storage and distribution facility construction projects would provide a clearer picture of value for money. The award amount of $58.7 million for a 1240-day project suggests a substantial undertaking. Without specific cost breakdowns or comparisons to independent cost estimates, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

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. The data shows 3 bids were received. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive pricing to secure the award. The fact that only three bids were submitted, however, could warrant further investigation into market capacity or potential barriers to entry for other firms.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the U.S. Navy and its operations at NAS Lemoore, ensuring reliable fuel supply. The contract delivers essential services related to the construction of fuel storage and distribution facilities. The geographic impact is localized to NAS Lemoore in California. The project likely involves a significant construction workforce, potentially creating jobs in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project complexities.
Risk of schedule delays impacting critical base operations.
Limited visibility into the specific construction methods and materials used without detailed oversight.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a potentially competitive bidding environment.
The contractor, APTIM FEDERAL SERVICES, LLC, has experience in federal contracting.
The project addresses a critical need for infrastructure modernization at a key naval base.

Sector Analysis

This contract falls within the construction sector, specifically focusing on specialized infrastructure for the oil and gas industry, as indicated by the NAICS code 237120. The market for such specialized construction services is often characterized by a limited number of highly qualified firms capable of undertaking large-scale, complex projects for government entities. Federal spending in this area is driven by the need to maintain and modernize critical infrastructure supporting military operations, often involving significant capital investment.

Small Business Impact

The contract data indicates that this was not a small business set-aside and that the contractor is not a small business. There is no explicit mention of subcontracting goals for small businesses. This suggests that opportunities for small businesses may be limited to direct subcontracting by APTIM FEDERAL SERVICES, LLC, rather than a mandated set-aside. Further review of the contract's subcontracting plan, if one exists, would be necessary to assess the full impact on 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 inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified facilities within the agreed-upon price. Transparency would be facilitated through contract award databases and potentially through public reporting on project milestones, though specific details on oversight mechanisms and Inspector General involvement are not provided in the summary data.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Military Construction Projects
Fuel Storage Infrastructure
Department of Defense Energy Projects

Risk Flags

Potential for cost overruns despite FFP structure.
Schedule adherence risk impacting base operations.
Limited small business participation opportunities.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.7 million to APTIM FEDERAL SERVICES, LLC. FIRM FIXED PRICE LUMP SUM IGF::OT::IGF P1508 REPLACE FUEL STORAGE AND DISTRIBUTION FACILITIES NAS LEMOORE

Who is the contractor on this award?

The obligated recipient is APTIM FEDERAL SERVICES, 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 $58.7 million.

What is the period of performance?

Start: 2017-03-30. End: 2020-08-21.

What is APTIM FEDERAL SERVICES, LLC's track record with similar large-scale construction projects for the Department of Defense?

APTIM FEDERAL SERVICES, LLC has a history of performing various construction and engineering services for the Department of Defense. While this specific contract for fuel storage and distribution facilities at NAS Lemoore is a significant award, APTIM has been involved in numerous other federal contracts, including infrastructure upgrades, environmental services, and facility maintenance across different military branches. Analyzing their past performance on projects of comparable size, complexity, and type, particularly those involving fuel infrastructure or pipeline construction, would provide a more robust assessment of their capabilities and reliability for this specific undertaking. Reviewing past performance evaluations and any documented issues or successes on prior DoD contracts would be crucial.

How does the awarded price of $58.7 million compare to independent cost estimates or similar projects?

Without access to the government's independent cost estimate (ICE) or detailed project specifications, a precise comparison is difficult. However, the $58.7 million figure for replacing fuel storage and distribution facilities at a major naval air station over approximately 3.5 years (1240 days) suggests a substantial investment. To benchmark value, one would ideally compare this to the cost per unit of storage capacity or per linear foot of pipeline constructed, adjusted for inflation and regional construction cost variations. Similar projects at other naval bases or military installations would serve as valuable comparators. The fact that it was awarded under full and open competition with three bids suggests the price was deemed acceptable by the government after a competitive process, but further analysis of market rates for specialized construction services would be beneficial.

What are the primary risks associated with this firm-fixed-price contract for fuel infrastructure construction?

The primary risks for the government under a firm-fixed-price (FFP) contract, even with a reputable contractor like APTIM FEDERAL SERVICES, LLC, revolve around potential scope creep, unforeseen site conditions, and contractor performance. While FFP shifts cost risk to the contractor, significant unforeseen issues (e.g., environmental contamination, complex subsurface conditions) could lead to change orders, potentially increasing the total cost or causing delays. Schedule risk is also present; delays in construction could impact NAS Lemoore's operational readiness. Ensuring robust oversight and clear contract specifications are crucial to mitigate these risks. The contractor's ability to manage complex logistics and specialized construction techniques safely and efficiently is also a key risk factor.

How effective is the full and open competition process in ensuring optimal value for taxpayer dollars in specialized construction like this?

The full and open competition process is generally considered the most effective method for ensuring optimal value for taxpayer dollars, especially in specialized construction. By allowing all qualified firms to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. In this case, with three bids received for the NAS Lemoore fuel facilities, the competition likely drove APTIM FEDERAL SERVICES, LLC to submit a more aggressive bid. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the market's capacity. If the market for such specialized construction is limited, even full and open competition might result in fewer bids than ideal, potentially impacting the degree of price competition achieved.

What is the historical spending trend for fuel storage and distribution facility construction at Naval Air Station Lemoore?

Historical spending data specifically for fuel storage and distribution facility construction at NAS Lemoore is not readily available in the provided summary. However, one could investigate past contracts awarded by NAVFAC or the Department of the Navy for similar projects at this base or other comparable naval installations. Analyzing trends in contract values, types (FFP vs. cost-plus), duration, and number of bidders over the last 5-10 years would reveal patterns. This could indicate whether spending has been consistent, increasing, or decreasing, and whether projects have typically been awarded competitively or through other means. Understanding these historical patterns is crucial for contextualizing the current $58.7 million award and assessing its alignment with past investment strategies.

What are the potential workforce implications of this $58.7 million construction contract?

A contract of this magnitude ($58.7 million) for constructing fuel storage and distribution facilities typically implies significant workforce requirements. APTIM FEDERAL SERVICES, LLC would likely need to mobilize a substantial team of skilled laborers, tradespeople (e.g., pipefitters, welders, electricians, heavy equipment operators), engineers, project managers, and safety personnel. Depending on the contractor's existing workforce and the project's location, there could be a substantial impact on the local labor market in the Lemoore, California area. This could involve hiring locally, potentially boosting employment and economic activity, or requiring the relocation of workers and their families. The duration of the project (1240 days) suggests a sustained need for this workforce over several years.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures 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: N6247315R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptim Holdings LLC

Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,721,309

Exercised Options: $58,721,309

Current Obligation: $58,721,309

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $898,863

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline