DoD's $97M Keesler AFB design-build contract awarded to W. G. Yates & Sons for commercial building construction

Contract Overview

Contract Amount: $97,152,893 ($97.2M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: Department of Defense

Start Date: 2007-11-26

End Date: 2011-03-02

Contract Duration: 1,192 days

Daily Burn Rate: $81.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TWO PHASE DESIGN BUILD CONTRACT FOR MEGA BUILDINGS, KEESLER AIR FORCE BASE, MISSISSIPPI FOR PACKAGE 11.

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39534

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $97.2 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: TWO PHASE DESIGN BUILD CONTRACT FOR MEGA BUILDINGS, KEESLER AIR FORCE BASE, MISSISSIPPI FOR PACKAGE 11. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Project duration of 1192 days indicates a significant, long-term construction undertaking. 4. The contract was awarded by the Department of the Navy, supporting Air Force infrastructure. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded in Mississippi, potentially benefiting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns or comparable project data. However, the firm fixed-price structure implies that the initial bid was deemed acceptable by the awarding agency. The scale of the project, involving design and build for mega-buildings, suggests a substantial investment. Further analysis would require comparing the per-square-foot cost or cost per unit of facility to similar large-scale military construction projects.

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. This typically involves a public solicitation and a competitive bidding process. The number of bids received is not specified, but full and open competition generally aims to maximize the number of bidders to foster price discovery and ensure the government receives the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple contractors to offer competitive pricing, potentially leading to lower overall costs for the government.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Keesler Air Force Base, Mississippi, through the provision of new or improved facilities. The contract delivers design and construction services for large-scale buildings, enhancing military infrastructure. The geographic impact is concentrated at Keesler Air Force Base in Mississippi. The project likely created numerous jobs in the construction sector, benefiting skilled trades and related industries in Mississippi and potentially surrounding areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive design and build phases, despite the fixed-price nature.
Ensuring the quality of 'mega-buildings' meets long-term operational and structural requirements is critical.
Coordination challenges between design and construction phases for a project of this magnitude.
Dependence on the contractor's financial stability and management capacity over the multi-year duration.

Positive Signals

Firm Fixed Price contract structure transfers significant cost risk to the contractor.
Full and open competition suggests a robust bidding process aimed at securing competitive pricing.
The project's focus on infrastructure development supports long-term military readiness.
The long duration allows for thorough planning and execution of complex design and build requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area often supports critical infrastructure for government operations, including military bases, federal buildings, and research facilities. The market is characterized by large firms capable of undertaking complex, large-scale projects, often requiring specialized design and engineering expertise. Comparable spending benchmarks would involve analyzing other large military construction contracts awarded by the Department of Defense or other federal agencies for similar facility types.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large construction firm. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of specific set-aside or subcontracting requirements in the provided data means the direct impact on the small business ecosystem is unclear and potentially limited unless proactively managed by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) from the Department of the Navy or the supported Air Force unit. Quality assurance surveillance plans (QASPs) would be in place to monitor performance, schedule, and quality. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Military Construction Projects
Design-Build Contracts
Base Infrastructure Modernization
Federal Building Construction
Department of Defense Facilities

Risk Flags

Potential for schedule delays due to project complexity.
Risk of cost overruns if design phase does not fully capture construction needs.
Ensuring long-term quality and durability of 'mega-buildings'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.2 million to W. G. YATES & SONS CONSTRUCTION COMPANY. TWO PHASE DESIGN BUILD CONTRACT FOR MEGA BUILDINGS, KEESLER AIR FORCE BASE, MISSISSIPPI FOR PACKAGE 11.

Who is the contractor on this award?

The obligated recipient is W. G. YATES & SONS CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $97.2 million.

What is the period of performance?

Start: 2007-11-26. End: 2011-03-02.

What was the track record of W. G. Yates & Sons Construction Company with the Department of Defense prior to this award?

Without access to a comprehensive database of past performance for W. G. Yates & Sons Construction Company, it is difficult to definitively assess their track record with the Department of Defense (DoD) specifically for this contract. However, the DoD typically conducts thorough pre-award evaluations of contractor past performance as part of the source selection process, especially for large, complex projects like this design-build contract. This evaluation would likely include reviewing their history on similar projects, their record of meeting schedule and budget, their quality of work, and their overall responsiveness to government requirements. The award of a significant contract like this suggests that their past performance was deemed satisfactory or better by the contracting agency.

How does the $97 million contract value compare to similar 'mega-building' construction projects at military installations?

Comparing the $97 million value of this contract to similar 'mega-building' construction projects at military installations requires access to detailed cost data for comparable projects, which is not readily available in the provided summary. The term 'mega-building' is subjective, but assuming it refers to large-scale, complex facilities, the $97 million figure represents a substantial investment. Factors influencing cost include building size (square footage), complexity of design, specific functional requirements (e.g., specialized labs, housing, command centers), site conditions, and the prevailing economic conditions at the time of award. To benchmark effectively, one would need to analyze projects of similar scope, size, and purpose, adjusting for inflation and regional cost differences. The firm fixed-price nature suggests the initial bid was considered competitive by the Navy.

What are the primary risks associated with a 'two-phase design-build' contract of this magnitude?

A 'two-phase design-build' contract, especially for 'mega-buildings,' carries several inherent risks. The first phase typically involves preliminary design and proposal submission, where the contractor is selected based on qualifications and initial design concepts. The second phase involves completing the detailed design and construction. Key risks include: 1) Cost uncertainty: While the contract is firm fixed-price, the initial design phase may not fully capture all eventual construction complexities, potentially leading to change orders or disputes if scope is not clearly defined. 2) Contractor performance: Ensuring the contractor has the capacity, expertise, and financial stability to manage both complex design and large-scale construction over a multi-year period is crucial. 3) Coordination: Effective integration of design and construction teams is vital to avoid delays and ensure quality. 4) Scope creep: Managing changes to the initial requirements during the design and construction phases can impact cost and schedule.

What does the duration of 1192 days (approximately 3.25 years) imply about the project's complexity and the contractor's schedule management?

A contract duration of 1192 days for a design-build project involving 'mega-buildings' at Keesler Air Force Base suggests a project of significant scale and complexity. This extended timeline allows for the intricate process of detailed design, obtaining necessary approvals, procurement of materials, and the physical construction of large structures. It implies that the project is not a simple build but likely involves substantial engineering, site preparation, and phased construction activities. For the contractor, W. G. Yates & Sons Construction Company, effective schedule management, resource allocation, and risk mitigation over this multi-year period are critical success factors. Delays could arise from design challenges, weather, supply chain issues, or unforeseen site conditions, all of which require robust project management to overcome within the fixed-price framework.

How does the NAICS code 236220 (Commercial and Institutional Building Construction) inform the understanding of this contract's purpose?

The North American Industry Classification System (NAICS) code 236220 specifically identifies the industry sector as 'Commercial and Institutional Building Construction.' This classification indicates that the contract's primary purpose is the construction of buildings intended for commercial or institutional use, rather than residential, industrial, or heavy civil engineering projects. For a military base like Keesler Air Force Base, this could encompass a wide range of facilities such as administrative buildings, barracks, training centers, commissaries, recreational facilities, or support centers. It signifies that the project involves the erection of structures with non-manufacturing, non-residential functions, requiring expertise in general building construction, project management, and coordination of various building trades.

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: TWO STEP

Solicitation ID: N6945007R0759

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Yates Companies Inc (UEI: 017041232)

Address: ONE GULLY AVE, PHILADELPHIA, MS, 03

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

Financial Breakdown

Contract Ceiling: $101,858,893

Exercised Options: $97,152,893

Current Obligation: $97,152,893

Contract Characteristics

Cost or Pricing Data: NO

Timeline