DoD's $60.2M Jacksonville Airfield Repair Contract Awarded to Archer Western Construction LLC

Contract Overview

Contract Amount: $60,236,780 ($60.2M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2016-08-16

Contract Duration: 690 days

Daily Burn Rate: $87.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NAX JAS AIRFIELD AND LIGHTING REPAIRS AT NAS JACKSONVILLE FL

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $60.2 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: IGF::OT::IGF NAX JAS AIRFIELD AND LIGHTING REPAIRS AT NAS JACKSONVILLE FL Key points: 1. Contract value represents a significant investment in critical military infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for airfield construction. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Contract duration of 690 days indicates a substantial scope of work. 5. Geographic focus on Florida highlights regional infrastructure development. 6. The contract falls within the broader category of civil engineering and construction services.

Value Assessment

Rating: good

The contract value of $60.2 million for airfield and lighting repairs at NAS Jacksonville appears reasonable given the scope of work. Benchmarking against similar large-scale airfield construction and repair projects within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to establish cost certainty, which is generally positive for government spending. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of exceptional value is difficult.

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. With three bidders participating, the competition level suggests a healthy market response for this type of specialized construction service. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The presence of multiple bidders implies that the requirements were well-defined and accessible to qualified firms.

Taxpayer Impact: Full and open competition with multiple bidders typically results in better pricing for taxpayers by fostering a competitive environment that drives down costs.

Public Impact

Naval Air Station Jacksonville benefits from upgraded and repaired airfield infrastructure, enhancing operational readiness. The project supports the U.S. Navy's aviation mission by ensuring the safety and efficiency of flight operations. Construction activities likely created temporary employment opportunities within the Jacksonville, Florida region. Improved airfield facilities contribute to the long-term operational capabilities of a key naval installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather or contractor performance issues.
Ensuring compliance with stringent military construction standards and specifications.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bidding environment.
Award to a known construction firm with experience in large projects.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction, including airfield infrastructure. The market for military airfield construction is specialized, often involving firms with specific security clearances and experience working on active military bases. Spending in this area is driven by the need to maintain and modernize critical defense infrastructure, ensuring operational readiness and safety. Comparable spending benchmarks would typically involve other large-scale airfield repair and construction projects at military installations nationwide.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract appears limited. However, the prime contractor, Archer Western Construction LLC, may engage small businesses as subcontractors, which would indirectly benefit the small business community. Further analysis of subcontracting reports would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, ensuring adherence to specifications, timelines, and budget. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting the government's exposure to cost increases. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Program
Naval Facilities Engineering Command Contracts
Airfield Pavement and Lighting Systems
Defense Infrastructure Projects

Risk Flags

Potential for cost escalation if unforeseen site conditions are encountered.
Risk of schedule delays due to weather or contractor performance.
Need for rigorous quality assurance to meet military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.2 million to ARCHER WESTERN CONSTRUCTION LLC. IGF::OT::IGF NAX JAS AIRFIELD AND LIGHTING REPAIRS AT NAS JACKSONVILLE FL

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION 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 $60.2 million.

What is the period of performance?

Start: 2014-09-26. End: 2016-08-16.

What is Archer Western Construction LLC's track record with similar large-scale airfield construction projects for the Department of Defense?

Archer Western Construction LLC has a history of undertaking significant construction projects, including those for government and military clients. While specific details on their past airfield projects for the DoD require deeper database searches, their involvement in large infrastructure projects suggests they possess the necessary experience and capacity. A review of their past performance on similar contracts, including on-time completion rates, budget adherence, and quality of work, would be crucial for a comprehensive assessment. Their portfolio often includes complex civil engineering and building projects, indicating a capability to manage the technical demands of airfield repairs and construction.

How does the awarded amount of $60.2 million compare to the estimated cost or independent government cost estimate for this project?

The provided data does not include the estimated cost or the Independent Government Cost Estimate (IGCE) for this contract. Therefore, a direct comparison to assess if the $60.2 million award represents a favorable or unfavorable outcome in terms of value for money cannot be definitively made. Generally, if the awarded price is significantly below the IGCE, it suggests strong competition and good price negotiation. Conversely, an award close to or exceeding the IGCE might warrant further scrutiny, especially if it's a firm fixed-price contract. Without the IGCE, assessing the efficiency of the procurement process and the ultimate value to taxpayers remains incomplete.

What are the primary risks associated with a firm fixed-price contract for airfield construction of this magnitude?

The primary risk with a firm fixed-price (FFP) contract for a project of this magnitude lies with the contractor. If the contractor underestimates costs, encounters unforeseen site conditions (e.g., soil issues, hazardous materials), or experiences significant material price increases, their profit margin will be reduced, potentially leading to financial distress or pressure to cut corners on quality. For the government, the risk is that the contractor may not have sufficient incentive to perform efficiently if they are confident in their profit margin, or conversely, may go out of business if costs escalate beyond their control, leading to delays and potential re-procurement costs. However, FFP contracts are generally favored for their cost certainty for the government.

What is the historical spending pattern for airfield maintenance and repair at NAS Jacksonville over the last 5-10 years?

Historical spending data for airfield maintenance and repair specifically at NAS Jacksonville is not directly available in the provided contract details. To analyze this, one would need to query federal procurement databases for all contracts awarded to NAS Jacksonville related to airfield infrastructure over the specified period. This would involve searching for relevant NAICS codes (e.g., 237310 for Highway, Street, and Bridge Construction, or others related to airport maintenance) and filtering by the specific installation. Understanding past spending levels can help contextualize the current $60.2 million award, indicating whether it represents a typical investment, a surge in activity, or a one-off major repair.

How many bids were received, and what does the number of bidders suggest about the competitiveness of the market for this specific type of construction service?

The data indicates that three bids were received for this contract. A competition involving three bidders is generally considered moderately competitive. It suggests that the market has multiple capable firms interested in and qualified for this type of specialized airfield construction work. While more bidders could potentially drive prices lower, three offers often provide sufficient price discovery and a reasonable basis for selecting the best value. If the number of bidders had been significantly lower (e.g., one or two), it might indicate market limitations, specialized requirements, or potential barriers to entry for other firms, which could impact price competitiveness.

What is the significance of the 'Highway, Street, and Bridge Construction' NAICS code (237310) for an airfield repair contract?

The NAICS code 237310, 'Highway, Street, and Bridge Construction,' is relevant to airfield repair because airfields share many construction characteristics with these infrastructure types. Airfield pavements (runways, taxiways, aprons) are essentially large paved surfaces requiring similar techniques for grading, paving, drainage, and structural integrity as highways and bridges. The code encompasses the construction and repair of roads, highways, streets, bridges, tunnels, and related structures. For airfield projects, it covers the foundational work, paving, and potentially associated drainage and lighting infrastructure, making it an appropriate classification for significant repair and construction activities on an airfield.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945014R1261

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 4343 ANCHOR PLAZA PKWY STE 155, TAMPA, FL, 33634

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

Financial Breakdown

Contract Ceiling: $60,236,780

Exercised Options: $60,236,780

Current Obligation: $60,236,780

Subaward Activity

Number of Subawards: 456

Total Subaward Amount: $708,276,942

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline