Air Force awards $116.8M design-bid-build construction contract for Dover AFB runway upgrades

Contract Overview

Contract Amount: $116,776,185 ($116.8M)

Contractor: Johnson Controls Federal Systems/Versar, LLC

Awarding Agency: Department of Defense

Start Date: 2014-07-23

End Date: 2018-01-20

Contract Duration: 1,277 days

Daily Burn Rate: $91.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN-BID-BUILD CONSTRUCTION EFFORT AT DOVER AIR FORCE BASE, DELAWARE. COMPLETE THE DESIGN-BID-BUILD CONSTRUCTION, WHICH CONSISTS OF A 9,600 FOOT LONG, 150 FOOT WIDE RUNWAY TO MEET THE REQUIREMENTS FOR MODIFIED HEAVY STRENGTH RUNWAY PAVEMENT, REPAIR INSTRUMENT LANDING SYSTEM (ILS) AND RUNWAY APPROACH LIGHTING.

Place of Performance

Location: DOVER AFB, KENT County, DELAWARE, 19902

State: Delaware Government Spending

Plain-Language Summary

Department of Defense obligated $116.8 million to JOHNSON CONTROLS FEDERAL SYSTEMS/VERSAR, LLC for work described as: IGF::OT::IGF DESIGN-BID-BUILD CONSTRUCTION EFFORT AT DOVER AIR FORCE BASE, DELAWARE. COMPLETE THE DESIGN-BID-BUILD CONSTRUCTION, WHICH CONSISTS OF A 9,600 FOOT LONG, 150 FOOT WIDE RUNWAY TO MEET THE REQUIREMENTS FOR MODIFIED HEAVY STRENGTH RUNWAY PAVEMENT, REPAIR INSTRUMENT LAND… Key points: 1. Contract addresses critical infrastructure needs for runway modernization and safety systems. 2. Significant investment in base infrastructure, impacting operational capabilities. 3. Project scope includes runway resurfacing and installation of advanced landing and lighting systems. 4. Long-duration contract spanning over three years, indicating a complex undertaking. 5. Fixed-price contract type aims to control costs, but potential for change orders exists.

Value Assessment

Rating: good

The contract value of approximately $116.8 million for a runway design-bid-build project appears reasonable given the scope. This includes extensive work on a 9,600-foot runway, ILS repair, and approach lighting. Benchmarking against similar large-scale airfield construction projects suggests this price is within expected ranges for such complex infrastructure development. The firm fixed-price nature of the contract provides cost certainty, although the duration and complexity could introduce risks for cost overruns if not managed effectively.

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 had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of four bidders (no) suggests a healthy level of interest in this significant construction project, likely leading to competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that public funds are used efficiently for essential infrastructure.

Public Impact

Benefits the U.S. Air Force by modernizing critical flight operations infrastructure at Dover AFB. Ensures enhanced safety and operational readiness through upgraded runway and landing systems. Supports economic activity in Delaware through construction jobs and related services. Improves the capability of Dover AFB to handle heavy aircraft and support its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex construction projects leading to cost increases.
Delays in construction due to weather or unforeseen site conditions could impact delivery timelines.
Coordination challenges between design and build phases in a design-bid-build approach.

Positive Signals

Firm fixed-price contract provides cost certainty for the base scope of work.
Full and open competition likely resulted in competitive pricing.
Long contract duration allows for phased execution and detailed work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale civil engineering and infrastructure development for a federal agency. The market for such projects is characterized by large, specialized construction firms capable of handling complex, high-value federal contracts. Spending on military base infrastructure is a consistent component of defense budgets, aimed at maintaining operational readiness and modernizing facilities.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions (ss: false, sb: false), large federal construction projects often involve significant subcontracting opportunities. Prime contractors are typically required to outline their plans for utilizing small businesses in their proposals, which can provide work for the small business ecosystem. The scale of this project suggests potential for substantial subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force's contracting and engineering divisions. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Airfield Pavement Construction
Instrument Landing System Installation
Runway Lighting Systems
Military Base Infrastructure Modernization
Design-Bid-Build Construction Projects

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Complexity of integrating new technology with existing infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.8 million to JOHNSON CONTROLS FEDERAL SYSTEMS/VERSAR, LLC. IGF::OT::IGF DESIGN-BID-BUILD CONSTRUCTION EFFORT AT DOVER AIR FORCE BASE, DELAWARE. COMPLETE THE DESIGN-BID-BUILD CONSTRUCTION, WHICH CONSISTS OF A 9,600 FOOT LONG, 150 FOOT WIDE RUNWAY TO MEET THE REQUIREMENTS FOR MODIFIED HEAVY STRENGTH RUNWAY PAVEMENT, REPAIR INSTRUMENT LANDING SYSTEM (ILS) AND RUNWAY APPROACH LIGHTING.

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS FEDERAL SYSTEMS/VERSAR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $116.8 million.

What is the period of performance?

Start: 2014-07-23. End: 2018-01-20.

What is the track record of Johnson Controls Federal Systems/Versar, LLC in executing large-scale federal construction projects?

Johnson Controls Federal Systems/Versar, LLC has a history of performing federal contracts, including construction and facility management services. Their experience with projects of similar scale and complexity would be a key factor in their ability to successfully deliver the Dover AFB runway upgrades. Reviewing past performance evaluations and project completion records for this joint venture or its constituent entities would provide insight into their reliability, quality of work, and adherence to schedules and budgets on comparable federal endeavors. Specific details on their past airfield construction experience would be particularly relevant.

How does the awarded price compare to similar runway construction projects at other military installations?

Benchmarking this $116.8 million contract against similar runway construction projects at other military installations requires detailed comparison of scope, location, and specific upgrades. Factors such as runway length, pavement type, complexity of ILS and lighting systems, and local construction market conditions significantly influence costs. While the provided data indicates full and open competition with four bidders, suggesting competitive pricing, a comprehensive comparison would involve analyzing data from projects of comparable size (e.g., 9,600 ft runway) and technical requirements. Without direct comparative data, assessing the precise value-for-money is challenging, but the competitive award process is a positive indicator.

What are the primary risks associated with this design-bid-build construction contract?

The primary risks associated with this design-bid-build contract include potential cost overruns due to unforeseen site conditions, material price fluctuations, or scope creep during the execution phase, despite the firm fixed-price structure. Schedule delays are also a significant risk, stemming from adverse weather, contractor performance issues, or coordination challenges between the design and construction elements. Furthermore, the complexity of integrating new ILS and lighting systems with existing infrastructure presents technical risks. Effective risk mitigation will depend on robust project management, contingency planning, and clear communication channels.

How effective are the oversight mechanisms for ensuring the successful completion of this runway project?

Oversight for this project is primarily vested in the Department of the Air Force, likely through its engineering and contracting commands. The firm fixed-price contract provides a baseline for cost control, and the duration (1277 days) allows for phased oversight. Key oversight mechanisms would include regular progress reviews, site inspections, quality assurance checks, and performance monitoring against contract milestones. The effectiveness hinges on the diligence of the Air Force's project management team in identifying and addressing issues promptly, ensuring compliance with design specifications and safety standards throughout the construction lifecycle.

What has been the historical spending trend for runway and airfield infrastructure at Dover AFB or similar Air Force installations?

Historical spending on runway and airfield infrastructure at Dover AFB and similar Air Force installations typically fluctuates based on modernization cycles and infrastructure condition assessments. Major runway overhauls, like the one awarded here, represent significant capital investments that occur periodically rather than annually. Trends would likely show periods of lower spending on routine maintenance interspersed with larger investments for complete reconstruction or upgrades to meet evolving operational requirements and technological advancements (e.g., new landing systems). Analyzing multi-year budgets for base infrastructure at Dover AFB would reveal these patterns.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CENTER, SPRINGFIELD, VA, 22151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $116,776,185

Exercised Options: $116,776,185

Current Obligation: $116,776,185

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300208D0024

IDV Type: IDC

Timeline