DoD awards $6M F-35 facility construction contract to U.S. Vet General Contracting, LLC

Contract Overview

Contract Amount: $6,039,221 ($6.0M)

Contractor: U.S. VET General Contracting, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-15

End Date: 2025-12-31

Contract Duration: 503 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT F-35 MUNITIONS MAINTENANCE, INSPECTION, AND ASSEMBLY (M&I) FACILITY

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53704

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to U.S. VET GENERAL CONTRACTING, LLC for work described as: CONSTRUCT F-35 MUNITIONS MAINTENANCE, INSPECTION, AND ASSEMBLY (M&I) FACILITY Key points: 1. Contract awarded for construction of a facility to support F-35 munitions. 2. The contract value is approximately $6 million. 3. The awardee is U.S. Vet General Contracting, LLC. 4. The contract type is a definitive contract with a firm fixed price. 5. The period of performance is approximately 1.6 years. 6. The facility will be located in Wisconsin.

Value Assessment

Rating: fair

The contract value of $6 million for a commercial and institutional building construction project appears within a reasonable range for a specialized facility. Benchmarking against similar construction projects for defense infrastructure would provide a more precise value-for-money assessment. The firm fixed-price structure shifts cost risk to the contractor, which can be beneficial if managed effectively. However, without detailed cost breakdowns or comparisons to similar projects, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates some level of competition, the exclusion of specific sources suggests that not all potential bidders were considered. The number of bidders (4) is moderate, and the exclusion clause warrants further investigation to understand its impact on price discovery and overall competition.

Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing, potentially leading to higher costs for taxpayers than if all qualified firms had been allowed to bid.

Public Impact

The primary beneficiaries are the U.S. Air Force and its F-35 program, ensuring operational readiness. The contract delivers a critical infrastructure component for munitions maintenance, inspection, and assembly. The geographic impact is concentrated in Wisconsin, potentially creating local construction jobs. The project supports the defense industrial base and specialized construction services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could impact cost-effectiveness.
Firm fixed-price contracts can sometimes lead to change order disputes if scope is not perfectly defined.
Dependence on a single contractor for a critical facility component.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a specific contractor suggests they met technical and performance requirements.
Project supports a high-priority defense asset (F-35).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The defense sector often requires specialized facilities with stringent security and operational requirements, which can command premium pricing. Comparable spending benchmarks for military facility construction vary widely based on size, complexity, and location, but a $6 million project for a munitions facility is a moderately sized undertaking within this niche.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary consideration for this specific award, nor was it a small business set-aside. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor, U.S. Vet General Contracting, LLC, is likely a larger entity, and the impact on the small business ecosystem would depend on their subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, a component of the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified facility within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed project oversight and inspector general jurisdiction would be internal to the DoD.

Related Government Programs

F-35 Program Support Contracts
Military Construction Projects
Defense Facility Maintenance and Operations
Munitions Storage and Handling Infrastructure

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if scope is not precisely managed under fixed-price contract.
Dependence on contractor's past performance, which is not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to U.S. VET GENERAL CONTRACTING, LLC. CONSTRUCT F-35 MUNITIONS MAINTENANCE, INSPECTION, AND ASSEMBLY (M&I) FACILITY

Who is the contractor on this award?

The obligated recipient is U.S. VET GENERAL CONTRACTING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2024-08-15. End: 2025-12-31.

What is the track record of U.S. Vet General Contracting, LLC in completing similar defense construction projects on time and within budget?

Information regarding the specific track record of U.S. Vet General Contracting, LLC for similar defense construction projects is not provided in the given data. A comprehensive assessment would require reviewing past performance evaluations, contract completion history, and any reported disputes or delays on previous government contracts. Without this data, it is difficult to definitively assess their reliability and efficiency for this particular project. Further due diligence would involve searching federal procurement databases and past performance repositories.

How does the $6 million contract value compare to the average cost of constructing similar munitions maintenance facilities for military aircraft?

The provided data does not include specific cost benchmarks for similar munitions maintenance facilities. The $6 million award for this project is for a definitive contract with a firm fixed price, awarded to U.S. Vet General Contracting, LLC. To compare its value, one would need to analyze data from the General Services Administration (GSA) or other government agencies that track construction costs for specialized military infrastructure. Factors such as square footage, specific security requirements, environmental controls, and location significantly influence construction costs, making direct comparisons challenging without detailed project specifications.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award type for this project?

The 'Full and Open Competition After Exclusion of Sources' award type presents a moderate risk. While it implies that competition occurred, the exclusion of certain sources means that the government may not have received bids from all potentially capable and competitive firms. This could lead to a less optimal price discovery process and potentially higher costs for the taxpayer than if a truly unrestricted full and open competition had been conducted. The risk lies in potentially overlooking more innovative solutions or more cost-effective bids from excluded entities. Understanding the rationale for the exclusion is crucial for assessing this risk.

What is the expected impact of this facility construction on the operational readiness and efficiency of the F-35 program?

The construction of this munitions maintenance, inspection, and assembly (M&I) facility is directly intended to enhance the operational readiness and efficiency of the F-35 program. By providing a dedicated, purpose-built space for these critical functions, the facility will streamline munitions handling, reduce turnaround times for aircraft preparation, and ensure that munitions are properly maintained and assembled according to stringent safety and operational standards. This improved infrastructure support is vital for sustaining the high tempo of operations expected from the F-35 fleet.

What are the historical spending patterns for munitions maintenance and assembly facilities within the Department of Defense?

Historical spending patterns for munitions maintenance and assembly facilities within the Department of Defense are not detailed in the provided data. However, it is understood that the DoD consistently invests in infrastructure to support its vast array of weapon systems, including the F-35. Spending in this area is driven by the need for secure, compliant, and efficient facilities that can handle potentially hazardous materials and support complex maintenance procedures. The frequency and scale of such investments are influenced by fleet size, technological advancements in munitions, and the lifecycle of existing facilities.

Are there any specific performance metrics or key performance indicators (KPIs) associated with the construction of this facility?

The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for the construction of this facility. However, standard construction contract KPIs typically include adherence to schedule, quality of workmanship, safety compliance, and adherence to the firm fixed price. For this particular contract, the successful completion of the facility according to the specified design and functional requirements by the end date of December 31, 2025, would be the primary performance indicator. Further details on specific KPIs would likely be found in the contract's statement of work.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W50S9F24B0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5350 PAULSON RD, MC FARLAND, WI, 53558

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,039,221

Exercised Options: $6,039,221

Current Obligation: $6,039,221

Actual Outlays: $39,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline