DOD Awards $37.5M Runway Repair Contract to JE Hurley Inc. at Buckley AFB
Contract Overview
Contract Amount: $37,465,422 ($37.5M)
Contractor: JE Hurley Inc.
Awarding Agency: Department of Defense
Start Date: 2013-08-22
End Date: 2015-04-30
Contract Duration: 616 days
Daily Burn Rate: $60.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SVS, REPAIR RUNWAY BUCKLEY AFB, CO
Place of Performance
Location: AURORA, ARAPAHOE County, COLORADO, 80011, UNITED STATES OF AMERICA
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $37.5 million to JE HURLEY INC. for work described as: CONSTRUCTION SVS, REPAIR RUNWAY BUCKLEY AFB, CO Key points: 1. Contract awarded for critical runway repair at Buckley AFB. 2. JE Hurley Inc. secured the $37.5M contract. 3. Competition method involved exclusion of sources, raising potential price discovery concerns. 4. Spending falls within the construction sector.
Value Assessment
Rating: fair
The contract value of $37.5M for runway repair appears substantial. Benchmarking against similar runway repair projects would be necessary to definitively assess pricing, but the exclusion of sources in the competition phase warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method limits the pool of potential bidders and may not result in the most competitive pricing or optimal price discovery compared to unrestricted full and open competition.
Taxpayer Impact: The use of a limited competition method could potentially lead to higher costs for taxpayers if a broader range of bidders could have offered more competitive pricing.
Public Impact
Ensures operational readiness of Buckley AFB by repairing critical runway infrastructure. Supports the local economy in Colorado through construction services. Potential for increased costs due to limited competition impacts taxpayer value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of clear justification for source exclusion
Positive Signals
- Addresses critical infrastructure need
- Contract awarded to a specific firm
Sector Analysis
This contract falls under Highway, Street, and Bridge Construction. Spending in this sector can vary significantly based on project scope, location, and material costs. The $37.5M value is a significant investment for a single runway repair project.
Small Business Impact
The data indicates the contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.
Oversight & Accountability
The 'exclusion of sources' in the competition method suggests a need for robust oversight to ensure the justification was sound and that fair market prices were obtained. Documentation of this decision is crucial for accountability.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may inflate costs.
- Lack of justification for source exclusion.
- Potential for missed cost savings.
- No small business participation noted.
Tags
highway-street-and-bridge-construction, department-of-defense, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.5 million to JE HURLEY INC.. CONSTRUCTION SVS, REPAIR RUNWAY BUCKLEY AFB, CO
Who is the contractor on this award?
The obligated recipient is JE HURLEY INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.5 million.
What is the period of performance?
Start: 2013-08-22. End: 2015-04-30.
What was the specific justification for excluding sources in this full and open competition, and how did it impact the final price?
The justification for excluding sources is not provided in the data. This lack of transparency raises concerns about whether the government explored all available options to ensure the best value. Without this information, it's difficult to assess if the limited competition led to a higher price than could have been achieved through broader bidding.
What are the risks associated with awarding a large construction contract after excluding potential bidders?
The primary risk is paying a premium due to reduced competition. When fewer companies are invited to bid, the incentive to offer the lowest possible price diminishes. There's also a risk of overlooking innovative solutions or more cost-effective approaches that other, excluded firms might have offered. This can lead to suboptimal use of taxpayer funds.
How effectively does this contract address the need for runway repair while ensuring optimal value for taxpayers?
The contract effectively addresses the critical need for runway repair, ensuring operational continuity at Buckley AFB. However, the value proposition for taxpayers is questionable due to the limited competition. The exclusion of sources suggests that the government may not have achieved the most competitive pricing possible, potentially increasing the overall cost to taxpayers.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W90FYQ13R0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4602 NORTHPARK DR, COLORADO SPRINGS, CO, 80918
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $37,465,422
Exercised Options: $37,465,422
Current Obligation: $37,465,422
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-22
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2015-04-17
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