Nevada Army National Guard awards $15.6M for new training range, highlighting construction needs

Contract Overview

Contract Amount: $15,632,129 ($15.6M)

Contractor: Atherton Construction LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-05

End Date: 2027-02-01

Contract Duration: 545 days

Daily Burn Rate: $28.7K/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: NEVADA ARMY NATIONAL GUARD (NVARNG) REQUIRES THE CONSTRUCTION OF A NEW QUALIFICATION TRAINING RANGE (QTR) AT HAWTHORNE ARMY DEPOT IN NEVADA, PROJECT NO: 322440. THE QTR WILL BE PROGRAMMED TO TRAIN AND TEST SOLDIERS.

Place of Performance

Location: HAWTHORNE, MINERAL County, NEVADA, 89415

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to ATHERTON CONSTRUCTION LLC for work described as: NEVADA ARMY NATIONAL GUARD (NVARNG) REQUIRES THE CONSTRUCTION OF A NEW QUALIFICATION TRAINING RANGE (QTR) AT HAWTHORNE ARMY DEPOT IN NEVADA, PROJECT NO: 322440. THE QTR WILL BE PROGRAMMED TO TRAIN AND TEST SOLDIERS. Key points: 1. The contract addresses a critical need for enhanced soldier training capabilities. 2. Competition was conducted after exclusion of sources, suggesting specific justifications for bidder selection. 3. The firm-fixed-price contract type aims to control costs for the government. 4. Project duration of 545 days indicates a significant construction undertaking. 5. The award to Atherton Construction LLC represents a substantial investment in military infrastructure. 6. The project is located at Hawthorne Army Depot, a key military facility in Nevada.

Value Assessment

Rating: fair

The contract value of $15.6 million for a qualification training range appears within a reasonable range for specialized military construction projects of this scale. Benchmarking against similar construction projects for military training facilities would provide a more precise assessment of value for money. The firm-fixed-price structure helps mitigate cost overruns, but the initial bid and final award price comparison is crucial for determining true cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the intent was competition, certain sources were excluded, potentially due to specific requirements, past performance, or other pre-defined criteria. The number of bidders (2) is relatively low, which could suggest a specialized nature of the work or limitations in the pre-qualification process. A limited competition can sometimes lead to higher prices compared to full and open competition.

Taxpayer Impact: The limited competition and low number of bidders may mean taxpayers did not benefit from the broadest possible price discovery, potentially resulting in a higher-than-optimal cost for the training range.

Public Impact

Soldiers in the Nevada Army National Guard will benefit from improved training facilities. The construction of a new Qualification Training Range (QTR) will enhance soldier readiness and combat effectiveness. The project's geographic impact is concentrated in Hawthorne, Nevada, supporting local military operations. The construction activities will likely create temporary employment opportunities in the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price negotiation, potentially increasing costs for taxpayers.
The exclusion of sources, if not adequately justified, could raise concerns about fairness and optimal resource allocation.
The firm-fixed-price contract, while good for cost control, relies heavily on accurate initial estimates; any unforeseen issues could strain the contractor.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The project addresses a clear and stated need for enhanced military training infrastructure.
The contract duration is defined, allowing for project planning and resource allocation.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically for military infrastructure. The market for such specialized construction is often characterized by a limited number of firms with the requisite security clearances, experience, and bonding capacity. Comparable spending benchmarks would involve analyzing other military construction projects, particularly training ranges, across different branches of the armed forces and geographic locations.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or set-aside for this specific contract. This suggests the project's scale, complexity, or specialized requirements may have favored larger, established contractors. There is no explicit mention of subcontracting requirements for small businesses, which could limit their opportunities on this particular project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with potential involvement from the Nevada Army National Guard's contracting and engineering divisions. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified range within budget. Transparency is generally maintained through contract award announcements and public contract databases, though detailed project progress reports may not be publicly accessible.

Related Government Programs

Military Construction, Army
Training Facilities
National Guard Readiness Programs
Defense Infrastructure Projects

Risk Flags

Limited competition may impact price competitiveness.
Potential for cost overruns if initial estimates are inaccurate.
Ensuring contractor meets specialized construction requirements.
Environmental compliance during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to ATHERTON CONSTRUCTION LLC. NEVADA ARMY NATIONAL GUARD (NVARNG) REQUIRES THE CONSTRUCTION OF A NEW QUALIFICATION TRAINING RANGE (QTR) AT HAWTHORNE ARMY DEPOT IN NEVADA, PROJECT NO: 322440. THE QTR WILL BE PROGRAMMED TO TRAIN AND TEST SOLDIERS.

Who is the contractor on this award?

The obligated recipient is ATHERTON CONSTRUCTION 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 $15.6 million.

What is the period of performance?

Start: 2025-08-05. End: 2027-02-01.

What is the track record of Atherton Construction LLC on similar government contracts, particularly military construction projects?

A thorough review of Atherton Construction LLC's past performance on government contracts, especially those involving military construction or specialized training facilities, is essential. This would involve examining contract databases for awards, completion status, any reported disputes, and performance evaluations. Understanding their experience with firm-fixed-price contracts and projects of similar magnitude ($15.6M) would provide insight into their capability to deliver this QTR project successfully. A history of timely completion, adherence to budget, and positive performance reviews would indicate a lower risk profile for this contract.

How does the awarded price of $15.6 million compare to similar Qualification Training Range (QTR) construction projects?

Benchmarking this $15.6 million contract against similar QTR construction projects requires access to data on comparable projects, including their scope, size, location, and construction complexity. Factors such as site preparation, specific training features (e.g., target systems, safety berms), and material costs can significantly influence price. If data suggests this contract is priced higher than comparable projects without clear justification (e.g., unique site challenges, advanced technology integration), it could indicate a potential value-for-money concern. Conversely, if it aligns with or is lower than benchmarks, it suggests a reasonable price.

What specific factors led to the 'exclusion of sources' in this full and open competition, and what are the implications?

The 'exclusion of sources' clause suggests that while the competition was intended to be broad, certain potential bidders were deliberately excluded based on predefined criteria. This could be due to specialized technical requirements, security clearances, past performance issues with specific companies, or a desire to streamline the process by pre-qualifying a select group. The implications are twofold: it may have limited the pool of potential bidders, potentially reducing competitive pressure and leading to a higher price for taxpayers. However, it could also ensure that only highly qualified and suitable contractors were considered, potentially reducing execution risk.

What are the key performance indicators (KPIs) for this contract, and how will the NVARNG measure the success of the new QTR?

Key performance indicators for this construction contract would likely focus on adherence to schedule (completion by Feb 1, 2027), adherence to budget ($15.6M), quality of construction meeting specified standards (e.g., Army Corps of Engineers standards), and safety compliance during the construction phase. Post-construction, the success of the QTR will be measured by its operational readiness, its capacity to meet training requirements for soldiers, and its durability and low maintenance needs over its lifecycle. The NVARNG will likely conduct inspections, review project documentation, and assess user feedback from soldiers utilizing the range.

What is the historical spending trend for military construction projects, specifically training ranges, within the Department of the Army or National Guard?

Historical spending on military construction, particularly training ranges, within the Department of the Army and National Guard tends to fluctuate based on modernization needs, geopolitical demands, and budget allocations. Over the past decade, there has been a consistent need for upgrading and expanding training facilities to meet evolving combat scenarios and soldier training requirements. Spending can be influenced by factors like base realignment and closure (BRAC) actions, new equipment fielding requiring different training environments, and the aging infrastructure of existing ranges. Analyzing past budgets and contract awards for similar projects would reveal trends in project scale, cost escalation, and funding priorities.

Are there any specific environmental or site-related risks associated with constructing a training range at Hawthorne Army Depot, and how are they being mitigated?

Constructing a training range, especially at an established military depot like Hawthorne, can involve environmental and site-related risks. These may include potential soil or groundwater contamination from historical military activities, management of hazardous materials during demolition or construction, noise pollution impacting surrounding areas, and management of stormwater runoff. Mitigation strategies typically involve thorough environmental impact assessments (EIAs), site remediation plans, adherence to strict environmental regulations (e.g., EPA standards), implementation of best management practices for construction, and community engagement to address noise concerns. The contract documents should detail these assessments and mitigation measures.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: W9124X25BA001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1050 WIGWAM PKWY, HENDERSON, NV, 89074

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

Financial Breakdown

Contract Ceiling: $15,632,129

Exercised Options: $15,632,129

Current Obligation: $15,632,129

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline