Fort Bliss Rail Yard Construction Awarded for $22.15M to Red Eagle JV Under Full and Open Competition
Contract Overview
Contract Amount: $22,150,180 ($22.2M)
Contractor: RED Eagle JV
Awarding Agency: Department of Defense
Start Date: 2025-04-18
End Date: 2026-12-24
Contract Duration: 615 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BID BUILD CONSTRUCTION FOR RAIL YARD IMPROVEMENTS CONTAINER STORAGE YARD AT FORT BLISS, TX.
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 88589
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to RED EAGLE JV for work described as: DESIGN BID BUILD CONSTRUCTION FOR RAIL YARD IMPROVEMENTS CONTAINER STORAGE YARD AT FORT BLISS, TX. Key points: 1. The contract is for design-bid-build construction of rail yard improvements and a container storage yard at Fort Bliss, Texas. 2. Red Eagle JV, a joint venture, secured the $22.15 million contract. 3. The award was made under full and open competition after exclusion of sources, indicating a competitive bidding process. 4. The project is slated for completion by December 2026, with a duration of 615 days.
Value Assessment
Rating: good
The contract value of $22.15 million for a design-bid-build construction project of this scope appears reasonable. Benchmarking against similar large-scale military construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while multiple sources were considered, some were excluded, potentially impacting the breadth of competition and price discovery.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for necessary infrastructure improvements at Fort Bliss.
Public Impact
Military infrastructure upgrades at Fort Bliss will enhance operational capabilities. The project supports the Department of Defense's logistical and storage needs. Construction activities may lead to temporary disruptions in the local area. The award contributes to the construction sector's economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of 'exclusion of sources' on competition.
- Need for detailed cost breakdown to ensure value for money.
Positive Signals
- Awarded under full and open competition.
- Clear project scope and defined completion date.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar military construction projects at large installations like Fort Bliss would provide context for the $22.15 million award.
Small Business Impact
The contract was awarded to Red Eagle JV. Further analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight through its contracting and project management divisions. Post-award monitoring will be crucial to ensure timely and quality completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for reduced competition due to source exclusion.
- Need for detailed cost validation against benchmarks.
- Risk of construction delays impacting operational readiness.
- Dependency on joint venture's performance and subcontractor reliability.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to RED EAGLE JV. DESIGN BID BUILD CONSTRUCTION FOR RAIL YARD IMPROVEMENTS CONTAINER STORAGE YARD AT FORT BLISS, TX.
Who is the contractor on this award?
The obligated recipient is RED EAGLE JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2025-04-18. End: 2026-12-24.
What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process, and how might this have affected the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that not all potential bidders possess. While this can streamline the selection process for complex projects, it may limit the number of competing firms, potentially leading to higher prices than if a broader competition were held. A detailed review of the solicitation's pre-qualification requirements would clarify the rationale.
How does the $22.15 million cost compare to industry benchmarks for similar rail yard and container storage construction projects, particularly those for military installations?
Benchmarking this $22.15 million contract against similar projects requires access to detailed cost data for comparable military rail yard and container storage facilities. Factors like geographic location, specific site conditions, material costs, and the complexity of the design-bid-build process significantly influence project costs. Without specific comparable project data, a definitive value assessment is challenging, though the firm fixed-price nature offers cost certainty.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful and timely completion of the rail yard improvements by December 2024?
The Department of the Army likely employs standard oversight mechanisms for construction contracts, including regular site inspections, progress reports, and milestone reviews. Key performance indicators would typically focus on adherence to schedule, quality of construction, safety compliance, and budget management. The firm fixed-price nature of the contract incentivizes the contractor to meet these objectives efficiently to maximize profit.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126G25R0004
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 29627 E STATE HIGHWAY 51, COWETA, OK, 74429
Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, 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: $22,150,180
Exercised Options: $22,150,180
Current Obligation: $22,150,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-04-18
Current End Date: 2026-12-24
Potential End Date: 2026-12-24 00:00:00
Last Modified: 2025-07-02
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