DoD awards $30.7M for Hurlburt Field combat aircraft apron, with 4 bidders competing

Contract Overview

Contract Amount: $30,690,514 ($30.7M)

Contractor: R. C. Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-27

End Date: 2024-06-27

Contract Duration: 1,582 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMBAT AIRCRAFT PARKING APRON, HURLBURT FIELD, FL

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to R. C. CONSTRUCTION CO., INC. for work described as: COMBAT AIRCRAFT PARKING APRON, HURLBURT FIELD, FL Key points: 1. Contract awarded to R. C. Construction Co., Inc. for combat aircraft apron construction. 2. Competition involved 4 bidders, suggesting a moderately competitive environment. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Project duration is over 4 years, indicating a significant construction undertaking. 5. Geographic focus is Hurlburt Field, Florida, impacting local infrastructure. 6. The award falls under heavy and civil engineering construction, a critical sector for military readiness.

Value Assessment

Rating: fair

The contract value of $30.7 million for a combat aircraft apron at Hurlburt Field appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar airfield construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the government has locked in a price, but the final cost could be influenced by change orders or unforeseen site conditions. 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: full-and-open

This contract was awarded under full and open competition, with four bids received. The presence of multiple bidders indicates a healthy level of interest and potential for competitive pricing. The fact that four companies submitted proposals suggests that the requirements were clear and accessible to a range of qualified contractors. This level of competition is generally favorable for price discovery and ensuring the government receives a fair market price for the services rendered.

Taxpayer Impact: The full and open competition with four bidders is positive for taxpayers, as it likely drove down the price through competitive pressure and allowed for a wider pool of contractors to bid, potentially leading to better value.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating at Hurlburt Field, Florida, who will gain improved infrastructure for combat aircraft. The project delivers essential construction services for a critical military installation. The geographic impact is localized to Hurlburt Field, Florida, supporting regional economic activity through construction jobs. Workforce implications include employment opportunities for construction workers and related trades in the Florida area during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Contract duration of over 4 years could lead to potential delays or scope creep if not managed effectively.
Reliance on a single contractor for a critical infrastructure project carries inherent risks if performance issues emerge.

Positive Signals

Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
Full and open competition with multiple bidders suggests a competitive award process.
The project addresses a clear need for infrastructure improvement at a key military installation.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to airfield infrastructure. The market for military airfield construction is specialized, often involving stringent security, environmental, and operational requirements. While specific market size data for combat aircraft apron construction is not readily available, the overall U.S. construction market is substantial. This contract represents a significant investment in maintaining and upgrading critical defense infrastructure, aligning with broader government spending on military facilities.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. It is possible that small businesses could participate as subcontractors to the prime contractor, R. C. Construction Co., Inc. Further investigation into subcontracting plans would be necessary to assess the direct impact on the small business ecosystem. Without specific set-aside goals, the direct benefit to small businesses is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army, which awarded the contract on behalf of the Department of Defense. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified apron construction. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Airfield Paving and Repair
Heavy Civil Engineering Contracts
Department of Defense Infrastructure Modernization

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Contractor performance issues could arise during the extended project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to R. C. CONSTRUCTION CO., INC.. COMBAT AIRCRAFT PARKING APRON, HURLBURT FIELD, FL

Who is the contractor on this award?

The obligated recipient is R. C. CONSTRUCTION CO., 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 $30.7 million.

What is the period of performance?

Start: 2020-02-27. End: 2024-06-27.

What is the track record of R. C. Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

A review of federal contract databases indicates that R. C. Construction Co., Inc. has a history of performing work for various government agencies, including the Department of Defense. Their past performance would be a key factor considered during the source selection process for this Hurlburt Field apron project. Analyzing their award history, contract values, and any reported performance issues or successes would provide insight into their reliability and capability. Specific details on their prior experience with airfield construction or similar large-scale civil engineering projects would be particularly relevant for assessing their suitability for this contract.

How does the awarded price of $30.7 million compare to similar combat aircraft apron construction projects at other military installations?

Benchmarking this $30.7 million contract against similar projects requires access to detailed cost data for comparable combat aircraft apron constructions at other military bases. Factors such as geographic location, specific site conditions, material costs, labor rates, and the exact scope of work (e.g., size, pavement type, drainage systems, lighting) significantly influence project costs. Without a standardized comparison dataset, it is challenging to definitively state whether this price represents excellent, fair, or questionable value. However, the presence of four bidders suggests the price was deemed competitive within the market for such specialized construction.

What are the primary risks associated with the long duration (over 4 years) of this construction contract?

The extended duration of over 4 years for this combat aircraft apron project introduces several potential risks. Firstly, there is an increased likelihood of encountering unforeseen site conditions (e.g., soil instability, underground utilities, environmental hazards) that could lead to change orders and cost increases, even under a firm fixed-price contract. Secondly, prolonged construction periods can be subject to fluctuations in material and labor costs, potentially impacting the contractor's profitability or leading to claims if not adequately accounted for. Thirdly, extended timelines increase the risk of project delays due to weather, regulatory changes, or contractor performance issues. Finally, the longer the project, the greater the potential for scope creep if requirements evolve during the construction phase.

What is the expected impact of this apron construction on the operational readiness and capacity of Hurlburt Field?

The construction of a new combat aircraft parking apron at Hurlburt Field is expected to significantly enhance operational readiness and capacity. A modern, well-maintained apron provides safe and efficient parking, taxiing, and servicing for combat aircraft. This can reduce wear and tear on existing infrastructure, improve aircraft turnaround times, and potentially accommodate a larger or more diverse fleet. Improved apron facilities are crucial for mission effectiveness, ensuring that aircraft are readily available and properly supported for training and operational deployments. The project directly addresses a critical piece of infrastructure supporting the base's primary functions.

How has federal spending on airfield construction and maintenance evolved over the past five years, and does this contract align with those trends?

Federal spending on airfield construction and maintenance has generally remained robust, driven by the need to modernize aging infrastructure and support evolving military aviation requirements. While specific figures fluctuate annually based on budget allocations and project priorities, there is a consistent investment in maintaining and upgrading airfields across the Department of Defense and other agencies like the FAA. This $30.7 million contract for Hurlburt Field aligns with this trend by addressing a specific infrastructure need. Analyzing historical spending patterns for airfield projects within the Air Force or DoD could reveal whether this award is consistent with typical investment levels for such facilities.

What are the key performance indicators (KPIs) likely being used to evaluate the success of this construction contract?

Key performance indicators for this construction contract would likely focus on several critical areas. Schedule adherence is paramount, measuring the contractor's ability to complete milestones and the overall project within the agreed-upon timeline. Cost control is also crucial, ensuring the project stays within the firm fixed price, with any deviations justified and approved. Quality of workmanship is assessed through inspections and adherence to construction standards and specifications. Safety performance, measured by incident rates and compliance with safety regulations, is another vital KPI. Finally, compliance with contract terms and specifications, including environmental regulations and reporting requirements, would be continuously monitored.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127819R0029

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 WEST PARK AVENUE GREENWOOD, GREENWOOD, MS, 38930

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,690,514

Exercised Options: $30,690,514

Current Obligation: $30,690,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline