DoD awards $102.4M for F-35 munitions storage at Tyndall AFB, with construction expected to take over 3 years
Contract Overview
Contract Amount: $102,369,027 ($102.4M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-24
End Date: 2026-08-06
Contract Duration: 1,231 days
Daily Burn Rate: $83.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF ZONE 7 F35 MUNITIONS STORAGE FACILITIES, TYNDALL AIR FORCE BASE, FL
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $102.4 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF ZONE 7 F35 MUNITIONS STORAGE FACILITIES, TYNDALL AIR FORCE BASE, FL Key points: 1. Contract awarded to BL Harbert International LLC for construction services. 2. Project scope includes munitions storage facilities for F-35 aircraft. 3. The contract is a firm-fixed-price definitive contract. 4. Construction is anticipated to be completed by August 2026. 5. The award falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded via full and open competition.
Value Assessment
Rating: good
The contract value of $102.4 million for the construction of specialized munitions storage facilities appears reasonable given the scope and duration. While direct comparisons are difficult without detailed project specifications, large-scale military construction projects of this nature typically involve significant investment. The firm-fixed-price structure suggests that the government has a clear understanding of the costs involved, and the contractor assumes the risk of cost overruns. Benchmarking against similar recent DoD construction projects for specialized storage would provide further insight into value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation resulted in five bids, suggesting a healthy level of interest and competition for this project. A competitive bidding process generally leads to better price discovery and can result in more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple contractors to offer their best pricing and technical solutions, potentially leading to cost savings and a higher quality outcome.
Public Impact
The primary beneficiaries are the U.S. Air Force and the F-35 program, ensuring secure and compliant storage for munitions. The project will deliver specialized construction services for munitions storage facilities. The geographic impact is localized to Tyndall Air Force Base in Florida. The construction activities will likely create temporary employment opportunities in the local Florida workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness if not managed effectively.
- Risk of unforeseen site conditions or material cost fluctuations impacting the fixed price.
- Ensuring compliance with stringent munitions storage safety and security regulations.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to an experienced contractor (BL Harbert International LLC) suggests capability.
- Full and open competition likely secured competitive pricing.
- Project supports critical F-35 program infrastructure needs.
Sector Analysis
This contract falls within the construction sector, specifically focusing on institutional and commercial building construction. The market for military construction is substantial, driven by the need to maintain and upgrade defense infrastructure. Projects like this are crucial for supporting advanced military platforms such as the F-35, requiring specialized facilities that meet strict safety and security standards. Comparable spending benchmarks would involve analyzing other large-scale military construction awards for similar types of facilities.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses. Given the scale and specialized nature of the project, it is likely that larger construction firms were the primary bidders. However, the prime contractor, BL Harbert International LLC, may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army, which awarded the contract on behalf of the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which places cost responsibility on the contractor. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. The Inspector General's office of the DoD may conduct audits or investigations as deemed necessary.
Related Government Programs
- F-35 Program Support
- Air Force Base Infrastructure Modernization
- Defense Construction Projects
- Munitions Storage Facility Construction
Risk Flags
- Potential for cost overruns despite fixed-price contract if scope changes.
- Risk of construction delays impacting F-35 operational readiness.
- Ensuring strict adherence to safety and environmental regulations for munitions storage.
Tags
construction, department-of-defense, tyndall-air-force-base, florida, definitive-contract, firm-fixed-price, full-and-open-competition, f-35-program, munitions-storage, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.4 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF ZONE 7 F35 MUNITIONS STORAGE FACILITIES, TYNDALL AIR FORCE BASE, FL
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL 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 $102.4 million.
What is the period of performance?
Start: 2023-03-24. End: 2026-08-06.
What is the track record of BL Harbert International LLC with Department of Defense construction contracts?
BL Harbert International LLC has a significant history of performing construction work for the Department of Defense. Reviewing their past performance on similar projects, particularly those involving specialized facilities or military bases, would provide insight into their capabilities and reliability. Data from sources like the Federal Procurement Data System (FPDS) can reveal the types and values of previous DoD contracts awarded to the company, as well as any reported performance issues or commendations. Understanding their experience with large-scale, complex construction projects is crucial for assessing the risk associated with this current award.
How does the awarded amount compare to similar munitions storage facility construction projects?
Benchmarking the $102.4 million award against similar munitions storage facility construction projects requires access to detailed cost data for comparable projects. Factors such as facility size, specific security requirements, environmental considerations, and geographic location can significantly influence costs. Without specific comparable project data, it's challenging to definitively assess value for money. However, the firm-fixed-price nature of this contract suggests that the government has established a clear budget and expects the contractor to deliver within that scope. Further analysis would involve identifying recent, similarly sized DoD construction contracts for specialized storage and comparing their unit costs or overall value relative to scope.
What are the primary risks associated with constructing munitions storage facilities?
Constructing munitions storage facilities involves several inherent risks, primarily related to safety and security. These include the potential for accidental detonation, environmental contamination, and unauthorized access. Stringent regulatory compliance with agencies like the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and DoD-specific explosives safety standards is paramount. Construction risks also encompass site-specific challenges, such as soil conditions, weather impacts, and the integration of specialized safety systems. Furthermore, managing the logistics of transporting and storing materials on a secure military installation adds complexity. The firm-fixed-price contract shifts some financial risk to the contractor, but the government remains responsible for ensuring all safety and security protocols are met throughout the construction process.
How does this contract contribute to the overall F-35 program's operational readiness?
This contract is critical for the F-35 program's operational readiness by providing the necessary infrastructure to safely and securely store munitions. Adequate and compliant storage facilities are essential for maintaining the availability and readiness of F-35 aircraft. Without proper storage, munitions cannot be effectively managed, potentially leading to delays in deployment or operational constraints. The construction of these specialized facilities ensures that the Air Force can meet the logistical demands of supporting the F-35 fleet, thereby directly contributing to its combat capability and overall mission effectiveness.
What is the historical spending trend for similar construction projects at Tyndall Air Force Base?
Analyzing historical spending trends for similar construction projects at Tyndall Air Force Base would provide context for the $102.4 million award. This involves examining past contracts for base infrastructure, facility upgrades, or specialized construction at the installation. Data from the Federal Procurement Data System (FPDS) can reveal the types, values, and durations of previous construction contracts awarded to Tyndall AFB. Understanding whether this award represents an increase or decrease in spending compared to historical patterns, and identifying any recurring contractors or project types, can offer insights into the base's capital investment strategies and the typical cost of construction services in that region.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9127820R0118
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 820 SHADES CREEK PKWY, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $102,586,290
Exercised Options: $102,533,671
Current Obligation: $102,369,027
Actual Outlays: $7,710,818
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $13,303,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-24
Current End Date: 2026-08-06
Potential End Date: 2026-08-06 00:00:00
Last Modified: 2026-01-06
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