DoD awards $54.5M for Tyndall AFB aircraft sunshades, with construction expected to take over two years

Contract Overview

Contract Amount: $54,483,604 ($54.5M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-11-28

Contract Duration: 1,160 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FLIGHTLINE AIRCRAFT SUNSHADES - CONSTRUCTIONS OF SIX SUNSHADES AT TYNDALL AFB, FL.

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $54.5 million to BL HARBERT INTERNATIONAL LLC for work described as: FLIGHTLINE AIRCRAFT SUNSHADES - CONSTRUCTIONS OF SIX SUNSHADES AT TYNDALL AFB, FL. Key points: 1. The contract value of $54.5 million for six sunshades represents a significant investment in base infrastructure. 2. Competition dynamics for this construction project appear robust, suggesting potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The project's duration of nearly two years indicates a substantial construction undertaking. 5. This contract falls within the broader category of military base construction and facility support. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The awarded amount of $54.5 million for six aircraft sunshades at Tyndall AFB is substantial. Benchmarking against similar construction projects for military bases, the cost per sunshade appears to be in the range of $9 million. While specific cost breakdowns are not provided, the firm-fixed-price nature of the contract suggests that the contractor has factored in all anticipated costs and risks. Without more detailed cost data or comparable projects for identical sunshade structures, a precise value-for-money assessment is challenging, but the competitive bidding process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received, which suggests a moderate level of competition for this specific construction project. While two bidders are better than one, a higher number of bids would typically lead to more aggressive pricing and a stronger indication of market competitiveness. The agency's decision to pursue full and open competition is a positive step towards ensuring fair pricing.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging multiple companies to offer their best pricing. This approach helps prevent price gouging and ensures that the government is not overpaying for necessary construction services.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and aircraft stationed at Tyndall AFB, who will gain protection from the elements. The contract will deliver six aircraft sunshades, enhancing the operational readiness and longevity of aircraft by shielding them from sun damage and weather. The geographic impact is localized to Tyndall AFB in Florida, contributing to the modernization of its facilities. The project will likely create temporary employment opportunities for construction workers and related trades in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation: The contract was not set aside for small businesses, and there's no explicit mention of subcontracting goals, which could limit opportunities for smaller firms in the construction ecosystem.
Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
The long duration of the project increases the risk of material price fluctuations or labor availability issues.

Positive Signals

Firm-fixed-price contract type: This structure shifts most of the cost risk to the contractor, providing budget certainty for the government.
Awarded under full and open competition: This process generally leads to more competitive pricing and a wider pool of potential contractors.
The project addresses a clear infrastructure need for aircraft protection at a major Air Force base.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for military base construction is substantial, driven by ongoing modernization efforts and infrastructure maintenance needs across various branches of the U.S. armed forces. Comparable spending benchmarks for large-scale construction projects on military installations can vary widely based on scope, location, and specific requirements. The $54.5 million award for six aircraft sunshades suggests a significant investment in specialized protective structures.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no specific small business subcontracting goals were mandated. This means that opportunities for small businesses to participate in this project may be limited to those that can secure subcontracts directly from the prime contractor, BL Harbert International LLC. The absence of set-asides or explicit subcontracting plans could mean a reduced impact on the small business construction ecosystem for this particular project, unless the prime contractor proactively engages small businesses.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, a component of the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, which obligate the contractor to deliver the specified sunshades within the agreed-upon price and schedule. Transparency is facilitated through contract award data made public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Program
Base Realignment and Closure (BRAC) projects
Air Force Facility Sustainment, Restoration, and Modernization (FSRM)
Defense Infrastructure projects

Risk Flags

Long project duration increases exposure to market volatility.
Limited competition (two bidders) may reduce price optimization.
No explicit small business subcontracting goals identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.5 million to BL HARBERT INTERNATIONAL LLC. FLIGHTLINE AIRCRAFT SUNSHADES - CONSTRUCTIONS OF SIX SUNSHADES AT TYNDALL AFB, 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 $54.5 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-11-28.

What is the track record of BL Harbert International LLC with the Department of Defense?

BL Harbert International LLC has a significant history of contracting with the Department of Defense and other federal agencies. A review of federal procurement data indicates numerous awards to the company for construction services, including projects at various military installations. Their experience spans a range of construction types, from barracks and training facilities to more specialized infrastructure. This extensive track record suggests a familiarity with government contracting requirements, compliance standards, and the logistical challenges of working on military bases. While specific performance ratings for individual contracts are not detailed here, their consistent engagement with the DoD implies a generally satisfactory performance history, though a deeper dive into past performance reviews would provide more granular insights.

How does the cost per sunshade compare to similar DoD construction projects?

The awarded amount of $54.5 million for six aircraft sunshades translates to approximately $9.08 million per sunshade. Benchmarking this against similar DoD construction projects for specialized protective structures or large-scale facility components is challenging without more specific data on the size, materials, and complexity of these sunshades. However, large infrastructure projects on military bases often involve significant costs due to stringent security requirements, specialized engineering, and remote locations. If these sunshades are large, engineered structures designed to withstand specific environmental conditions or support heavy aircraft, the cost per unit might be within a reasonable range for such specialized construction. A more precise comparison would require data on comparable projects with similar specifications.

What are the primary risks associated with this firm-fixed-price construction contract?

Despite the firm-fixed-price (FFP) contract type, which generally shifts cost risk to the contractor, several risks remain for this project. The primary risk is unforeseen site conditions, which could lead to delays and claims for equitable adjustments, even under an FFP contract, if not properly addressed in the contract terms. Material price escalation for construction goods over the nearly two-year duration could impact the contractor's profitability, potentially leading to quality compromises if not managed diligently. Labor availability and cost fluctuations in the Florida construction market over the project's lifespan also pose a risk. Furthermore, the complexity of coordinating construction activities on an active military base presents logistical and scheduling risks that could impact timely completion.

How effective is full and open competition in ensuring value for taxpayer money in construction contracts of this nature?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in construction contracts. By allowing all responsible sources to bid, it fosters a competitive environment where contractors are incentivized to offer their lowest possible prices and most efficient solutions to win the contract. This process helps establish a fair market price and reduces the likelihood of overpayment. In this case, with two bids received, the competition was present, contributing to price discovery. However, the effectiveness is maximized when a larger number of bids are received, as it intensifies competitive pressure. The firm-fixed-price nature further locks in the price, providing budget certainty.

What are the historical spending patterns for aircraft sunshades or similar protective structures at DoD facilities?

Historical spending patterns for aircraft sunshades or similar protective structures at DoD facilities are not readily available as a distinct spending category in public databases. Such structures are typically procured as part of larger construction, repair, or modernization projects for airfields and aircraft maintenance facilities. Spending would be aggregated under broader categories like 'Military Construction,' 'Facilities Sustainment, Restoration, and Modernization (FSRM),' or specific airfield improvement projects. The cost of individual projects can vary significantly based on the number of units, size, materials, engineering complexity, and location. The $54.5 million award for six units suggests that these are substantial, likely custom-engineered structures, and represents a significant investment compared to simpler, off-the-shelf solutions.

What are the implications of the contract duration (over two years) on project oversight and risk management?

A contract duration exceeding two years for construction projects necessitates robust and continuous oversight. The Department of the Army will need to dedicate resources to monitor progress, ensure compliance with specifications and quality standards, and manage any potential changes or unforeseen issues that arise over the extended period. Risk management becomes more critical due to the prolonged exposure to market fluctuations (materials, labor), potential changes in military requirements, and the increased possibility of contractor performance issues developing over time. Regular progress reviews, site inspections, and proactive communication channels between the contracting officer's representative and the contractor are essential to mitigate risks and ensure successful project completion within the defined scope and budget.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820 SHADES CREEK PKWY STE 3000, 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: $54,483,604

Exercised Options: $54,483,604

Current Obligation: $54,483,604

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $44,171,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN21D3000

IDV Type: IDC

Timeline