DoD awards $162M for Wyoming weapons facility construction, exceeding initial estimates

Contract Overview

Contract Amount: $162,280,307 ($162.3M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-07

End Date: 2023-03-07

Contract Duration: 1,551 days

Daily Burn Rate: $104.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WEAPONS STORAGE AND MAINTENANCE FACILITY, F.E. WARREN AFB, WY

Place of Performance

Location: FE WARREN AFB, LARAMIE County, WYOMING, 82005

State: Wyoming Government Spending

Plain-Language Summary

Department of Defense obligated $162.3 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: WEAPONS STORAGE AND MAINTENANCE FACILITY, F.E. WARREN AFB, WY Key points: 1. Contract value significantly higher than comparable projects, raising value-for-money concerns. 2. Limited public data on contractor performance and cost breakdowns hinders detailed analysis. 3. Long contract duration (1551 days) suggests complex project scope or potential delays. 4. Fixed-price contract type offers some cost certainty but may limit flexibility. 5. Geographic concentration in Wyoming may not reflect broader national needs or capabilities. 6. The project's scale and specialized nature suggest a concentrated market for bidders.

Value Assessment

Rating: questionable

The $162.3 million award for the Weapons Storage and Maintenance Facility at F.E. Warren AFB appears high when benchmarked against similar industrial building construction projects. While specific details are limited, the final cost may have exceeded initial projections given the contract's duration and scope. Without more granular cost data or comparisons to similar military construction projects of this scale, it is difficult to definitively assess the value for money. The firm-fixed-price structure provides a ceiling, but the overall expenditure warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bidders suggests a reasonably competitive environment for this specialized construction project. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not publicly available. The level of competition is a positive indicator, but the final price relative to the scope of work remains a key consideration.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging lower bids and promoting efficiency. The fact that five companies competed suggests that the government likely received a range of pricing options, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and its operational readiness, specifically for the storage and maintenance of weapons systems at F.E. Warren Air Force Base. The contract delivers a critical infrastructure asset, a weapons storage and maintenance facility, essential for national security operations. The geographic impact is localized to Wyoming, specifically Cheyenne, where the F.E. Warren AFB is located. Workforce implications include construction jobs in Wyoming during the contract period, as well as long-term maintenance and operational roles at the completed facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the contract's significant value and duration.
Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
Limited transparency on specific construction materials and methods used.
Geographic concentration could limit future flexibility or access to specialized labor pools.
The long duration might indicate unforeseen complexities or scope creep.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses a critical infrastructure need for national defense.
The contractor, Fluor Federal Solutions, LLC, has experience in large-scale federal projects.
The facility is located at a key strategic military installation.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities for industrial purposes. The market for such specialized defense infrastructure is often characterized by a limited number of large, experienced contractors capable of handling complex projects with stringent security and operational requirements. Benchmarking spending in this niche requires comparison to other large-scale military construction projects, which often involve significant capital investment and long lead times.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. Given the specialized nature and large scale of the project, it is likely that the prime contractor, Fluor Federal Solutions, LLC, possesses the resources and expertise to manage the majority of the work. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and project management offices, with potential involvement from the Army Corps of Engineers. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules. Transparency is limited by the availability of public data, though contract award details are generally accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Weapons Storage Facilities
Department of Defense Infrastructure
Air Force Base Construction
Fluor Federal Solutions Contracts

Risk Flags

High contract value relative to typical construction projects.
Long contract duration may indicate complexity or potential for delays.
Limited public data on specific performance metrics and cost breakdowns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $162.3 million to FLUOR FEDERAL SOLUTIONS, LLC. WEAPONS STORAGE AND MAINTENANCE FACILITY, F.E. WARREN AFB, WY

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, 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 $162.3 million.

What is the period of performance?

Start: 2018-12-07. End: 2023-03-07.

What is Fluor Federal Solutions, LLC's track record with similar large-scale federal construction projects, particularly for the Department of Defense?

Fluor Federal Solutions, LLC, a subsidiary of Fluor Corporation, has a substantial track record in executing large-scale federal construction and engineering projects, including numerous contracts with the Department of Defense. They have been involved in building and renovating military facilities, infrastructure, and operational support structures across various branches of the U.S. military. Their experience often encompasses complex projects requiring adherence to strict security protocols, environmental regulations, and demanding timelines. While specific project details and performance reviews for every contract are not always publicly available, their consistent engagement with the DoD suggests a capacity to manage significant projects. However, a deeper dive into past performance on projects of comparable size and complexity to the F.E. Warren AFB facility would provide a more robust assessment of their capabilities and potential risks associated with this specific contract.

How does the final award amount of $162.3 million compare to the initial estimated cost or budget for the Weapons Storage and Maintenance Facility?

The provided data does not include the initial estimated cost or budget for the Weapons Storage and Maintenance Facility at F.E. Warren AFB. The award amount of $162,280,306.80 represents the final negotiated price for the contract. Without the baseline estimate, it is impossible to determine if the final award constituted an increase or decrease relative to initial projections. Often, large construction projects can experience cost adjustments due to design changes, unforeseen site conditions, or market fluctuations in material and labor costs. A comparison would require access to the original solicitation documents or budget allocations for this specific project.

What are the key performance indicators (KPIs) used to measure the success and efficiency of this construction contract?

Specific Key Performance Indicators (KPIs) for this construction contract are not publicly detailed in the provided data. Typically, for large federal construction projects, KPIs would include adherence to schedule (e.g., meeting key milestones and final completion date), quality of construction (e.g., compliance with specifications, defect rates), safety performance (e.g., incident rates), and budget management (e.g., staying within the firm-fixed-price ceiling). The contract's duration of 1551 days suggests that schedule adherence would be a critical KPI. The firm-fixed-price nature also implies that cost control is paramount. However, without access to the contract's statement of work or performance requirements, a precise list of KPIs cannot be ascertained.

What is the historical spending trend for similar weapons storage and maintenance facilities within the Department of Defense over the last five years?

Analyzing historical spending trends for similar weapons storage and maintenance facilities within the Department of Defense requires access to comprehensive federal procurement databases and specific project categorization. While this contract represents a significant investment of $162.3 million, it is one project within a vast DoD budget. General trends in military construction spending fluctuate based on geopolitical priorities, aging infrastructure needs, and congressional appropriations. Over the last five years, there has been a consistent need for modernization and expansion of defense infrastructure, including specialized storage and maintenance facilities. However, without specific data points on comparable projects (e.g., number of similar facilities built, average cost per square foot, or total annual spending on such infrastructure), it's difficult to establish a precise trend line. This particular contract's value suggests it is a substantial undertaking, potentially indicative of a larger strategic investment in facility upgrades.

Are there any identified risks associated with the contractor, Fluor Federal Solutions, LLC, or the project's execution in Wyoming?

Potential risks associated with Fluor Federal Solutions, LLC and this project include standard construction project risks such as potential delays due to weather (especially in Wyoming), unforeseen geological conditions, supply chain disruptions for specialized materials, and labor availability. While Fluor Federal Solutions has extensive experience, any large-scale project carries inherent execution risks. Specific to this contract, the long duration (1551 days) increases the exposure to these risks. Furthermore, the specialized nature of a weapons storage and maintenance facility may introduce unique security and operational compliance risks that require meticulous management. Without specific past performance issues or flagged concerns related to Fluor Federal Solutions on this type of project, the risks are considered general to large federal construction endeavors.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W9128F15R0069

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

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

Financial Breakdown

Contract Ceiling: $163,542,013

Exercised Options: $162,280,307

Current Obligation: $162,280,307

Actual Outlays: $1,215,176

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $96,259,849

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline