DoD Awards $133M for Minot AFB Helicopter Operations Facility Construction
Contract Overview
Contract Amount: $133,284,718 ($133.3M)
Contractor: Federal Contracting Inc
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2026-11-09
Contract Duration: 1,319 days
Daily Burn Rate: $101.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MINOT HELO OPS FACILITY CONSTRUCTION, MINOT AFB, ND.
Place of Performance
Location: MINOT AFB, WARD County, NORTH DAKOTA, 58704
Plain-Language Summary
Department of Defense obligated $133.3 million to FEDERAL CONTRACTING INC for work described as: MINOT HELO OPS FACILITY CONSTRUCTION, MINOT AFB, ND. Key points: 1. Significant investment in critical infrastructure at Minot AFB. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk of cost overruns or schedule delays in large construction projects. 4. Construction sector is subject to material costs and labor availability fluctuations.
Value Assessment
Rating: fair
The contract value of $133.3M is substantial for a single facility. Benchmarking against similar large-scale military construction projects is necessary to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This method limits the pool of potential bidders, which could impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure project. The chosen competition method may not yield the most cost-effective outcome.
Public Impact
Enhances operational capabilities for helicopter units at Minot AFB. Supports military readiness and personnel infrastructure. Potential for local economic impact through job creation and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may increase costs.
- Construction projects are prone to delays and cost overruns.
- Exclusion of sources needs justification.
Positive Signals
- Addresses critical infrastructure needs.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This project falls within the commercial and institutional building construction sector. Large federal construction contracts can be influenced by fluctuating material costs, labor shortages, and complex regulatory environments.
Small Business Impact
The data indicates this contract was not set aside for small businesses and that the primary contractor is not a small business. Opportunities for small businesses may exist further down the subcontracting chain.
Oversight & Accountability
Oversight will be crucial to monitor project execution, adherence to budget, and quality of construction. The Department of the Army's contracting and project management teams are responsible for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Potential for cost overruns.
- Schedule delays.
- Complexity of large construction projects.
Tags
commercial-and-institutional-building-co, department-of-defense, nd, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $133.3 million to FEDERAL CONTRACTING INC. MINOT HELO OPS FACILITY CONSTRUCTION, MINOT AFB, ND.
Who is the contractor on this award?
The obligated recipient is FEDERAL CONTRACTING 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 $133.3 million.
What is the period of performance?
Start: 2023-03-31. End: 2026-11-09.
What specific factors led to the exclusion of certain sources in the competition?
The exclusion of sources suggests specific technical requirements, past performance considerations, or unique capabilities were deemed necessary for this project. Understanding these criteria is vital to determine if the limited competition was justified and if it truly served the government's best interest in securing the most suitable contractor and price.
How does the firm-fixed-price structure mitigate risks associated with fluctuating construction costs?
A firm-fixed-price (FFP) contract shifts the risk of cost overruns to the contractor. While this provides budget certainty for the government, it relies on the contractor's accurate estimation of all project costs, including potential fluctuations in materials and labor. If the contractor's estimates are too low, they may seek change orders or face financial strain.
What are the key performance indicators (KPIs) for this facility's construction to ensure effectiveness?
Key performance indicators should include adherence to the construction schedule, meeting quality standards and specifications, achieving the final facility's operational readiness, and ensuring safety compliance throughout the build. Post-occupancy evaluations of the facility's functionality and durability will also be critical measures of effectiveness.
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: W9128F22R0048
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5475 TECH CENTER DR, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $143,714,279
Exercised Options: $133,284,718
Current Obligation: $133,284,718
Actual Outlays: $7,829,185
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-31
Current End Date: 2026-11-09
Potential End Date: 2026-11-09 00:00:00
Last Modified: 2025-12-05
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