DoD Awards $26M Flight Simulator Facility to Record Steel and Construction, Inc. at Tinker AFB

Contract Overview

Contract Amount: $25,962,548 ($26.0M)

Contractor: Record Steel and Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-25

End Date: 2022-06-15

Contract Duration: 1,237 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT E-3G FLIGHT TRAINING SIMULATOR FACILITY TINKER AFB

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to RECORD STEEL AND CONSTRUCTION, INC. for work described as: CONSTRUCT E-3G FLIGHT TRAINING SIMULATOR FACILITY TINKER AFB Key points: 1. The contract value of $25.96M for a flight training simulator facility represents a significant investment in military readiness. 2. Competition was full and open, suggesting a potentially competitive bidding process for this construction project. 3. The firm fixed-price contract type aims to control costs, but potential risks include construction delays and material cost fluctuations. 4. The project falls within the Commercial and Institutional Building Construction sector, a vital area for infrastructure development.

Value Assessment

Rating: good

The contract value of $25.96M appears reasonable for a specialized facility of this nature, especially considering the firm fixed-price structure which shifts risk to the contractor. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive environment that can drive down costs.

Public Impact

Enhances pilot training capabilities at Tinker AFB, improving military readiness and operational effectiveness. Supports the local economy through construction jobs and related services in Oklahoma. The facility will house advanced flight training simulators, crucial for preparing aircrews for complex missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if material prices increase significantly.
Risk of construction delays impacting training schedules.
Contractor performance and quality control are critical for facility longevity.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award.
Project supports critical military training infrastructure.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector critical for developing specialized facilities like flight simulators. Spending benchmarks in this sector vary widely based on project complexity and scale.

Small Business Impact

The data indicates the prime contractor is RECORD STEEL AND CONSTRUCTION, INC., and there is no specific information provided regarding small business subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award was made by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for federal construction contracts would apply, including site inspections and progress reporting to ensure compliance and quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost escalation due to market volatility in construction materials.
Risk of schedule delays impacting critical training timelines.
Ensuring long-term operational and maintenance costs are managed post-construction.
Dependence on a single prime contractor for a complex facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to RECORD STEEL AND CONSTRUCTION, INC.. CONSTRUCT E-3G FLIGHT TRAINING SIMULATOR FACILITY TINKER AFB

Who is the contractor on this award?

The obligated recipient is RECORD STEEL AND CONSTRUCTION, 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 $26.0 million.

What is the period of performance?

Start: 2019-01-25. End: 2022-06-15.

What is the estimated cost per square foot for this simulator facility, and how does it compare to industry benchmarks for similar specialized construction projects?

Without specific square footage data, a precise cost per square foot cannot be calculated. However, the total contract value of $25.96M for a flight training simulator facility suggests a significant investment. Industry benchmarks for specialized institutional construction can range widely, but factors like advanced technological integration, specialized materials, and stringent safety requirements for such facilities would likely place it at the higher end of the spectrum compared to standard commercial buildings.

What are the primary risks associated with the firm fixed-price contract for this construction project, and what mitigation strategies are in place?

The primary risk with a firm fixed-price contract is that the contractor may face financial losses if costs exceed the agreed-upon price, potentially leading to quality compromises or delays. Mitigation strategies typically include thorough initial cost estimations, robust contract clauses addressing unforeseen circumstances (like material price escalation caps), and diligent government oversight of contractor performance and progress to ensure adherence to specifications and timelines.

How will the successful completion of this flight training simulator facility impact the operational effectiveness and training efficiency of the relevant Air Force units at Tinker AFB?

The successful completion of this facility will significantly enhance operational effectiveness by providing a state-of-the-art training environment. Advanced simulators allow for realistic, repeatable, and safe training scenarios that are often impossible or too costly to replicate in actual aircraft. This leads to more proficient aircrews, reduced wear and tear on operational aircraft, and potentially lower overall training costs, ultimately boosting mission readiness.

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: TWO STEP

Solicitation ID: W912BV18R0017

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 W ROSSI STE 200, BOISE, ID, 83706

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

Financial Breakdown

Contract Ceiling: $26,722,548

Exercised Options: $25,962,548

Current Obligation: $25,962,548

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,994,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline