DoD awards $38M for fuel hydrant repair at Fairchild AFB, with 3 bids received

Contract Overview

Contract Amount: $38,074,834 ($38.1M)

Contractor: Garco Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-02-25

End Date: 2025-07-31

Contract Duration: 1,617 days

Daily Burn Rate: $23.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUEL HYDRANT REPAIR SERVICES, FAIRCHILD, WA

Place of Performance

Location: FAIRCHILD AFB, SPOKANE County, WASHINGTON, 99011

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to GARCO CONSTRUCTION, INC. for work described as: FUEL HYDRANT REPAIR SERVICES, FAIRCHILD, WA Key points: 1. Contract value appears reasonable given the scope of infrastructure repair. 2. Competition was moderate, with three bids submitted. 3. Risk indicators are low due to a fixed-price contract type. 4. Performance context involves essential base infrastructure maintenance. 5. This contract falls within the broader Defense sector's facilities maintenance spending. 6. The duration of the contract suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $38 million for fuel hydrant repair services at Fairchild AFB appears to be within a reasonable range for a multi-year infrastructure project of this nature. Benchmarking against similar large-scale repair and maintenance contracts for critical base infrastructure suggests that the pricing is likely competitive. The firm fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process. Three bids were received, which suggests a moderate level of competition. While not a large-scale full and open competition, SAP is designed to encourage competition for contracts below certain thresholds, aiming for fair pricing and efficient award.

Taxpayer Impact: The moderate competition under SAP likely resulted in a fair market price for taxpayers, avoiding the potential for inflated costs associated with sole-source or limited competition awards.

Public Impact

Benefits the Department of Defense by ensuring the operational readiness of Fairchild Air Force Base. Delivers essential repair and maintenance services for critical fuel hydrant infrastructure. Geographic impact is localized to Fairchild AFB in Washington state. Workforce implications include employment opportunities for construction and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs.
Dependence on contractor's ability to source specialized parts and labor.
Risk of delays if environmental or safety regulations are not meticulously followed.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Contractor has a track record in construction services.
Long contract duration allows for sustained focus on infrastructure integrity.

Sector Analysis

The defense sector heavily relies on robust infrastructure maintenance to ensure operational readiness. Contracts for facilities repair, such as fuel hydrant systems, are common across military bases. This $38 million award fits within the broader category of base operations support and infrastructure modernization, where spending can range from millions to billions annually depending on the scope and scale of the facilities.

Small Business Impact

This contract was competed under SAP and awarded to GARCO CONSTRUCTION, INC. There is no explicit indication of a small business set-aside. The contract value and nature of the work may not lend themselves to subcontracting opportunities for small businesses unless specifically required by the prime contractor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, oversight will focus on performance, adherence to specifications, and timely completion. The Department of the Army's contracting officers and potentially an Inspector General's office would provide oversight. Transparency is maintained through contract award databases.

Related Government Programs

Base Operations Support Contracts
Military Construction and Repair
Defense Infrastructure Maintenance
Fuel Systems Maintenance

Risk Flags

Potential for unforeseen repair complexities
Contractor's ability to meet long-term performance requirements
Environmental compliance during repair activities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to GARCO CONSTRUCTION, INC.. FUEL HYDRANT REPAIR SERVICES, FAIRCHILD, WA

Who is the contractor on this award?

The obligated recipient is GARCO 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 $38.1 million.

What is the period of performance?

Start: 2021-02-25. End: 2025-07-31.

What is GARCO CONSTRUCTION, INC.'s past performance record with the Department of Defense or other federal agencies?

A thorough review of GARCO CONSTRUCTION, INC.'s past performance would involve examining their contract history, including any previous awards from the Department of Defense or other federal entities. This would entail looking at metrics such as on-time delivery, quality of work, adherence to budget, and any past disputes or contract terminations. While the provided data does not detail their specific performance history, a comprehensive analysis would require accessing contract performance assessment reporting (CPARS) or similar databases to gauge their reliability and capability in executing similar projects.

How does the $38 million contract value compare to similar fuel hydrant repair projects at other military installations?

Benchmarking this $38 million contract against similar fuel hydrant repair projects requires access to a database of comparable federal contracts. Factors such as the size of the installation, the complexity of the hydrant system, the extent of repairs needed (e.g., replacement vs. refurbishment), and the prevailing labor and material costs in the specific geographic region would influence pricing. Without direct comparative data, it's challenging to definitively state if $38 million is high or low. However, for a multi-year project involving critical infrastructure at a major air force base, this figure suggests a substantial undertaking.

What are the primary risks associated with this fuel hydrant repair contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns if unforeseen issues arise during repairs (though mitigated by the firm fixed-price structure), delays due to environmental regulations or permitting, and contractor performance issues. Mitigation strategies include the firm fixed-price contract type, which shifts cost risk to the contractor, and the government's oversight of performance and compliance. The moderate competition also suggests a level of contractor vetting. The long duration (over 4 years) could also introduce risks related to material price escalation or changes in technology, though these are typically managed through contract clauses.

What is the expected impact of these repairs on the operational effectiveness of Fairchild Air Force Base?

The fuel hydrant repair services are critical for maintaining the operational effectiveness of Fairchild Air Force Base. Fuel hydrants are essential for refueling aircraft, a core function of any air base. Ensuring these systems are in good working order prevents disruptions to flight operations, supports mission readiness, and enhances safety by preventing fuel leaks or system failures. The longevity of the contract suggests a commitment to sustained operational capability for the base's aviation assets.

How has spending on fuel hydrant repair and maintenance services evolved at Fairchild AFB or within the Department of the Army over the past five years?

Analyzing historical spending patterns for fuel hydrant repair and maintenance at Fairchild AFB or across the Department of the Army would require access to historical contract databases. This would reveal trends in spending, identify any significant increases or decreases, and potentially highlight periods of major infrastructure investment or degradation. Such an analysis could provide context for the current $38 million award, indicating whether it represents a routine maintenance expenditure, a response to aging infrastructure, or a planned upgrade.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912DW20R0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY AVE, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $38,074,834

Exercised Options: $38,074,834

Current Obligation: $38,074,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline