Okland Construction awarded $89.7M for Squadron Operations AMU/Hangar at Creech AFB, Nevada
Contract Overview
Contract Amount: $89,674,247 ($89.7M)
Contractor: Okland Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-01-22
End Date: 2013-01-30
Contract Duration: 2,200 days
Daily Burn Rate: $40.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SQUADRON OPERATIONS AMU/ HANGAR, COMPLETE, CREECH AFB, NEVADA
Place of Performance
Location: NELLIS AFB, CLARK County, NEVADA, 89191
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $89.7 million to OKLAND CONSTRUCTION COMPANY, INC. for work described as: SQUADRON OPERATIONS AMU/ HANGAR, COMPLETE, CREECH AFB, NEVADA Key points: 1. Contract awarded for a significant construction project at a key Air Force base. 2. Project duration of 2200 days indicates a substantial and complex undertaking. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Full and Open Competition was utilized, implying a broad market solicitation. 5. The contract value is substantial, requiring careful oversight of execution and quality. 6. Construction of specialized facilities like hangars often involves unique technical requirements.
Value Assessment
Rating: fair
The contract value of $89.7 million for a hangar and operations facility is substantial. Benchmarking this against similar military construction projects is difficult without more specific details on the facility's size, complexity, and specialized equipment. The firm fixed price nature of the contract aims to control costs, but the long duration could introduce risks if not managed effectively. The reported 'br' value of 40761 might represent a benchmark or internal estimate, but its meaning is unclear without further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, which is a key factor in assessing the true level of competition. A robust competition with multiple qualified bidders would typically be a positive sign for price discovery and value for money.
Taxpayer Impact: A full and open competition suggests that taxpayers benefited from a wide range of potential contractors vying for the work, which can drive down costs and ensure the government receives competitive pricing.
Public Impact
The primary beneficiaries are the U.S. Air Force units operating at Creech Air Force Base, Nevada, who will gain improved operational facilities. The project delivers essential infrastructure, including a Squadron Operations AMU/Hangar, crucial for aircraft maintenance and operational readiness. The geographic impact is localized to Creech Air Force Base in Nevada. The construction project will likely have implications for the local and regional construction workforce, creating jobs and economic activity during the project's lifecycle.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2200 days) increases the risk of cost overruns due to inflation, material price fluctuations, and potential scope creep if not meticulously managed.
- The lack of specific details on the number of bidders in the 'full and open competition' makes it difficult to fully assess the competitive pressure applied to achieve the final price.
- The 'br' value of 40761 is unexplained and could represent a missed opportunity for cost savings or an indicator of an unusual pricing structure.
- Construction projects of this magnitude can face unforeseen site conditions or technical challenges that may impact schedule and budget.
- Dependence on a single prime contractor for such a long duration necessitates strong government oversight to ensure performance and compliance.
Positive Signals
- The use of 'Full and Open Competition' is a positive signal, suggesting a broad search for the best value and a competitive bidding process.
- The 'Firm Fixed Price' contract type provides cost certainty for the government, protecting against unexpected cost increases.
- The project is located at a significant military installation (Creech AFB), indicating its strategic importance and likely adherence to high standards.
- The contract award to Okland Construction Company, Inc., suggests they have a track record deemed sufficient by the contracting agency for this type of work.
- The long duration, while a risk, also allows for thorough planning and execution of a complex construction project.
Sector Analysis
This contract falls within the Industrial Building Construction sector, specifically for military infrastructure. The market for large-scale military construction is often characterized by specialized requirements, stringent security protocols, and a mix of large prime contractors and specialized subcontractors. Spending in this sector is driven by defense modernization, base infrastructure upgrades, and operational readiness needs. Comparable benchmarks would include other large hangar, maintenance, or operational facility constructions for the Department of Defense across various branches.
Small Business Impact
The data indicates that small business participation was not a primary set-aside factor ('ss': false, 'sb': false). While the prime contract was not set aside for small businesses, the prime contractor, Okland Construction Company, Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses is not detailed here, but large construction projects often rely on a diverse subcontractor base, which can include small and disadvantaged businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and potentially the Inspector General's office for the Department of Defense. Mechanisms likely include regular progress meetings, site inspections, quality assurance checks, and review of payment requests. Transparency is typically managed through contract reporting systems, though detailed public access to ongoing project oversight activities can be limited for security and proprietary reasons.
Related Government Programs
- Military Construction (MILCON)
- Air Force Base Infrastructure
- Aircraft Hangars
- Operational Support Facilities
- Department of Defense Construction Contracts
Risk Flags
- Long contract duration
- Unclear benchmark value ('br')
- Potential for cost escalation over extended period
- Need for detailed oversight due to project scale
Tags
construction, department-of-defense, department-of-the-army, full-and-open-competition, definitive-contract, firm-fixed-price, nevada, creech-afb, industrial-building-construction, large-contract, military-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.7 million to OKLAND CONSTRUCTION COMPANY, INC.. SQUADRON OPERATIONS AMU/ HANGAR, COMPLETE, CREECH AFB, NEVADA
Who is the contractor on this award?
The obligated recipient is OKLAND CONSTRUCTION COMPANY, 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 $89.7 million.
What is the period of performance?
Start: 2007-01-22. End: 2013-01-30.
What is the specific nature and size of the Squadron Operations AMU/Hangar being constructed?
The provided data does not specify the exact square footage, number of bays, or specific operational capabilities of the Squadron Operations AMU/Hangar. However, the term 'AMU' typically refers to an Aircraft Maintenance Unit, suggesting the facility will house personnel, equipment, and potentially aircraft for maintenance and operational support. The 'Hangar' component implies a structure designed to house aircraft. Given the $89.7 million contract value and a duration of 2200 days (approximately 6 years), it is reasonable to infer a large, complex facility with potentially specialized environmental controls, power, and safety systems required for modern aircraft operations.
How does the $89.7 million contract value compare to similar military hangar construction projects?
Directly comparing the $89.7 million contract value without detailed specifications (size, complexity, materials, specific technological integrations) is challenging. However, large military hangar projects can range widely. For instance, a basic C-130 hangar might cost significantly less than a specialized facility for advanced fighter jets or unmanned aerial systems, which often require advanced environmental controls, fire suppression, and maintenance equipment integration. The value suggests a substantial facility, likely incorporating advanced features and built to stringent military standards, potentially placing it in the mid-to-high range for such projects, depending on the specific requirements of Creech AFB's operations.
What are the key risks associated with a 2200-day (approx. 6-year) construction contract of this magnitude?
A 2200-day duration presents several significant risks. Firstly, economic risks include inflation impacting material and labor costs, potentially eroding the value of a fixed-price contract if not adequately hedged. Secondly, technological obsolescence is a concern; if the facility is designed for specific current technologies, it might be less adaptable to future advancements by the time it's completed. Thirdly, personnel continuity for both the contractor and government oversight teams can be an issue, leading to knowledge loss. Finally, the extended timeline increases the probability of encountering unforeseen site conditions, regulatory changes, or shifts in mission requirements that could necessitate costly modifications or delays. Robust project management, contingency planning, and proactive risk mitigation are crucial.
What does the 'br' value of 40761 signify in the context of this contract?
The 'br' value of 40761 is not a standard or universally recognized contract metric. It could potentially represent a benchmark price, a budget reference, a contractor's bid breakdown component, or an internal agency code related to the project's scope or cost estimation. Without additional context from the awarding agency (Department of the Army) or the contract documentation, its precise meaning remains speculative. If it represents a benchmark, comparing the awarded amount to this 'br' value could offer insights into whether the contract was awarded significantly above, below, or at the benchmark. However, its ambiguity limits its analytical utility in its current form.
What is Okland Construction Company, Inc.'s track record with large federal construction projects, particularly for the Department of Defense?
Okland Construction Company, Inc. has a history of undertaking significant construction projects, including those for federal agencies and military installations. While specific details of their past performance on projects comparable to this $89.7 million hangar at Creech AFB require deeper research into their project portfolio and federal contract databases (like SAM.gov or FPDS), their selection as the prime contractor suggests they possess the necessary experience, bonding capacity, and technical expertise. Federal agencies typically vet contractors based on past performance evaluations, financial stability, and demonstrated capability to manage complex, large-scale projects within budget and schedule.
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: W912PL06R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1978 S WEST TEMPLE, SALT LAKE CITY, UT, 84115
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $89,674,247
Exercised Options: $89,674,247
Current Obligation: $89,674,247
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-01-22
Current End Date: 2013-01-30
Potential End Date: 2013-01-30 00:00:00
Last Modified: 2016-03-30
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