DoD's $33M Ft. Irwin hangar contract awarded to Cox Construction for UAS facility and runway upgrades

Contract Overview

Contract Amount: $33,182,691 ($33.2M)

Contractor: COX Construction CO

Awarding Agency: Department of Defense

Start Date: 2015-10-27

End Date: 2019-01-29

Contract Duration: 1,190 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCT AN UNMANNED AIRCARFT SYSTEMS HANGAR AT FT IRWIN. WORK INCLUDES OPERATIONS AND MAINTENANCE HANGAR WITH SHOPS, COMPANY ADMINISTRATION, AIRCRAFT CONTAINER STORAGE, ORGANIZATIONAL VEHICLE PARKING. WORK ALSO INCLUDES ASPHALT OVERALY OF EXISTING RUNWAY, TAIWAY, AND ACCESS APARON.

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to COX CONSTRUCTION CO for work described as: IGF::OT::IGF CONSTRUCT AN UNMANNED AIRCARFT SYSTEMS HANGAR AT FT IRWIN. WORK INCLUDES OPERATIONS AND MAINTENANCE HANGAR WITH SHOPS, COMPANY ADMINISTRATION, AIRCRAFT CONTAINER STORAGE, ORGANIZATIONAL VEHICLE PARKING. WORK ALSO INCLUDES ASPHALT OVERALY OF EXISTING RUNWAY, TAIWAY,… Key points: 1. The contract awarded to Cox Construction Co. for $33.18 million addresses critical infrastructure needs for Unmanned Aircraft Systems (UAS) at Ft. Irwin. 2. The scope includes a comprehensive operations and maintenance hangar, administrative spaces, and aircraft storage, alongside significant runway and taxiway improvements. 3. The project was awarded under a firm-fixed-price definitive contract, indicating a clear understanding of project requirements and cost structure. 4. The duration of the contract, spanning from October 2015 to January 2019, suggests a substantial construction timeline for the complex facility. 5. The absence of small business set-asides indicates the contract was not specifically targeted to small businesses, potentially impacting their participation. 6. The project falls under the Commercial and Institutional Building Construction NAICS code, aligning it with standard construction industry practices.

Value Assessment

Rating: good

The contract value of $33.18 million for a UAS hangar and runway improvements at Ft. Irwin appears reasonable given the scope of work. While direct comparisons are difficult without specific project details and location-based cost indices, similar large-scale military construction projects often range in the tens of millions. The firm-fixed-price structure suggests that the pricing was determined upfront, which can be advantageous for the government if costs are well-managed by the contractor. Benchmarking against other DoD construction projects of similar complexity would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With four bidders participating, the competition level was moderate. This suggests that while multiple companies were interested, the market for this specific type of specialized military construction may be somewhat concentrated. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition with four bidders is a positive indicator for taxpayers, suggesting that the government sought the best value from a range of qualified contractors, likely resulting in a more competitive price than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Army units operating Unmanned Aircraft Systems at Ft. Irwin, gaining enhanced operational capabilities and infrastructure. The project delivers a specialized hangar facility crucial for the maintenance, operation, and storage of UAS, alongside critical airfield infrastructure upgrades. The geographic impact is localized to Ft. Irwin, California, enhancing its strategic importance as a training and operational base for UAS. The construction activities likely supported a workforce of skilled tradespeople and construction professionals during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price contract.
Delays in project completion could impact operational readiness for UAS units at Ft. Irwin.
The limited number of bidders (4) might suggest a specialized market where competition could be further enhanced in future procurements.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses a critical and growing need for UAS infrastructure within the Department of Defense.
The contractor, Cox Construction Co., has experience in large-scale construction projects.

Sector Analysis

This contract falls within the broader construction sector, specifically Commercial and Institutional Building Construction. The market for specialized military construction, particularly for advanced systems like UAS, is a niche within this sector. The demand for such facilities is driven by evolving military technology and operational requirements. Comparable spending benchmarks would involve analyzing other DoD contracts for similar hangar facilities, maintenance depots, and airfield infrastructure upgrades, which can vary significantly based on size, complexity, and location.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Cox Construction Co., may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services. The absence of a set-aside means that large businesses were eligible to compete and potentially win the prime contract, which is typical for projects of this scale and complexity.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the relevant Army Corps of Engineers district responsible for construction projects. Quality assurance representatives would likely be assigned to monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract performance or closeout.

Related Government Programs

Department of the Army Military Construction
Unmanned Aircraft Systems Infrastructure
Airfield Paving and Maintenance
Defense Base Realignment and Closure (BRAC) Projects
Fort Irwin Base Operations Support

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of cost escalation due to unforeseen site conditions or material price fluctuations.
Moderate competition level may limit future price discovery.
Dependence on contractor's specialized expertise for UAS infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to COX CONSTRUCTION CO. IGF::OT::IGF CONSTRUCT AN UNMANNED AIRCARFT SYSTEMS HANGAR AT FT IRWIN. WORK INCLUDES OPERATIONS AND MAINTENANCE HANGAR WITH SHOPS, COMPANY ADMINISTRATION, AIRCRAFT CONTAINER STORAGE, ORGANIZATIONAL VEHICLE PARKING. WORK ALSO INCLUDES ASPHALT OVERALY OF EXISTING RUNWAY, TAIWAY, AND ACCESS APARON.

Who is the contractor on this award?

The obligated recipient is COX CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2015-10-27. End: 2019-01-29.

What is Cox Construction Co.'s track record with similar large-scale military construction projects?

Cox Construction Co. has a history of undertaking significant construction projects, including those for government and military clients. While specific details on prior UAS hangar construction are not provided in this data snippet, their experience in large-scale building and infrastructure projects suggests a capability to manage complex contracts. A deeper dive into their contract history would reveal the types and scale of previous military projects, their performance ratings on those projects, and any past issues or successes. This would provide a clearer picture of their suitability and reliability for the Ft. Irwin contract.

How does the $33.18 million cost compare to similar UAS hangar construction projects?

Benchmarking the $33.18 million cost requires comparing it to similar UAS hangar projects, considering factors like size, complexity, specific technological requirements, and geographic location. Without access to a database of comparable projects with detailed cost breakdowns, a precise comparison is challenging. However, for a facility encompassing operations, maintenance, administration, and aircraft storage, along with airfield improvements, this figure appears within a plausible range for major military construction. The firm-fixed-price nature suggests the cost was established upfront, but actual value depends on the quality of execution and adherence to schedule.

What are the primary risks associated with this type of construction contract?

The primary risks for this construction contract include potential cost overruns if unforeseen site conditions or material price escalations occur, despite the firm-fixed-price structure. Schedule delays are another significant risk, which could impact the operational readiness of UAS units. Technical risks related to integrating specialized UAS support systems within the hangar could also arise. Furthermore, the moderate competition level (4 bidders) might indicate a specialized market, potentially limiting future competitive opportunities or driving up prices if contractor capacity is constrained.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined, as is typical for construction. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. For this UAS hangar project, FFP incentivizes Cox Construction Co. to control costs and manage resources efficiently to maximize profit. However, if the initial scope definition was incomplete or if significant unforeseen issues arise, the contractor might seek change orders, potentially increasing the total cost. Effective oversight is still crucial to ensure the contractor meets quality standards within the agreed price.

What is the historical spending trend for UAS infrastructure at Ft. Irwin or similar installations?

Historical spending trends for UAS infrastructure at Ft. Irwin or similar installations are not detailed in the provided data. However, the increasing emphasis on drone technology across military branches suggests a growing investment in dedicated facilities like hangars, maintenance bays, and training areas. This contract represents a specific investment in that trend. Analyzing broader DoD budgets for aviation infrastructure and specific UAS program funding would provide context on the overall spending trajectory in this area over time.

Were there any performance issues or disputes during the contract's execution?

The provided data does not contain information regarding performance issues, disputes, or contract modifications during the execution of this contract. To assess performance, one would need to consult contract performance reports, payment histories, and any official records of disputes or claims filed by either the contractor or the government. Such information is typically available through government contract databases or agency records.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PL15R0016

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3170 SCOTT ST, VISTA, CA, 92081

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

Financial Breakdown

Contract Ceiling: $33,182,691

Exercised Options: $33,182,691

Current Obligation: $33,182,691

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $21,549,266

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline