DoD's $25M F-35 Hangar Project at Luke AFB Awarded to Okland Construction Under Firm Fixed Price Contract
Contract Overview
Contract Amount: $24,956,545 ($25.0M)
Contractor: Okland Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-25
End Date: 2020-07-20
Contract Duration: 1,425 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DESIGN BUILD F-35 SQUAD OPS AMU AND HANGAR 4, LUKE AFB, AZ
Place of Performance
Location: LUKE AFB, MARICOPA County, ARIZONA, 85309
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to OKLAND CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF DESIGN BUILD F-35 SQUAD OPS AMU AND HANGAR 4, LUKE AFB, AZ Key points: 1. The project involves constructing facilities for F-35 operations, a critical component of Air Force modernization. 2. Okland Construction Company, Inc. secured the contract, indicating a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but potential risks include scope creep and unforeseen site conditions. 4. This falls within the Industrial Building Construction sector, supporting defense infrastructure.
Value Assessment
Rating: good
The contract value of $24.96 million appears reasonable for a large-scale construction project of this nature, especially given the specialized requirements for F-35 operations. Benchmarking against similar military construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified contractors can bid.
Taxpayer Impact: The firm fixed price contract structure helps protect taxpayers by establishing a ceiling on project costs, assuming the scope is well-defined.
Public Impact
Enhances operational readiness for the F-35 program at Luke AFB. Supports critical infrastructure development for advanced military aircraft. Contributes to the local economy in Arizona through construction jobs and related services. Ensures facilities meet the specific technical and security requirements for F-35 operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Risk of schedule delays impacting F-35 operational timelines.
- Ensuring long-term durability and maintenance efficiency of the new facilities.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Project supports a high-priority defense asset (F-35).
Sector Analysis
This project falls under Industrial Building Construction, a sector vital for supporting defense infrastructure. Spending benchmarks for similar military construction projects, particularly those involving specialized aircraft like the F-35, would be useful for comparison.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting goals were explicitly mentioned for this contract. Further investigation may be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, as the procuring agency, is responsible for oversight. The Inspector General's office may conduct audits or reviews to ensure compliance and cost-effectiveness throughout the project lifecycle.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Firm Fixed Price contracts can be less flexible to scope changes.
- Dependence on specialized construction expertise for advanced aircraft facilities.
- Ensuring long-term maintenance and operational costs are managed effectively post-construction.
Tags
industrial-building-construction, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to OKLAND CONSTRUCTION COMPANY, INC.. IGF::OT::IGF DESIGN BUILD F-35 SQUAD OPS AMU AND HANGAR 4, LUKE AFB, AZ
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 $25.0 million.
What is the period of performance?
Start: 2016-08-25. End: 2020-07-20.
What is the estimated cost per square foot for this hangar construction, and how does it compare to industry benchmarks for similar military aviation facilities?
Without specific square footage data, a precise cost per square foot cannot be calculated. However, the total contract value of $24.96 million for a specialized F-35 hangar suggests a significant investment. Benchmarking would require comparing this total cost against the size and complexity of similar facilities constructed for advanced aircraft, considering factors like specialized environmental controls, security features, and maintenance equipment integration.
What specific risks were identified during the bidding process, and what mitigation strategies are in place to address potential cost overruns or schedule delays?
While the data doesn't detail specific identified risks, common concerns for large construction projects include unforeseen subsurface conditions, weather delays, and material price fluctuations. Mitigation strategies typically involve detailed site investigations, robust contingency planning within the budget, clear contract clauses for change orders, and proactive project management to monitor progress and address issues promptly.
How effectively will these new facilities enhance the operational efficiency and readiness of the F-35 squadrons stationed at Luke AFB?
The new hangar and operations facilities are designed to provide dedicated, state-of-the-art infrastructure tailored to the specific needs of the F-35, including maintenance, training, and operational support. This is expected to improve aircraft readiness rates, streamline maintenance processes, and enhance overall squadron efficiency by providing a secure and technologically advanced environment, thereby directly contributing to the program's operational effectiveness.
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: TWO STEP
Solicitation ID: W912PL16R0010
Offers Received: 10
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,245,646
Exercised Options: $24,956,545
Current Obligation: $24,956,545
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-25
Current End Date: 2020-07-20
Potential End Date: 2020-07-20 00:00:00
Last Modified: 2025-04-22
More Contracts from Okland Construction Company, Inc.
- CMC Design Phase Services and Construction of U.S. District Courthouse Salt Lake City, UT — $180.9M (General Services Administration)
- Squadron Operations AMU/ Hangar, Complete, Creech AFB, Nevada — $89.7M (Department of Defense)
- 200606!600457!2100!w91238!usa Engineer Dist Sacramento !W9123806C0008 !A!N! !N! ! !20060215!20080930!056090319!056090319!056090319!n!okland Construction Company IN!1978 S West Temple !salt Lake City !ut!84115!35410!011!49!hill AFB !davis !utah !+000017452000!n!n!000000000000!y199!other Miscellaneous Buildings !C2 !construction !000 !NOT Discernable !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!006!b! !D!N!C! ! !N!C!N! ! ! !d!d!a!a!000!a!b!y! !N! ! ! ! !0001! ! — $37.3M (Department of Defense)
- F-22 Radar Cross Section Test Facility, Hill AFB, UT — $26.4M (Department of Defense)
- NEW Border Patrol Station, Wellton, AZ — $26.4M (Department of Defense)
View all Okland Construction Company, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)