Department of the Army awards $16.1M for C-130 maintenance hangar construction in New Mexico

Contract Overview

Contract Amount: $16,102,805 ($16.1M)

Contractor: Big-D Construction Corp

Awarding Agency: Department of Defense

Start Date: 2009-09-28

End Date: 2012-06-29

Contract Duration: 1,005 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOF C-130 MAINTENANCE HANGAR AMU, CAFB

Place of Performance

Location: CANNON AFB, CURRY County, NEW MEXICO, 88103

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to BIG-D CONSTRUCTION CORP for work described as: SOF C-130 MAINTENANCE HANGAR AMU, CAFB Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type indicates that the contractor bears the risk of cost overruns. 3. The project duration of 1005 days suggests a significant construction undertaking. 4. The contract was awarded to BIG-D CONSTRUCTION CORP, a single entity. 5. The project is located in New Mexico, potentially impacting the local construction workforce and economy. 6. The contract value of $16.1 million falls within a moderate spending range for major construction projects.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable project data. However, the $16.1 million award for a C-130 maintenance hangar suggests a substantial investment. The firm fixed-price nature of the contract shifts cost risk to the contractor, which can sometimes lead to higher initial bids but provides budget certainty for the government. Further analysis would require comparing the cost per square foot or per specialized feature against similar military construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 15 bids suggests a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that government funds are used efficiently and that the most cost-effective solutions are selected.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating C-130 aircraft, who will gain a dedicated and modern maintenance facility. The project delivers essential infrastructure for aircraft maintenance, ensuring operational readiness and efficiency. The geographic impact is concentrated in New Mexico, potentially creating local construction jobs and stimulating the regional economy. The construction phase will likely involve a significant number of skilled tradespeople, impacting the local construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Dependence on a single contractor (BIG-D CONSTRUCTION CORP) for project completion.
Risk of delays impacting the operational readiness of C-130 aircraft maintenance schedules.
The long duration of the project increases the potential for scope creep or changes in requirements.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a competitive bidding process that should yield fair pricing.
The project addresses a critical infrastructure need for military aviation maintenance.
Award to a single, presumably qualified, contractor streamlines project management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized military infrastructure. The construction of aircraft maintenance hangars requires adherence to stringent specifications for size, environmental controls, and specialized equipment. Comparable spending benchmarks would involve analyzing other large-scale military construction projects, particularly those involving aviation facilities, to assess cost-effectiveness relative to project scope and complexity.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the 'sb' field is false. This suggests the primary contract was not specifically targeted for small businesses. However, the prime contractor, BIG-D CONSTRUCTION CORP, may engage small businesses for subcontracting opportunities to fulfill project requirements. The extent of small business subcontracting would need further investigation to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and engineering divisions. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Program
Aircraft Maintenance Facilities
Department of Defense Infrastructure Projects
Air Force Base Modernization

Risk Flags

Long project duration may increase risk of cost escalation or scope creep.
Firm Fixed Price contract places cost overrun risk on contractor.
Dependence on a single contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to BIG-D CONSTRUCTION CORP. SOF C-130 MAINTENANCE HANGAR AMU, CAFB

Who is the contractor on this award?

The obligated recipient is BIG-D CONSTRUCTION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2009-09-28. End: 2012-06-29.

What is the track record of BIG-D CONSTRUCTION CORP on similar government contracts, particularly in military construction?

A thorough review of BIG-D CONSTRUCTION CORP's past performance on government contracts, especially those involving military aviation facilities or large-scale construction projects, is crucial. This would involve examining contract histories for on-time completion, adherence to budget, quality of work, and any instances of disputes or contract terminations. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in assessing their reliability and capability for a project of this magnitude and complexity. Understanding their experience with firm-fixed-price contracts and their ability to manage complex logistical requirements on military installations would further inform this assessment.

How does the cost per square foot of this hangar compare to similar military aviation maintenance facilities constructed recently?

To benchmark the value, we would need to determine the total square footage of the hangar and compare the cost per square foot ($16,102,804.66 / square footage) against a dataset of similar military aviation maintenance hangars. Factors such as specialized equipment installation (e.g., cranes, ventilation systems for aircraft exhaust), unique structural requirements for large aircraft, and specific environmental controls would need to be considered. If comparable projects have a significantly lower cost per square foot, it might indicate potential overpricing or scope differences. Conversely, a higher cost per square foot could be justified by unique technical requirements or challenging site conditions.

What are the primary risks associated with the firm-fixed-price contract type for this specific project?

The primary risk with a firm-fixed-price (FFP) contract for a large construction project like a C-130 maintenance hangar is that the contractor, BIG-D CONSTRUCTION CORP, bears the full financial responsibility for any cost overruns. If material costs escalate unexpectedly, labor shortages drive up wages, or unforeseen site conditions require extensive remediation, the contractor's profit margin will shrink, potentially leading to quality compromises or even project abandonment if the losses become unsustainable. While FFP provides budget certainty for the government, it can incentivize contractors to bid higher initially to buffer against these risks, or to cut corners if costs begin to exceed projections.

How effective is the 'full and open competition' strategy in ensuring optimal value for this type of specialized construction?

Full and open competition is generally considered the most effective strategy for ensuring optimal value, as it maximizes the pool of potential bidders and fosters a competitive environment that drives down prices. For specialized construction like a C-130 maintenance hangar, this approach allows the government to solicit bids from a wide range of qualified firms, including those with specific expertise in aviation infrastructure. The fact that 15 bids were received suggests robust competition. The effectiveness is further measured by whether the lowest bid met all technical requirements and whether the selected contractor demonstrates a strong past performance record, ensuring both cost savings and quality delivery.

What is the historical spending trend for C-130 maintenance hangar construction or similar aviation infrastructure by the Department of the Army?

Analyzing historical spending data for similar projects by the Department of the Army would provide context for the $16.1 million award. This involves looking at the number of such facilities constructed over the past 5-10 years, their average cost, contract types used, and the average duration. Significant deviations from historical averages, either higher or lower, would warrant further investigation. Understanding past spending patterns can help identify potential inflation trends, shifts in construction methodologies, or changes in procurement strategies that might explain the current contract's value and terms.

What are the potential implications of the 1005-day project duration on the operational readiness of the affected Air Force units?

A project duration of 1005 days (approximately 2.75 years) for a C-130 maintenance hangar implies a significant construction timeline. This extended period could potentially impact the operational readiness of the Air Force units relying on the facility. If existing maintenance capabilities are strained or insufficient during the construction phase, it could lead to longer turnaround times for aircraft maintenance, reduced sortie generation rates, or the need for temporary, potentially less efficient, maintenance solutions. Effective project phasing and contingency planning by the Department of the Army would be critical to mitigate any negative impacts on operational tempo.

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: W912PP09R0028

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 404 W 400 S, SALT LAKE CITY, UT, 84101

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

Financial Breakdown

Contract Ceiling: $16,102,805

Exercised Options: $16,102,805

Current Obligation: $16,102,805

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline