DoD Awards $70.3M for MQ-9 FTU Operations Facility at Holloman AFB
Contract Overview
Contract Amount: $70,309,665 ($70.3M)
Contractor: BL Harbert International LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-07
End Date: 2027-06-25
Contract Duration: 1,205 days
Daily Burn Rate: $58.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MQ-9 FORMAL TRAINING UNTIL (FTU) OPERATIONS FACILITY, HOLLOMAN AIR FORCE BASE (HAFB), OTERO COUNTY, NEW MEXICO
Place of Performance
Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330
Plain-Language Summary
Department of Defense obligated $70.3 million to BL HARBERT INTERNATIONAL LLC for work described as: MQ-9 FORMAL TRAINING UNTIL (FTU) OPERATIONS FACILITY, HOLLOMAN AIR FORCE BASE (HAFB), OTERO COUNTY, NEW MEXICO Key points: 1. Construction contract awarded to BL Harbert International LLC for a significant facility. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration is over 3 years, indicating a substantial construction undertaking. 4. The firm-fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $70.3M for a large-scale facility appears reasonable given the scope and duration. Benchmarking against similar large institutional building construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows all qualified contractors to bid. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, ensuring taxpayer funds are used efficiently for this critical military training infrastructure.
Public Impact
Enhances training capabilities for MQ-9 operations, directly impacting pilot readiness. Supports military personnel and operations at Holloman Air Force Base. Contributes to the local economy in Otero County, New Mexico, through construction jobs and related activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction cost overruns given the project's scale and duration.
- Dependency on contractor performance for timely completion and quality.
- Future operational and maintenance costs of the facility are not detailed.
Positive Signals
- Clear need for enhanced MQ-9 training infrastructure.
- Competitive bidding process likely secured a favorable price.
- Firm-fixed-price contract provides cost certainty.
- Strategic location at Holloman AFB supports critical Air Force missions.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by government infrastructure needs and military base development, with significant project values common for large facilities.
Small Business Impact
The contract was awarded to BL Harbert International LLC, a large business. There is no indication of small business subcontracting goals being a primary focus in the provided data, though it is standard practice for large prime contractors to engage small businesses.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Standard oversight mechanisms for large construction projects, including site inspections and progress reviews, are expected to be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration exceeds 3 years, increasing exposure to market fluctuations.
- Large contract value may attract significant scrutiny regarding cost efficiency.
- Potential for scope creep if training requirements evolve during construction.
- Reliance on a single prime contractor for a complex build.
- Geographic location may present logistical challenges for materials and labor.
Tags
commercial-and-institutional-building-co, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.3 million to BL HARBERT INTERNATIONAL LLC. MQ-9 FORMAL TRAINING UNTIL (FTU) OPERATIONS FACILITY, HOLLOMAN AIR FORCE BASE (HAFB), OTERO COUNTY, NEW MEXICO
Who is the contractor on this award?
The obligated recipient is BL HARBERT INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $70.3 million.
What is the period of performance?
Start: 2024-03-07. End: 2027-06-25.
What are the specific performance metrics for the MQ-9 training capabilities this facility is intended to enhance?
The provided data focuses on the construction contract itself and does not detail the specific performance metrics for the MQ-9 training capabilities. Further documentation related to the facility's operational requirements and the MQ-9 program's objectives would be needed to assess this aspect. This information is crucial for understanding the full value proposition beyond the physical structure.
What are the potential risks associated with the firm-fixed-price contract type for a project of this duration?
While firm-fixed-price contracts offer cost certainty, risks can arise for projects spanning several years. Unforeseen material cost escalations, labor shortages, or design changes not covered by contingencies could strain the contractor's ability to deliver within the fixed price, potentially leading to claims or impacting quality if not managed proactively.
How will the effectiveness of this facility be measured post-construction in terms of training outcomes?
The effectiveness of the facility will likely be measured by its ability to support the intended MQ-9 training curriculum, improve training efficiency, and contribute to pilot proficiency and mission readiness. Key indicators could include reduced training times, increased training throughput, and positive feedback from trainees and instructors, alongside mission success rates.
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: TWO STEP
Solicitation ID: W912PP22R0018
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 820 SHADES CREEK PKWY, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,785,115
Exercised Options: $70,309,665
Current Obligation: $70,309,665
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $41,705,405
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-07
Current End Date: 2027-06-25
Potential End Date: 2027-06-25 00:00:00
Last Modified: 2025-12-17
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