Messer Construction Co. awarded $24.1M for advanced power and thermal research lab at Wright Patterson AFB

Contract Overview

Contract Amount: $24,135,916 ($24.1M)

Contractor: Messer Construction CO.

Awarding Agency: Department of Defense

Start Date: 2010-06-14

End Date: 2013-07-11

Contract Duration: 1,123 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONVERSION FOR ADVANCED POWER AND THERMAL RESEARCH LAB, WRIGHT PATTERSON AIR FORCE BASE, OHIO

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to MESSER CONSTRUCTION CO. for work described as: CONVERSION FOR ADVANCED POWER AND THERMAL RESEARCH LAB, WRIGHT PATTERSON AIR FORCE BASE, OHIO Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of over 3 years indicates a significant undertaking with potential for schedule risks. 4. Fixed-price contract type shifts risk to the contractor, but requires careful scope management. 5. Location in Ohio places the project within a region with established construction industry infrastructure. 6. The project supports advanced research capabilities for the Department of Defense.

Value Assessment

Rating: good

The $24.1 million award for the advanced power and thermal research lab at Wright Patterson Air Force Base is substantial, reflecting the complexity and scale of constructing specialized research facilities. Benchmarking against similar large-scale institutional or laboratory construction projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. However, given the typical costs associated with advanced research infrastructure, the price appears within a plausible range. The firm fixed-price contract type suggests that the contractor is responsible for cost overruns, which can be a positive indicator of value if the scope is well-defined.

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. With 7 bidders participating, the competition level appears healthy, suggesting that the government received multiple proposals and had a reasonable basis for selecting the most advantageous offer. This level of competition generally promotes price discovery and can lead to more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: A competitive bidding process for this significant construction project helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the researchers and personnel at Wright Patterson Air Force Base who will utilize the new advanced power and thermal research lab. The project delivers a critical piece of infrastructure enabling cutting-edge research and development in power and thermal technologies for defense applications. The geographic impact is concentrated at Wright Patterson Air Force Base in Ohio, supporting a key military installation. The construction phase will likely involve a significant number of skilled laborers, engineers, and project managers, providing economic stimulus to the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract scope is not meticulously managed.
Schedule delays are a common risk in large construction projects, potentially impacting research timelines.
Ensuring the specialized nature of the lab meets evolving technological requirements could be a challenge.
Coordination between the construction contractor and base personnel for site access and operations.

Positive Signals

Full and open competition suggests a robust bidding process, likely resulting in competitive pricing.
The firm fixed-price contract type provides cost certainty for the government, assuming scope adherence.
Messer Construction Co.'s involvement suggests a contractor with the capacity to handle large-scale projects.
The project directly supports critical defense research and development initiatives.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized research facilities. The construction market for such high-tech government installations is often characterized by significant project values and stringent performance requirements. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per specialized lab feature for similar defense or R&D facilities. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in infrastructure upgrades and new facilities.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities specifically targeted towards small businesses. The prime contractor, Messer Construction Co., is likely a large entity capable of managing such a substantial project independently. Further analysis would be needed to determine if any subcontracting plans involved small business participation, which could impact the broader small business ecosystem in the construction trades.

Oversight & Accountability

Oversight for this project would typically be managed by the contracting officer's representative (COR) and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements, although detailed project-specific oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Research and Development Facilities
Department of Defense Infrastructure
Advanced Technology Laboratories
Wright Patterson Air Force Base Projects

Risk Flags

Potential for scope creep in complex fixed-price construction.
Schedule adherence risk in large-scale infrastructure projects.
Ensuring long-term technological relevance of specialized research facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to MESSER CONSTRUCTION CO.. CONVERSION FOR ADVANCED POWER AND THERMAL RESEARCH LAB, WRIGHT PATTERSON AIR FORCE BASE, OHIO

Who is the contractor on this award?

The obligated recipient is MESSER 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 $24.1 million.

What is the period of performance?

Start: 2010-06-14. End: 2013-07-11.

What is Messer Construction Co.'s track record with large federal construction contracts, particularly for research facilities?

Messer Construction Co. has a history of undertaking significant construction projects, including those for institutional and government clients. While specific details on their past performance on advanced research facilities for the Department of Defense require deeper database analysis, their selection for a $24.1 million project at a major Air Force base suggests they possess the requisite experience and capacity. Reviewing past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any litigation history would provide a more comprehensive understanding of their track record. Their ability to successfully manage complex projects, adhere to schedules, and maintain quality standards on similar prior contracts would be key indicators.

How does the $24.1 million cost compare to similar advanced research lab constructions by the DoD?

Benchmarking the $24.1 million cost requires comparing it against similar advanced power and thermal research laboratories constructed by the Department of Defense or other federal agencies. Factors such as square footage, specialized equipment integration, unique structural requirements (e.g., vibration isolation, clean rooms), and geographic location significantly influence construction costs. Without specific data on comparable projects, it's difficult to definitively state if this award represents excellent or fair value. However, for a facility designed for advanced research, the investment is substantial and likely reflects specialized needs beyond standard building construction. A detailed cost-per-square-foot analysis against similar DoD R&D facilities would be necessary for a precise comparison.

What are the primary risks associated with a firm fixed-price contract for a project of this scale and complexity?

The primary risk with a firm fixed-price (FFP) contract for a large, complex project like an advanced research lab is the potential for scope creep and contractor claims if the initial scope definition is inadequate or if unforeseen conditions arise. While FFP shifts cost overrun risk to the contractor, significant changes or unforeseen issues can lead to costly change orders or disputes, potentially negating the initial cost certainty. For the government, the risk lies in ensuring the contract adequately defines all requirements and that robust change management processes are in place. The contractor bears the risk of underestimating costs or encountering difficulties, which could impact their profitability or even lead to default if severe enough.

What is the expected effectiveness of this new lab in advancing the DoD's power and thermal research capabilities?

The effectiveness of the new lab in advancing the DoD's power and thermal research capabilities is directly tied to its design, equipment, and the quality of research conducted within it. By providing state-of-the-art facilities for power and thermal research, the lab is expected to enable breakthroughs in areas critical to national defense, such as energy efficiency, advanced power generation, thermal management for high-performance systems, and potentially next-generation weapon systems. Its effectiveness will be measured by the successful development of new technologies, improved system performance, and the ability to meet future defense requirements. The specific research objectives and the caliber of the scientific personnel assigned to the facility will ultimately determine its impact.

How has federal spending on similar construction projects at Wright Patterson AFB trended over the past decade?

Analyzing historical spending trends on similar construction projects at Wright Patterson Air Force Base over the past decade would require accessing and aggregating federal procurement data. This would involve filtering awards for construction services, potentially focusing on large-scale facility development or specialized research infrastructure. A trend analysis could reveal patterns of investment in infrastructure, identify periods of increased or decreased spending, and highlight the types of facilities being prioritized. Such an analysis could provide context for the $24.1 million award, indicating whether it represents a typical investment level or a significant departure from historical spending patterns at the base.

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: W912QR10R0007

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Messer Construction CO (UEI: 041603499)

Address: 4801 HEMPSTEAD STATION DR UNIT A, DAYTON, OH, 10

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,135,916

Exercised Options: $24,135,916

Current Obligation: $24,135,916

Contract Characteristics

Cost or Pricing Data: NO

Timeline