DoD's $20.6M Fuel Hydrant System Replacement Contract Awarded to Garco Construction

Contract Overview

Contract Amount: $20,629,230 ($20.6M)

Contractor: Garco Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-04-26

End Date: 2025-04-22

Contract Duration: 1,457 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WPAFB DLA FUEL HYDRANT SYSTEM REPLACEMENT - BASE AND ALL OPTIONS ARE ACCEPTED. AT THIS TIME, THE BASE AND OPTIONS 4 AND 5 BEING FUNDED.

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to GARCO CONSTRUCTION, INC. for work described as: WPAFB DLA FUEL HYDRANT SYSTEM REPLACEMENT - BASE AND ALL OPTIONS ARE ACCEPTED. AT THIS TIME, THE BASE AND OPTIONS 4 AND 5 BEING FUNDED. Key points: 1. Contract awarded for critical infrastructure upgrade at Wright-Patterson Air Force Base. 2. Definitive contract type suggests a long-term relationship for services. 3. Firm Fixed Price contract structure aims to control costs for the government. 4. Competition was full and open, indicating a broad market search. 5. The contract duration spans over 1400 days, suggesting a significant project scope. 6. Project is located in Ohio, impacting local construction and supply chains.

Value Assessment

Rating: good

The contract value of $20.6 million for a fuel hydrant system replacement appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military bases indicates that pricing is generally within expected ranges for specialized infrastructure work. The firm fixed-price nature of the award provides cost certainty for the Department of Defense, mitigating the risk of cost overruns.

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 offers. The presence of 5 bids suggests a healthy level of interest and competition for this type of specialized construction work. This broad competition is beneficial for price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and encourage efficiency from contractors.

Public Impact

Benefits the Department of Defense by ensuring the operational readiness and safety of fuel supply systems at Wright-Patterson Air Force Base. Delivers essential infrastructure upgrades to a critical military installation. Geographic impact is primarily within Ohio, supporting local construction jobs and businesses. Workforce implications include employment opportunities for skilled construction labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's multi-year duration.
Ensuring compliance with environmental regulations during construction.
Managing the logistical complexities of working on an active military base.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition likely secured competitive pricing.
Long-term contract duration allows for focused execution and potential learning curve efficiencies.

Sector Analysis

The construction sector, particularly for specialized infrastructure like fuel hydrant systems, is a significant part of federal spending. This contract falls under the Oil and Gas Pipeline and Related Structures Construction NAICS code. Comparable spending benchmarks for military base infrastructure upgrades can vary widely, but projects of this scale often range from tens to hundreds of millions of dollars, depending on complexity and location.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Garco Construction, Inc., a presumably larger entity, suggests that the primary focus was on technical capability and competitive pricing for a large-scale project. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the awarded contract.

Oversight & Accountability

The contract is a definitive contract, which typically involves detailed terms and conditions. Oversight would likely be managed by the Department of the Army contracting office responsible for Wright-Patterson Air Force Base. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price structure and contract performance clauses.

Related Government Programs

Military Base Infrastructure Projects
Fuel Storage and Distribution Systems
Department of Defense Construction Contracts
Wright-Patterson Air Force Base Operations

Risk Flags

Potential for schedule slippage due to project complexity and duration.
Ensuring contractor compliance with stringent military base safety and environmental standards.
Managing potential cost fluctuations in materials and labor over the contract period, despite FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to GARCO CONSTRUCTION, INC.. WPAFB DLA FUEL HYDRANT SYSTEM REPLACEMENT - BASE AND ALL OPTIONS ARE ACCEPTED. AT THIS TIME, THE BASE AND OPTIONS 4 AND 5 BEING FUNDED.

Who is the contractor on this award?

The obligated recipient is GARCO CONSTRUCTION, 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 $20.6 million.

What is the period of performance?

Start: 2021-04-26. End: 2025-04-22.

What is the track record of Garco Construction, Inc. with federal contracts, particularly within the Department of Defense?

Garco Construction, Inc. has a history of federal contracting, primarily with the Department of Defense. Reviewing their past performance on similar infrastructure projects, especially those involving fuel systems or pipeline construction on military installations, would provide insight into their capabilities and reliability. Analyzing their award history, contract values, and any reported performance issues or successes can help assess their suitability for this current project. Understanding their experience with firm fixed-price contracts and adherence to project timelines is also crucial for evaluating their track record.

How does the awarded price of $20.6 million compare to similar fuel hydrant system replacement projects at other military bases?

Benchmarking this $20.6 million contract against similar fuel hydrant system replacement projects at other military bases requires access to detailed cost data for comparable projects. Factors such as the size of the base, the complexity of the existing and new systems, the specific geographic location (which affects labor and material costs), and the scope of work (e.g., underground vs. above-ground components, integration with existing infrastructure) significantly influence project costs. Without specific comparable project data, a precise value-for-money assessment is challenging. However, the firm fixed-price nature and full and open competition suggest an effort to achieve competitive pricing.

What are the primary risks associated with a multi-year construction project of this nature, and how are they being mitigated?

Key risks for this multi-year fuel hydrant system replacement project include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions. Cost overruns are mitigated by the firm fixed-price contract type, which shifts much of the financial risk to the contractor. Performance risks, such as quality of work or adherence to specifications, are managed through contract oversight, inspections, and performance clauses. Environmental compliance and safety on an active military installation are also significant risk areas requiring stringent management protocols. The contractor's experience and the government's oversight plan are critical mitigation factors.

What is the expected impact of this contract on the operational effectiveness and safety of Wright-Patterson Air Force Base?

The replacement of the fuel hydrant system is expected to significantly enhance the operational effectiveness and safety of Wright-Patterson Air Force Base. An aging or failing hydrant system can lead to fuel supply disruptions, increased maintenance costs, and potential safety hazards, including leaks or contamination. A new, modern system will ensure reliable and safe fuel delivery for aircraft operations, reduce the risk of environmental incidents, and likely decrease long-term maintenance expenditures. This upgrade is crucial for maintaining the base's readiness and supporting its mission-critical functions.

How has federal spending on similar infrastructure construction projects at military installations trended over the past five years?

Federal spending on infrastructure construction projects at military installations has generally remained robust, driven by the need to modernize aging facilities and address deferred maintenance. While specific trends vary by agency and project type, there has been a consistent focus on upgrading critical systems like fuel, power, and water. Factors influencing spending include national security priorities, congressional appropriations, and the condition assessments of existing infrastructure. Analyzing historical spending data for the Department of Defense's facilities engineering and construction accounts would reveal overall trends and highlight areas of increased investment.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR21R0006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4114 E BROADWAY AVE, SPOKANE, WA, 99202

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

Financial Breakdown

Contract Ceiling: $20,738,905

Exercised Options: $20,629,230

Current Obligation: $20,629,230

Actual Outlays: $746,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline