DoD awards $29M for HC-130J Hangar construction in Florida, with a 700-day performance period

Contract Overview

Contract Amount: $29,014,092 ($29.0M)

Contractor: Hitt Contracting, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-04-04

End Date: 2025-05-18

Contract Duration: 1,140 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRIMARY FACILITY - HC-130J HANGAR. THIS FUNDS THE BASE ITEMS AND OPTIONS A, B, C AND D. PERIOD OF PERFORMANCE IS 700 CALENDAR DAYS FROM NTP.

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to HITT CONTRACTING, INC. for work described as: PRIMARY FACILITY - HC-130J HANGAR. THIS FUNDS THE BASE ITEMS AND OPTIONS A, B, C AND D. PERIOD OF PERFORMANCE IS 700 CALENDAR DAYS FROM NTP. Key points: 1. Contract awarded to HITT Contracting, Inc. for construction services. 2. Project includes base items and options A, B, C, and D. 3. Performance period spans 700 calendar days from Notice to Proceed. 4. Contract type is Firm Fixed Price, indicating predictable costs. 5. Full and open competition was utilized for this award. 6. The contract is a Definitive Contract, suggesting a clear scope of work. 7. Location of construction is Florida.

Value Assessment

Rating: good

The contract value of $29.01 million for a large hangar facility appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for military aviation facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government. However, without specific cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. The use of full and open competition generally promotes a competitive environment, which can lead to better pricing and quality for the government. The number of bids received would further clarify the level of competition.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the branch requiring the HC-130J hangar. The service delivered is the construction of a critical aviation facility. The geographic impact is localized to Florida, where the facility will be built. Workforce implications include job creation for construction workers and related trades in the Florida area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions requiring change orders.
Dependence on a single contractor for the full performance period.

Positive Signals

Firm Fixed Price contract limits cost escalation.
Full and open competition suggests a competitive award process.
Clear period of performance defined.
Awarded to a known entity (HITT Contracting, Inc.).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized military aviation infrastructure. The market for constructing such facilities is often specialized, involving contractors with experience in government projects and aviation standards. The $29 million award is a significant investment, reflecting the complexity and scale of building a hangar capable of housing HC-130J aircraft. Comparable spending benchmarks would involve analyzing other military hangar construction projects across different branches and locations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (sb: false). While HITT Contracting, Inc. may engage small businesses as subcontractors, there is no explicit mandate within this award's description. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer's representative (COR) and potentially involve quality assurance personnel from the Department of the Army. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Military Base Construction
Aviation Facility Maintenance
Department of Defense Infrastructure Projects
Aircraft Hangar Development

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of unforeseen site conditions requiring scope adjustments.
Ensuring compliance with stringent military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to HITT CONTRACTING, INC.. PRIMARY FACILITY - HC-130J HANGAR. THIS FUNDS THE BASE ITEMS AND OPTIONS A, B, C AND D. PERIOD OF PERFORMANCE IS 700 CALENDAR DAYS FROM NTP.

Who is the contractor on this award?

The obligated recipient is HITT CONTRACTING, 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 $29.0 million.

What is the period of performance?

Start: 2022-04-04. End: 2025-05-18.

What is the track record of HITT Contracting, Inc. with similar government aviation construction projects?

HITT Contracting, Inc. has a significant history of performing large-scale construction projects, including those for government and aviation clients. A detailed review of their past performance on contracts with the Department of Defense or other federal agencies, particularly those involving aircraft hangars or similar specialized facilities, would be necessary to fully assess their suitability and past success rates. This would involve examining contract performance reports, any past disputes or claims, and client satisfaction feedback. Their experience with firm-fixed-price contracts and adherence to project schedules and budgets on similar projects would be key indicators.

How does the awarded price compare to industry benchmarks for constructing HC-130J hangars?

Benchmarking the $29.01 million award against industry standards for HC-130J hangars requires access to detailed cost data and construction specifications. Factors such as hangar size, specialized equipment requirements (e.g., ventilation, fire suppression, maintenance bays), site preparation needs, and regional labor costs significantly influence pricing. Without specific comparable projects that detail these elements, a precise comparison is difficult. However, the firm-fixed-price nature suggests the government sought cost certainty. Further analysis would involve consulting construction cost databases or seeking expert opinions on the reasonableness of the price relative to the project's scope and complexity.

What are the primary risks associated with the construction of this HC-130J hangar?

The primary risks associated with this construction project include potential delays due to weather, unforeseen subsurface conditions, supply chain disruptions for materials, and labor shortages. Given the 700-day performance period, adherence to schedule is critical for the operational readiness of the HC-130J aircraft. The firm-fixed-price contract mitigates financial risks for the government related to cost overruns, but the contractor bears the risk of increased costs. Ensuring robust project management, contingency planning, and effective communication between the government and HITT Contracting, Inc. are crucial for mitigating these risks.

What is the expected impact of this hangar construction on the operational capabilities of the HC-130J fleet?

The construction of a dedicated HC-130J hangar is expected to significantly enhance the operational capabilities and readiness of the aircraft fleet. Hangars provide essential protection from environmental elements, reducing wear and tear on aircraft and facilitating maintenance activities. This project will likely enable more efficient and effective maintenance, repair, and servicing of the HC-130J aircraft, potentially leading to increased aircraft availability and mission readiness. The facility's design will be tailored to the specific needs of the HC-130J, ensuring optimal support for its operations.

How has federal spending on military aviation infrastructure construction trended in recent years?

Federal spending on military aviation infrastructure construction has generally remained robust, driven by the need to modernize aging facilities and accommodate new aircraft platforms. Trends often reflect strategic priorities, such as investments in strategic airlift, fighter modernization, or unmanned aerial systems. Analyzing historical spending data for similar hangar construction projects across the DoD would reveal patterns related to contract types, competition levels, and average project costs. Factors like budget allocations, geopolitical events, and infrastructure replacement cycles influence these spending trends.

What are the key performance indicators (KPIs) likely to be used to evaluate the success of this construction contract?

Key performance indicators for this construction contract would likely include adherence to the schedule (700-day performance period), quality of construction meeting specified standards, safety compliance on-site, and final project cost within the firm-fixed-price amount. The government's contracting officer's representative (COR) would monitor progress, conduct inspections, and ensure all contractual requirements are met. Successful completion would be defined by the delivery of a fully functional and compliant HC-130J hangar, ready for operational use, within the agreed-upon timeframe and price.

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: SEALED BID

Solicitation ID: W912QR20B0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $29,096,592

Exercised Options: $29,014,092

Current Obligation: $29,014,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline