Beale AFB New Construction Contract Awarded to Cox Construction Co. for $36.3M

Contract Overview

Contract Amount: $36,303,738 ($36.3M)

Contractor: COX Construction CO

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2025-05-28

Contract Duration: 975 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW CONSTRUCTION, SQ OPS AND AMU BEALE AFB

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.3 million to COX CONSTRUCTION CO for work described as: NEW CONSTRUCTION, SQ OPS AND AMU BEALE AFB Key points: 1. Contract value represents a significant investment in infrastructure modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Project duration of 975 days indicates a substantial construction timeline. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. Geographic focus on Beale AFB, California, highlights regional infrastructure development. 6. The contract falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $36.3 million for new construction at Beale AFB appears reasonable given the scope of work, which includes operations and maintenance buildings. Benchmarking against similar large-scale construction projects for military bases suggests that this award is within expected cost ranges. The firm fixed-price nature of the contract provides a degree of cost control for the government, although the final cost will depend on the contractor's efficiency and management of unforeseen issues.

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. With three bidders participating, the competition level suggests a healthy market interest in this type of government construction work. The presence of multiple bidders generally contributes to price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition with three bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Beale AFB, who will gain modern facilities. The contract delivers new construction, including operational and maintenance buildings, enhancing base capabilities. The geographic impact is concentrated at Beale AFB in California. The project will likely create jobs in the construction sector within California, supporting the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather, material availability, or labor shortages.
Ensuring compliance with all environmental and safety regulations throughout the construction process.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition with multiple bidders suggests a competitive pricing environment.
The contractor, Cox Construction Co., is likely experienced in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often supports critical infrastructure for government operations, including military bases. Comparable spending benchmarks for similar base construction projects can vary widely based on location, size, and specific requirements, but a $36.3 million award for new operational and maintenance facilities is substantial.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Cox Construction Co., there is no explicit information on subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small business subcontracting goals were established or met, which is crucial for assessing the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, given the agency information provided. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or inspector general involvement would depend on project milestones and any identified issues.

Related Government Programs

Military Base Construction
Department of Defense Infrastructure Projects
Federal Building and Construction Contracts
Air Force Base Modernization

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen conditions
Ensuring quality of construction
Compliance with environmental regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.3 million to COX CONSTRUCTION CO. NEW CONSTRUCTION, SQ OPS AND AMU BEALE AFB

Who is the contractor on this award?

The obligated recipient is COX 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 $36.3 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-05-28.

What is the track record of Cox Construction Co. on similar federal contracts?

Cox Construction Co. has a history of performing federal construction contracts, particularly within the Department of Defense. While specific details on past performance metrics are not provided in this data snippet, their selection for a $36.3 million project at Beale AFB suggests they meet the necessary qualifications and experience requirements set by the Army Corps of Engineers or relevant contracting agency. A deeper dive into their contract history, including past performance evaluations, any disputes, or on-time completion rates for similar-sized projects, would provide a more comprehensive understanding of their reliability and capability.

How does the $36.3 million value compare to similar new construction projects at military bases?

The $36.3 million contract value for new construction and operations/maintenance buildings at Beale AFB is a significant but not unusual figure for military infrastructure projects. The cost of base construction is highly variable, influenced by factors such as geographic location (labor costs, material transport), specific building requirements (e.g., security, specialized equipment), site conditions, and the overall economic climate. Without specific details on the square footage, complexity of the buildings, and duration of construction, a precise comparison is difficult. However, this award appears to be in line with substantial construction efforts typically undertaken to modernize or expand military installations.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with this firm fixed-price contract, while offering cost certainty, lie in potential scope creep and unforeseen circumstances. If the government requires changes or additions to the original scope of work, these could lead to change orders that increase the overall cost and potentially extend the schedule, even within a fixed-price framework. Furthermore, if Cox Construction Co. underestimates costs, faces significant material price increases, or encounters unexpected site conditions (like hazardous materials or difficult soil), they bear the financial burden, which could impact their profitability or, in extreme cases, their ability to complete the project without issues. The government's risk is primarily related to ensuring the contractor adequately manages these potential challenges and delivers the required quality.

How effective is full and open competition in ensuring value for taxpayer money in large construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large construction contracts. By allowing all responsible contractors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as seen with three in this case, increases the likelihood that the government will receive a fair market price. This process also promotes transparency and reduces the potential for favoritism or collusion. While oversight is still crucial to ensure the winning bid represents true value and the contractor performs as expected, the competitive bidding stage is foundational for achieving cost-effectiveness.

What is the historical spending trend for new construction at Beale AFB or similar Air Force bases?

Historical spending trends for new construction at Beale AFB and similar Air Force bases typically fluctuate based on military readiness needs, budget allocations, and infrastructure modernization cycles. Major construction projects are often driven by strategic decisions regarding force structure, new equipment, or aging facility replacement. Spending can be lumpy, with periods of significant investment followed by leaner years. Analyzing past spending data for Beale AFB would reveal patterns related to specific types of construction (e.g., housing, hangars, operational facilities) and the average contract values awarded over time. This context helps determine if the current $36.3 million award is consistent with, higher than, or lower than historical norms for similar projects.

Are there specific performance metrics or KPIs tied to this contract for evaluating success?

While the provided data does not explicitly list Key Performance Indicators (KPIs) or specific performance metrics for this contract, they are standard components of federal construction agreements. Typically, performance is evaluated against criteria such as adherence to the schedule, quality of workmanship, compliance with safety regulations, and successful completion of all specified construction tasks. The firm fixed-price nature incentivizes timely completion and adherence to scope. The contracting officer's representative (COR) or designated government personnel would monitor progress and quality, with formal evaluations often occurring upon project completion or at key milestones. Any deficiencies or failures to meet contractual obligations could impact future bidding opportunities for the contractor.

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: W912QR22R0064

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1210 DISTRIBUTION WAY, VISTA, CA, 92081

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

Financial Breakdown

Contract Ceiling: $37,166,738

Exercised Options: $36,303,738

Current Obligation: $36,303,738

Actual Outlays: $6,506,434

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $46,650,963

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline