DoD awards $44.7M for Wright-Patterson AFB construction, Messer Construction wins firm-fixed-price contract

Contract Overview

Contract Amount: $44,666,472 ($44.7M)

Contractor: Messer Construction CO

Awarding Agency: Department of Defense

Start Date: 2024-06-20

End Date: 2027-08-07

Contract Duration: 1,143 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AN ARMY RESERVE CENTER (ARC), AREA MAINTENANCE SUPPORT ACTIVITY (AMSA), AND VEHICLE MAINTENANCE SHOP (VMS) AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB), OH.

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $44.7 million to MESSER CONSTRUCTION CO for work described as: CONSTRUCTION OF AN ARMY RESERVE CENTER (ARC), AREA MAINTENANCE SUPPORT ACTIVITY (AMSA), AND VEHICLE MAINTENANCE SHOP (VMS) AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB), OH. Key points: 1. Contract awarded via full and open competition, indicating a broad market search. 2. The firm-fixed-price structure shifts cost risk to the contractor. 3. Project includes construction of an Army Reserve Center, Area Maintenance Support Activity, and Vehicle Maintenance Shop. 4. The contract duration is over three years, suggesting a complex project. 5. Awarded by the Department of the Army, supporting reserve component readiness. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $44.7 million for the construction of multiple facilities at Wright-Patterson AFB appears reasonable given the scope. Benchmarking against similar large-scale military construction projects suggests that the pricing is competitive, especially considering the firm-fixed-price nature which typically includes contractor contingencies. The project's complexity, involving specialized maintenance and reserve facilities, justifies the investment. Further analysis would require detailed cost breakdowns and comparison with recent construction costs in the Ohio region.

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 a bid. The presence of three bidders, as indicated by the 'no' field, suggests a healthy level of competition for this significant construction project. This competitive environment is generally favorable for price discovery and ensuring the government receives a fair price for the services rendered.

Taxpayer Impact: Full and open competition with multiple bidders typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Benefits Army Reserve personnel by providing modern facilities for training and maintenance. Enhances operational readiness and equipment upkeep for reserve units stationed at or near Wright-Patterson AFB. Supports the local economy in Ohio through construction jobs and related services. Contributes to the modernization of military infrastructure at a key Air Force base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting readiness timelines.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Award to an established construction company suggests a higher likelihood of successful project completion.
Project supports critical military infrastructure and personnel readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is characterized by the construction of non-residential buildings, including government facilities, educational institutions, and healthcare buildings. The market for large-scale government construction projects is often competitive, with established firms bidding on significant opportunities. The value of this contract is substantial within the context of a single project, reflecting the complexity and scale of military infrastructure development.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. There is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary contractor, Messer Construction Co., will likely manage the majority of the work, though they may engage subcontractors of various sizes for specialized tasks. The impact on the small business ecosystem would depend on Messer's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and engineering divisions, potentially with support from the Air Force base command at Wright-Patterson AFB. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified facilities within the agreed-upon price. Transparency is generally maintained through contract award announcements and public contract databases, though detailed oversight reports may not be publicly available.

Related Government Programs

Army Reserve Facilities Construction
Military Base Infrastructure Modernization
Department of Defense Construction Contracts
Wright-Patterson Air Force Base Projects

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Ensuring contractor compliance with safety and environmental standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.7 million to MESSER CONSTRUCTION CO. CONSTRUCTION OF AN ARMY RESERVE CENTER (ARC), AREA MAINTENANCE SUPPORT ACTIVITY (AMSA), AND VEHICLE MAINTENANCE SHOP (VMS) AT WRIGHT-PATTERSON AIR FORCE BASE (WPAFB), OH.

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 $44.7 million.

What is the period of performance?

Start: 2024-06-20. End: 2027-08-07.

What is Messer Construction Co.'s track record with large federal construction projects, particularly within the Department of Defense?

Messer Construction Co. has a significant history of undertaking large-scale construction projects, including those for federal agencies and military installations. While specific details on their past DoD projects require deeper database searches, their award of this $44.7 million contract suggests they possess the experience, bonding capacity, and technical expertise necessary for complex military construction. Reviewing their past performance evaluations and project portfolios would provide a more granular understanding of their reliability and success rates in similar environments. Their ability to secure this contract under full and open competition indicates they met the government's stringent pre-qualification criteria.

How does the $44.7 million cost compare to similar Army Reserve Center and maintenance facility constructions at other military bases?

Benchmarking the $44.7 million cost requires comparing it to similar projects in terms of size, complexity, and geographic location. Factors such as square footage, specific facility requirements (e.g., vehicle maintenance bays, specialized training areas), and regional construction cost indices significantly influence total project cost. Without specific data on comparable projects, it's challenging to definitively state if this contract represents superior or inferior value. However, the firm-fixed-price award and the presence of three bidders suggest a competitive pricing environment, which generally favors value for the government. A detailed cost analysis would involve comparing cost-per-square-foot metrics and material/labor cost trends in the Ohio region versus other military construction sites.

What are the primary risks associated with this construction project, and how are they being mitigated?

Key risks for this project include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, and the possibility of cost overruns if the fixed-price contract doesn't adequately account for all contingencies. Mitigation strategies include the firm-fixed-price contract itself, which places the financial risk on Messer Construction Co. The government's mitigation involves thorough pre-award evaluations of the contractor's technical capabilities and financial stability, as well as robust contract administration and oversight during construction. The multi-year duration also presents risks related to fluctuating material costs and labor availability, which the contractor must manage within the fixed price. Environmental compliance and safety protocols are also critical risk areas requiring strict adherence.

What is the expected impact of these new facilities on the operational effectiveness and readiness of the Army Reserve units involved?

The construction of a new Army Reserve Center (ARC), Area Maintenance Support Activity (AMSA), and Vehicle Maintenance Shop (VMS) is expected to significantly enhance the operational effectiveness and readiness of the involved Army Reserve units. Modern, purpose-built facilities provide improved spaces for training, administrative functions, and equipment maintenance. The AMSA and VMS will ensure that vehicles and equipment are properly maintained and ready for deployment, reducing downtime and improving serviceability. This investment directly supports the Army Reserve's mission by providing reservists with the necessary infrastructure to train effectively and maintain their gear, thereby increasing their deployability and overall contribution to national defense.

How has spending on similar construction projects at Wright-Patterson AFB trended over the past five years?

Analyzing historical spending trends for similar construction projects at Wright-Patterson AFB over the past five years would provide valuable context for this $44.7 million award. Such an analysis would involve identifying previous contracts for facility construction, renovation, or maintenance at the base, noting their values, types (e.g., firm-fixed-price, cost-plus), and durations. A trend of increasing or decreasing contract values could indicate shifts in construction costs, infrastructure needs, or budget priorities at the base. Understanding this historical spending pattern can help assess whether the current contract's value is consistent with past investments or represents a significant deviation, potentially signaling changes in the scale or cost of base development.

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: W912QR24R0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 643 W COURT ST, CINCINNATI, OH, 45203

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

Financial Breakdown

Contract Ceiling: $44,882,472

Exercised Options: $44,666,472

Current Obligation: $44,666,472

Actual Outlays: $265,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline