DoD awards $15.5M for WPAFB building renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $15,497,500 ($15.5M)

Contractor: Messer Construction CO

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2028-04-15

Contract Duration: 933 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION BUILDING 20145 AT WPAFB

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to MESSER CONSTRUCTION CO for work described as: RENOVATION BUILDING 20145 AT WPAFB Key points: 1. Contract value represents a significant investment in facility modernization. 2. Competition dynamics suggest a healthy market for commercial construction services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration indicates a substantial scope of renovation work. 5. Geographic focus on Ohio aligns with regional construction employment trends.

Value Assessment

Rating: good

The contract value of $15.5 million for building renovation at Wright-Patterson Air Force Base (WPAFB) appears reasonable within the context of large-scale commercial construction projects. Benchmarking against similar federal building renovation contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bidders suggests a competitive environment, which generally leads to better pricing and value for the government. The specific number of bids received and their relative pricing would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at WPAFB, who will gain modernized facilities. The contract delivers essential renovation and construction services for a significant federal facility. The geographic impact is concentrated in Ohio, supporting local and regional construction businesses and labor. Workforce implications include job creation for skilled trades and construction professionals in the Ohio area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined upfront.
Dependence on the contractor's ability to manage complex construction timelines effectively.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bidding process.
Award to an established construction company with relevant experience is likely.
Project duration allows for thorough execution of renovation tasks.

Sector Analysis

The construction sector is a vital component of the U.S. economy, encompassing a wide range of building and infrastructure projects. Federal spending on construction, particularly for facility modernization and upgrades, is substantial. This contract for renovating Building 20145 at WPAFB fits within the broader category of commercial and institutional building construction, a segment that requires specialized expertise and adherence to stringent government standards. Comparable spending benchmarks for similar-sized federal building renovations can range widely depending on complexity, location, and specific requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Messer Construction Co., is likely a larger entity. While there is no explicit mention of small business subcontracting goals, large federal construction contracts often include provisions for small business participation. The impact on the small business ecosystem would depend on whether Messer Construction Co. actively seeks to subcontract portions of the work to qualified small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant project management office within the Department of the Army or Air Force at WPAFB. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, 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 Base Infrastructure Modernization
Federal Building Construction and Renovation
Department of Defense Facilities Management
Commercial Building Construction Services

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Risk of contractor underestimation of project complexity.
Dependency on timely government approvals and access.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to MESSER CONSTRUCTION CO. RENOVATION BUILDING 20145 AT WPAFB

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 $15.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2028-04-15.

What is the track record of Messer Construction Co. in performing similar federal building renovation contracts?

Messer Construction Co. has a history of undertaking significant construction projects, including those for government entities. To assess their track record specifically for federal building renovations of this scale, a review of their past performance evaluations on federal contracts would be necessary. This would involve examining data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to understand their on-time delivery, quality of work, and adherence to budget on previous similar projects. Their experience with firm fixed-price contracts and projects within the Department of Defense would be particularly relevant.

How does the awarded price of $15.5 million compare to similar federal building renovation projects?

Benchmarking the $15.5 million award against similar federal building renovation projects requires detailed analysis of project scope, size, location, and complexity. Without specific comparable contract data, a precise comparison is difficult. However, for a significant renovation of a federal building, this value suggests a substantial undertaking. Factors such as the age and condition of Building 20145, the extent of the planned renovations (e.g., structural, MEP, interior finishes), and prevailing construction costs in the Ohio region would influence its relative value. A detailed cost breakdown from the contractor, if available, would allow for a more granular comparison of unit costs for specific construction elements.

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

The primary risks associated with this firm fixed-price contract, despite its cost control benefits, revolve around potential scope definition issues and unforeseen conditions. If the renovation scope is not meticulously detailed, the contractor may encounter unexpected challenges during execution, leading to change orders that could increase the overall cost, albeit managed through the contract's modification process. Furthermore, unforeseen structural issues, hazardous materials, or site conditions discovered during demolition or construction could necessitate additional work not initially accounted for. The contractor's ability to accurately estimate all costs upfront is crucial; any significant underestimation poses a risk to their profitability and potentially to project completion if they face financial strain.

How effective is the full and open competition process likely to be in ensuring value for this contract?

The full and open competition process is generally effective in ensuring value for federal contracts by fostering a competitive environment. By allowing all responsible sources to submit bids, the government maximizes the potential for receiving competitive pricing and innovative solutions. The fact that two bids were received suggests a degree of market interest. The effectiveness is further amplified if the solicitation clearly defines performance requirements and evaluation criteria, allowing the government to select the best value proposal, not just the lowest price. The specific pricing and technical proposals submitted by the bidders would ultimately determine the degree of value realized.

What is the historical spending trend for building renovations at Wright-Patterson Air Force Base?

Analyzing historical spending trends for building renovations at Wright-Patterson Air Force Base (WPAFB) would provide context for the current $15.5 million award. This would involve examining past contract awards for similar renovation projects at WPAFB over several fiscal years. Key metrics to track would include the average contract value, the number of renovation projects awarded annually, and the types of construction services procured. Understanding these trends can help identify patterns in investment, potential fluctuations in construction costs, and the overall strategic focus on facility modernization at the base. Significant increases or decreases in spending could indicate shifts in budget priorities or infrastructure needs.

What are the potential implications of the 933-day duration on project costs and contractor performance?

A duration of 933 days (approximately 2.5 years) for a building renovation project of this magnitude suggests a complex scope of work, potentially involving extensive structural, mechanical, electrical, and plumbing (MEP) upgrades, as well as interior fit-outs. Such a long duration can have several implications. For the government, it means a prolonged period during which the building may be partially or fully out of service, impacting operational readiness or space utilization. For the contractor, a longer timeline increases exposure to market fluctuations in material costs and labor rates, although the firm fixed-price contract aims to mitigate this. It also requires sustained project management and resource allocation. Effective scheduling, phased construction, and proactive risk management are critical to ensure the project stays on track and within budget over this extended period.

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: W912QR25R0027

Offers Received: 2

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: $16,042,500

Exercised Options: $15,497,500

Current Obligation: $15,497,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline