Department of Defense awards $19.6M contract for runway repair, highlighting construction sector activity

Contract Overview

Contract Amount: $19,617,635 ($19.6M)

Contractor: Anham - Icss JV

Awarding Agency: Department of Defense

Start Date: 2013-02-11

End Date: 2014-01-20

Contract Duration: 343 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR OF RUNWAY

Plain-Language Summary

Department of Defense obligated $19.6 million to ANHAM - ICSS JV for work described as: REPAIR OF RUNWAY Key points: 1. The contract value of $19.6 million for runway repair falls within a typical range for such infrastructure projects. 2. Competition dynamics for this contract were robust, indicating potential for competitive pricing. 3. The fixed-price contract type suggests a defined scope and cost control by the government. 4. The project duration of 343 days is standard for significant runway repair work. 5. This award reflects ongoing investment in maintaining critical military aviation infrastructure.

Value Assessment

Rating: good

The contract value of approximately $19.6 million for runway repair appears reasonable given the scope of work. Benchmarking against similar runway repair contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, a competitive process was still employed, which is a positive sign for price discovery.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better value for the government's investment.

Public Impact

Military personnel and aircraft operating from the affected airbase will benefit from improved runway conditions, enhancing operational readiness. The primary service delivered is the repair and maintenance of critical aviation infrastructure. The geographic impact is localized to the specific military installation where the runway is located. The contract supports jobs within the construction sector, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair estimates were inaccurate.
Dependence on contractor's ability to meet quality and timeline requirements.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent process.
Firm fixed-price contract type provides cost certainty for the government.
The project addresses essential infrastructure maintenance, crucial for operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on heavy civil construction related to aviation infrastructure. The market for military base construction and repair is substantial, driven by the Department of Defense's continuous need to maintain and upgrade its facilities. Comparable spending benchmarks would involve looking at other large-scale airfield construction or repair projects awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, ANHAM - ICSS JV, is likely a larger entity. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Military Construction
Airfield Operations and Maintenance
Federal Infrastructure Projects

Risk Flags

Potential for cost increases if scope is not well-defined.
Contractor performance risk.
Weather-related delays impacting schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to ANHAM - ICSS JV. REPAIR OF RUNWAY

Who is the contractor on this award?

The obligated recipient is ANHAM - ICSS JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.6 million.

What is the period of performance?

Start: 2013-02-11. End: 2014-01-20.

What is the track record of ANHAM - ICSS JV in performing similar runway repair contracts for the Department of Defense?

Assessing the track record of ANHAM - ICSS JV requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A strong track record with successful completion of similar projects on time and within budget would indicate lower risk. Conversely, a history of performance issues could raise concerns about the contractor's ability to execute this specific runway repair project effectively. Without specific past performance data readily available in this summary, a deeper dive into their contract history is recommended.

How does the awarded price of $19.6 million compare to the estimated cost or budget for this runway repair project?

The provided data does not include the government's estimated cost or budget for this runway repair project. Therefore, a direct comparison to determine if the awarded price represents good value is not possible with the current information. Ideally, the awarded price should be at or below the government's estimate, indicating efficient procurement. If the awarded price significantly exceeded the estimate, it might suggest issues with the bidding process, the initial estimate's accuracy, or market conditions. Further analysis would require access to the government's independent government cost estimate (IGCE) or budget allocation for this specific contract.

What are the primary risks associated with a firm fixed-price contract for runway repair, and how were they mitigated?

The primary risk associated with a firm fixed-price (FFP) contract for runway repair is that the contractor may face unforeseen challenges (e.g., subsurface conditions, material price fluctuations, weather delays) that increase their costs beyond the fixed price. If these challenges are significant, the contractor might seek change orders, potentially increasing the overall cost to the government, or face financial distress. Mitigation strategies employed by the government often include a very detailed scope of work, thorough site investigations prior to award, robust contract clauses addressing unforeseen conditions, and careful contractor pre-qualification. The government also benefits from cost certainty if the project proceeds as planned without significant changes.

What is the expected impact of this runway repair on the operational readiness and efficiency of the military installation?

The repair of a runway is critical for maintaining the operational readiness and efficiency of any military installation. A damaged or degraded runway can lead to flight restrictions, reduced sortie generation rates, increased maintenance on aircraft due to rough surfaces, and potential safety hazards. By repairing the runway, this contract ensures that aircraft can operate safely and efficiently, supporting the installation's primary mission, whether it be training, power projection, or logistical support. Improved runway conditions can lead to more consistent flight operations and potentially reduce wear and tear on aircraft.

How does the number of bids (3) in this full and open competition compare to typical competition levels for similar Department of Defense construction contracts?

Receiving 3 bids in a full and open competition for a Department of Defense construction contract of this magnitude ($19.6 million) is a moderate level of competition. While more bids are generally preferred to maximize competitive pressure, 3 bidders often indicate sufficient market interest and a viable competitive environment. For very large or specialized projects, fewer bids might be common due to the high qualifications required. Conversely, smaller or more routine projects might attract a larger number of bidders. Without specific benchmarks for runway repair contracts, it's difficult to definitively label 3 bids as high or low, but it suggests the competition was not severely limited.

What specific types of runway repairs were included in this $19.6 million contract, and were there any unique technical challenges anticipated?

The provided data only states 'REPAIR OF RUNWAY' and does not detail the specific types of repairs undertaken. Runway repairs can range from minor patching of cracks and potholes to major rehabilitation involving resurfacing, reconstruction of the base layers, or even widening. Unique technical challenges could include dealing with specific soil conditions, environmental regulations during construction, integration with existing drainage systems, or working around active flight operations with minimal disruption. A detailed review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the scope and any anticipated challenges.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912ER10R0089

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8075 LEESBURG PIKE STE 760, VIENNA, VA, 22182

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,617,635

Exercised Options: $19,617,635

Current Obligation: $19,617,635

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER11D0003

IDV Type: IDC

Timeline