DoD's $51M Shaiban Logistics Base Construction Contract Awarded to Gilbane Federal
Contract Overview
Contract Amount: $50,992,861 ($51.0M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2007-11-21
End Date: 2010-04-03
Contract Duration: 864 days
Daily Burn Rate: $59.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION, SHAIBAN LOGISTICS BASE, IRAQ
Plain-Language Summary
Department of Defense obligated $51.0 million to GILBANE FEDERAL for work described as: CONSTRUCTION, SHAIBAN LOGISTICS BASE, IRAQ Key points: 1. Contract awarded to Gilbane Federal for construction services. 2. Project is for the Shaiban Logistics Base in Iraq. 3. The Department of the Air Force is the contracting agency. 4. Contract type is Cost Plus Fixed Fee. 5. This project falls under the Commercial and Institutional Building Construction NAICS code.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar construction projects in overseas contingency operations is difficult due to unique logistical and security challenges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee pricing structure may not always yield the most cost-effective outcome compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being utilized for overseas military base construction, with potential for cost escalation inherent in the contract type.
Public Impact
Supports military operations by providing essential logistics infrastructure. Potential for cost overruns due to contract type and operational environment. Impacts local economy through construction jobs and material sourcing (if applicable). Requires ongoing oversight to ensure project completion and cost control.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Overseas construction presents unique logistical and security risks.
- Limited transparency on specific cost drivers for this type of contract.
Positive Signals
- Awarded through full and open competition.
- Addresses critical infrastructure needs for military operations.
Sector Analysis
Construction spending in support of defense operations often involves complex logistical challenges and higher risk profiles. Benchmarks are difficult to establish due to the unique nature of overseas projects and varying security environments.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts, especially in overseas environments. The Department of the Air Force must ensure rigorous monitoring of costs, schedule, and performance to mitigate risks and ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Overseas contingency operation environment.
- Potential for cost overruns.
- Lack of specific small business participation data.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.0 million to GILBANE FEDERAL. CONSTRUCTION, SHAIBAN LOGISTICS BASE, IRAQ
Who is the contractor on this award?
The obligated recipient is GILBANE FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $51.0 million.
What is the period of performance?
Start: 2007-11-21. End: 2010-04-03.
What were the primary cost drivers that led to the final award amount of $50.99 million for this construction project?
The primary cost drivers likely included labor, materials, equipment, transportation to Iraq, site preparation, security, and overhead. The Cost Plus Fixed Fee structure means the government covers allowable costs plus a negotiated fixed fee for the contractor's profit and overhead. Specific details on the allocation of these costs would typically be found in the contract's detailed cost breakdown, which is often not publicly available.
What specific risks were identified and mitigated during the full and open competition process for this overseas construction contract?
Risks during competition likely included ensuring fair pricing, contractor capability, and adherence to security protocols. Mitigation strategies might involve pre-qualification of bidders, detailed performance work statements, and robust evaluation criteria. For overseas projects, risks related to political instability, logistical challenges, and local regulations are also critical considerations that bidders and the contracting agency must address.
How effectively does this construction project contribute to the Department of Defense's strategic objectives in Iraq, considering its cost and duration?
The project's effectiveness hinges on its contribution to logistical support for military operations. The $51 million cost and nearly 2.5-year duration suggest a significant investment. Its strategic value depends on the base's role in current and future operations, force projection, and sustainment capabilities. A thorough post-award review would be necessary to assess the return on investment and alignment with strategic goals.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 2730 SHADELANDS DR # 100, WALNUT CREEK, CA, 10
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,992,861
Exercised Options: $50,992,861
Current Obligation: $50,992,861
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA890306D8513
IDV Type: IDC
Timeline
Start Date: 2007-11-21
Current End Date: 2010-04-03
Potential End Date: 2010-04-03 00:00:00
Last Modified: 2009-04-23
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