Army Awards $137.6M Construction Contract to Fluor Alaska for Fort Greely Facilities
Contract Overview
Contract Amount: $362,393,076 ($362.4M)
Contractor: Fluor Alaska, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-04-16
End Date: 2015-12-07
Contract Duration: 4,983 days
Daily Burn Rate: $72.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: 200210!000427!2100!CA87 !U.S. ARMY ENGINEER AND SUPPORT !DACA8702C0004 !A!N! !N! !20020416!20040331!137659793!059220392!006907190!N!FLUOR ALASKA INC !1200 JADWIN AVENUE !RICHLAND !AK!99352!26100!240!02!FORT GREELY !SOUTHEAST FAIRBANKS !ALASKA !+000070000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B!F!N!A! !A!Y!R!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: DELTA JUNCTION, SOUTHEAST FAIRBANKS County, ALASKA, 99737
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $362.4 million to FLUOR ALASKA, INC. for work described as: 200210!000427!2100!CA87 !U.S. ARMY ENGINEER AND SUPPORT !DACA8702C0004 !A!N! !N! !20020416!20040331!137659793!059220392!006907190!N!FLUOR ALASKA INC !1200 JADWIN AVENUE !RICHLAND !AK!99352!26100!240!02!FORT GREELY !SOUTHEAST FAIRBANKS !ALASKA !+000070000000!N!N!000000000000!Y199!… Key points: 1. The contract, valued at $137.6 million, was awarded to Fluor Alaska, Inc. for construction services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 4. The project is categorized under 'Other Heavy and Civil Engineering Construction', suggesting infrastructure development.
Value Assessment
Rating: fair
The contract value of $137.6 million for construction services appears within a reasonable range for large-scale infrastructure projects. However, without specific details on the scope of work and comparable projects, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.
Public Impact
Supports military infrastructure at Fort Greely, Alaska, enhancing operational capabilities. Provides construction jobs and economic activity in the Southeast Fairbanks region of Alaska. The project contributes to the modernization and maintenance of critical defense facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Award Fee contracts if performance incentives are not well-defined.
- Geographic remoteness of Fort Greely could impact logistics and increase costs.
- Long contract duration (4983 days) may introduce risks related to changing requirements or economic conditions.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Focus on critical military infrastructure development.
- Contract type incentivizes performance through award fees.
Sector Analysis
This contract falls under the Construction sector, specifically heavy and civil engineering. Spending in this area is often driven by government infrastructure needs, military base development, and public works projects. Benchmarks vary widely based on project type and location.
Small Business Impact
The data indicates this was a large contract awarded to Fluor Alaska, Inc. There is no specific information provided regarding subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management teams ensuring compliance with terms, performance standards, and budget adherence.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is exceptionally long (4983 days).
- Cost Plus Award Fee contract type can lead to cost uncertainty.
- Project location in Alaska may present logistical challenges and higher costs.
- Lack of specific details on the scope of work limits detailed value assessment.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ak, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $362.4 million to FLUOR ALASKA, INC.. 200210!000427!2100!CA87 !U.S. ARMY ENGINEER AND SUPPORT !DACA8702C0004 !A!N! !N! !20020416!20040331!137659793!059220392!006907190!N!FLUOR ALASKA INC !1200 JADWIN AVENUE !RICHLAND !AK!99352!26100!240!02!FORT GREELY !SOUTHEAST FAIRBANKS !ALASKA !+000070000000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B!F!N!A! !A!Y!R!2!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!
Who is the contractor on this award?
The obligated recipient is FLUOR ALASKA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $362.4 million.
What is the period of performance?
Start: 2002-04-16. End: 2015-12-07.
What specific construction services were included in this $137.6 million contract, and how do they align with Fort Greely's operational needs?
The contract data specifies the North American Industry Classification System (NAICS) code 237990, 'Other Heavy and Civil Engineering Construction,' and mentions 'Other Miscellaneous Buildings.' This suggests a broad scope including infrastructure, utilities, and building construction. The exact services would be detailed in the contract's statement of work, aimed at supporting Fort Greely's mission requirements, which could range from barracks and training facilities to logistical support structures.
What are the potential risks associated with a Cost Plus Award Fee contract for a project of this magnitude and duration?
Cost Plus Award Fee (CPAF) contracts carry inherent risks, primarily the potential for costs to escalate if the award fee criteria are not tightly managed or if the contractor's performance incentives are not perfectly aligned with the government's objectives. For a long-duration project like this (nearly 14 years), there's also a risk of scope creep, unforeseen site conditions, and inflation impacting costs beyond initial projections, potentially leading to higher-than-anticipated final expenditures.
How effectively did the 'full and open competition' process ensure value for money, given the project's scale and location?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best prices and technical solutions. For a large-scale construction project in a potentially remote location like Fort Greely, the effectiveness hinges on the clarity of the solicitation, the number and capability of competing firms, and the evaluation criteria used. While competition generally drives value, the specific outcomes depend on the market conditions and the government's ability to define requirements precisely to elicit competitive bids.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 406 W FIREWEED LANE, ANCHORAGE, AK, 99503
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-04-16
Current End Date: 2015-12-07
Potential End Date: 2015-12-07 00:00:00
Last Modified: 2016-01-05
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