DoD Awards $29.9M Contract for B147 SWTW Renovation to HHI Corporation

Contract Overview

Contract Amount: $29,934,069 ($29.9M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-12

End Date: 2027-03-30

Contract Duration: 1,722 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF B147 SWTW

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to HHI CORPORATION for work described as: RENOVATION OF B147 SWTW Key points: 1. Contract awarded to HHI Corporation for building construction. 2. Full and open competition after exclusion of sources was used. 3. The contract has a duration of 1722 days. 4. The total value is $29,934,069. 5. The contract is for the Department of the Air Force.

Value Assessment

Rating: good

The contract value of $29.9 million for a renovation project appears reasonable given the duration and scope. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while open competition was intended, specific sources may have been excluded, potentially limiting price discovery and competition.

Taxpayer Impact: The use of a limited competition method could result in higher costs for taxpayers compared to unrestricted full and open competition.

Public Impact

Impacts military infrastructure in Texas. Supports construction industry jobs. Ensures operational readiness through facility upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may increase costs.
  • Long contract duration could lead to scope creep or cost overruns.

Positive Signals

  • Awarded to a single entity, potentially streamlining execution.
  • Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining government facilities and infrastructure, with typical project values varying widely based on scope and complexity.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if HHI Corporation intends to subcontract with small businesses.

Oversight & Accountability

Oversight will be managed by the Department of the Air Force. The firm fixed price contract type offers some cost control, but the long duration necessitates diligent monitoring for performance and potential changes.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition may not yield the best price.
  • Long duration increases risk of cost escalation.
  • Potential for scope creep over the contract period.
  • Lack of direct small business award.

Tags

commercial-and-institutional-building-co, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to HHI CORPORATION. RENOVATION OF B147 SWTW

Who is the contractor on this award?

The obligated recipient is HHI CORPORATION.

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 $29.9 million.

What is the period of performance?

Start: 2022-07-12. End: 2027-03-30.

What specific factors led to the exclusion of certain sources in the competition?

The exclusion of sources in the competition likely stemmed from specific technical requirements, past performance evaluations, or unique capabilities needed for the B147 SWTW renovation. Understanding these criteria is crucial to assess if the limited competition was justified and truly served the government's best interest in obtaining the required services.

What are the potential risks associated with the long contract duration of 1722 days?

A contract duration of 1722 days (approximately 4.7 years) presents risks such as potential escalation of material and labor costs beyond initial estimates, changes in technology or building codes requiring contract modifications, and a reduced ability to adapt to evolving operational needs. Diligent contract management and change control processes are essential to mitigate these risks.

How does the firm fixed price contract type ensure value for taxpayers?

The Firm Fixed Price (FFP) contract type provides the government with cost certainty, as the contractor is obligated to complete the work for a predetermined price. This shifts the risk of cost overruns to the contractor, thereby protecting taxpayers from unexpected increases in project expenses, assuming the initial price was set competitively and realistically.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 736 W HARRISVILLE RD, OGDEN, UT, 84404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,934,069

Exercised Options: $29,934,069

Current Obligation: $29,934,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0017

IDV Type: IDC

Timeline

Start Date: 2022-07-12

Current End Date: 2027-03-30

Potential End Date: 2027-03-30 00:00:00

Last Modified: 2025-08-13

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