Air Force awards $31.3M contract for runway reconstruction, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $31,293,470 ($31.3M)

Contractor: Southern Contracting, LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-02

End Date: 2013-08-29

Contract Duration: 423 days

Daily Burn Rate: $74.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECONSTRUCT RUNWAY 13C/31C

Place of Performance

Location: COLUMBUS, LOWNDES County, MISSISSIPPI, 39710

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to SOUTHERN CONTRACTING, LLC for work described as: RECONSTRUCT RUNWAY 13C/31C Key points: 1. Contract value represents a substantial investment in critical airfield infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of work. 3. Contract duration of 423 days indicates a complex and lengthy project. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The project falls within the broader category of civil engineering and construction services. 6. Geographic location in Mississippi may influence local economic impact and workforce availability.

Value Assessment

Rating: good

The contract value of $31.3 million for runway reconstruction appears reasonable given the scope of work. While specific benchmarks for runway reconstruction are not readily available without more detailed project specifications, the price per day of operation is approximately $73,980. This figure should be compared against similar large-scale airfield repair projects to fully assess value for money. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor manages costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, specific sources were initially excluded. This suggests a potentially limited competitive landscape, possibly due to specialized requirements or prior relationships. With 5 bidders, the competition level was moderate, which can still lead to price discovery but may not be as robust as a truly unrestricted full and open competition. Further details on the reasons for source exclusion would be needed for a complete assessment.

Taxpayer Impact: The moderate number of bidders suggests that taxpayers likely received competitive pricing, but the exclusion of certain sources might have limited the potential for even greater cost savings.

Public Impact

The primary beneficiaries are the U.S. Air Force and its operational readiness, ensuring a functional runway for aircraft. The project delivers essential infrastructure repair and modernization services for a key military installation. The geographic impact is concentrated in Mississippi, potentially creating local employment opportunities and stimulating the regional economy through construction activities. Workforce implications include demand for skilled construction labor, engineers, and project managers in the Mississippi region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Risk of schedule delays impacting airfield operations if the contractor faces challenges.
Dependence on the contractor's technical expertise and project management capabilities.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Moderate competition among 5 bidders suggests a degree of market responsiveness.
Project addresses critical infrastructure needs, ensuring long-term operational capability.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and infrastructure development. The market for airfield construction and repair is specialized, often involving significant capital investment and adherence to stringent military or aviation standards. Comparable spending benchmarks would typically be found within large-scale transportation infrastructure projects or other military base development initiatives. The size of this contract suggests it is a significant project within its specific niche.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, Southern Contracting, LLC, is likely a larger entity capable of handling the project scope independently or through its own established supply chains, with limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force unit responsible for airfield operations and maintenance. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and reporting, though detailed project progress and specific oversight activities may not be publicly disclosed.

Related Government Programs

Airfield Pavement Repair
Military Construction Projects
Infrastructure Modernization Programs
Civil Engineering Support Contracts

Risk Flags

Potential for schedule delays
Unforeseen site conditions
Limited competition due to source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to SOUTHERN CONTRACTING, LLC. RECONSTRUCT RUNWAY 13C/31C

Who is the contractor on this award?

The obligated recipient is SOUTHERN CONTRACTING, LLC.

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 $31.3 million.

What is the period of performance?

Start: 2012-07-02. End: 2013-08-29.

What is the track record of Southern Contracting, LLC in performing similar large-scale runway reconstruction projects?

Information regarding Southern Contracting, LLC's specific track record on similar large-scale runway reconstruction projects is not detailed in the provided data. To assess their capability, a review of past performance on contracts of comparable size, complexity, and scope would be necessary. This would involve examining project completion records, client satisfaction surveys, and any history of disputes or contract modifications. Without this specific performance history, it is difficult to definitively gauge their expertise in this specialized area. However, the award of this significant contract by the Department of the Air Force suggests they met certain pre-qualification criteria and demonstrated a capacity to undertake such work.

How does the awarded price compare to industry benchmarks for runway reconstruction of this scale?

Directly comparing the $31.3 million award to specific industry benchmarks for runway reconstruction is challenging without detailed project specifications (e.g., square footage, depth of repair, specific materials, complexity of drainage systems). However, the contract duration of 423 days yields a daily cost of approximately $73,980. This metric can be used as a rough comparison point against similar projects. A comprehensive value assessment would require benchmarking against other Department of Defense or Federal Aviation Administration contracts for similar airfield infrastructure work, considering factors like geographic location, labor costs, and material prices prevalent during the contract period (2012-2013).

What are the primary risks associated with this firm fixed-price contract for runway reconstruction?

The primary risks associated with this firm fixed-price contract for runway reconstruction, from the government's perspective, are minimal regarding cost overruns, as the contractor assumes that risk. However, the government remains exposed to risks related to contractor performance and schedule adherence. If Southern Contracting, LLC encounters unforeseen site conditions (e.g., subsurface issues, environmental hazards), material shortages, or labor disputes, it could lead to project delays. Such delays could impact airfield operations and potentially incur costs for the government if contract clauses allow for certain types of compensation for delays not caused by the contractor. Ensuring robust oversight and clear contract terms is crucial to mitigate these risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring competitive pricing for infrastructure projects?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance the benefits of full and open competition with specific, justifiable reasons for excluding certain potential offerors. Its effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusion. If exclusions are based on legitimate technical requirements or national security concerns that genuinely limit the pool of capable contractors, the resulting competition among the remaining bidders can still yield fair market prices. However, if exclusions are arbitrary or overly broad, they can artificially limit competition, potentially leading to higher prices than would be achieved in a truly unrestricted environment. The presence of 5 bidders suggests a moderate level of competition, which is generally conducive to price discovery.

What is the historical spending trend for runway construction and repair within the Department of the Air Force?

Historical spending trends for runway construction and repair within the Department of the Air Force typically fluctuate based on military readiness requirements, aging infrastructure, and budget allocations. Major modernization efforts or responses to wear and tear on airfields drive significant spending. The period around 2012-2013, when this contract was awarded, may have seen consistent investment in maintaining and upgrading critical airbase infrastructure. Analyzing broader spending patterns over several fiscal years would reveal cyclical investments, potential increases during periods of heightened global military activity, or shifts driven by infrastructure sustainment programs. This specific $31.3 million award represents a notable single investment within that broader context.

What are the potential long-term implications of this runway reconstruction on airfield operational efficiency and safety?

The long-term implications of this runway reconstruction project are expected to be highly positive for airfield operational efficiency and safety. By repairing or replacing aging pavement, the project directly addresses issues such as surface degradation, cracking, and unevenness, which can impede aircraft movement and increase wear on landing gear. A reconstructed runway typically offers a smoother, more reliable surface, allowing for potentially higher operational tempo and reduced delays due to surface conditions. Furthermore, modern construction standards often incorporate improved drainage, lighting, and marking systems, all of which contribute significantly to enhanced safety, particularly during adverse weather conditions or nighttime operations. This investment ensures the airfield remains a viable and safe asset for military aviation.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA302212R0006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1043 BREWER RD, PHEBA, MS, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,293,470

Exercised Options: $31,293,470

Current Obligation: $31,293,470

Contract Characteristics

Cost or Pricing Data: NO

Timeline