Air Force Awards $12.5M Contract for B-21 Operations Support Squadron Demolition/Consolidation
Contract Overview
Contract Amount: $12,495,554 ($12.5M)
Contractor: HGL Construction Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-23
End Date: 2026-01-20
Contract Duration: 1,215 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DEMOLISH/CONSOLIDATE 19 OPERATIONS SUPPORT SQUADRON (OSS) FUNCTION IN B-216
Place of Performance
Location: LITTLE ROCK AFB, PULASKI County, ARKANSAS, 72099
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $12.5 million to HGL CONSTRUCTION INC for work described as: DEMOLISH/CONSOLIDATE 19 OPERATIONS SUPPORT SQUADRON (OSS) FUNCTION IN B-216 Key points: 1. The contract focuses on demolishing and consolidating 19 Operations Support Squadron (OSS) functions. 2. HGL Construction Inc. secured the award under full and open competition. 3. The project duration is 1215 days, indicating a significant undertaking. 4. The fixed-price contract type aims to control costs for the Department of the Air Force.
Value Assessment
Rating: good
The contract value of $12.5 million for demolition and consolidation of 19 squadron functions appears reasonable given the scope and duration. Benchmarking against similar large-scale construction and demolition projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for this infrastructure project.
Public Impact
Impacts 19 specific Air Force Operations Support Squadron functions. Potential for improved operational efficiency through consolidation. Construction and demolition activities may cause localized disruption. Supports the modernization of Air Force infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for unforeseen site conditions during demolition.
- Coordination challenges across 19 distinct squadron functions.
- Environmental considerations during demolition and construction.
Positive Signals
- Clear contract type (Firm Fixed Price) for cost control.
- Full and open competition ensures market-driven pricing.
- Long-term project duration allows for phased execution.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure projects can vary significantly based on base modernization needs and geopolitical factors.
Small Business Impact
The contract was awarded to HGL Construction Inc. and does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed-price contract and defined duration provide a framework for accountability, but detailed monitoring of progress and quality is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for asbestos or other hazardous materials.
- Unforeseen structural issues during demolition.
- Coordination complexity across multiple squadron functions.
- Environmental impact during construction phase.
- Potential for schedule delays due to weather or site conditions.
Tags
commercial-and-institutional-building-co, department-of-defense, ar, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to HGL CONSTRUCTION INC. DEMOLISH/CONSOLIDATE 19 OPERATIONS SUPPORT SQUADRON (OSS) FUNCTION IN B-216
Who is the contractor on this award?
The obligated recipient is HGL CONSTRUCTION INC.
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 $12.5 million.
What is the period of performance?
Start: 2022-09-23. End: 2026-01-20.
What is the specific rationale for consolidating these 19 OSS functions, and what are the projected long-term operational benefits?
The specific rationale likely stems from a need to modernize infrastructure, improve efficiency, and potentially reduce operational overhead. Consolidating functions can streamline support services, enhance collaboration, and centralize resources. Projected benefits often include cost savings through reduced facility footprint, optimized staffing, and improved service delivery, though these need to be quantified through a formal analysis.
What are the potential environmental risks associated with demolishing existing structures, and what mitigation strategies are in place?
Potential environmental risks include the presence of hazardous materials (e.g., asbestos, lead paint), soil contamination, and dust/noise pollution. Mitigation strategies typically involve thorough site assessments, proper abatement procedures for hazardous materials, containment measures to prevent soil and water contamination, and dust/noise control plans as mandated by environmental regulations and the contract specifications.
How will the success of the consolidation be measured post-completion to ensure value for money and improved effectiveness?
Success will likely be measured through key performance indicators (KPIs) established in the contract or subsequent operational plans. These could include metrics related to cost savings achieved, improvements in response times for support services, reduction in facility maintenance costs, enhanced collaboration among consolidated units, and overall user satisfaction surveys from personnel utilizing the consolidated facilities.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 S DOUGLAS BLVD STE A, OKLAHOMA CITY, OK, 73130
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,495,554
Exercised Options: $12,495,554
Current Obligation: $12,495,554
Actual Outlays: $5,646,456
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA446022D0003
IDV Type: IDC
Timeline
Start Date: 2022-09-23
Current End Date: 2026-01-20
Potential End Date: 2026-01-20 00:00:00
Last Modified: 2025-09-18
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