Department of Defense awards $25.6M contract for dormitory repairs and facade upgrades at McConnell Air Force Base

Contract Overview

Contract Amount: $25,659,606 ($25.7M)

Contractor: Ahtna-Cdm Smith JV

Awarding Agency: Department of Defense

Start Date: 2024-04-08

End Date: 2026-05-25

Contract Duration: 777 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INTERIOR REPAIR AND REMODELING OF 188 DORMITORY ROOMS, COMMON SPACES, AND REPLACEMENT OF THE EXTERIOR MASONRY VENEER ON THIS 3 STORY DORMITORY FACILITY WITH A NEW EIFS WALL SYSTEM AND A NEW SSMRS ROOF.

Place of Performance

Location: MCCONNELL AFB, SEDGWICK County, KANSAS, 67221

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to AHTNA-CDM SMITH JV for work described as: INTERIOR REPAIR AND REMODELING OF 188 DORMITORY ROOMS, COMMON SPACES, AND REPLACEMENT OF THE EXTERIOR MASONRY VENEER ON THIS 3 STORY DORMITORY FACILITY WITH A NEW EIFS WALL SYSTEM AND A NEW SSMRS ROOF. Key points: 1. Contract focuses on essential infrastructure upgrades for military housing. 2. Project scope includes interior renovations and exterior building envelope improvements. 3. Firm-fixed-price contract type suggests defined cost expectations. 4. Long duration indicates a comprehensive and potentially complex project. 5. Location in Kansas suggests regional construction market engagement.

Value Assessment

Rating: good

The contract value of $25.6 million for dormitory repairs and exterior upgrades appears reasonable given the scope of work, which includes interior remodeling of 188 rooms and common spaces, along with a new EIFS wall system and SSMRS roof. Benchmarking against similar large-scale dormitory renovation projects within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the long duration of 777 days could introduce escalation risks if not managed carefully.

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 the intent was broad competition, specific sources were initially excluded, potentially limiting the bidder pool. The award to AHTNA-CDM SMITH JV suggests that at least two entities were considered or competed. The level of competition, while not fully open, likely provided some price discovery, but the exclusion of sources warrants further investigation into the justification.

Taxpayer Impact: The exclusion of certain sources may have limited the potential for the most competitive pricing, potentially impacting taxpayer value. Understanding the rationale behind the exclusion is key to assessing if taxpayers received the best possible price.

Public Impact

Service members residing in the affected dormitories will benefit from improved living conditions and updated facilities. The project will enhance the structural integrity and energy efficiency of the dormitory building. Construction activities will likely involve local and regional labor, providing economic stimulus. The upgrades contribute to the overall readiness and quality of life at McConnell Air Force Base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long project duration (777 days).
Risk of delays impacting service member housing availability.
Dependence on specific materials (EIFS, SSMRS) could lead to supply chain issues.
Justification for 'exclusion of sources' needs to be clear to ensure fair competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on essential infrastructure upgrades addresses critical needs.
Award to a joint venture may indicate capacity for complex projects.
Project aims to improve quality of life for military personnel.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Defense is a major client in this sector, frequently awarding contracts for facility maintenance, repair, and new construction to support its vast infrastructure. Spending in this area is driven by the need to maintain operational readiness and provide adequate housing and facilities for military personnel. Comparable spending benchmarks would involve analyzing other large-scale dormitory renovation or building envelope projects awarded by federal agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. The award was made under full and open competition after exclusion of sources. While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, AHTNA-CDM SMITH JV, may engage small businesses as subcontractors. An analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Air Force facilities and engineering departments. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency can be assessed through contract award notices and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the performance of the contract.

Related Government Programs

Military Housing Construction and Renovation
Department of Defense Facilities Management
Building Envelope Repair and Replacement
Commercial and Institutional Building Construction

Risk Flags

Potential for limited competition due to source exclusion.
Long project duration increases risk of cost escalation and delays.
Dependence on specific building materials could lead to supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to AHTNA-CDM SMITH JV. INTERIOR REPAIR AND REMODELING OF 188 DORMITORY ROOMS, COMMON SPACES, AND REPLACEMENT OF THE EXTERIOR MASONRY VENEER ON THIS 3 STORY DORMITORY FACILITY WITH A NEW EIFS WALL SYSTEM AND A NEW SSMRS ROOF.

Who is the contractor on this award?

The obligated recipient is AHTNA-CDM SMITH JV.

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 $25.7 million.

What is the period of performance?

Start: 2024-04-08. End: 2026-05-25.

What is the track record of AHTNA-CDM SMITH JV in performing similar large-scale construction and renovation projects for the Department of Defense?

Assessing the track record of AHTNA-CDM SMITH JV requires a review of their past performance on federal contracts, particularly those involving dormitory renovations, exterior facade replacements, and roofing systems. Information on their past performance, including any history of cost overruns, schedule delays, or quality issues, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A positive performance history on similar projects would increase confidence in their ability to successfully execute this $25.6 million contract. Conversely, a history of subpar performance would raise concerns about project execution and value for taxpayers.

How does the awarded price of $25.6 million compare to market rates for similar dormitory renovation and EIFS/SSMRS roof replacement projects?

To benchmark the $25.6 million award, a detailed cost analysis would be necessary, comparing the price per square foot or per room renovated against similar projects in the Kansas region and nationally. Factors such as the complexity of the interior work, the specific EIFS and SSMRS systems chosen, and prevailing labor and material costs would need to be considered. Data from construction cost estimating services, industry reports, and publicly available contract awards for comparable projects would be essential. Without this detailed comparison, it is difficult to definitively state if the price represents excellent value, or if it is higher than market rates.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method introduces specific risks. The primary risk is that by excluding certain potential bidders, the government may not have received the most competitive offers available in the market. This could lead to a higher price for taxpayers than if all qualified sources had been allowed to compete. The justification for excluding sources must be robust and clearly documented to ensure fairness and prevent potential protests. If the exclusion was not adequately justified, it could indicate a lack of proper market research or an attempt to steer the contract, thereby undermining the integrity of the procurement process and potentially increasing costs.

What is the expected impact of the 777-day duration on the overall cost and potential for project delays?

A project duration of 777 days (approximately 2.1 years) for dormitory renovations and facade replacement carries inherent risks related to cost escalation and potential delays. Longer project timelines increase the exposure to fluctuating material prices, labor rate changes, and unforeseen site conditions that may arise over an extended period. While a firm-fixed-price contract aims to mitigate some cost risks, significant unforeseen issues or poorly managed schedules could still lead to change orders or claims, increasing the final cost to the government. Furthermore, extended durations can impact the availability of housing for service members, potentially affecting morale and operational readiness if not managed effectively.

How will the new EIFS wall system and SSMRS roof contribute to the long-term operational efficiency and maintenance costs of the dormitory?

The installation of a new Exterior Insulation and Finish System (EIFS) and a Structural Standing Metal Roof System (SSMRS) is expected to significantly improve the dormitory's long-term operational efficiency and reduce maintenance costs. EIFS provides enhanced thermal insulation, which can lead to substantial energy savings in heating and cooling costs over the life of the building. It also offers a durable and weather-resistant exterior. The SSMRS roof is known for its longevity, low maintenance requirements, and resistance to leaks and extreme weather. Together, these systems should reduce the frequency and cost of future repairs, improve building performance, and contribute to a more sustainable and cost-effective facility for the Air Force.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 EL CAMINO REAL, STE 240, IRVINE, CA, 92602

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,659,606

Exercised Options: $25,659,606

Current Obligation: $25,659,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0012

IDV Type: IDC

Timeline