Department of the Air Force awards $2.4M contract for Building 4 demolition and consolidation

Contract Overview

Contract Amount: $2,438,966 ($2.4M)

Contractor: Infinite Energy Construction, Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-01

End Date: 2025-12-15

Contract Duration: 228 days

Daily Burn Rate: $10.7K/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: FURNISH ALL LABOR. MATERIALS, AND EQUIPMENT REQUIRED TO DEMO AND CONSOLIDATE BUILDING 4 IN ACCORDANCE WITH ATTACHED PROPOSAL DATED 27 FEB 2025 AND DESIGN DOCUMENTS.

Place of Performance

Location: WHITEMAN AFB, JOHNSON County, MISSOURI, 65305

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to INFINITE ENERGY CONSTRUCTION, INC for work described as: FURNISH ALL LABOR. MATERIALS, AND EQUIPMENT REQUIRED TO DEMO AND CONSOLIDATE BUILDING 4 IN ACCORDANCE WITH ATTACHED PROPOSAL DATED 27 FEB 2025 AND DESIGN DOCUMENTS. Key points: 1. Contract focuses on demolition and consolidation services, indicating infrastructure modernization efforts. 2. The firm-fixed-price structure suggests a defined scope and budget, potentially limiting cost overruns. 3. Competition was open after exclusion of sources, implying a deliberate but not fully open process. 4. The contract duration of 228 days points to a focused, medium-term project. 5. Awarded by the Department of the Air Force, aligning with defense infrastructure needs. 6. The North American Industry Classification System (NAICS) code 236220 categorizes this under Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of $2,438,966 for demolition and consolidation of a building appears reasonable for a project of this nature. Benchmarking against similar Department of Defense construction projects would provide a more precise assessment, but the fixed-price nature suggests the contractor has absorbed cost variability. The scope includes labor, materials, and equipment, which are standard components for such work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded from the outset. The number of bidders is not specified, but this procurement method suggests a potentially less competitive environment than unrestricted full and open competition, which could impact price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, as it aims to secure fair pricing. However, the exclusion of sources warrants scrutiny to ensure no potentially lower-cost, capable vendors were unfairly barred.

Public Impact

The primary beneficiaries are the Department of the Air Force, receiving modernized facilities. Services delivered include the complete demolition and consolidation of Building 4. The geographic impact is localized to the specific Air Force installation where Building 4 is located. Workforce implications include employment for construction labor, demolition specialists, and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions are encountered beyond the scope of the proposal.
Risk of delays if permitting or environmental reviews are more complex than anticipated.
Dependence on the contractor's ability to manage subcontractors effectively for specialized demolition tasks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Clear scope of work based on a dated proposal and design documents.
Awarded to a contractor with experience in construction (implied by company name and NAICS code).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to defense infrastructure. The market for such services is robust, driven by government needs for facility maintenance, upgrades, and modernization. Comparable spending benchmarks would typically be assessed based on square footage, complexity of demolition, and environmental remediation requirements, which are not fully detailed here but are implied by the project scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Infinite Energy Construction, Inc. is likely a large business, given the contract value. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this project.

Oversight & Accountability

Oversight will likely be managed by the Department of the Air Force contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award notice, but detailed project progress and financial reporting would be subject to specific contract clauses and internal oversight procedures.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) related projects
Facility Sustainment, Restoration, and Modernization (FSRM)
Defense Infrastructure Projects

Risk Flags

Competition level may be less than optimal due to source exclusion.
Potential for unforeseen site conditions impacting cost and schedule.
Need for clear definition of 'consolidation' to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to INFINITE ENERGY CONSTRUCTION, INC. FURNISH ALL LABOR. MATERIALS, AND EQUIPMENT REQUIRED TO DEMO AND CONSOLIDATE BUILDING 4 IN ACCORDANCE WITH ATTACHED PROPOSAL DATED 27 FEB 2025 AND DESIGN DOCUMENTS.

Who is the contractor on this award?

The obligated recipient is INFINITE ENERGY 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 $2.4 million.

What is the period of performance?

Start: 2025-05-01. End: 2025-12-15.

What is the track record of Infinite Energy Construction, Inc. with the Department of Defense?

A comprehensive review of Infinite Energy Construction, Inc.'s track record with the Department of Defense would require accessing historical contract databases and performance evaluations. Typically, this involves examining past awards, contract values, performance ratings (e.g., CPARS), and any instances of disputes or terminations. Without specific historical data, it's presumed the company was selected based on its ability to meet the requirements of this specific delivery order, potentially including prior relevant experience or competitive positioning. Further investigation into their past performance on similar construction and demolition projects would be necessary for a complete assessment.

How does the awarded amount compare to similar building demolition and consolidation projects within the DoD?

The awarded amount of $2,438,966 for the demolition and consolidation of Building 4 needs to be benchmarked against similar projects to assess value for money. Factors influencing cost include the building's size, materials, structural complexity, environmental hazards (like asbestos or lead paint), and the specific consolidation requirements. Projects involving extensive hazardous material abatement or complex structural demolition typically command higher prices. A comparison would ideally involve projects of similar scale and scope within the DoD, considering regional labor and material cost variations. Without specific comparable project data, the current award appears within a plausible range for a significant construction task.

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

The primary risks associated with this firm-fixed-price contract, while generally favorable for cost control, include potential scope creep if the definition of 'consolidation' is not precisely delineated, leading to change orders. Another risk is contractor underestimation of costs, which could lead to quality compromises or contractor default if the fixed price becomes unsustainable for them. Unforeseen site conditions (e.g., underground utilities, hazardous materials) not adequately addressed in the initial proposal could also pose risks, potentially requiring contract modifications or disputes. The government's risk is primarily in ensuring the contractor has the capability and incentive to perform to the required standards within the fixed price.

How effective is the 'full and open competition after exclusion of sources' method for ensuring competitive pricing in construction?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements or limitations. It allows for a wider pool of potential bidders than a sole-source award but is less competitive than unrestricted full and open competition. Its effectiveness in ensuring competitive pricing depends heavily on the rationale for excluding sources and the number of bidders that remain. If the exclusion is justified and a sufficient number of capable bidders participate, it can lead to competitive pricing. However, if the exclusion significantly limits the pool of qualified contractors, it may reduce competitive pressure and potentially lead to higher prices than a truly unrestricted competition.

What is the historical spending trend for building demolition and consolidation contracts by the Department of the Air Force?

Analyzing historical spending trends for building demolition and consolidation by the Department of the Air Force would involve examining contract data over several fiscal years. This would reveal patterns in contract values, frequency of awards, and the types of contractors engaged. Trends might indicate an increase or decrease in infrastructure modernization efforts, shifts in procurement strategies (e.g., more fixed-price contracts), or changes in average project costs due to market fluctuations or policy directives. Such analysis helps in forecasting future needs and budgeting, and in identifying potential areas for cost savings or efficiency improvements in future procurements.

What are the potential long-term implications of consolidating Building 4 for the Air Force installation?

Consolidating Building 4 likely aims to improve operational efficiency, reduce facility maintenance costs, and potentially free up space for other uses or consolidation of operations. By demolishing an older structure and integrating its functions into another, the Air Force can streamline its footprint, leading to savings in utilities, security, and general upkeep. This can also enhance collaboration by bringing related functions closer together. The long-term implications are generally positive, contributing to a more modern, cost-effective, and functional installation, provided the consolidation plan is well-executed and aligns with the installation's strategic goals.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13625 OAK ST, KANSAS CITY, MO, 64145

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,438,966

Exercised Options: $2,438,966

Current Obligation: $2,438,966

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA462522D0006

IDV Type: IDC

Timeline