Air Force awards $5.9M for Building 618 renovation, highlighting construction sector activity in Arizona

Contract Overview

Contract Amount: $5,915,766 ($5.9M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2026-01-16

Contract Duration: 458 days

Daily Burn Rate: $12.9K/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: THIS REQUIREMENT IS TO RENOVATE BLDG 618 MMRT

Place of Performance

Location: LUKE AIR FORCE BASE, MARICOPA County, ARIZONA, 85309

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to HHI CORPORATION for work described as: THIS REQUIREMENT IS TO RENOVATE BLDG 618 MMRT Key points: 1. The contract value represents a significant investment in facility modernization. 2. Competition dynamics for this project will be assessed to understand pricing efficiency. 3. Risk indicators will be monitored throughout the renovation to ensure timely completion. 4. Performance context will be established by comparing this project to similar construction efforts. 5. This contract positions the Air Force within the broader commercial and institutional building construction market. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The awarded amount of $5.9 million for the renovation of Building 618 appears reasonable for a project of this scope within the commercial and institutional building construction sector. Benchmarking against similar facility renovation contracts for the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be advantageous for the government if the initial pricing is competitive. Further analysis would involve comparing the per-square-foot cost or cost per major renovation task against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. This suggests a competitive process was intended, but the exact number of bidders and the rationale for any exclusions would need further investigation to fully assess the level of competition. A robust competition typically leads to better pricing and innovation for the government.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages efficient service delivery.

Public Impact

The primary beneficiaries are the Department of the Air Force personnel who will utilize the modernized Building 618. The services delivered include comprehensive renovation of a significant facility, enhancing its functionality and safety. The geographic impact is localized to the specific Air Force installation in Arizona where Building 618 is located. Workforce implications may include employment opportunities for construction workers, project managers, and support staff in the Arizona region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of delays due to unforeseen site conditions common in building renovations.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract type helps manage cost certainty.
Full and open competition generally promotes competitive pricing.
Clear project timeline with defined start and end dates.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this sector often supports infrastructure modernization and facility upgrades across various agencies. Comparable spending benchmarks would involve looking at other large-scale renovation or construction projects awarded by the Department of Defense or other federal entities for similar types of buildings, considering regional cost variations.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, HHI CORPORATION, chooses to engage them. The extent of small business participation will depend on the subcontracting plan, if any, required by the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Air Force project management office. Accountability measures are embedded in the firm-fixed-price contract, requiring delivery of specified renovations by a set date. Transparency is generally maintained through contract award databases, though specific details of the renovation process and ongoing oversight may not be publicly detailed.

Related Government Programs

Department of Defense Facility Renovation Projects
Air Force Base Infrastructure Modernization
Commercial Building Construction Contracts
Federal Government Construction Spending

Risk Flags

Potential for unforeseen site conditions
Risk of construction delays
Ensuring contractor compliance with regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to HHI CORPORATION. THIS REQUIREMENT IS TO RENOVATE BLDG 618 MMRT

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 $5.9 million.

What is the period of performance?

Start: 2024-10-15. End: 2026-01-16.

What is the track record of HHI CORPORATION in completing similar federal construction projects on time and within budget?

A review of HHI CORPORATION's past performance on federal contracts, particularly those involving building renovations for agencies like the Department of Defense or Air Force, would be necessary to assess their track record. Key metrics to examine include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) could provide insights into their reliability and past performance, helping to gauge the risk associated with this current award.

How does the awarded amount of $5.9 million compare to the average cost of similar building renovations for federal facilities?

To benchmark the $5.9 million award, one would compare it against the average cost per square foot or per major renovation task for similar federal building renovations. Factors such as the age and condition of Building 618, the specific scope of work (e.g., HVAC, electrical, structural), and the geographic location (Arizona) would need to be considered. Analyzing data from previous, comparable Air Force or DoD renovation contracts, adjusted for inflation and regional cost differences, would provide a clearer picture of whether this award represents good value for money or if it is potentially high or low relative to market rates.

What are the primary risk indicators associated with this specific building renovation contract?

Key risk indicators for this contract include potential unforeseen conditions within Building 618 that could lead to scope creep and cost overruns, despite the firm-fixed-price structure. Delays in material procurement or labor shortages in the Arizona construction market could also pose risks to the project's timeline. Furthermore, ensuring the contractor's adherence to all federal safety and environmental regulations throughout the renovation process is critical. The 'Full and Open Competition After Exclusion of Sources' aspect also warrants scrutiny to ensure that any exclusions did not unduly limit competition and potentially impact pricing or contractor selection.

What is the expected effectiveness of the Building 618 renovation in meeting the Air Force's operational needs?

The effectiveness of the renovation will be measured by how well the modernized Building 618 supports the Air Force's specific operational requirements. This includes assessing improvements in functionality, safety, energy efficiency, and technological integration. Post-renovation assessments and user feedback from Air Force personnel occupying the building will be crucial in determining if the project successfully met its objectives and provided the intended benefits, such as enhanced workspace or improved facility resilience.

How has federal spending on commercial and institutional building construction, particularly by the Air Force, trended in recent years?

Analyzing recent federal spending trends in commercial and institutional building construction, especially by the Air Force, would provide context for this $5.9 million award. This involves examining historical data to identify patterns in contract values, types of projects undertaken (e.g., new construction vs. renovation), and geographic distribution of spending. Understanding these trends can help determine if this contract is part of a larger investment strategy, a response to specific infrastructure needs, or consistent with historical spending levels for facility modernization.

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: 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: $5,915,766

Exercised Options: $5,915,766

Current Obligation: $5,915,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0008

IDV Type: IDC

Timeline