Air Force awards $26.4M contract for Tank Farm 3 & 4 repairs to Red Point Construction
Contract Overview
Contract Amount: $26,377,544 ($26.4M)
Contractor: RED Point Construction, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-15
End Date: 2026-01-26
Contract Duration: 864 days
Daily Burn Rate: $30.5K/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: FSXB 17-4704 REPAIR TANK FARM 3 AND 4
Place of Performance
Location: JBER, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to RED POINT CONSTRUCTION, LLC for work described as: FSXB 17-4704 REPAIR TANK FARM 3 AND 4 Key points: 1. Contract value of $26.4M for critical infrastructure repair. 2. Competition method indicates potential for price discovery. 3. Risk of project delays or cost overruns exists. 4. Sector focus on Oil & Gas Pipeline Construction.
Value Assessment
Rating: good
The contract value of $26.4M appears reasonable for a project of this scope, involving tank farm repairs. Benchmarking against similar large-scale construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method might impact the extent of price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure maintenance, aiming for long-term operational efficiency and safety.
Public Impact
Ensures operational readiness of critical fuel storage facilities. Supports regional economic activity through construction services. Mitigates environmental risks associated with aging infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the lowest possible price.
- Potential for scope creep or unforeseen site conditions.
- Contract duration extends into 2026, requiring ongoing monitoring.
Positive Signals
- Addresses a clear need for infrastructure maintenance.
- Fixed-price contract provides cost certainty.
- Awarded to a single, presumably qualified, contractor.
Sector Analysis
This contract falls within the Oil and Gas Pipeline and Related Structures Construction sector. Spending in this sector is often driven by infrastructure upgrades, maintenance, and regulatory compliance, with significant capital investment required.
Small Business Impact
The contract was awarded to RED POINT CONSTRUCTION, LLC. Analysis is needed to determine if this prime contractor is a small business or if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract type is a Definitive Contract, which typically involves detailed specifications and oversight. The Air Force's oversight will be crucial to ensure project completion according to specifications and budget.
Related Government Programs
- Oil and Gas Pipeline and Related Structures Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for unforeseen site conditions impacting budget and schedule.
- Long contract duration increases exposure to market fluctuations.
- Dependency on a single contractor for critical repairs.
Tags
oil-and-gas-pipeline-and-related-structu, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to RED POINT CONSTRUCTION, LLC. FSXB 17-4704 REPAIR TANK FARM 3 AND 4
Who is the contractor on this award?
The obligated recipient is RED POINT CONSTRUCTION, 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 $26.4 million.
What is the period of performance?
Start: 2023-09-15. End: 2026-01-26.
What specific factors led to the exclusion of sources in the competition?
The exclusion of sources suggests that only specific contractors met the stringent requirements for this specialized repair work, potentially due to unique technical capabilities, past performance, or security clearances. Understanding these criteria is key to assessing if the limited competition truly served the government's best interest in securing the necessary expertise.
What is the benchmark cost for similar tank farm repair projects of this scale?
Benchmarking similar tank farm repair projects requires detailed analysis of scope, location, materials, and labor costs. Without specific comparable contract data, it's difficult to definitively assess if $26.4M is optimal. However, large-scale infrastructure projects often involve significant costs due to complexity and regulatory requirements.
How will the Air Force ensure effective project management and mitigate risks throughout the contract duration?
Effective project management will rely on robust oversight from the Air Force contracting and technical teams. This includes regular progress reviews, site inspections, strict adherence to the Statement of Work, and proactive risk management to address potential issues like schedule delays or cost overruns before they escalate.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures 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: SEALED BID
Solicitation ID: FA500023B0001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 561 E STEEL LOOP, PALMER, AK, 99645
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,377,544
Exercised Options: $26,377,544
Current Obligation: $26,377,544
Actual Outlays: $456,983
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $3,832,038
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-15
Current End Date: 2026-01-26
Potential End Date: 2026-01-26 00:00:00
Last Modified: 2025-05-05
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