DoD awards $16.7M for prefabricated buildings in Alaska, raising value-for-money questions

Contract Overview

Contract Amount: $16,726,517 ($16.7M)

Contractor: EDL Construction Inc

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-06-30

Contract Duration: 698 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND ASSEMBLY OF FOUR NEW, HEATED PRE-ENGINEERED BUILDINGS IAW THE STATEMENTS OF WORK.

Place of Performance

Location: JBER, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to EDL CONSTRUCTION INC for work described as: DESIGN AND ASSEMBLY OF FOUR NEW, HEATED PRE-ENGINEERED BUILDINGS IAW THE STATEMENTS OF WORK. Key points: 1. Contract awarded to EDL CONSTRUCTION INC for prefabricated buildings. 2. Project involves design and assembly of four heated buildings. 3. Duration of the contract is 698 days. 4. The contract type is Firm Fixed Price. 5. Geographic location is Alaska. 6. This award represents a significant investment in infrastructure.

Value Assessment

Rating: fair

The contract value of $16.7 million for four heated prefabricated buildings appears substantial. Benchmarking against similar construction projects for military installations is necessary to determine if the price is competitive. The firm fixed-price structure shifts risk to the contractor, but the overall value proposition depends on the quality and longevity of the structures delivered. Without detailed cost breakdowns or comparisons to market rates for similar prefabricated structures in remote locations, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With two bids received, the level of competition was limited. While full and open competition is generally preferred for ensuring fair pricing, a low number of bids can sometimes suggest market limitations or specific requirements that deter broader participation, potentially impacting price discovery.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price. However, with only two bids, there is a risk that the price may not reflect the most competitive market rate achievable with broader participation.

Public Impact

Military personnel stationed in Alaska will benefit from improved, heated facilities. The project will deliver four new, pre-engineered buildings. The geographic impact is concentrated in Alaska, supporting operational readiness in a challenging climate. The construction activities may create temporary local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than a more robust bidding environment.
The firm fixed-price contract, while shifting risk, could lead to cost overruns if unforeseen issues arise during construction in a remote location.
The specific requirements for 'heated pre-engineered buildings' might limit the pool of qualified contractors, impacting competition.

Positive Signals

Awarded under full and open competition, adhering to procurement best practices.
The firm fixed-price contract provides cost certainty for the government once awarded.
The project addresses a clear need for improved infrastructure in a critical operational area.

Sector Analysis

This contract falls within the construction and manufacturing sector, specifically focusing on prefabricated metal buildings. The market for such structures is influenced by factors like material costs, labor availability, and logistical challenges, especially in remote locations like Alaska. The Department of Defense is a significant consumer of construction services, often requiring specialized facilities designed for harsh environments or specific operational needs. Benchmarking this contract's value against other government or private sector projects for similar prefabricated structures in comparable climates would provide further insight.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, EDL CONSTRUCTION INC, will likely handle the majority of the work. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, performance and delivery are key accountability measures. The Department of the Air Force will monitor progress to ensure compliance with the statement of work and delivery schedule. Inspector General oversight may be applicable for investigations into fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though specific project details might be limited.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Infrastructure Projects
Prefabricated Building Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns in Remote Locations
Dependency on Contractor's Specialized Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to EDL CONSTRUCTION INC. DESIGN AND ASSEMBLY OF FOUR NEW, HEATED PRE-ENGINEERED BUILDINGS IAW THE STATEMENTS OF WORK.

Who is the contractor on this award?

The obligated recipient is EDL 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 $16.7 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-06-30.

What is the typical cost per square foot for heated prefabricated buildings of this nature in remote Alaskan locations?

Determining the precise cost per square foot for heated prefabricated buildings in remote Alaskan locations is complex without specific architectural plans and detailed material specifications. However, general industry benchmarks suggest that construction costs in Alaska are significantly higher than in the contiguous United States due to logistical challenges, specialized labor requirements, and the need for materials suited to extreme cold. For standard commercial prefabricated metal buildings, costs can range from $50 to $150 per square foot, but for heated, specialized military-grade structures in Alaska, this figure could easily double or triple. Factors such as foundation requirements, insulation R-values, HVAC system capacity, and the need for durable, weather-resistant finishes all contribute to a higher per-square-foot cost. The $16.7 million award for four buildings, without knowing their size, suggests a substantial investment per unit, likely reflecting these elevated costs.

How does EDL CONSTRUCTION INC's track record with the Department of Defense compare to industry standards for similar projects?

Assessing EDL CONSTRUCTION INC's track record requires a review of their past performance on Department of Defense (DoD) contracts, particularly those involving construction of prefabricated or specialized buildings in challenging environments. Publicly available data, such as the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS), would be crucial here. Without access to this specific data, it's difficult to provide a direct comparison. Generally, contractors working with the DoD are evaluated on factors like on-time delivery, adherence to budget (especially relevant for fixed-price contracts), quality of work, and responsiveness to issues. A history of successful, timely completions with minimal disputes would indicate a strong track record. Conversely, a pattern of delays, cost overruns, or quality deficiencies would raise concerns. For this specific $16.7 million contract, the limited competition might suggest that EDL CONSTRUCTION INC is one of a few contractors with the requisite experience and capacity for such projects in Alaska.

What are the potential risks associated with constructing heated prefabricated buildings in Alaska under a firm fixed-price contract?

Constructing heated prefabricated buildings in Alaska under a firm fixed-price contract presents several potential risks. Firstly, the remote location significantly increases logistical costs and complexity for material delivery and personnel transport. Unexpected weather delays during critical construction phases can extend project timelines and increase costs, which the contractor must absorb under a fixed-price agreement. The extreme cold requires robust insulation and heating systems, and any design or material failures in these critical components could lead to costly repairs and potential delays. Furthermore, the availability of skilled labor in remote Alaskan areas can be limited and expensive, adding to the contractor's risk. If unforeseen site conditions (e.g., permafrost issues, difficult terrain) are encountered, remediation costs could be substantial. The contractor bears the risk of these cost escalations, which could impact their profit margin or, in extreme cases, lead to financial distress if not adequately accounted for in their bid.

How does the $16.7 million expenditure for these four buildings compare to historical spending on similar infrastructure by the Department of the Air Force in Alaska?

Comparing the $16.7 million expenditure for these four buildings to historical spending by the Department of the Air Force (DAF) in Alaska requires access to detailed historical contract data. Without specific historical figures, a direct comparison is challenging. However, the DAF consistently invests in infrastructure to support its operations in Alaska, given its strategic importance and harsh climate. Expenditures for barracks, maintenance facilities, hangars, and other support structures can run into millions of dollars, especially for projects requiring specialized design and construction in remote areas. The cost of individual projects can vary widely based on size, complexity, and the specific needs being addressed. This $16.7 million award for four heated prefabricated buildings should be viewed within the context of the DAF's overall infrastructure modernization and sustainment budget for the region. If similar projects in the past were significantly less expensive, it might warrant further investigation into the current project's scope, materials, or market conditions.

What specific performance metrics will be used to evaluate the success of this contract, beyond simple delivery?

Beyond simple delivery, the success of this contract will likely be evaluated based on several key performance metrics outlined in the Statement of Work (SOW). These would typically include adherence to the specified design and assembly standards for the four heated prefabricated buildings, ensuring they meet all functional requirements for their intended use. Quality of construction is paramount; this involves assessing the structural integrity, the effectiveness of the heating and insulation systems, and the overall finish and durability of the buildings. Timeliness of completion, measured against the contract's duration of 698 days, is another critical metric. Compliance with safety regulations during the construction phase is also essential. Furthermore, the government may evaluate the contractor's responsiveness to any issues or deficiencies identified during the construction or warranty period. Post-occupancy performance, such as the buildings' energy efficiency and operational reliability, could also be considered long-term indicators of success.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 871 CORONADO CENTER DR STE 200 OFC 237, HENDERSON, NV, 89052

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,726,517

Exercised Options: $16,726,517

Current Obligation: $16,726,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA21D0028

IDV Type: FSS

Timeline