Air Force Awards $3.84M Contract for Tinian Island Runway Construction Supplies

Contract Overview

Contract Amount: $3,840,000 ($3.8M)

Contractor: FPA Pacific Corp.

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2026-07-31

Contract Duration: 204 days

Daily Burn Rate: $18.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL FURNISH SUPPLIES FOR DELIVERY ORDERS ISSUED UNDER THIS AGREEMENT FOR SUPPLIES NECESSARY TO CONSTRUCT/REPAIR A RUNWAY ON TINIAN ISLAND. ORDER SPECIFICATIONS SHALL EITHER REFERENCE SECTION J OF THE AGREEMENT OR THE ORDER ITSELF.

Place of Performance

Location: TINIAN, TINIAN County, NORTHERN MARIANA ISLANDS, 96952

Plain-Language Summary

Department of Defense obligated $3.8 million to FPA PACIFIC CORP. for work described as: THE CONTRACTOR SHALL FURNISH SUPPLIES FOR DELIVERY ORDERS ISSUED UNDER THIS AGREEMENT FOR SUPPLIES NECESSARY TO CONSTRUCT/REPAIR A RUNWAY ON TINIAN ISLAND. ORDER SPECIFICATIONS SHALL EITHER REFERENCE SECTION J OF THE AGREEMENT OR THE ORDER ITSELF. Key points: 1. The contract is for crushed and broken limestone, essential for runway construction/repair. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 3. The award is a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated agreement for ongoing needs. 4. The primary sector is Construction, with a specific focus on infrastructure development in a remote location.

Value Assessment

Rating: good

The contract value of $3.84M appears reasonable for construction materials for a runway. Benchmarking against similar infrastructure projects would provide a more precise assessment, but the price seems within expected ranges for specialized materials in a remote location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves a limited number of offers. While competed, the specific method and number of bidders are not detailed, potentially limiting price discovery compared to full and open competition.

Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for essential supplies, potentially leading to cost efficiencies for taxpayers if competition was adequate.

Public Impact

Enhances critical infrastructure at Tinian Island, supporting military readiness and regional stability. Provides necessary materials for runway repair, ensuring operational capabilities for aircraft. Supports economic activity through the supply chain for construction materials. The remote location may present logistical challenges impacting delivery timelines and costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential logistical challenges in a remote location
Reliance on specific raw materials (limestone)

Positive Signals

Supports critical infrastructure development
Firm Fixed Price contract provides cost certainty
BPA Call structure allows for efficient future orders

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy civil construction and infrastructure. Spending benchmarks for runway construction vary widely based on size, materials, and location, but this award appears to be for a significant material supply component.

Small Business Impact

The data indicates the contractor is FPA PACIFIC CORP. and that small business participation was not a specific set-aside (sb: false). Further analysis would be needed to determine if FPA PACIFIC CORP. itself is a small business or if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The award is a BPA Call under a larger agreement, suggesting some level of pre-negotiation and oversight. The Department of the Air Force is the procuring entity, implying standard government oversight procedures will be in place for delivery orders.

Related Government Programs

Crushed and Broken Limestone Mining and Quarrying
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Logistical challenges due to remote island location
Potential for supply chain disruptions
Limited competition under SAP
Dependence on specific raw material availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to FPA PACIFIC CORP.. THE CONTRACTOR SHALL FURNISH SUPPLIES FOR DELIVERY ORDERS ISSUED UNDER THIS AGREEMENT FOR SUPPLIES NECESSARY TO CONSTRUCT/REPAIR A RUNWAY ON TINIAN ISLAND. ORDER SPECIFICATIONS SHALL EITHER REFERENCE SECTION J OF THE AGREEMENT OR THE ORDER ITSELF.

Who is the contractor on this award?

The obligated recipient is FPA PACIFIC CORP..

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 $3.8 million.

What is the period of performance?

Start: 2026-01-08. End: 2026-07-31.

What is the specific quantity and quality standard for the crushed and broken limestone required?

The contract specifies that order specifications will reference Section J of the agreement or the order itself. This implies detailed technical specifications regarding the type, size, gradation, and quality of the crushed and broken limestone will be provided in those documents. Without access to Section J or the specific order, the exact quantity and quality standards remain undefined in this summary.

What are the potential risks associated with sourcing construction materials for a remote island location like Tinian?

Sourcing materials for a remote island presents significant logistical risks, including extended transportation times, potential for damage during transit, higher shipping costs, and limited availability of local resources. These factors could lead to project delays and cost overruns if not meticulously managed through robust supply chain planning and contingency measures.

How does the firm-fixed-price contract type impact the government's risk and the contractor's incentive for cost control?

A firm-fixed-price (FFP) contract shifts the primary cost risk to the contractor. This incentivizes the contractor to manage costs effectively to maximize profit. For the government, it provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, it may lead to higher initial pricing to account for contractor risk.

Industry Classification

NAICS: Mining, Quarrying, and Oil and Gas Extraction › Nonmetallic Mineral Mining and Quarrying › Crushed and Broken Limestone Mining and Quarrying

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 GRAND ST SAN JOSE VILLAGE, TINIAN, MP, 96952

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,840,000

Exercised Options: $3,840,000

Current Obligation: $3,840,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: FA502525AB002

IDV Type: BPA

Timeline