Air Force awards $35.8M contract for Thunder Landing Zone repair in Guam

Contract Overview

Contract Amount: $35,836,338 ($35.8M)

Contractor: IAN Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2026-06-29

Contract Duration: 642 days

Daily Burn Rate: $55.8K/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: SAKW 23-5001 REPAIR THUNDER LANDING ZONE (LZ)

Place of Performance

Location: YIGO, GUAM County, GUAM, 96929

Plain-Language Summary

Department of Defense obligated $35.8 million to IAN CORPORATION for work described as: SAKW 23-5001 REPAIR THUNDER LANDING ZONE (LZ) Key points: 1. Contract value appears reasonable given the scope of construction and remote location. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract, indicating a flexible agreement for services. 4. The fixed-price nature of the contract shifts risk to the contractor. 5. The project is located in Guam, which may incur higher logistical costs. 6. The contractor, IAN CORPORATION, has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of $35.8 million for repairing a landing zone is within a typical range for significant construction projects in remote or overseas locations. Benchmarking against similar infrastructure repair projects in the Pacific region would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government as it caps costs, provided the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially related to specialized capabilities or prior performance. The number of bidders is not explicitly stated, but the 'limited' competition level implies fewer than a fully open solicitation, which could impact price discovery.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources was justified, aiming for specialized capabilities. This approach can still yield competitive pricing if the pool of eligible bidders is sufficiently robust.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations requiring a functional Thunder Landing Zone. The contract delivers essential infrastructure repair services, ensuring operational readiness. The geographic impact is localized to Guam, supporting military infrastructure in the Indo-Pacific region. The project will likely involve local labor and subcontractors, contributing to the Guam economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Logistical challenges in Guam could impact project timelines and material availability.
Dependence on a single contractor for a critical infrastructure repair.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The project addresses a critical infrastructure need for military operations.
The contractor has experience with federal contracts, suggesting familiarity with requirements.

Sector Analysis

This contract falls within the construction sector, specifically related to civil engineering and infrastructure development for military installations. The market for such specialized construction in overseas territories like Guam is often limited to a few experienced firms capable of handling the logistical and technical demands. Comparable spending benchmarks would involve looking at other military base construction or repair projects in similar geographic contexts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project oversight details may not be publicly available.

Related Government Programs

Military Base Infrastructure Repair
Airfield Construction and Maintenance
Guam Defense Projects
Indo-Pacific Military Support

Risk Flags

Potential for schedule delays due to remote location logistics.
Risk of unforeseen site conditions impacting fixed-price contract.
Limited competition may affect optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to IAN CORPORATION. SAKW 23-5001 REPAIR THUNDER LANDING ZONE (LZ)

Who is the contractor on this award?

The obligated recipient is IAN 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 $35.8 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-06-29.

What is the track record of IAN CORPORATION with the Department of Defense?

IAN CORPORATION has a history of receiving federal contracts, primarily from the Department of Defense. While specific details on past performance quality are not provided in this summary, their consistent engagement suggests a level of capability and compliance with federal procurement regulations. A deeper dive into their contract history, including any past performance evaluations or disputes, would offer a more comprehensive understanding of their reliability for this specific landing zone repair project.

How does the contract value compare to similar landing zone repair projects?

Benchmarking the $35.8 million contract value requires comparing it to similar landing zone repair or airfield construction projects, particularly those in overseas or remote locations like Guam. Factors such as the scope of work (e.g., surface repair, drainage, lighting), the size of the landing zone, and the specific materials used significantly influence costs. Without direct comparable data points, it's challenging to definitively assess value for money, but the contract's fixed-price nature and the location suggest a potentially higher cost baseline due to logistical complexities.

What are the primary risks associated with this contract?

The primary risks include potential cost overruns if unforeseen site conditions are encountered, despite the firm-fixed-price structure. Logistical challenges inherent in operating in Guam, such as material sourcing and transportation, could lead to schedule delays. Furthermore, the reliance on a single contractor for a critical infrastructure repair introduces performance risk; any issues with IAN CORPORATION's execution could directly impact military operations. Environmental factors specific to Guam might also pose risks if not adequately addressed in the project plan.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of project?

This competition method aims to balance broad market access with the need for specialized capabilities. For a project like landing zone repair, where specific engineering or construction expertise might be required, excluding certain sources could ensure that only qualified contractors participate. The effectiveness hinges on whether the exclusion criteria were narrowly tailored and if a sufficient number of capable bidders remained. If the exclusion significantly limited competition, it could potentially lead to less competitive pricing than a truly open solicitation.

What is the historical spending trend for landing zone repairs by the Air Force?

Analyzing historical spending trends for landing zone repairs by the Air Force would reveal patterns in contract values, frequency of awards, and geographic distribution. This specific $35.8 million award needs to be viewed within that broader context. If similar projects have historically cost less, it might warrant further investigation into the current contract's pricing. Conversely, if spending on such repairs has been increasing due to aging infrastructure or strategic shifts, this award might align with broader trends.

What are the implications of the definitive contract type for project management?

A definitive contract, often used for projects with established scope and pricing, provides a clear framework. For this landing zone repair, it implies that the requirements were well-defined at the time of award. This contract type generally offers more certainty regarding cost and deliverables compared to more flexible agreements like cost-plus contracts. However, it also means that changes to the scope would likely require formal modifications, potentially impacting timelines and budget if not managed efficiently.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA524024R0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1129 ROUTE 15, BARRIGADA, GU, 96913

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $35,836,338

Exercised Options: $35,836,338

Current Obligation: $35,836,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline