DoD Awards $45M Firm Fixed Price Contract for B-52 Hangar Construction in Oklahoma
Contract Overview
Contract Amount: $45,069,248 ($45.1M)
Contractor: Krbcfs-Maguire O'hara Joint Venture
Awarding Agency: Department of Defense
Start Date: 2023-10-02
End Date: 2025-09-15
Contract Duration: 714 days
Daily Burn Rate: $63.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WWYK213194 B-52 ALLIED SUPT FOR TEMP 2- DOCK HANGAR, ALC RAMP
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $45.1 million to KRBCFS-MAGUIRE O'HARA JOINT VENTURE for work described as: WWYK213194 B-52 ALLIED SUPT FOR TEMP 2- DOCK HANGAR, ALC RAMP Key points: 1. Significant investment in critical aircraft maintenance infrastructure. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (714 days) suggests complex project scope. 4. Construction sector is prone to cost overruns and schedule delays.
Value Assessment
Rating: questionable
The contract value of $45M for a B-52 hangar is substantial. Without comparable projects or detailed cost breakdowns, it's difficult to assess if this price is competitive. The firm fixed price structure shifts risk to the contractor but requires careful initial pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method can lead to higher prices as the contractor faces no market pressure to offer the most cost-effective solution. Price discovery is limited to negotiation with the single awarded entity.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, potentially resulting in a higher overall cost for the facility.
Public Impact
Ensures continued operational readiness for the B-52 bomber fleet. Supports critical maintenance and repair capabilities for aging aircraft. Potential for job creation in the Oklahoma region during construction. Long-term asset for the Department of Defense's strategic capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns in large construction projects.
- Long contract duration increases exposure to market fluctuations.
- Lack of detailed cost data hinders value assessment.
Positive Signals
- Addresses critical infrastructure need for B-52 maintenance.
- Firm fixed price contract provides cost certainty.
- Long-term investment in defense readiness.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Large-scale government construction projects often involve significant budgets and can be subject to delays and cost escalations. Benchmarks for similar specialized hangar construction are not readily available.
Small Business Impact
The awardee is a joint venture, KRBCFS-MAGUIRE O'HARA JOINT VENTURE. Information regarding the small business participation within this joint venture or the prime contractor's history with small businesses is not provided in the data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the negotiated price is fair and reasonable, and that the contractor adheres to the firm fixed price terms throughout the project lifecycle to prevent scope creep or unjustified cost increases.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Limited transparency on pricing justification
Tags
commercial-and-institutional-building-co, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.1 million to KRBCFS-MAGUIRE O'HARA JOINT VENTURE. WWYK213194 B-52 ALLIED SUPT FOR TEMP 2- DOCK HANGAR, ALC RAMP
Who is the contractor on this award?
The obligated recipient is KRBCFS-MAGUIRE O'HARA JOINT VENTURE.
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 $45.1 million.
What is the period of performance?
Start: 2023-10-02. End: 2025-09-15.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, this occurs when only one source can meet the requirement due to unique capabilities, urgency, or specific technical needs. Without this justification, it's difficult to assess if the government adequately explored options to secure competitive pricing and ensure the best value for taxpayers.
How does the $45M contract value compare to industry benchmarks for similar specialized hangar construction projects?
Comparing the $45M contract value to industry benchmarks is essential for assessing its reasonableness. Specialized facilities like aircraft hangars, especially those designed for specific aircraft like the B-52, can have highly variable costs based on size, complexity, and required technological integration. A lack of readily available, comparable data makes a definitive assessment challenging, highlighting a potential gap in transparency.
What are the key performance indicators and risk mitigation strategies in place to ensure project completion within budget and schedule?
Effective oversight requires clearly defined KPIs and robust risk mitigation plans. For a project of this scale and duration, potential risks include material cost increases, labor shortages, unforeseen site conditions, and design changes. The government should ensure the contract includes mechanisms for monitoring progress, managing risks proactively, and holding the contractor accountable for meeting performance expectations.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA813723R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 374 KEKU ROAD, KAKE, AK, 99830
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,069,248
Exercised Options: $45,069,248
Current Obligation: $45,069,248
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-10-02
Current End Date: 2025-09-15
Potential End Date: 2025-09-15 00:00:00
Last Modified: 2025-08-19
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