Air Force awards $16.5M contract for fire suppression system repair, highlighting construction sector spending

Contract Overview

Contract Amount: $16,493,514 ($16.5M)

Contractor: West Coast JV, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-27

End Date: 2026-07-30

Contract Duration: 1,372 days

Daily Burn Rate: $12.0K/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: REPAIR HIGH PRESSURE FIRE SUPPRESSION SYSTEM B5038

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to WEST COAST JV, LLC for work described as: REPAIR HIGH PRESSURE FIRE SUPPRESSION SYSTEM B5038 Key points: 1. Contract value represents a significant investment in facility maintenance for critical infrastructure. 2. The award to WEST COAST JV, LLC suggests a competitive landscape for specialized construction services. 3. Contract duration of nearly four years indicates a need for sustained, long-term maintenance. 4. The firm-fixed-price structure aims to control costs and provide predictability for the government. 5. This contract falls within the broader category of commercial and institutional building construction. 6. The specific North American Industry Classification System (NAICS) code 236220 points to general building construction.

Value Assessment

Rating: good

The contract value of $16.5 million for repairing a high-pressure fire suppression system appears reasonable given the duration and scope. Benchmarking against similar facility maintenance contracts for Department of Defense installations would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the initial pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were initially excluded. The number of bidders (4) indicates a moderate level of competition. This type of competition, while not fully open, can still lead to price discovery, but the exclusion of specific sources might limit the most competitive bids.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a fair price, but there may be an opportunity for greater savings if the competition had been entirely unrestricted.

Public Impact

This contract directly benefits the Department of the Air Force by ensuring the operational readiness and safety of its facilities. The primary service delivered is the repair and maintenance of a critical fire suppression system, essential for protecting personnel and assets. The geographic impact is localized to the Air Force installation where the system is located (Utah). The contract supports jobs within the construction sector, specifically for skilled trades involved in building maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial bids did not fully account for the complexity of 'high pressure' systems.
Risk of delays in repair completion impacting facility operational status.
Dependence on a single contractor (WEST COAST JV, LLC) for the duration of the contract could limit flexibility.
The 'after exclusion of sources' clause warrants scrutiny to ensure no viable, competitive sources were unfairly barred.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Award to a joint venture may indicate capacity to handle complex projects.
The contract duration suggests a commitment to long-term facility upkeep.
The existence of competition, even if limited, is a positive signal for price negotiation.

Sector Analysis

This contract falls within the broader construction industry, specifically focusing on commercial and institutional building construction, as indicated by NAICS code 236220. The market for facility maintenance and repair services for government installations is substantial, with significant annual spending across various agencies. This particular award is for a specialized system, suggesting a niche within the larger construction services sector. Comparable spending benchmarks would involve looking at other contracts for similar infrastructure repairs at military bases.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, WEST COAST JV, LLC, is likely a larger entity or a joint venture. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would depend on whether WEST COAST JV, LLC actively seeks small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force contracting and facility management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services by a certain date. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction may be invoked if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Facility Maintenance and Repair Contracts
Department of Defense Construction Projects
Fire Safety Systems Procurement
Commercial Building Construction Services
Air Force Base Infrastructure

Risk Flags

Limited competition due to source exclusion.
Potential for performance issues if contractor lacks specialized expertise.
Risk of cost escalation if initial pricing was not comprehensive.
Need for robust quality assurance to ensure system integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to WEST COAST JV, LLC. REPAIR HIGH PRESSURE FIRE SUPPRESSION SYSTEM B5038

Who is the contractor on this award?

The obligated recipient is WEST COAST JV, 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 $16.5 million.

What is the period of performance?

Start: 2022-10-27. End: 2026-07-30.

What is the track record of WEST COAST JV, LLC in performing similar government contracts, particularly for facility maintenance and repair?

A thorough review of WEST COAST JV, LLC's past performance on federal contracts is crucial. This would involve examining contract databases like SAM.gov for previous awards, performance evaluations (e.g., CPARS reports), and any history of disputes or contract terminations. Specifically, looking for experience with fire suppression systems, high-pressure systems, and projects of similar magnitude ($16.5 million) at Department of Defense installations would provide insight into their capability and reliability. A positive performance history suggests a lower risk for this current contract, while a history of issues would raise concerns about value and timely delivery.

How does the awarded price of $16.5 million compare to market rates for similar fire suppression system repair services?

Benchmarking the $16.5 million award against market rates requires detailed analysis. This involves identifying comparable contracts for repairing high-pressure fire suppression systems at other government facilities or large commercial institutions. Factors such as system complexity, geographic location (affecting labor and material costs), and contract duration must be considered. If available, data from industry cost estimating services or recent bids on similar projects could be used. A price significantly above market rates would indicate potential overpayment, while a price well below might suggest aggressive bidding that could risk performance quality or completion.

What are the specific risks associated with repairing 'high pressure' fire suppression systems, and how are they mitigated in this contract?

Repairing 'high pressure' fire suppression systems carries inherent risks related to system integrity, potential for accidental discharge, and the need for specialized expertise. These systems operate under significant force, meaning component failures or improper repairs could lead to catastrophic events, property damage, or safety hazards. Mitigation in this contract is primarily through the firm-fixed-price structure, which incentivizes the contractor to perform the work correctly to avoid costly rework. Additionally, the contract likely includes specific technical specifications, quality assurance surveillance plans (QASPs), and performance standards that the contractor must meet. The limited competition also suggests a pre-qualification process may have occurred.

What is the historical spending pattern for fire suppression system maintenance and repair within the Department of the Air Force, and how does this award fit?

Analyzing historical spending for fire suppression system maintenance and repair within the Air Force would reveal trends in contract values, frequency of awards, and key contractors. This $16.5 million award needs to be viewed in that context. If annual spending on such services typically ranges between $X and $Y million, this award represents a significant portion of that budget for the contract period. Understanding historical patterns can help identify if this award is an outlier, a consistent investment, or potentially indicative of increased needs or aging infrastructure. It also helps in assessing whether the current award represents a fair price compared to past expenditures.

What does the 'after exclusion of sources' clause in the contract type signify regarding competition and potential cost savings?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the initial solicitation was intended for broad competition, but certain potential bidders were subsequently excluded. This exclusion could be due to various reasons, such as specific technical requirements, past performance issues, or security concerns. While it's not a sole-source award, the exclusion limits the pool of potential offerors. This can reduce the intensity of competition compared to truly full and open competition, potentially leading to higher prices for the government. The justification for the exclusion should be carefully reviewed to ensure it was valid and did not unduly restrict competition.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 61050 HWY 101, COOS BAY, OR, 97420

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,493,514

Exercised Options: $16,493,514

Current Obligation: $16,493,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820122D0008

IDV Type: IDC

Timeline