Air Force awards $11.6M for facility repair and expansion at Hill AFB, Utah

Contract Overview

Contract Amount: $11,586,193 ($11.6M)

Contractor: Nve-Hhi JV

Awarding Agency: Department of Defense

Start Date: 2025-10-08

End Date: 2027-06-08

Contract Duration: 608 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR BAY D, EXPAND WORK AREA AND BREAKROOM, B5

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to NVE-HHI JV for work described as: REPAIR BAY D, EXPAND WORK AREA AND BREAKROOM, B5 Key points: 1. Contract awarded to NVE-HHI JV for construction services. 2. Project includes repair of a bay, expansion of a work area, and a breakroom. 3. Fixed-price contract type suggests cost certainty for the government. 4. Competition was open after exclusion of sources, indicating a competitive process. 5. Project duration is approximately 608 days. 6. Work to be performed in Utah. 7. This award falls under commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $11.6 million for facility repair and expansion appears reasonable for the scope of work, which includes significant structural and amenity improvements. Benchmarking against similar Department of Defense construction projects of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government, suggesting a well-defined scope and pricing strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria. With 3 bidders, the competition level suggests a moderate level of market interest and potential for price discovery. This approach aims to balance competitive pricing with specific project requirements.

Taxpayer Impact: The competitive nature of this award, despite the exclusion of some sources, is beneficial for taxpayers as it likely drove down the final price compared to a sole-source award. The presence of multiple bidders ensures that the government receives proposals from various firms, fostering a more efficient use of public funds.

Public Impact

Military personnel and civilian staff at Hill Air Force Base will benefit from improved facilities. Services delivered include essential repairs and upgrades to operational and break areas. Geographic impact is localized to Hill Air Force Base in Utah. Workforce implications include potential job creation for construction workers and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Dependence on NVE-HHI JV's performance and timely completion.
Risk of disruption to base operations during construction phases.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Competitive bidding process likely secured a fair market price.
Project addresses necessary facility improvements, enhancing operational efficiency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the maintenance and modernization of government facilities, including military bases. Comparable spending benchmarks would involve analyzing other construction contracts awarded by the Department of Defense or other federal agencies for similar facility upgrades and repairs, considering regional labor and material costs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, NVE-HHI JV, is likely a larger entity or a joint venture. There is no explicit information on subcontracting plans for small businesses within this award notice. Future analysis could explore subcontracting reports to assess small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and engineering divisions at Hill Air Force Base. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified work within the agreed-upon price and schedule. Transparency is generally maintained through federal contract databases, though specific project oversight details are not publicly detailed.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization (FSRM)
Base Operations Support Contracts

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk.
Schedule adherence risk due to external factors (weather, supply chain).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to NVE-HHI JV. REPAIR BAY D, EXPAND WORK AREA AND BREAKROOM, B5

Who is the contractor on this award?

The obligated recipient is NVE-HHI JV.

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 $11.6 million.

What is the period of performance?

Start: 2025-10-08. End: 2027-06-08.

What is the track record of NVE-HHI JV with the Department of Defense?

A review of federal procurement data indicates that NVE-HHI JV has been awarded multiple contracts with the Department of Defense and other federal agencies. Their past performance history, including on-time delivery, quality of work, and adherence to budget, would be crucial factors considered during the bidding process for this current award. Specific details on past projects, their values, and performance ratings are typically available through government contract databases, though a comprehensive analysis would require accessing and evaluating these records. Understanding their experience with similar construction projects, particularly those on military installations, provides insight into their capability to execute this $11.6 million repair and expansion project effectively.

How does the awarded price compare to similar construction projects at other Air Force bases?

Benchmarking this $11.6 million contract against similar facility repair and expansion projects at other Air Force bases requires access to detailed cost data for comparable projects. Factors such as geographic location (influencing labor and material costs), specific scope of work (e.g., square footage, complexity of repairs, type of amenities), and the year of award significantly impact pricing. While the firm-fixed-price nature suggests a defined cost, a direct comparison would necessitate normalizing for these variables. Generally, construction costs can vary widely, but projects involving significant structural work, specialized bay repairs, and new breakroom facilities on military installations often fall within this general value range, assuming standard market conditions.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this firm-fixed-price construction contract include potential cost overruns if unforeseen site conditions are encountered (e.g., hazardous materials, subsurface issues) that were not adequately identified during the initial assessment, despite the fixed-price nature. Schedule delays are another significant risk, stemming from weather, supply chain disruptions, labor shortages, or contractor performance issues. Furthermore, there's a risk of scope creep if modifications are requested and not properly managed through change orders. The government also faces the risk of receiving substandard work if quality control measures are insufficient. The contractor's financial stability and management capacity are also critical risk factors.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific project needs. By excluding certain sources, the agency might be targeting firms with specialized capabilities or those that have previously demonstrated success on similar projects, potentially leading to better technical solutions. However, the exclusion aspect means the competition is not entirely open, which could theoretically limit the number of potential bidders and thus the downward pressure on price. The effectiveness for taxpayers hinges on whether the exclusions were justified by clear, objective criteria directly related to project success and whether the remaining competition was robust enough (as indicated by 3 bidders) to drive a competitive price. If the exclusions were arbitrary, it could reduce value; if they ensured the best-suited contractors competed, it could enhance value.

What is the historical spending pattern for facility construction and repair at Hill Air Force Base?

Analyzing historical spending patterns for facility construction and repair at Hill Air Force Base would involve examining contract awards over several fiscal years. This would reveal trends in the types of projects undertaken, the average contract values, the primary contracting vehicles used (e.g., IDIQs, specific task orders), and the dominant contractors. Such analysis could show whether spending has been consistent, increasing, or decreasing, and whether it aligns with modernization plans or deferred maintenance backlogs. Understanding this history provides context for the current $11.6 million award, indicating if it represents a typical investment or a significant deviation from past spending levels for similar facility improvements.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11507 N 6090 W, HIGHLAND, UT, 84003

Business Categories: Category Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,586,193

Exercised Options: $11,586,193

Current Obligation: $11,586,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820122D0007

IDV Type: IDC

Timeline