DoD awards $60.7M for F-15 modernization, Gilbane Federal to lead construction at Saudi bases

Contract Overview

Contract Amount: $60,697,740 ($60.7M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2020-12-10

End Date: 2023-10-15

Contract Duration: 1,039 days

Daily Burn Rate: $58.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE I NAVAL IGLOOS AT KING ABDULAZIZ AIR BASE AND KING FAISAL AIR BASE, F-15 MODERNIZATION PROGRAM ROYAL SAUDI AIR FORCE

Plain-Language Summary

Department of Defense obligated $60.7 million to GILBANE FEDERAL for work described as: PHASE I NAVAL IGLOOS AT KING ABDULAZIZ AIR BASE AND KING FAISAL AIR BASE, F-15 MODERNIZATION PROGRAM ROYAL SAUDI AIR FORCE Key points: 1. Contract value represents a significant investment in foreign military sales infrastructure. 2. Competition dynamics suggest a robust bidding process for this large-scale construction project. 3. Performance timeline of over 1000 days indicates a complex, multi-phase execution. 4. Project aligns with broader US foreign policy objectives in the Middle East. 5. Construction sector expertise is critical for successful delivery of these specialized facilities.

Value Assessment

Rating: good

The contract value of $60.7 million for construction services at two Royal Saudi Air Force bases appears reasonable given the scope. While direct comparisons are difficult due to the international and specialized nature of the project, the firm-fixed-price structure suggests a defined cost ceiling. Benchmarking against similar large-scale military construction projects, particularly those involving foreign military sales, would provide further context on value for money. The duration of the contract (over 1000 days) also implies a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of a competitive bidding process is generally favorable for price discovery and ensuring that the government receives competitive pricing. The specific number of bidders is not detailed, but the designation 'full and open' suggests a significant level of market engagement.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Royal Saudi Air Force, which will receive modernized facilities to support its F-15 fleet. Services delivered include the construction and modernization of naval igloos and related infrastructure at two key air bases. The geographic impact is concentrated in Saudi Arabia, specifically at King Abdulaziz Air Base and King Faisal Air Base. Workforce implications include potential employment opportunities for both US and local construction personnel, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Geopolitical risks associated with operating in a foreign country could impact project timelines and costs.
Dependency on foreign government cooperation and approvals for smooth project execution.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to Gilbane Federal, a known entity in federal contracting, suggests a degree of reliability.
Full and open competition likely resulted in a competitive price.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on defense-related infrastructure. The market for military construction, particularly for foreign military sales, is specialized and often involves significant security and logistical considerations. Comparable spending benchmarks would typically involve other large-scale military base construction or modernization projects, both domestically and internationally, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-asides. Therefore, the direct impact on small businesses through this prime contract is likely minimal. However, the prime contractor, Gilbane Federal, may engage small businesses as subcontractors for specialized services or materials, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, likely through the Air Force's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified construction services within the agreed budget. Transparency is facilitated by the contract award being publicly available, though detailed project progress reports may be less accessible due to the international and sensitive nature of the work.

Related Government Programs

Foreign Military Sales (FMS) Program
F-15 Aircraft Sustainment Programs
Department of Defense Construction Contracts
Middle East Security Initiatives

Risk Flags

International Operations Risk
Geopolitical Instability
Logistical Complexity
Foreign Regulatory Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.7 million to GILBANE FEDERAL. PHASE I NAVAL IGLOOS AT KING ABDULAZIZ AIR BASE AND KING FAISAL AIR BASE, F-15 MODERNIZATION PROGRAM ROYAL SAUDI AIR FORCE

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

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 $60.7 million.

What is the period of performance?

Start: 2020-12-10. End: 2023-10-15.

What is Gilbane Federal's track record with large-scale international construction projects, particularly for defense clients?

Gilbane Federal has a substantial history of executing large-scale construction and facilities management projects for various U.S. government agencies, including the Department of Defense, both domestically and internationally. They have experience in complex environments and often manage projects involving significant logistical challenges. While specific details on their involvement in F-15 modernization support infrastructure in Saudi Arabia are not publicly detailed in this award notice, their general profile suggests they possess the capabilities required for such undertakings. Their portfolio often includes projects related to military bases, aviation facilities, and infrastructure upgrades, indicating a relevant background for this contract.

How does the $60.7 million contract value compare to similar F-15 modernization support construction projects?

Directly comparable projects are scarce due to the unique nature of foreign military sales and specific base infrastructure requirements. However, large-scale military construction projects, especially those involving new facilities or major upgrades at operational air bases, frequently range from tens to hundreds of millions of dollars. The $60.7 million figure for constructing naval igloos and related support at two bases for an F-15 modernization program appears to be within the expected range for such specialized, international defense infrastructure work. Factors like location, specific technological requirements for the igloos, and site preparation complexity heavily influence costs.

What are the primary risks associated with executing this construction contract in Saudi Arabia?

Key risks include geopolitical instability, differing regulatory and labor laws, logistical challenges in transporting materials and personnel, potential security concerns, and currency exchange rate fluctuations. Additionally, cultural differences and communication barriers can impact project management and execution. The reliance on local permits and approvals adds another layer of potential delay. The firm-fixed-price nature of the contract shifts some of the financial risk to the contractor, but delays or unforeseen issues could still lead to claims or disputes.

What is the expected impact of this contract on the F-15 modernization program's overall effectiveness?

This contract is crucial for the operational effectiveness of the F-15 modernization program by providing the necessary hardened and secure facilities (naval igloos) for aircraft maintenance, storage, and potentially mission planning. Without adequate infrastructure, the benefits of modernizing the F-15 fleet cannot be fully realized, as aircraft require secure and suitable environments for upkeep and deployment. The successful completion of this construction project directly supports the Royal Saudi Air Force's ability to maintain and operate its modernized F-15 aircraft efficiently and securely.

What has been the historical spending trend for similar construction support for foreign military aircraft modernization programs?

Historical spending on construction support for foreign military aircraft modernization programs varies significantly based on the aircraft type, the number of platforms being modernized, the recipient nation's existing infrastructure, and the scope of upgrades. Programs involving advanced fighter jets like the F-15, especially those requiring specialized hardened facilities, typically involve substantial construction budgets. Over the past decade, spending on such projects has often been in the multi-million to hundreds-of-millions-of-dollars range, reflecting the complexity and strategic importance of these endeavors. Fluctuations depend on geopolitical priorities and the specific modernization phases undertaken by allied nations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1655 GRANT ST 12TH FL, CONCORD, CA, 94520

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,697,740

Exercised Options: $60,697,740

Current Obligation: $60,697,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890317D0041

IDV Type: IDC

Timeline