DoD awards $15.4M for Ebbing ANGB ramp and taxiway repairs, with 3 bids received

Contract Overview

Contract Amount: $15,445,149 ($15.4M)

Contractor: Ahtna-Cdm Smith JV

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-01-21

Contract Duration: 846 days

Daily Burn Rate: $18.3K/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: DESIGN-BUILD CONSTRUCTION SERVICES TO REPAIR/REFURBISH MAIN RAMP, AIRCRAFT SUNSHADES, AND TAXIWAY AT EBBING ANGB, FORT SMITH, AR.

Place of Performance

Location: FORT SMITH, SEBASTIAN County, ARKANSAS, 72903

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to AHTNA-CDM SMITH JV for work described as: DESIGN-BUILD CONSTRUCTION SERVICES TO REPAIR/REFURBISH MAIN RAMP, AIRCRAFT SUNSHADES, AND TAXIWAY AT EBBING ANGB, FORT SMITH, AR. Key points: 1. Contract awarded to AHTNA-CDM SMITH JV for essential airfield infrastructure upgrades. 2. Project scope includes repairs to the main ramp, aircraft sunshades, and taxiway. 3. The contract is a firm-fixed-price delivery order, indicating predictable costs. 4. Competition was full and open after exclusion of sources, suggesting a deliberate bidding process. 5. The duration of 846 days highlights the significant scale of the refurbishment. 6. Location in Fort Smith, Arkansas, points to regional economic impact. 7. This award falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $15.4 million for airfield infrastructure repair appears reasonable given the scope of work, which includes a main ramp, aircraft sunshades, and taxiway refurbishment. While specific cost breakdowns are not provided, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the expected costs. Benchmarking against similar large-scale airfield construction projects would provide a more precise value assessment, but the number of bidders (3) in a full and open competition suggests a competitive pricing environment.

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 initial solicitation might have had some exclusions, the final award was made through a broad competitive process. Three bids were received, which is a moderate level of competition. This suggests that while multiple firms were interested and capable, the market for this specific type of specialized airfield construction may not be exceptionally crowded.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging competitive pricing. With three bidders, there was a reasonable incentive for each to offer competitive rates to secure the contract.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Ebbing Air National Guard Base, ensuring safe and efficient aircraft movement. The services delivered include critical repairs and refurbishment of essential airfield infrastructure. The geographic impact is concentrated in Fort Smith, Arkansas, potentially creating local jobs during the construction period. Workforce implications include employment opportunities for construction workers and specialists in airfield maintenance and repair within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions are encountered during the extensive refurbishment.
Dependence on the contractor's ability to manage a complex project over an extended period.
Risk of schedule delays impacting base operations if the project timeline is not strictly adhered to.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost increases.
Award to a joint venture (AHTNA-CDM SMITH JV) may indicate a combination of expertise and capacity.
The project addresses critical infrastructure needs, enhancing operational readiness and safety.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on institutional and commercial building construction, with a specialization in airfield infrastructure. The market for airfield construction and repair is significant, driven by military and civilian aviation needs. This project represents a substantial investment in maintaining and upgrading critical national defense assets. Comparable spending benchmarks would typically involve other large-scale airfield renovation or construction projects at military installations.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a specific small business set-aside. However, the joint venture structure of the awardee, AHTNA-CDM SMITH JV, could involve small business participation through subcontracting or as part of the joint venture itself. Further analysis would be needed to determine the extent of small business involvement and subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and engineering personnel at Ebbing ANGB. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Airfield Pavement Repair
Military Base Infrastructure Modernization
Aircraft Hangar and Support Facility Construction
Defense Infrastructure Projects
Air National Guard Facility Maintenance

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk on a large, multi-year project.
Adequacy of competition level for optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to AHTNA-CDM SMITH JV. DESIGN-BUILD CONSTRUCTION SERVICES TO REPAIR/REFURBISH MAIN RAMP, AIRCRAFT SUNSHADES, AND TAXIWAY AT EBBING ANGB, FORT SMITH, AR.

Who is the contractor on this award?

The obligated recipient is AHTNA-CDM SMITH 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 $15.4 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-01-21.

What is the track record of AHTNA-CDM SMITH JV in performing similar large-scale airfield construction projects?

Assessing the track record of AHTNA-CDM SMITH JV requires examining past performance on similar contracts. As a joint venture, its history is a composite of its constituent companies' experiences. A review of federal contract databases and past performance evaluations would reveal their success in delivering projects of comparable scope, complexity, and value, particularly those involving airfield infrastructure. Key indicators include on-time delivery, adherence to budget, quality of work, and safety records. Without specific past performance data readily available for this JV, it's difficult to definitively assess their capabilities, but the award suggests they met the government's pre-qualification criteria for this project.

How does the awarded amount of $15.4 million compare to the estimated cost or budget for this airfield repair project?

The awarded amount of $15.4 million represents the final negotiated price for the design-build construction services. To assess its value relative to the budget, one would need access to the government's independent government cost estimate (IGCE) or the initial budget allocated for this project. If the awarded amount is significantly below the IGCE, it could indicate strong competition and good negotiation. Conversely, if it's at or above the IGCE, it might suggest the initial estimate was accurate or that the competition was less aggressive than anticipated. The firm-fixed-price nature means this is the ceiling cost, but understanding the initial budget context is crucial for a complete value assessment.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration and scope?

While firm-fixed-price (FFP) contracts are generally favored for cost control, they carry specific risks, especially for long-duration, complex projects like airfield refurbishment. The primary risk for the contractor is underestimating costs, leading to reduced profit or even losses if unforeseen issues arise (e.g., subsurface conditions, material price escalations not covered by contract clauses). For the government, the risk is that the contractor may cut corners on quality or safety to protect their profit margin, although robust quality assurance and oversight mitigate this. The extended duration (846 days) increases the contractor's exposure to market fluctuations in labor and materials, which could strain their financial capacity if not adequately factored into the initial bid.

What is the expected impact of these repairs on the operational effectiveness and safety of Ebbing ANGB?

The repairs to the main ramp, aircraft sunshades, and taxiway are critical for maintaining and enhancing the operational effectiveness and safety of Ebbing Air National Guard Base. A well-maintained ramp and taxiway ensure smooth and safe aircraft ground operations, reducing the risk of accidents and enabling efficient sortie generation. Aircraft sunshades protect sensitive avionics and components from extreme heat, preserving equipment longevity and reducing maintenance needs. Overall, these infrastructure upgrades are essential for supporting the base's primary mission, whether it involves training, deployment readiness, or other operational functions, by ensuring reliable and safe aviation support facilities.

How does this $15.4 million award fit into the broader historical spending patterns for airfield maintenance and construction within the Department of the Air Force?

This $15.4 million award for Ebbing ANGB represents a significant but not extraordinary investment within the Department of the Air Force's overall budget for infrastructure maintenance and construction. The Air Force manages a vast portfolio of airfields globally, and annual spending on repairs, upgrades, and new construction can run into billions of dollars. Awards of this magnitude are common for major airfield components like ramps and taxiways, especially at active bases or those undergoing modernization. Historical data would show that such projects are recurring needs due to wear and tear, aging infrastructure, and evolving operational requirements. This specific award should be viewed as part of a continuous cycle of investment necessary to maintain a modern and capable air fleet.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA890323R0140

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 EL CAMINO REAL, STE 240, IRVINE, CA, 92602

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Government, Native American Tribal Government, Minority Owned Business, Native American Owned 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: $16,530,696

Exercised Options: $15,445,149

Current Obligation: $15,445,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0012

IDV Type: IDC

Timeline