DoD Awards $70.5M for Saudi Arabia Air Base Construction, Gilbane Federal Selected
Contract Overview
Contract Amount: $70,477,499 ($70.5M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2024-02-14
End Date: 2026-05-23
Contract Duration: 829 days
Daily Burn Rate: $85.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF PHASE II NAVY IGLOOS MUNITIONS STORAGE AREAS AT KING SAUD AIR BASE (KSAB), AL JOUF AIR BASE (AJAB), KING FAHAD AIR BASE (KFDAB) AND PRINCE SULTAN AIR BASE (PSAB), KINGDOM OF SAUDI ARABIA.
Plain-Language Summary
Department of Defense obligated $70.5 million to GILBANE FEDERAL for work described as: CONSTRUCTION OF PHASE II NAVY IGLOOS MUNITIONS STORAGE AREAS AT KING SAUD AIR BASE (KSAB), AL JOUF AIR BASE (AJAB), KING FAHAD AIR BASE (KFDAB) AND PRINCE SULTAN AIR BASE (PSAB), KINGDOM OF SAUDI ARABIA. Key points: 1. The contract is for construction of munitions storage areas at four Saudi Arabian air bases. 2. Gilbane Federal, a large business, was awarded the contract. 3. The contract was awarded under full and open competition. 4. The project duration is 829 days, with an estimated completion in May 2026. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The award amount of $70.5 million appears reasonable for a large-scale construction project of this nature, especially considering the international location and specialized requirements for munitions storage. Benchmarking against similar DoD overseas construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple contractors vie for the award.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure supporting military operations abroad. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Enhances US military logistical capabilities in the Middle East. Supports critical munitions storage infrastructure for air bases. Represents significant investment in international defense infrastructure. Project completion is crucial for operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Potential for cost overruns due to international logistics and unforeseen site conditions.
- Geopolitical risks associated with operating in Saudi Arabia.
- Dependency on foreign labor and material sourcing.
Positive Signals
- Clear statement of work for essential infrastructure.
- Firm Fixed Price contract limits cost uncertainty.
- Awarded under full and open competition, suggesting competitive pricing.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure, particularly overseas, is substantial and driven by strategic geopolitical needs and operational requirements.
Small Business Impact
The contract was awarded to Gilbane Federal, a large business, and there is no indication that small businesses were involved as subcontractors in this specific award. Future subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, managed this procurement. Standard oversight mechanisms for large construction contracts, including site inspections and progress reporting, are expected to be in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Geopolitical risk in Saudi Arabia.
- Logistical challenges of overseas construction.
- Potential for scope creep or change orders.
- Dependency on foreign supply chains.
- Ensuring compliance with local regulations and customs.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.5 million to GILBANE FEDERAL. CONSTRUCTION OF PHASE II NAVY IGLOOS MUNITIONS STORAGE AREAS AT KING SAUD AIR BASE (KSAB), AL JOUF AIR BASE (AJAB), KING FAHAD AIR BASE (KFDAB) AND PRINCE SULTAN AIR BASE (PSAB), KINGDOM OF SAUDI ARABIA.
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 $70.5 million.
What is the period of performance?
Start: 2024-02-14. End: 2026-05-23.
What is the specific breakdown of costs for materials, labor, and overhead within the $70.5 million award?
The specific cost breakdown is not publicly available in this award notice. Such details are typically found in the contractor's proposal and are subject to negotiation and contract administration. Understanding this breakdown is crucial for assessing the efficiency of the pricing and identifying potential areas for cost savings or overruns during project execution.
What are the contingency plans for potential delays or cost increases due to geopolitical instability in the region?
Contingency plans for geopolitical instability are not explicitly detailed in the award notice. However, the Firm Fixed Price contract structure implies that the contractor bears the primary risk for cost overruns. The government may have clauses addressing force majeure events, but specific mitigation strategies would likely be part of the contract's risk management plan.
How will the effectiveness of the completed munitions storage areas be measured and verified?
Effectiveness will likely be measured through adherence to design specifications, successful completion of quality assurance inspections, and final acceptance testing by the Air Force. Verification will involve ensuring the facilities meet all safety, security, and operational requirements for storing munitions as per military standards.
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
Solicitation ID: FA890323R0058
Offers Received: 2
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: $70,493,159
Exercised Options: $70,493,159
Current Obligation: $70,477,499
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
Start Date: 2024-02-14
Current End Date: 2026-05-23
Potential End Date: 2026-05-23 00:00:00
Last Modified: 2026-01-07
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