Air Force Awards $53.8M for King Salmon Air Station Apron and Taxiway Repairs

Contract Overview

Contract Amount: $53,857,705 ($53.9M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2024-11-18

End Date: 2026-11-18

Contract Duration: 730 days

Daily Burn Rate: $73.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AIRFIELD APRONS, TAXIWAY K, AND TAXIWAY M ON KING SALMON AIR STATION.

Place of Performance

Location: KING SALMON, BRISTOL BAY County, ALASKA, 99613

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to GILBANE FEDERAL for work described as: REPAIR AIRFIELD APRONS, TAXIWAY K, AND TAXIWAY M ON KING SALMON AIR STATION. Key points: 1. Significant investment in critical infrastructure at King Salmon Air Station. 2. Competition method indicates a potentially competitive bidding process. 3. Risk of cost overruns or schedule delays in large construction projects. 4. Construction sector spending benchmark needs further analysis.

Value Assessment

Rating: good

The award amount of $53.8M for airfield repairs appears substantial. Benchmarking against similar airfield construction projects would be necessary to definitively assess value, but the fixed-price contract type offers some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source awards.

Taxpayer Impact: Taxpayer funds are being used for essential military infrastructure maintenance, ensuring operational readiness. Competitive bidding aims to maximize the value of this investment.

Public Impact

Ensures continued operational capability of King Salmon Air Station. Supports local and regional economic activity through construction contracts. Addresses aging infrastructure needs for national defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for unforeseen site conditions impacting cost and schedule.
  • Reliance on a single delivery order for a large project.
  • Geographic remoteness of Alaska may increase logistical costs.

Positive Signals

  • Firm fixed-price contract provides cost certainty.
  • Full and open competition promotes competitive pricing.
  • Clear delivery order for specific infrastructure improvements.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for large-scale airfield infrastructure projects are highly variable based on location, scope, and specific requirements.

Small Business Impact

The data indicates no specific set-aside for small businesses. Larger federal construction contracts often involve subcontracting opportunities, but direct analysis of small business participation requires further data.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will be crucial to ensure adherence to contract terms, quality of work, and timely completion, especially given the project's scale and location.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost escalation due to material and labor price fluctuations.
  • Risk of schedule delays due to weather or logistical challenges in Alaska.
  • Dependency on a single delivery order for a significant infrastructure project.
  • Need for robust quality control to ensure durability of repairs.

Tags

commercial-and-institutional-building-co, department-of-defense, ak, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to GILBANE FEDERAL. REPAIR AIRFIELD APRONS, TAXIWAY K, AND TAXIWAY M ON KING SALMON AIR STATION.

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 $53.9 million.

What is the period of performance?

Start: 2024-11-18. End: 2026-11-18.

What is the historical cost performance of Gilbane Federal on similar large-scale construction contracts?

Assessing Gilbane Federal's historical cost performance on comparable projects is vital for understanding potential cost overrun risks. Reviewing past contract data, including change order frequency and final cost versus initial award, would provide insights into their project management capabilities and ability to deliver within budget on complex infrastructure initiatives.

How do the repair costs compare to the estimated replacement cost of the airfield infrastructure?

Comparing the repair cost of $53.8 million to the estimated replacement cost of the airfield aprons and taxiways is essential for evaluating long-term value. If repairs are significantly less than replacement, it suggests a cost-effective approach. Conversely, if repair costs approach replacement value, it might warrant a discussion about more comprehensive upgrades or rebuilding.

What are the specific performance metrics and quality assurance measures included in the contract?

Understanding the contract's performance metrics and quality assurance measures is key to ensuring the effectiveness of the repairs. Details on acceptable standards, inspection protocols, and remedies for substandard work will determine if the project meets its intended lifespan and operational requirements, ultimately impacting the long-term value for the Air Force.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $53,857,705

Exercised Options: $53,857,705

Current Obligation: $53,857,705

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $44,155,485

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: 2024-11-18

Current End Date: 2026-11-18

Potential End Date: 2026-11-18 00:00:00

Last Modified: 2024-12-04

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