Navy's $18.8M Hangar Modernization Contract Awarded to Coakley & Williams JV Amidst ARRA Funding
Contract Overview
Contract Amount: $18,756,793 ($18.8M)
Contractor: Rich Moe/Coakley & Williams JV
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2012-11-08
Contract Duration: 1,135 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAS::17 1805::TAS RECOVERYPROJECT#::RM142-02::RP# HANGAR 110 MODERNIZATION, NAVAL AIR STATION, PATUXENT RIVER, MARYLAND ARRA::YES::ARRA
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to RICH MOE/COAKLEY & WILLIAMS JV for work described as: TAS::17 1805::TAS RECOVERYPROJECT#::RM142-02::RP# HANGAR 110 MODERNIZATION, NAVAL AIR STATION, PATUXENT RIVER, MARYLAND ARRA::YES::ARRA Key points: 1. Contract awarded under the American Recovery and Reinvestment Act (ARRA) signifies a focus on economic stimulus through infrastructure projects. 2. The project involved modernization of Hangar 110 at Naval Air Station, Patuxent River, Maryland, a critical facility for naval aviation operations. 3. A firm-fixed-price contract structure suggests that cost risks were largely borne by the contractor, providing budget certainty for the Navy. 4. The duration of the contract (1135 days) indicates a substantial construction project requiring significant planning and execution. 5. The award to a joint venture highlights potential collaboration and resource pooling for complex construction endeavors. 6. The contract's completion date in late 2012 places it within the period of ARRA project implementation and closeout.
Value Assessment
Rating: fair
The contract value of approximately $18.8 million for a hangar modernization project at a naval air station appears within a reasonable range for large-scale construction. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps control costs, but the final cost relative to the initial scope and market rates for similar construction services in Maryland would be key indicators of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was sought, certain sources were excluded, potentially due to specific qualifications or prior relationships. With 7 bidders, there was a moderate level of competition. However, the exclusion of sources might limit the breadth of competitive pricing and innovation compared to truly unrestricted full and open competition.
Taxpayer Impact: The moderate competition level, while providing some price discovery, may not have driven the absolute lowest prices for taxpayers compared to a scenario with more bidders and fewer exclusions.
Public Impact
Naval aviation operations at NAS Patuxent River benefit from modernized infrastructure, enhancing readiness and capability. The project supports the construction and skilled trades workforce in Maryland through direct employment and subcontracting opportunities. The modernization of Hangar 110 is crucial for maintaining and repairing naval aircraft, indirectly supporting national defense. Taxpayers benefit from the investment in critical military infrastructure, ensuring the long-term operational effectiveness of naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if excluded sources were significantly more competitive.
- Risk of schedule delays in large construction projects, impacting operational readiness.
- Ensuring compliance with ARRA reporting requirements and project closeout procedures.
Positive Signals
- Firm-fixed-price contract mitigates cost uncertainty for the government.
- Award to a joint venture may indicate robust capacity and expertise.
- Project completion contributes to the modernization of essential military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized military infrastructure. The construction market for large-scale government facilities is often characterized by significant barriers to entry, requiring specialized expertise, security clearances, and adherence to stringent regulations. Spending in this sector is driven by defense modernization needs, base infrastructure upgrades, and economic stimulus programs like ARRA.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside objective (ss: false, sb: false). While the prime contractor is a joint venture, the extent of small business subcontracting is not detailed here. Large construction projects often involve significant subcontracting opportunities, and the impact on the small business ecosystem would depend on how Coakley & Williams JV engaged with smaller firms for specialized construction services.
Oversight & Accountability
Oversight for this contract would have been primarily managed by the Department of the Navy's contracting and engineering divisions. Given it was an ARRA-funded project, additional oversight likely came from ARRA-specific reporting and accountability mechanisms, potentially involving Inspectors General offices to ensure proper use of funds and project execution. Transparency would be managed through contract award databases and public reporting requirements.
Related Government Programs
- Naval Air Station Infrastructure Modernization
- Military Construction Projects
- American Recovery and Reinvestment Act (ARRA) Projects
- Department of Defense Construction Contracts
- Hangar Construction and Maintenance
Risk Flags
- ARRA Funding Compliance
- Construction Project Delays
- Cost Overruns Potential
- Limited Competition Impact
Tags
construction, department-of-defense, department-of-the-navy, naval-air-station, patuxent-river, maryland, definitive-contract, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, arra-funded, large-contract, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to RICH MOE/COAKLEY & WILLIAMS JV. TAS::17 1805::TAS RECOVERYPROJECT#::RM142-02::RP# HANGAR 110 MODERNIZATION, NAVAL AIR STATION, PATUXENT RIVER, MARYLAND ARRA::YES::ARRA
Who is the contractor on this award?
The obligated recipient is RICH MOE/COAKLEY & WILLIAMS JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2009-09-30. End: 2012-11-08.
What was the specific nature of the 'exclusion of sources' in this full and open competition, and how might it have impacted pricing?
The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the solicitation was broadly advertised, certain potential bidders were intentionally excluded from consideration. The reasons for exclusion are not specified in the provided data but could include factors such as failure to meet specific pre-qualification criteria, past performance issues, inability to meet security requirements, or specific technical capabilities deemed essential for this particular project. This exclusion, while potentially ensuring a more qualified pool of bidders, could limit the overall number of competing entities. If the excluded sources were highly competitive, their absence might have led to less aggressive pricing from the remaining bidders, potentially resulting in a higher final contract price than if unrestricted competition had been allowed.
How does the $18.8 million cost compare to similar hangar modernization projects at other naval installations?
Benchmarking the $18.8 million cost requires detailed comparison with similar projects, considering factors like hangar size, scope of modernization (e.g., structural upgrades, HVAC, electrical, fire suppression systems), location, and the year of award. Without specific data on comparable projects, it's difficult to definitively assess value. However, large-scale military construction projects, especially those involving specialized facilities like aircraft hangars, typically incur significant costs due to stringent requirements, security protocols, and the need for specialized materials and labor. The ARRA funding context might also influence cost considerations, potentially prioritizing job creation alongside project completion. A detailed cost-benefit analysis comparing the scope of work, duration, and final cost against similar projects would be necessary for a precise value assessment.
What were the primary risks associated with this hangar modernization project, and how were they managed?
Major risks for a project of this scale typically include construction delays due to unforeseen site conditions, weather, or supply chain disruptions; cost overruns, particularly if the firm-fixed-price contract had inadequate contingency or scope creep occurred; and potential impacts on ongoing naval operations at the air station. Management strategies would likely involve robust project management by the Navy, detailed scheduling and risk mitigation plans from the contractor (Coakley & Williams JV), adherence to the firm-fixed-price contract terms to control costs, and clear communication protocols. Given the project's duration (1135 days), phased construction or temporary operational adjustments might have been necessary to minimize disruption. ARRA oversight likely added another layer of risk management focused on compliance and timely execution.
What is the significance of this contract being funded by the American Recovery and Reinvestment Act (ARRA)?
The funding of this contract through ARRA in 2009 signifies its role as part of a broader federal initiative to stimulate the economy during a period of recession. ARRA projects were intended to create jobs, spur economic activity, and invest in critical infrastructure. For this hangar modernization project, ARRA funding likely accelerated the timeline for necessary upgrades that might otherwise have been deferred. It also implies a heightened focus on reporting, accountability, and timely completion to demonstrate the effectiveness of the stimulus spending. The project's success would have been measured not only by its technical completion but also by its contribution to economic recovery goals.
What was the track record of Coakley & Williams JV in executing similar large-scale government construction contracts prior to this award?
Information on the specific track record of Coakley & Williams JV for similar large-scale government construction contracts prior to this $18.8 million award is not detailed in the provided data. However, their ability to win a competitive bid for a significant project like the Hangar 110 modernization suggests they possessed the necessary qualifications, experience, and financial capacity deemed acceptable by the Department of the Navy. Joint ventures are often formed to pool resources and expertise, indicating a strategic approach to undertaking complex projects. A deeper dive into their past performance ratings, other federal contracts, and project portfolio would be needed for a comprehensive assessment of their track record.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008009R0156
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15875 COMMERCE CT, UPPER MARLBORO, MD, 20774
Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,756,793
Exercised Options: $18,756,793
Current Obligation: $18,756,793
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-30
Current End Date: 2012-11-08
Potential End Date: 2012-11-08 00:00:00
Last Modified: 2021-07-29
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