DoD Awards $22.6M for Runway Repair, Highlighting Infrastructure Needs

Contract Overview

Contract Amount: $22,636,012 ($22.6M)

Contractor: Great Mills Trading Post CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2015-10-26

End Date: 2018-04-30

Contract Duration: 917 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: .IGF::OT::IGF RUNWAYS REPAIR AND REHABILITATION PAX

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to GREAT MILLS TRADING POST CO., INC. for work described as: .IGF::OT::IGF RUNWAYS REPAIR AND REHABILITATION PAX Key points: 1. Significant investment in critical infrastructure for naval operations. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 917 days indicates a substantial project scope. 4. Focus on runway repair points to ongoing maintenance requirements in defense.

Value Assessment

Rating: fair

The award amount of $22.6 million for runway repair and rehabilitation appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure maintenance, ensuring operational readiness. The competitive nature of the award aims to secure the best value for the government.

Public Impact

Ensures continued operational capability for naval aviation at the specified location. Supports local economy through construction activities and potential subcontracting. Addresses aging infrastructure, a common challenge in government facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on long-term construction projects.
Risk of unforeseen site conditions impacting schedule and budget.
Dependence on a single contractor for the full project duration.

Positive Signals

Awarded through full and open competition.
Addresses critical infrastructure needs.
Clear contract type (Firm Fixed Price) for cost control.

Sector Analysis

This contract falls within the construction sector, specifically focusing on infrastructure vital for defense operations. Spending benchmarks for runway repair and rehabilitation can vary widely based on location, size, and specific requirements.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in the provided data. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The contract's duration and value suggest a need for robust oversight to ensure adherence to schedule, budget, and quality standards. The Department of the Navy is responsible for monitoring performance and ensuring accountability.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long project duration increases exposure to market fluctuations.
Potential for scope creep if unforeseen issues arise.
Dependence on contractor's financial stability over the contract term.
Geographic location may present unique logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to GREAT MILLS TRADING POST CO., INC.. .IGF::OT::IGF RUNWAYS REPAIR AND REHABILITATION PAX

Who is the contractor on this award?

The obligated recipient is GREAT MILLS TRADING POST CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2015-10-26. End: 2018-04-30.

What is the historical cost performance of similar runway repair contracts awarded by the Department of Defense?

Historical cost performance for similar runway repair contracts can vary significantly. Factors such as project complexity, geographic location, material costs, and unforeseen site conditions heavily influence outcomes. Analyzing past projects with similar scope and duration within the DoD can reveal trends in cost overruns or savings, providing a benchmark for evaluating the current contract's potential financial trajectory and identifying common risk factors.

How effectively did the full and open competition process ensure competitive pricing for this runway repair project?

The full and open competition process is designed to foster competitive pricing by allowing multiple qualified vendors to bid. Its effectiveness in this specific instance depends on the number of bids received, the range of proposed prices, and the final negotiated price relative to independent cost estimates. A thorough review of the bidding process documentation would be necessary to confirm that genuine price competition was achieved and that the government secured a fair market price.

What are the potential long-term implications of this runway repair project on the operational readiness of the naval facility?

This runway repair project is crucial for maintaining and enhancing the operational readiness of the naval facility. By addressing wear and tear, it ensures safe and efficient aircraft operations, reduces the risk of flight delays or cancellations due to runway conditions, and supports the deployment capabilities of naval aviation assets. The successful and timely completion of this project directly contributes to the facility's ability to perform its mission effectively.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008015R0502

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20294 POINT LOOKOUT RD, GREAT MILLS, MD, 20634

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,636,012

Exercised Options: $22,636,012

Current Obligation: $22,636,012

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline