DoD awards $22.8M for Armored Fighting Vehicle Support Facility in Washington, with ABSHER CONSTRUCTION CO

Contract Overview

Contract Amount: $22,819,463 ($22.8M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2025-09-04

End Date: 2027-10-16

Contract Duration: 772 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY25, P982 ARMORED FIGHTING VEHICLE SUPPORT FACILITY, NBK, SILVERDALE, WA

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to ABSHER CONSTRUCTION CO for work described as: FY25, P982 ARMORED FIGHTING VEHICLE SUPPORT FACILITY, NBK, SILVERDALE, WA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 2 years indicates a medium-term project. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Project location in Silverdale, WA, suggests a focus on regional defense infrastructure. 5. The award amount is substantial for a single construction facility project.

Value Assessment

Rating: good

The contract value of $22.8 million for a support facility appears reasonable given the scope of constructing specialized defense infrastructure. Benchmarking against similar large-scale construction projects for military bases, this price point is within expected ranges. The firm-fixed-price contract type suggests that the contractor has assessed risks and costs, aiming for a defined profit margin, which can lead to predictable spending for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a healthy level of competition for this project. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value, driving down costs compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Navy and Department of Defense personnel stationed at NBK, Silverdale, WA, who will utilize the new facility. The project will deliver a critical support facility for armored fighting vehicles, enhancing operational readiness and maintenance capabilities. The geographic impact is concentrated in Silverdale, Washington, potentially creating local construction jobs and economic activity. The construction activities will likely involve a skilled workforce, including tradespeople and project management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Delays in construction could impact operational readiness timelines for the armored vehicles.
Ensuring compliance with stringent military construction standards requires careful oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market price was secured.
Project duration is defined, allowing for clear planning and execution timelines.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically catering to specialized defense infrastructure needs. The market for military construction is significant, driven by ongoing modernization and operational requirements. This project represents a specific investment in enhancing the capabilities of the Navy's facilities in the Pacific Northwest, aligning with broader defense spending trends in infrastructure development.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides or subcontracting goals. Without explicit set-aside provisions, the primary contractor, ABSHER CONSTRUCTION CO., will determine subcontracting opportunities. It is possible that small businesses could be engaged as subcontractors, but this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions, ensuring adherence to specifications and timelines. Accountability measures are embedded in the firm-fixed-price contract, which penalizes the contractor for cost overruns. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported.

Related Government Programs

Naval Base Kitsap Construction Projects
Department of Defense Facilities Modernization
Armored Vehicle Maintenance and Support Contracts
Military Construction Projects in Washington State

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting project timelines.
Ensuring adherence to stringent military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to ABSHER CONSTRUCTION CO. FY25, P982 ARMORED FIGHTING VEHICLE SUPPORT FACILITY, NBK, SILVERDALE, WA

Who is the contractor on this award?

The obligated recipient is ABSHER CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2025-09-04. End: 2027-10-16.

What is ABSHER CONSTRUCTION CO.'s track record with the Department of Defense, particularly on similar construction projects?

ABSHEER CONSTRUCTION CO. has a history of performing construction services for various government agencies, including the Department of Defense. While specific details on past projects of identical scope (e.g., armored vehicle support facilities) are not provided in this data snippet, their award on this contract suggests they meet the qualifications and experience required by the Navy. A deeper dive into their contract history within FPDS would reveal the number and value of previous DoD contracts, their performance ratings, and any past issues or successes on comparable projects. This would provide a clearer picture of their reliability and expertise in executing large-scale military construction.

How does the $22.8 million award compare to the estimated cost or budget for this specific type of facility?

The provided data does not include the government's estimated cost or budget for the P982 ARMORED FIGHTING VEHICLE SUPPORT FACILITY. Therefore, a direct comparison to determine if the $22.8 million award represents a favorable price is not possible with the current information. However, the fact that the contract was awarded under full and open competition with five bidders suggests that the awarded price is likely competitive. In the absence of an independent government estimate, the number of bidders and the final award price serve as indicators of market value. Further analysis would require access to the government's independent cost estimate or data on similar facilities constructed recently.

What are the primary risks associated with the firm-fixed-price contract type for this project?

The primary risk associated with a firm-fixed-price (FFP) contract for a project like the Armored Fighting Vehicle Support Facility is that the contractor, ABSHER CONSTRUCTION CO., bears the financial responsibility for any cost overruns. While this shifts risk from the government, it can incentivize the contractor to cut corners on quality or safety if they underestimate costs or encounter unforeseen issues. Conversely, if the contractor significantly overestimates costs, the government might end up paying a premium. Effective oversight by the Department of the Navy is crucial to ensure the contractor maintains quality standards and adheres to the contract's technical specifications despite the FFP structure.

What is the expected impact of this facility on the operational readiness and maintenance of armored fighting vehicles?

The construction of the P982 ARMORED FIGHTING VEHICLE SUPPORT FACILITY is intended to directly enhance the operational readiness and maintenance capabilities for armored fighting vehicles. Such facilities typically provide specialized bays for repair, maintenance, and logistical support, equipped with necessary tools, equipment, and environmental controls. By centralizing these functions in a dedicated, modern facility, the Navy can expect reduced downtime for vehicles, improved efficiency in maintenance procedures, and potentially extended vehicle lifespans. This contributes to a more robust and responsive force projection capability.

How does the spending on this single facility compare to broader trends in Department of Defense construction or infrastructure spending?

The $22.8 million award for this single facility is a component of the Department of Defense's overall infrastructure spending, which typically runs into billions of dollars annually. DoD infrastructure investments cover a wide range of projects, including barracks, training facilities, airfields, ports, and specialized support structures like this one. While $22.8 million is a significant sum for one project, it represents a fraction of the total DoD construction budget. This specific award aligns with the DoD's ongoing efforts to modernize its facilities and ensure they can support current and future military equipment, such as armored fighting vehicles, across various installations.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,942,234

Exercised Options: $22,819,463

Current Obligation: $22,819,463

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $7,380,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4425523D1700

IDV Type: IDC

Timeline