DoD's $38.8M Iceland Airfield Upgrades Contract Awarded to Iceland Prime Contractor Ltd
Contract Overview
Contract Amount: $38,829,847 ($38.8M)
Contractor: Iceland Prime Contractor Ltd
Awarding Agency: Department of Defense
Start Date: 2020-09-21
End Date: 2023-03-05
Contract Duration: 895 days
Daily Burn Rate: $43.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MILCON PROJECTS P-19001, EDI: AIRFIELD UPGRADES - APRON EXPANSION P-19002, EDI: EXPEDITIONARY BEDDOWN SITE AND P-19003, EDI: AIRFIELD UPGRADES - DANGEROUS CARGO PAD LOCATED AT KEFLAVIK, ICELAND
Plain-Language Summary
Department of Defense obligated $38.8 million to ICELAND PRIME CONTRACTOR LTD for work described as: MILCON PROJECTS P-19001, EDI: AIRFIELD UPGRADES - APRON EXPANSION P-19002, EDI: EXPEDITIONARY BEDDOWN SITE AND P-19003, EDI: AIRFIELD UPGRADES - DANGEROUS CARGO PAD LOCATED AT KEFLAVIK, ICELAND Key points: 1. The contract covers airfield upgrades, expeditionary beddown sites, and dangerous cargo pads at Keflavik, Iceland. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The project duration is 895 days, with a firm-fixed-price contract type. 4. No small business participation was noted in the provided data.
Value Assessment
Rating: fair
The total award amount is $38.8 million. Benchmarking per-unit costs for airfield upgrades and construction in international locations is challenging without specific scope details. However, the firm-fixed-price structure suggests the government has a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting multiple bidders were considered. This method generally promotes price discovery and competitive pricing for the government.
Taxpayer Impact: The firm-fixed-price contract type aims to control costs for taxpayers by establishing a set price for the defined scope of work.
Public Impact
Enhances critical military infrastructure at a key NATO base in Iceland. Supports expeditionary capabilities, improving readiness for rapid deployment. Addresses safety and logistical needs for handling dangerous cargo. Potential economic impact for local Icelandic businesses through subcontracts, though not explicitly detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- International location may introduce logistical and oversight complexities.
- Firm-fixed-price contracts can shift risk to the contractor, potentially leading to higher initial bids.
Positive Signals
- Full and open competition promotes competitive pricing.
- Strategic importance of the airfield upgrades for national defense.
- Clear contract type (FFP) for cost control.
Sector Analysis
This contract falls under Industrial Building Construction (NAICS 236210). Spending in this sector can vary significantly based on project scale, location, and material costs. Military construction projects often involve specialized requirements and security considerations.
Small Business Impact
The data indicates that this contract did not involve small business participation. Efforts to include small businesses in large federal construction projects are often a priority to foster economic growth and competition.
Oversight & Accountability
Oversight would typically involve the Department of the Navy, ensuring adherence to contract terms, quality standards, and timely completion. Regular site inspections and progress reports are standard accountability measures for such projects.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Logistical challenges associated with construction in an international location.
- Dependence on a single prime contractor for a large, multi-faceted project.
- Lack of small business involvement may indicate missed opportunities for broader economic impact.
Tags
industrial-building-construction, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to ICELAND PRIME CONTRACTOR LTD. MILCON PROJECTS P-19001, EDI: AIRFIELD UPGRADES - APRON EXPANSION P-19002, EDI: EXPEDITIONARY BEDDOWN SITE AND P-19003, EDI: AIRFIELD UPGRADES - DANGEROUS CARGO PAD LOCATED AT KEFLAVIK, ICELAND
Who is the contractor on this award?
The obligated recipient is ICELAND PRIME CONTRACTOR LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.8 million.
What is the period of performance?
Start: 2020-09-21. End: 2023-03-05.
What is the breakdown of costs for the different components of the airfield upgrades (apron expansion, beddown site, cargo pad)?
The provided data does not detail the cost breakdown for individual components like the apron expansion, expeditionary beddown site, or dangerous cargo pad. A more granular breakdown would be necessary to assess the value and efficiency of each specific element of the project and identify potential areas for cost savings or optimization in future contracts.
What specific risks were identified during the full and open competition process, and how were they mitigated?
The data does not specify risks identified during the competition phase. Typically, risks in such projects could include logistical challenges in Iceland, contractor performance, or unforeseen site conditions. Mitigation strategies might involve detailed pre-bid site assessments, robust contractor vetting, and clear performance metrics within the contract.
How does the final cost compare to initial estimates or bids received during the competition?
The data provides the final award amount ($38.8 million) but does not include initial estimates or the range of bids received during the full and open competition. A comparison would be crucial to determine if the awarded price represents good value and if the competitive process effectively drove down costs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N6247019R5017
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: HOFDABAKKI 9, REYKJAVIK
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $38,829,847
Exercised Options: $38,829,847
Current Obligation: $38,829,847
Actual Outlays: $15,916,094
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-21
Current End Date: 2023-03-05
Potential End Date: 2023-03-05 00:00:00
Last Modified: 2023-02-13
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