DoD Awards $25.3M for Moron Air Base Repair Facility, Raising Value Concerns

Contract Overview

Contract Amount: $25,310,459 ($25.3M)

Contractor: Eiffage Infraestructuras SAU Y Eiffage Energia SLU, UTE, LEY 18/1982 DE 26 DE Mayo, Eiffage Group UTE

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2026-04-15

Contract Duration: 1,034 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILITARY CONSTRUCTION PROJECT 014 RAPID AIRFIELD DAMAGE REPAIR STORAGE FACILITY, MORON AIR BASE TASK ORDER

Plain-Language Summary

Department of Defense obligated $25.3 million to EIFFAGE INFRAESTRUCTURAS SAU Y EIFFAGE ENERGIA SLU, UTE, LEY 18/1982 DE 26 DE MAYO, EIFFAGE GROUP UTE for work described as: MILITARY CONSTRUCTION PROJECT 014 RAPID AIRFIELD DAMAGE REPAIR STORAGE FACILITY, MORON AIR BASE TASK ORDER Key points: 1. The $25.3M contract for a rapid airfield damage repair storage facility at Moron Air Base is awarded to EIFFAGE INFRAESTRUCTURAS SAU Y EIFFAGE ENERGIA SLU, UTE. 2. The project falls under the Commercial and Institutional Building Construction sector, with a North American Industry Classification System (NAICS) code of 236220. 3. The contract type is Firm Fixed Price, with a duration of 1034 days, indicating a defined scope and payment structure. 4. Despite full and open competition, the value appears high relative to the benchmark, warranting further scrutiny. 5. The absence of small business participation is noted.

Value Assessment

Rating: questionable

The contract value of $25.3M for a repair facility seems high when compared to similar construction projects. The benchmark of $24.48M suggests this award is approximately 3.4% over the expected cost, which warrants further investigation into the scope and necessity of the premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were solicited. However, the final award price being higher than the benchmark suggests that the competitive process may not have driven the price down to the most optimal level.

Taxpayer Impact: Taxpayers may be overpaying by approximately $830,000 based on the benchmark comparison, although the exact impact depends on the final delivered value and any potential change orders.

Public Impact

Military readiness could be enhanced by the new facility, improving response times for airfield repairs. The project's location at Moron Air Base suggests a strategic investment in European operational capabilities. The significant investment raises questions about long-term infrastructure needs and maintenance costs. The lack of small business involvement could limit opportunities for smaller enterprises in this construction project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Value concerns due to award price exceeding benchmark.
No small business participation.
Potential for cost overruns if scope expands.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract provides cost certainty.
Project addresses critical military infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for military construction can vary significantly based on geopolitical needs and infrastructure upgrades. The benchmark of $24.48M provides a reference point for similar projects.

Small Business Impact

The contract explicitly states that small business participation is not applicable (sb: false). This means no specific set-aside or subcontracting goals were mandated for small businesses in this particular award, potentially limiting opportunities for smaller firms.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for this contract. Oversight will involve monitoring project progress, adherence to the firm fixed price, and ensuring the facility meets all specified requirements by the 2026 completion date.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns.
Lack of small business engagement.
Dependency on a single prime contractor.
Geopolitical risks affecting project timeline or costs.
Quality control during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to EIFFAGE INFRAESTRUCTURAS SAU Y EIFFAGE ENERGIA SLU, UTE, LEY 18/1982 DE 26 DE MAYO, EIFFAGE GROUP UTE. MILITARY CONSTRUCTION PROJECT 014 RAPID AIRFIELD DAMAGE REPAIR STORAGE FACILITY, MORON AIR BASE TASK ORDER

Who is the contractor on this award?

The obligated recipient is EIFFAGE INFRAESTRUCTURAS SAU Y EIFFAGE ENERGIA SLU, UTE, LEY 18/1982 DE 26 DE MAYO, EIFFAGE GROUP UTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-04-15.

What specific factors contributed to the award price exceeding the benchmark by over 3%?

The higher award price may be attributed to several factors, including specialized materials or labor required for rapid airfield damage repair equipment, unforeseen site conditions, or a lack of sufficiently competitive bids despite the 'full and open' designation. Market fluctuations in construction costs or specific logistical challenges at Moron Air Base could also have driven up the price beyond the initial benchmark estimate.

What are the potential risks associated with awarding a construction contract without small business participation?

The primary risk of excluding small businesses is potentially higher costs due to reduced competition and the loss of innovative solutions they often bring. It also represents a missed opportunity to support local economies and foster growth within the small business sector, which is a key component of the defense industrial base.

How will the effectiveness of this storage facility be measured post-completion?

Effectiveness will be measured by its ability to store and deploy rapid airfield damage repair equipment efficiently and reliably. Key performance indicators will likely include response times for equipment retrieval, the condition of stored assets, and the facility's integration into broader airfield maintenance and emergency response protocols.

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

Solicitation ID: N6247020R4011

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE RIO VIEJO (PG IND CR. DE LA ISLA), S/N, DOS HERMANAS

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,315,446

Exercised Options: $25,310,459

Current Obligation: $25,310,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247021D0015

IDV Type: IDC

Timeline