Navy awards $44.7M contract for runway repair, highlighting infrastructure needs in California

Contract Overview

Contract Amount: $44,710,000 ($44.7M)

Contractor: Southwest Concrete Paving CO

Awarding Agency: Department of Defense

Start Date: 2023-07-27

End Date: 2025-12-03

Contract Duration: 860 days

Daily Burn Rate: $52.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST19-0500 REPAIR RWY

Place of Performance

Location: LEMOORE, KINGS County, CALIFORNIA, 93245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $44.7 million to SOUTHWEST CONCRETE PAVING CO for work described as: ST19-0500 REPAIR RWY Key points: 1. Contract value of $44.7 million addresses critical infrastructure maintenance. 2. Full and open competition suggests a competitive bidding process. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Firm-fixed-price contract type shifts risk to the contractor. 5. The project is located in California, a state with significant military infrastructure. 6. The North American Industry Classification System (NAICS) code 237310 points to highway, street, and bridge construction, suggesting a focus on foundational infrastructure.

Value Assessment

Rating: good

The contract value of $44.7 million for runway repair appears reasonable given the scope of infrastructure projects. Benchmarking against similar runway repair contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without detailed cost breakdowns or comparisons to industry standards for similar repair work, a definitive value assessment is challenging.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While two bidders are better than one, a higher number of bids typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally drives down prices through market forces. The existence of at least two bids suggests that the government likely received a competitive price for this runway repair work.

Public Impact

Benefits military readiness by ensuring operational runways at a naval facility. Services delivered include essential repairs to critical aviation infrastructure. Geographic impact is concentrated in California, supporting naval operations in the region. Workforce implications include employment for construction labor and specialized trades involved in civil engineering and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repair, despite fixed-price contract.
Dependence on a single delivery order within a potentially larger IDIQ contract may limit long-term visibility.
The limited number of bidders (2) could indicate potential barriers to entry or a specialized market.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust procurement process.
The contract addresses a critical infrastructure need, supporting operational readiness.

Sector Analysis

The construction sector, particularly civil engineering and infrastructure repair, is a significant area of federal spending. This contract falls under the Highway, Street, and Bridge Construction (NAICS 237310) category, which encompasses a broad range of projects essential for transportation and military operations. Federal spending in this sector is often driven by the need to maintain and upgrade aging infrastructure, as well as support national defense installations. Comparable spending benchmarks would involve analyzing other large-scale runway or airfield repair contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the prime contractor, Southwest Concrete Paving Co., may engage small businesses as subcontractors to fulfill portions of the work, depending on subcontracting plans and opportunities within the project scope. The absence of a small business set-aside means that larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Navy, who ensures performance meets contract requirements. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Infrastructure Projects
Naval Air Station Maintenance Contracts
Federal Aviation Administration (FAA) Airport Improvement Program (AIP)
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost escalation if unforeseen conditions are encountered.
Risk of schedule delays due to weather or site conditions.
Quality control and assurance are critical for infrastructure longevity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.7 million to SOUTHWEST CONCRETE PAVING CO. ST19-0500 REPAIR RWY

Who is the contractor on this award?

The obligated recipient is SOUTHWEST CONCRETE PAVING 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 $44.7 million.

What is the period of performance?

Start: 2023-07-27. End: 2025-12-03.

What is the track record of Southwest Concrete Paving Co. with federal contracts, particularly with the Department of the Navy?

Southwest Concrete Paving Co. has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance on similar infrastructure projects, especially runway or airfield repairs, would be crucial. Key indicators to examine include on-time delivery, adherence to budget (especially for fixed-price contracts), quality of work, and any past performance issues or disputes. Their experience with the Department of the Navy specifically would provide further insight into their familiarity with naval procurement processes and facility requirements. A review of their contract history on platforms like SAM.gov or FPDS would reveal the volume and types of contracts awarded to them, offering a basis for assessing their reliability and capability for this $44.7 million runway repair project.

How does the awarded price of $44.7 million compare to similar runway repair contracts awarded by the Navy or other federal agencies?

To assess the value for money, the $44.7 million award needs to be benchmarked against comparable federal contracts for runway repair. This involves identifying contracts with similar scope (e.g., square footage of repair, type of damage addressed, specific materials used), geographic location, and time of award. Factors like the specific runway conditions, complexity of the repair (e.g., depth of pavement, drainage requirements), and the prevailing market rates for construction services in California at the time of award are critical. If this contract's price per square foot or per unit of repair work is significantly higher or lower than similar projects, it could indicate either exceptional value or potential overpricing/underbidding. Detailed analysis of contract line item numbers (CLINs) and associated costs, if available, would further refine this comparison.

What are the primary risks associated with this firm-fixed-price contract for runway repair, and how are they mitigated?

The primary risk for the government in a firm-fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. For runway repair, risks include discovering subsurface problems (e.g., poor soil conditions, underground utilities), encountering hazardous materials, or experiencing weather delays that increase contractor costs. Mitigation strategies include a well-defined scope of work, robust inspection and quality assurance processes by the government, clear contract clauses addressing unforeseen conditions, and the contractor's own risk management practices. The government's thorough pre-bid assessment and the contractor's incentive to maintain a good performance record for future work also serve as risk mitigators.

What is the expected impact of this contract on the operational readiness of the specific naval facility in California?

This contract directly addresses the operational readiness of the naval facility by ensuring the integrity and safety of its runways. Functional and well-maintained runways are critical for flight operations, allowing aircraft to take off and land safely and efficiently. Delays or restrictions due to runway damage can significantly impact training schedules, deployment readiness, and overall mission capability. By awarding this contract, the Navy is investing in essential infrastructure maintenance, thereby reducing the risk of flight disruptions, enhancing safety for aircrews and ground personnel, and ensuring the facility can support its intended aviation missions without compromise. The timely completion of these repairs is paramount to sustaining the facility's operational tempo.

How does the competition level (2 bidders) for this delivery order compare to typical competition levels for similar construction contracts within the Department of the Navy?

A competition level of two bidders for a delivery order under a larger IDIQ contract can be considered moderate. For large-scale construction projects, especially those requiring specialized expertise like airfield repair, competition can sometimes be limited due to the specific capabilities required and the number of qualified firms. However, the Department of the Navy generally strives for robust competition. If the average number of bids for similar Navy construction contracts is significantly higher (e.g., 4-5 bidders), then two bidders might suggest specific market conditions, high barriers to entry for this particular type of work, or perhaps that the IDIQ contract itself had a limited pool of pre-qualified vendors. Understanding the context of the parent IDIQ contract is key to fully evaluating this competition level.

What are the implications of this contract being a 'Delivery Order' under a potentially larger contract structure?

This contract being a 'Delivery Order' signifies that it is a task-specific order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for future purchases, allowing agencies to procure supplies or services over a period. A delivery order specifies the exact quantity, delivery schedule, and price for a particular requirement, like this runway repair. The implications are that the initial competition likely occurred when the parent IDIQ contract was awarded, potentially to multiple awardees. This specific delivery order then competed among those awardees or was assigned based on pre-negotiated terms. It suggests a streamlined process for fulfilling recurring or anticipated needs, but also means the $44.7 million is just one component of a potentially larger overall contract vehicle.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: N6247318R5826

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12313 W ALICE AVE, EL MIRAGE, AZ, 85335

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

Financial Breakdown

Contract Ceiling: $44,710,000

Exercised Options: $44,710,000

Current Obligation: $44,710,000

Actual Outlays: $172,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247319D2441

IDV Type: IDC

Timeline