DoD's Pave-Tech Inc. Awarded $13.8M for MCAS Yuma Runway Repairs Amidst Overruns

Contract Overview

Contract Amount: $13,854,803 ($13.9M)

Contractor: Pave-Tech Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-21

End Date: 2026-08-28

Contract Duration: 645 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: YU2305M REPAIR OVERRUNS RUNWAY AT MCAS YUMA, YUMA, AZ

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85369

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to PAVE-TECH INC. for work described as: YU2305M REPAIR OVERRUNS RUNWAY AT MCAS YUMA, YUMA, AZ Key points: 1. The contract addresses runway repair overruns at MCAS Yuma, indicating potential project management or unforeseen cost issues. 2. Pave-Tech Inc. secured the award, highlighting their role in critical infrastructure maintenance for the Department of the Navy. 3. The project falls under Highway, Street, and Bridge Construction, a sector vital for military base operations and logistics. 4. With a duration of 645 days, the project's extended timeline may impact operational readiness at the base.

Value Assessment

Rating: questionable

The award amount of $13.8M for runway repairs appears substantial. Benchmarking against similar runway repair contracts is necessary to determine if the pricing is competitive, especially given the 'overruns' context which suggests potential cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the mention of 'overruns' raises questions about whether the initial competitive pricing adequately accounted for all project complexities or if subsequent changes led to increased costs.

Taxpayer Impact: Taxpayers are funding critical infrastructure repairs. While competition is positive, the overruns suggest potential inefficiencies or unexpected costs that could increase the final expenditure beyond initial projections.

Public Impact

Ensures operational readiness of MCAS Yuma by repairing essential runway infrastructure. Supports local economy in Yuma, Arizona through construction contract. Potential for disruption to flight operations during repair period. Highlights the ongoing need for infrastructure investment in military installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract overruns indicate potential cost control issues.
Extended project duration may impact base operations.
Need for detailed cost breakdown to justify overruns.

Positive Signals

Awarded through full and open competition.
Addresses critical infrastructure need for military readiness.
Supports economic activity in Arizona.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, specifically for military airfield infrastructure. Spending in this area is crucial for maintaining operational capabilities, but costs can be highly variable due to specialized requirements and site conditions.

Small Business Impact

The data indicates the prime contractor is PAVE-TECH INC. There is no information provided regarding subcontracting to small businesses for this specific delivery order. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The 'overruns' noted in the description warrant close oversight to ensure costs are justified and managed effectively. The Department of the Navy's contracting activity should provide detailed reporting on the reasons for the overruns and measures taken to control future spending.

Related Government Programs

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

Risk Flags

Potential for cost overruns impacting budget.
Extended project duration may affect operational tempo.
Lack of detailed cost breakdown for overruns.
Need for enhanced oversight to ensure project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to PAVE-TECH INC.. YU2305M REPAIR OVERRUNS RUNWAY AT MCAS YUMA, YUMA, AZ

Who is the contractor on this award?

The obligated recipient is PAVE-TECH 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 $13.9 million.

What is the period of performance?

Start: 2024-11-21. End: 2026-08-28.

What specific factors contributed to the runway repair overruns at MCAS Yuma?

The overruns likely stem from a combination of factors inherent in large-scale construction projects, such as unforeseen subsurface conditions, material price fluctuations, weather delays, or changes in project scope. A detailed post-award review by the Department of the Navy would be necessary to pinpoint the exact causes and assess the justification for the increased costs.

How does the per-unit cost of this runway repair compare to industry benchmarks for similar projects?

Without specific unit cost breakdowns (e.g., cost per square foot of pavement, cost per linear foot of repair), a direct comparison to industry benchmarks is difficult. However, the total award of $13.8M for a 645-day project suggests a significant investment. Further analysis of detailed cost elements is required to assess value for money against comparable airfield construction projects.

What measures are in place to ensure the effectiveness and timely completion of the remaining project scope?

Given the history of overruns, enhanced project management and oversight are critical. The Department of the Navy should implement stricter monitoring of PAVE-TECH INC.'s progress, cost controls, and adherence to the revised schedule. Regular progress reports, site inspections, and clear communication channels are essential to mitigate further delays and ensure the runway is effectively repaired.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247318R5826

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2231 LA MIRADA DRIVE, VISTA, CA, 92081

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: $13,854,803

Exercised Options: $13,854,803

Current Obligation: $13,854,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247319D2440

IDV Type: IDC

Timeline