DoD Awards $17.1M for RAAF Tindal Squadron Operations Facility Construction

Contract Overview

Contract Amount: $17,119,389 ($17.1M)

Contractor: C.C. Pines PTY. Limited

Awarding Agency: Department of Defense

Start Date: 2024-05-03

End Date: 2026-04-30

Contract Duration: 727 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY22 MCAF PAF180700, SQUADRON OPERATIONS FACILITY, ROYAL AUSTRALIAN AIR FORCE BASE TINDAY, AUSTRALIA

Plain-Language Summary

Department of Defense obligated $17.1 million to C.C. PINES PTY. LIMITED for work described as: FY22 MCAF PAF180700, SQUADRON OPERATIONS FACILITY, ROYAL AUSTRALIAN AIR FORCE BASE TINDAY, AUSTRALIA Key points: 1. Construction contract awarded to C.C. Pines Pty. Limited for a facility at RAAF Base Tindal. 2. The contract is for Firm Fixed Price, indicating a clear cost structure. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The project duration is 727 days, spanning nearly two years. 5. No small business participation was noted in this award.

Value Assessment

Rating: fair

The award amount of $17.1M for a squadron operations facility appears within a reasonable range for a specialized construction project of this scale and duration. Benchmarking against similar international military construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract suggests a well-defined scope of work, allowing bidders to provide accurate cost proposals.

Taxpayer Impact: Taxpayer funds are being used for a critical infrastructure project supporting allied military operations, with the expectation of value derived from competitive procurement.

Public Impact

Enhances operational capabilities for the Royal Australian Air Force. Supports U.S. defense cooperation and presence in the Indo-Pacific region. Contributes to local economic activity through construction jobs and material sourcing. Represents a long-term investment in shared defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of small business participation.
  • Potential for cost overruns in international construction projects.
  • Geopolitical risks impacting project timeline or scope.

Positive Signals

  • Awarded via full and open competition.
  • Firm Fixed Price contract type.
  • Supports key U.S. strategic interests in Australia.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on global strategic needs and base development priorities. The $17.1M award is substantial for a single facility but aligns with major infrastructure investments.

Small Business Impact

The award notice indicates that small business participation was not a factor in this specific contract. This could be due to the nature of the prime contractor or the specialized requirements of the project, which may not have been suitable for small business subcontracting.

Oversight & Accountability

The Department of the Navy, acting as the procuring agency, is responsible for overseeing this contract. Oversight would focus on ensuring C.C. Pines Pty. Limited adheres to the contract terms, schedule, and quality standards throughout the construction period.

Related Government Programs

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

Risk Flags

  • Potential for cost escalation due to international location.
  • Dependency on a single prime contractor for project completion.
  • Limited visibility into subcontracting opportunities for small businesses.
  • Geopolitical factors affecting long-term stability and project execution.

Tags

commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to C.C. PINES PTY. LIMITED. FY22 MCAF PAF180700, SQUADRON OPERATIONS FACILITY, ROYAL AUSTRALIAN AIR FORCE BASE TINDAY, AUSTRALIA

Who is the contractor on this award?

The obligated recipient is C.C. PINES PTY. LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2024-05-03. End: 2026-04-30.

What is the specific breakdown of costs within the $17.1M award, and how does it compare to industry benchmarks for similar facilities?

The provided data does not include a detailed cost breakdown. A comprehensive analysis would require access to the contract's line-item details to compare labor, materials, overhead, and profit against established construction cost indices and benchmarks for military facilities of comparable size and complexity.

What are the primary risks associated with constructing a facility in Australia for a U.S. Department of Defense contract, and how are they being mitigated?

Key risks include navigating Australian building codes and regulations, potential supply chain disruptions for specialized materials, currency exchange rate fluctuations, and logistical challenges of managing an international project. Mitigation strategies likely involve close coordination with local authorities, robust project management, and contingency planning for unforeseen issues.

How effectively does this facility construction contribute to the overall mission readiness and operational goals of the Royal Australian Air Force and U.S. Forces?

The facility is designed to support squadron operations, implying a direct enhancement to the unit's ability to perform its mission. Its effectiveness is measured by its contribution to improved operational tempo, enhanced training capabilities, and better logistical support, ultimately bolstering the combined operational readiness in the region.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274223R1316

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 OXFORD FALLS RD, OXFORD FALLS

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

Financial Breakdown

Contract Ceiling: $17,119,389

Exercised Options: $17,119,389

Current Obligation: $17,119,389

Actual Outlays: $1,829,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-05-03

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2025-09-17

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