DoD Awards $327M for RAAF Darwin Aircraft Apron Construction, Awarded to SLSCO, Ltd
Contract Overview
Contract Amount: $327,270,000 ($327.3M)
Contractor: Slsco, Ltd.
Awarding Agency: Department of Defense
Start Date: 2025-03-31
End Date: 2028-05-29
Contract Duration: 1,155 days
Daily Burn Rate: $283.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY23 MCON P-923 AIRCRAFT PARKING APRON, ROYAL AUSTRALIAN AIR FORCE BASE, DARWIN, AUSTRALIA
Plain-Language Summary
Department of Defense obligated $327.3 million to SLSCO, LTD. for work described as: FY23 MCON P-923 AIRCRAFT PARKING APRON, ROYAL AUSTRALIAN AIR FORCE BASE, DARWIN, AUSTRALIA Key points: 1. Significant investment in critical infrastructure for a key U.S. ally. 2. Competition method appears robust, but specific price discovery details are limited. 3. Risk of cost overruns or schedule delays in large-scale international construction projects. 4. Construction sector is subject to material cost fluctuations and labor availability.
Value Assessment
Rating: fair
The contract value of $327.27 million for an aircraft parking apron is substantial. Benchmarking against similar large-scale airfield construction projects is difficult without more granular cost data, but the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific number of bids received and the evaluation criteria are not detailed, impacting the assessment of price discovery effectiveness.
Taxpayer Impact: Taxpayer funds are being used for a project supporting U.S. strategic interests abroad, implying a benefit to national security that justifies the expenditure.
Public Impact
Enhances U.S. military operational capabilities and interoperability with Australia. Supports regional stability and strengthens diplomatic ties with a key ally. Potential for job creation and economic activity in the Darwin region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- International project complexities and geopolitical risks.
- Potential for unforeseen site conditions impacting cost and schedule.
- Reliance on a single contractor for a large, critical project.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Supports a critical U.S. strategic alliance.
- Awarded under full and open competition.
Sector Analysis
This project falls within the Highway, Street, and Bridge Construction sector, specifically large-scale civil engineering and airfield infrastructure. Spending in this sector can be highly variable, influenced by government infrastructure initiatives and geopolitical needs.
Small Business Impact
The data indicates this was a full and open competition, but it does not specify if small businesses were involved as subcontractors. Large infrastructure projects often involve complex subcontracting opportunities, but direct awards to small businesses are less common for contracts of this magnitude.
Oversight & Accountability
The Department of the Navy is the awarding agency, implying established oversight mechanisms for large construction contracts. However, the international location may introduce additional oversight challenges and require coordination with Australian authorities.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- International project execution risks.
- Potential for supply chain disruptions.
- Geopolitical factors impacting project stability.
- Complexity of managing large-scale construction projects.
Tags
highway-street-and-bridge-construction, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $327.3 million to SLSCO, LTD.. FY23 MCON P-923 AIRCRAFT PARKING APRON, ROYAL AUSTRALIAN AIR FORCE BASE, DARWIN, AUSTRALIA
Who is the contractor on this award?
The obligated recipient is SLSCO, 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 $327.3 million.
What is the period of performance?
Start: 2025-03-31. End: 2028-05-29.
What is the estimated cost per square foot or per unit of capacity (e.g., aircraft parking spots) for this apron construction, and how does it compare to similar projects in comparable regions?
Without detailed cost breakdowns, calculating a precise per-unit cost is not possible. However, given the $327.27 million award for an aircraft parking apron, the cost per unit is likely high due to specialized materials, engineering requirements, and the international location. Benchmarking would require access to similar project data, which is not provided here.
What are the primary risks associated with constructing military infrastructure in a foreign, albeit allied, nation, and what mitigation strategies are in place?
Key risks include navigating foreign regulations, potential geopolitical instability, logistical challenges in material and personnel transport, and differing labor practices. Mitigation strategies likely involve close collaboration with Australian authorities, robust security protocols, contingency planning for supply chain disruptions, and experienced project management teams familiar with international operations.
How effectively does the firm-fixed-price contract structure mitigate potential cost overruns given the project's scale and international setting?
The firm-fixed-price structure is designed to transfer most of the cost overrun risk to the contractor, SLSCO, Ltd. This incentivizes efficient project management and cost control. However, significant unforeseen issues (e.g., extreme weather, discovery of unexploded ordnance) could still lead to change orders or claims, potentially impacting the final cost.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6274224R1308
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6702 BROADWAY ST, GALVESTON, TX, 77554
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $462,397,784
Exercised Options: $459,825,472
Current Obligation: $327,270,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-31
Current End Date: 2028-05-29
Potential End Date: 2028-05-29 00:00:00
Last Modified: 2025-08-28
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