Navy awards $33.9M for runway lighting repair at NAS Kingsville, TX, under full and open competition

Contract Overview

Contract Amount: $33,931,630 ($33.9M)

Contractor: CRP Contracting

Awarding Agency: Department of Defense

Start Date: 2018-11-19

End Date: 2021-06-09

Contract Duration: 933 days

Daily Burn Rate: $36.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF N69450-19-C-0503, REPAIR RUNWAY LIGHTING, NAS KINGSVILLE, TX

Place of Performance

Location: KINGSVILLE, KLEBERG County, TEXAS, 78363

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.9 million to CRP CONTRACTING for work described as: IGF::OT::IGF N69450-19-C-0503, REPAIR RUNWAY LIGHTING, NAS KINGSVILLE, TX Key points: 1. Contract awarded for essential infrastructure repair, ensuring operational readiness. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Contract duration of 933 days indicates a significant project scope. 5. The project falls under the Highway, Street, and Bridge Construction NAICS code, suggesting a focus on civil engineering aspects of airfield maintenance.

Value Assessment

Rating: good

The contract value of $33.9 million for runway lighting repair appears reasonable given the scope and duration. Without specific benchmarks for runway lighting replacement projects at naval air stations, a direct comparison is difficult. However, the fixed-price nature of the contract provides cost certainty. The number of bids received (2) is on the lower side for a full and open competition, which could suggest potential for higher pricing than if more bidders had participated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Two bids were received, which is a moderate level of competition. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite receiving only two bids, indicates an effort to leverage the market. Taxpayers benefit from the potential for competitive pricing, though the limited number of bidders warrants monitoring to ensure value for money.

Public Impact

Naval Air Station Kingsville benefits from improved runway safety and operational capabilities. The project ensures the continued readiness of naval aviation training and operations. The geographic impact is localized to Kingsville, Texas, and its surrounding areas. The project likely supports local construction and maintenance workforce employment during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential market concentration or barriers to entry for other firms.
The fixed-price contract type, while offering cost certainty, can shift risk to the contractor, potentially leading to higher initial bids if unforeseen issues arise.

Positive Signals

Awarded under full and open competition, signaling an attempt to maximize market participation.
Fixed-price contract type is generally favorable for government cost control.
The project addresses critical infrastructure needs for naval aviation readiness.

Sector Analysis

The contract falls within the construction sector, specifically related to airfield infrastructure. The NAICS code 237310 (Highway, Street, and Bridge Construction) is broad but encompasses the civil engineering and construction aspects of airfield maintenance. Spending on airfield maintenance and repair is a critical component of defense infrastructure, ensuring the operational capability of military bases. Comparable spending benchmarks would typically involve analyzing other airfield repair contracts across different military branches and locations.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether larger prime contractors engage small businesses for specialized services or materials, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the work is completed according to specifications and within the agreed-upon timeline. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Air Station Infrastructure Modernization
Airfield Pavement and Lighting Systems
Defense Infrastructure Projects
Military Construction Contracts

Risk Flags

Limited competition (2 bidders)
Potential for cost overruns if unforeseen conditions arise (though mitigated by fixed-price contract)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 million to CRP CONTRACTING. IGF::OT::IGF N69450-19-C-0503, REPAIR RUNWAY LIGHTING, NAS KINGSVILLE, TX

Who is the contractor on this award?

The obligated recipient is CRP CONTRACTING.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.9 million.

What is the period of performance?

Start: 2018-11-19. End: 2021-06-09.

What is the track record of CRP Contracting with the Department of Defense, particularly on similar airfield construction or repair projects?

CRP Contracting has a history of performing work for the Department of Defense. Analyzing their past performance on similar projects, such as runway repairs, lighting system installations, or other airfield infrastructure work, would be crucial. This includes examining contract values, completion timeliness, quality of work, and any past performance issues or awards. A review of their contract history within the DoD would reveal their experience level and reliability in executing complex construction projects, especially those critical to military operations. Without specific past performance data for this contractor on comparable projects, it's difficult to definitively assess their suitability beyond the award of this specific contract.

How does the awarded price of $33.9 million compare to industry benchmarks for similar runway lighting repair projects at naval air stations?

Benchmarking this $33.9 million contract requires detailed comparison with similar projects. Factors such as the size of the runway, the type of lighting system being replaced (e.g., LED vs. older technologies), the complexity of the installation (e.g., underground cabling, integration with air traffic control systems), and the specific geographic location (which affects labor and material costs) are critical. Generally, runway lighting upgrades can range from a few million to tens of millions of dollars. The fact that this is a definitive contract awarded under full and open competition with two bidders suggests the Navy sought competitive pricing. However, without access to detailed cost breakdowns or a database of comparable airfield lighting projects, a precise value-for-money assessment relative to industry standards is challenging.

What are the primary risks associated with this runway lighting repair contract, and how are they being mitigated?

Key risks include potential delays due to weather, unforeseen subsurface conditions during excavation, contractor performance issues, and supply chain disruptions for specialized lighting components. Given the fixed-price contract type, the contractor bears much of the cost overrun risk. Mitigation strategies likely involve detailed project planning, phased construction schedules to minimize operational impact, rigorous quality assurance inspections, and contingency planning for material procurement. The Navy's oversight team would monitor progress closely and enforce contract terms. The limited number of bidders might also represent a risk if the chosen contractor struggles, as finding a replacement quickly could be difficult.

How effective is the current runway lighting system at NAS Kingsville, and what is the expected improvement in operational capability post-repair?

The effectiveness of the current system is implied to be diminished, necessitating repair. Runway lighting is critical for safe aircraft operations, especially during nighttime, adverse weather, and emergencies. Upgraded lighting systems, often incorporating energy-efficient LEDs, can improve visibility, reduce maintenance requirements, and enhance overall airfield safety and reliability. The repair project is expected to restore or enhance the runway's operational capability, potentially allowing for more consistent flight operations, reduced delays, and improved safety margins for training and operational sorties conducted at NAS Kingsville.

What has been the historical spending trend for runway maintenance and repair at NAS Kingsville or similar naval air stations over the past five years?

Analyzing historical spending trends for runway maintenance and repair at NAS Kingsville and comparable naval air stations over the past five years would provide context for the $33.9 million award. This would involve examining previous contracts for similar work, including repairs, upgrades, and general maintenance of runways, taxiways, and associated lighting systems. Understanding these trends can reveal patterns in investment, identify periods of significant infrastructure renewal, and help assess whether the current contract represents a typical expenditure or a substantial one-time investment. Without this historical data, it's difficult to determine if this contract aligns with established spending patterns or signifies a new phase of infrastructure investment.

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: N6945018R0505

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4477 E 5TH AVE, COLUMBUS, OH, 43219

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,931,630

Exercised Options: $33,931,630

Current Obligation: $33,931,630

Actual Outlays: $1,617,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline