Department of Defense awards $82.5M for Vandenberg AFB building renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $82,509,970 ($82.5M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2015-07-24

End Date: 2021-01-11

Contract Duration: 1,998 days

Daily Burn Rate: $41.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RENOVATION OF BUILDING 7000 FOR THE JSPOC CONSOLIDATION AT VANDENBERG AFB, CA. FOR PROJECT: XUMU131054B1

Place of Performance

Location: CONCORD, CONTRA COSTA County, CALIFORNIA, 94520

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $82.5 million to GILBANE FEDERAL for work described as: IGF::OT::IGF RENOVATION OF BUILDING 7000 FOR THE JSPOC CONSOLIDATION AT VANDENBERG AFB, CA. FOR PROJECT: XUMU131054B1 Key points: 1. Contract value represents a significant investment in facility modernization. 2. The project falls within the broader context of military base infrastructure upgrades. 3. Fixed-price contract type suggests a defined scope and cost control measures. 4. Project duration indicates a substantial, long-term construction undertaking. 5. Geographic concentration in California may reflect regional construction market dynamics.

Value Assessment

Rating: fair

The total contract value of $82.5 million for the renovation of Building 7000 at Vandenberg AFB appears substantial. Benchmarking against similar large-scale commercial and institutional building construction projects within the Department of Defense or other federal agencies would be necessary for a precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was competitive. However, without detailed cost breakdowns or comparisons to industry standards for similar renovations, it is difficult to definitively assess if the price represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The presence of two bids suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bids would typically provide stronger assurance of competitive pricing and a wider range of solutions.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential bidders and drives down prices through market forces. This method ensures that the government is likely to receive the best possible value for taxpayer dollars.

Public Impact

The primary beneficiaries are the United States Air Force personnel and operations at Vandenberg AFB, who will utilize the modernized facilities. The contract delivers essential renovation and modernization services for a critical military facility. The geographic impact is concentrated at Vandenberg AFB in California. The project likely supports a significant number of construction jobs, including skilled trades and project management roles, within the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of renovation was underestimated or unforeseen issues arose during construction.
Risk of schedule delays impacting the operational readiness of the facility.
Dependence on the performance and financial stability of the selected contractor, Gilbane Federal.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive bidding process.
The project addresses critical infrastructure needs for a key military installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports the maintenance, upgrade, and construction of government facilities, including military bases, administrative buildings, and research centers. The total contract value of $82.5 million is substantial for a single project, reflecting the complexity and scale of renovating a large building. Comparable spending benchmarks would involve analyzing other large-scale federal construction or renovation contracts for similar types of facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Gilbane Federal, may still engage small businesses as subcontractors to fulfill parts of the project, depending on their own subcontracting strategies and the availability of qualified small business vendors in the region.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. The Inspector General's office for the Department of Defense may also conduct audits or investigations into the contract's performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Base Infrastructure Modernization
Federal Building Construction and Renovation
Department of Defense Facilities Management
Air Force Base Operations Support

Risk Flags

Potential for schedule delays due to project complexity and duration.
Risk of cost escalation if unforeseen conditions arise, despite fixed-price contract.
Dependence on contractor's ability to manage a large, multi-year construction project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.5 million to GILBANE FEDERAL. IGF::OT::IGF RENOVATION OF BUILDING 7000 FOR THE JSPOC CONSOLIDATION AT VANDENBERG AFB, CA. FOR PROJECT: XUMU131054B1

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $82.5 million.

What is the period of performance?

Start: 2015-07-24. End: 2021-01-11.

What is the track record of Gilbane Federal in completing large-scale federal construction projects on time and within budget?

Gilbane Federal, as a division of Gilbane Building Company, has a long history of executing large-scale construction projects for federal agencies. While specific performance data for this particular contract (Project XUMU131054B1) is not detailed here, their broader portfolio includes numerous military construction projects, renovations, and facility upgrades across various branches of the U.S. military. Assessing their track record would involve reviewing past performance evaluations, contract award histories, and any reported instances of cost overruns or schedule delays on similar projects. Generally, large federal contractors are subject to performance metrics and feedback mechanisms, but a comprehensive analysis requires access to that specific performance data.

How does the awarded price of $82.5 million compare to the estimated cost or market rates for similar building renovations at military installations?

Directly comparing the $82.5 million award to specific market rates for similar renovations is challenging without detailed project specifications and regional cost indices. However, the value suggests a significant undertaking, likely involving extensive structural, mechanical, electrical, and architectural upgrades. To benchmark this price, one would typically look at the cost per square foot for comparable federal or large commercial building renovations in the California region. Factors such as the age and condition of Building 7000, the complexity of the required upgrades (e.g., seismic retrofitting, energy efficiency improvements, IT infrastructure integration), and the specific requirements of the JSPOC consolidation would heavily influence the final cost. The firm fixed-price nature implies the government agreed this was a fair price for the defined scope.

What are the primary risks associated with a project of this scale and duration (nearly 2,000 days)?

Projects of this scale and duration, like the renovation of Building 7000, carry inherent risks. Key risks include potential scope creep, where unforeseen issues necessitate additional work beyond the original plan, leading to cost increases and schedule delays. Material price fluctuations and labor availability can also impact the budget and timeline, especially over a multi-year period. Contractor performance and management are critical; a poorly managed project can suffer from quality issues, safety incidents, and inefficiencies. Furthermore, changes in military requirements or base operations during the renovation could necessitate design modifications. The firm fixed-price contract aims to mitigate cost risks for the government, but schedule and performance risks remain significant.

What is the expected impact of this renovation on the operational capabilities of the JSPOC at Vandenberg AFB?

The renovation of Building 7000 is intended to directly support the Joint Space Operations Center (JSPOC) consolidation at Vandenberg AFB. This implies that the current facilities may be inadequate, outdated, or insufficient to meet the evolving operational needs of the JSPOC. The modernization is expected to provide a more secure, efficient, and technologically advanced environment for the center's personnel and equipment. This could lead to improved command and control capabilities, enhanced data processing and communication infrastructure, and better working conditions, ultimately contributing to the overall effectiveness and mission readiness of the JSPOC.

How has federal spending on military construction and renovation projects in California trended over the past five years?

Federal spending on military construction and renovation projects in California has historically been substantial due to the state's high concentration of military installations. Over the past five years, trends have likely been influenced by national defense priorities, infrastructure modernization initiatives, and specific base realignment or closure actions. While precise figures require detailed analysis of federal budget data and contract awards, California consistently ranks among the top states for defense spending. Factors such as aging infrastructure, the need for upgraded technology, and force protection requirements often drive consistent investment. This $82.5 million contract aligns with the general pattern of significant federal investment in maintaining and improving military facilities in the state.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gilbane, Inc. (UEI: 022726165)

Address: 2730 SHADELANDS DR # 100, WALNUT CREEK, CA, 94598

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $82,509,970

Exercised Options: $82,509,970

Current Obligation: $82,509,970

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300208D0008

IDV Type: IDC

Timeline