Hangar Repair Project at Holloman AFB Awarded for $17.6M, Boosting Commercial Construction Sector
Contract Overview
Contract Amount: $17,626,751 ($17.6M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2015-09-29
End Date: 2026-09-30
Contract Duration: 4,019 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF DESIGN BUILD CONSTRUCTION SERVICES FOR REPAIR HANGAR 1080 QF-16 AT HOLLOMAN AFB, NM PROJECT: KWRD11-0023
Place of Performance
Location: HOLLOMAN AFB, OTERO County, NEW MEXICO, 88330
Plain-Language Summary
Department of Defense obligated $17.6 million to GILBANE FEDERAL for work described as: IGF::OT::IGF DESIGN BUILD CONSTRUCTION SERVICES FOR REPAIR HANGAR 1080 QF-16 AT HOLLOMAN AFB, NM PROJECT: KWRD11-0023 Key points: 1. The project focuses on commercial and institutional building construction, a key sector for economic activity. 2. Gilbane Federal, a significant player, secured the contract, indicating established competition. 3. The firm fixed price contract type aims to control costs, but the long duration presents potential risks. 4. This award contributes to the broader construction industry's performance and employment.
Value Assessment
Rating: good
The contract value of $17.6M appears reasonable for a large-scale hangar repair project. Benchmarking against similar Department of Defense construction contracts would provide a more precise assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives the best possible price for services rendered.
Public Impact
Supports infrastructure maintenance for critical military assets. Creates jobs in the construction sector in New Mexico. Enhances operational readiness for the Air Force's QF-16 program. Contributes to the local and regional economy through construction spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (4019 days) increases risk of cost overruns and scope creep.
- Potential for unforeseen site conditions in an existing hangar structure.
- Reliance on a single delivery order may limit flexibility if needs change.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Awarded through full and open competition.
- Project supports critical Air Force infrastructure.
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a vital segment of the construction industry. Spending in this sector is often tied to government infrastructure needs and economic development initiatives.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific information provided regarding small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure quality and adherence to schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long project duration increases risk.
- Potential for unforeseen site conditions.
- Contract awarded via delivery order, not prime contract.
- Limited visibility into small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to GILBANE FEDERAL. IGF::OT::IGF DESIGN BUILD CONSTRUCTION SERVICES FOR REPAIR HANGAR 1080 QF-16 AT HOLLOMAN AFB, NM PROJECT: KWRD11-0023
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 $17.6 million.
What is the period of performance?
Start: 2015-09-29. End: 2026-09-30.
What is the estimated cost per square foot for the hangar repair, and how does it compare to industry benchmarks for similar facilities?
The provided data does not include square footage, making a direct cost per square foot calculation impossible. To assess value, a comparison would require detailed project scope, including the size of Hangar 1080 and the specific repair work involved. Industry benchmarks for similar government or commercial hangar renovations would then be applied.
What are the primary risks associated with the 4019-day duration of this project, and what mitigation strategies are in place?
The extended duration presents risks such as material price escalation, labor availability fluctuations, potential for design changes, and the impact of evolving technology or operational requirements. Mitigation strategies could include robust contract clauses for price adjustments, proactive supply chain management, phased construction approaches, and regular stakeholder reviews to adapt to changing needs.
How effectively does the firm fixed price contract manage potential cost overruns given the project's complexity and long timeline?
A firm fixed price contract is designed to transfer cost overrun risk to the contractor. However, for a project of this scale and duration, the initial price must be carefully estimated. The effectiveness relies on the thoroughness of the initial bid, the contractor's ability to manage costs, and the presence of contingency planning within the contract for unforeseen, significant issues.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
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
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: $17,626,751
Exercised Options: $17,626,751
Current Obligation: $17,626,751
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA300208D0008
IDV Type: IDC
Timeline
Start Date: 2015-09-29
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-30
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