DoD Awards $48.3M for Munitions Storage Area Construction at Al Kharj
Contract Overview
Contract Amount: $48,258,416 ($48.3M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2018-09-22
End Date: 2018-09-22
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::CL::IGF FFP/SATOC CONSTRUCTION MUNITIONS STORAGE AREA (MSA) AL KHARJ, PSAB F-15 MODERNIZATION PROGRAM
Plain-Language Summary
Department of Defense obligated $48.3 million to GILBANE FEDERAL for work described as: IGF::CL::IGF FFP/SATOC CONSTRUCTION MUNITIONS STORAGE AREA (MSA) AL KHARJ, PSAB F-15 MODERNIZATION PROGRAM Key points: 1. Significant investment in critical infrastructure for F-15 modernization. 2. Gilbane Federal secured the contract through full and open competition. 3. Potential for cost efficiencies given the firm-fixed-price contract type. 4. Sector focus on commercial and institutional building construction.
Value Assessment
Rating: good
The award amount of $48.3M appears reasonable for a large-scale construction project of this nature. Benchmarking against similar military construction contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple qualified contractors vied for the award.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the services rendered.
Public Impact
Enhances operational readiness and capabilities for the F-15 fleet. Supports critical munitions storage and handling infrastructure. Contributes to the modernization efforts of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large construction projects.
- Dependency on a single contractor for project completion.
- Geopolitical risks associated with overseas construction.
Positive Signals
- Clear contract type (FFP) limits cost overrun risk.
- Full and open competition promotes competitive pricing.
- Strategic importance of the project for Air Force modernization.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending in this sector can vary significantly based on defense priorities and global security needs.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.
Oversight & Accountability
The Department of the Air Force awarded this contract, implying standard oversight mechanisms are in place. However, the effectiveness of oversight for overseas construction projects can be complex and requires diligent monitoring.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if scope changes.
- Dependency on contractor performance for timely completion.
- Security risks inherent in overseas construction.
- Logistical complexities of international project execution.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.3 million to GILBANE FEDERAL. IGF::CL::IGF FFP/SATOC CONSTRUCTION MUNITIONS STORAGE AREA (MSA) AL KHARJ, PSAB F-15 MODERNIZATION PROGRAM
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 $48.3 million.
What is the period of performance?
Start: 2018-09-22. End: 2018-09-22.
What is the projected return on investment for this munitions storage facility in terms of enhanced operational efficiency and reduced risk?
The return on investment is primarily measured by improved operational readiness and enhanced safety for munitions handling and storage. By modernizing facilities, the Air Force reduces risks associated with outdated infrastructure, potentially lowering long-term maintenance costs and preventing accidents. Quantifying direct financial ROI is challenging, but the strategic value in supporting the F-15 modernization program is substantial.
What are the key risks associated with constructing a munitions storage area in a foreign location, and how are they being mitigated?
Key risks include geopolitical instability, logistical challenges in material and personnel transport, differing labor laws and customs, and security concerns. Mitigation strategies likely involve close coordination with host nation authorities, robust security protocols, experienced project management teams familiar with overseas operations, and contingency planning for unforeseen events. The firm-fixed-price contract also shifts some cost-related risks to the contractor.
How does the cost of this munitions storage area construction compare to similar projects, and does it represent good value for taxpayer money?
Without specific benchmark data for comparable munitions storage facilities, a definitive value assessment is difficult. However, the use of full and open competition and a firm-fixed-price contract suggests a competitive pricing environment. The Department of Defense likely conducted cost analyses to ensure the $48.3M award represents a fair and reasonable price for the scope of work and the strategic importance of the facility.
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
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: $48,258,416
Exercised Options: $48,258,416
Current Obligation: $48,258,416
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA300208D0008
IDV Type: IDC
Timeline
Start Date: 2018-09-22
Current End Date: 2018-09-22
Potential End Date: 2018-09-22 00:00:00
Last Modified: 2021-05-06
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