Department of Defense awards $14.7M contract for aircraft maintenance facility construction in Alabama

Contract Overview

Contract Amount: $14,695,127 ($14.7M)

Contractor: Bear Brothers Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-30

End Date: 2025-09-25

Contract Duration: 696 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRUCTION OF AN 18000 SQUARE FOOT AIRCRAFT MAINTENANCE UNIT FACILITY PROJECT NUMBER FAKZ169003

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36108

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to BEAR BROTHERS INC for work described as: CONTRUCTION OF AN 18000 SQUARE FOOT AIRCRAFT MAINTENANCE UNIT FACILITY PROJECT NUMBER FAKZ169003 Key points: 1. The contract value represents a significant investment in critical infrastructure for the Department of the Army. 2. Construction services for institutional buildings are a common requirement, but the scale of this facility is notable. 3. The fixed-price contract type aims to control costs, but potential for change orders exists in large construction projects. 4. The project duration of 696 days indicates a substantial undertaking requiring careful project management. 5. The geographic location in Alabama may have implications for local workforce and material sourcing. 6. The contract was awarded through full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $14.7 million for an 18,000 square foot aircraft maintenance unit facility appears reasonable given the scope of construction. Benchmarking against similar institutional building projects of this size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, but the final cost will depend on the execution and management of the project. Without specific cost breakdowns for materials, labor, and overhead, a definitive per-square-foot cost comparison is difficult, but the initial award seems within expected ranges for specialized government construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple sources were solicited and considered after an initial exclusion period. With three bids received, the competition level suggests a moderate degree of market interest. While not a completely unrestricted open competition, it likely provided sufficient price discovery to ensure a competitive outcome. The exclusion of sources might have been based on specific pre-qualification criteria or prior relationships, which warrants further examination.

Taxpayer Impact: The full and open competition after exclusion of sources suggests that taxpayers benefited from a competitive bidding process, likely leading to a more favorable price than a sole-source award. The presence of multiple bidders helps ensure that the selected contractor is offering a competitive rate.

Public Impact

The primary beneficiaries are the Department of the Army, which will gain a new aircraft maintenance facility. The project will deliver essential infrastructure to support military aviation operations. The geographic impact is concentrated in Alabama, potentially stimulating local economic activity through job creation and material procurement. The construction workforce in Alabama will likely see increased employment opportunities during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design changes arise during construction.
Dependence on the contractor's ability to manage complex construction timelines and deliver the facility on schedule.
Risk associated with the specific exclusion of sources in the competition process, which could limit broader market participation.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award through a competitive process suggests a reasonable price was secured.
The project duration is clearly defined, allowing for structured planning and oversight.

Sector Analysis

The construction sector for institutional and commercial buildings is a significant part of the federal contracting landscape. This contract falls under the North American Industry Classification System (NAICS) code 236220, which covers Commercial and Institutional Building Construction. Federal spending in this area is driven by the need for new facilities, upgrades, and maintenance across various agencies, including defense. Comparable spending benchmarks would involve analyzing the cost per square foot for similar military or government-owned facilities constructed in recent years, considering regional labor and material cost variations.

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 for small businesses arising from a set-aside provision. However, the prime contractor, Bear Brothers Inc., may engage small businesses as subcontractors for specialized construction services, which would contribute to the small business ecosystem. The extent of small business participation will depend on the prime contractor's subcontracting plan and opportunities available in the local market.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) from the Department of the Army, ensuring compliance with contract terms and specifications. Accountability measures are embedded in the firm-fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is facilitated through federal contract databases where award details are published. The Inspector General's office may conduct audits or investigations if any irregularities or fraud are suspected.

Related Government Programs

Military Construction Projects
Aircraft Hangar Construction
Base Infrastructure Development
Department of Defense Facilities Management

Risk Flags

Potential for cost overruns due to construction complexities.
Risk of schedule delays impacting operational readiness.
Limited competition due to source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to BEAR BROTHERS INC. CONTRUCTION OF AN 18000 SQUARE FOOT AIRCRAFT MAINTENANCE UNIT FACILITY PROJECT NUMBER FAKZ169003

Who is the contractor on this award?

The obligated recipient is BEAR BROTHERS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2023-10-30. End: 2025-09-25.

What is the track record of Bear Brothers Inc. in performing similar large-scale government construction contracts?

A review of Bear Brothers Inc.'s contract history would be necessary to assess their track record. Key indicators would include the number of similar projects completed, their performance ratings on past federal contracts (e.g., through the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Understanding their experience with military construction, specifically aircraft maintenance facilities, would provide further insight into their capability to successfully execute this project. Without direct access to their performance data, it's difficult to definitively assess their reliability for this specific undertaking.

How does the awarded price compare to industry benchmarks for similar aircraft maintenance unit facilities?

To benchmark the awarded price of $14.7 million for an 18,000 square foot facility, one would typically look at the cost per square foot. This equates to approximately $817 per square foot. This figure needs to be compared against recent federal and commercial construction projects of similar scope, complexity, and location. Factors such as specialized requirements for aircraft maintenance (e.g., ventilation, heavy-duty flooring, specialized lighting, hangar bay doors), material costs, labor rates in Alabama, and the overall economic climate at the time of bidding would influence this comparison. A higher per-square-foot cost might be justified by unique technical specifications or stringent security requirements inherent to military facilities.

What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for a reduced pool of qualified bidders compared to a completely unrestricted open competition. While it aims to ensure fair competition among those who meet specific criteria, the exclusion of certain sources might inadvertently limit the number of competitive bids received. This could potentially lead to less aggressive pricing than might be achieved in a broader competition. Additionally, the justification for excluding sources needs to be robust to ensure that the government is not foregoing potentially better value or innovative solutions from a wider range of contractors.

How effective is the firm-fixed-price contract type in ensuring program effectiveness and cost control for this construction project?

The firm-fixed-price (FFP) contract type is generally considered effective for controlling costs and ensuring predictability in construction projects, as it shifts most of the risk to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes efficient management and cost control on the part of the contractor. For program effectiveness, the FFP contract ensures that the project is completed to the specified standards and requirements, as deviations could lead to disputes or non-payment. However, the effectiveness can be diminished if the initial scope is poorly defined, leading to numerous change orders that can increase the overall cost and complexity.

What are the historical spending patterns for aircraft maintenance facilities by the Department of the Army?

Analyzing historical spending patterns for aircraft maintenance facilities by the Department of the Army would involve examining past contract awards for similar infrastructure projects. This would include looking at the frequency of such awards, the average contract values, the typical project durations, and the geographic distribution of these investments. Understanding these patterns can help contextualize the current $14.7 million award, indicating whether it is an outlier, a typical investment, or part of a larger trend in facility modernization or expansion. It also helps in identifying potential contractors who have historically secured such work and assessing the overall budget allocation for facility construction within the Army.

What are the potential workforce implications of this construction project in Alabama?

This $14.7 million construction project is expected to have positive workforce implications for Alabama. It will likely create numerous direct and indirect jobs in the construction sector, including roles for skilled tradespeople (electricians, plumbers, carpenters, heavy equipment operators), project managers, engineers, and support staff. Additionally, the demand for construction materials and services could stimulate business for local suppliers and subcontractors. The duration of the project (696 days) suggests a sustained period of employment opportunities. The specific skills required will depend on the complexity of the aircraft maintenance unit facility, potentially including specialized technicians for advanced systems.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: W50S6N23B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bear Lumber Company, Inc.

Address: 220 MENDEL PKWY W, MONTGOMERY, AL, 36117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,695,127

Exercised Options: $14,695,127

Current Obligation: $14,695,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline