Lead Builders Inc. awarded $32.27M contract for aircraft hangar repair at Channel Islands Air Guard Station

Contract Overview

Contract Amount: $32,274,070 ($32.3M)

Contractor: Lead Builders Inc

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2026-04-18

Contract Duration: 598 days

Daily Burn Rate: $54.0K/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: THE CONTRACTOR SHALL PROVIDE ALL PLANT, LABOR, TRANSPORTATION, MATERIALS, TOOLS, EQUIPMENT, APPLIANCES, AND SUPERVISION NECESSARY FOR THE REPAIR OF THE PRIMARY AIRCRAFT MAINTENANCE HANGAR (BUILDING 801) AT CHANNEL ISLANDS AIR GUARD STATION, CA.

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to LEAD BUILDERS INC for work described as: THE CONTRACTOR SHALL PROVIDE ALL PLANT, LABOR, TRANSPORTATION, MATERIALS, TOOLS, EQUIPMENT, APPLIANCES, AND SUPERVISION NECESSARY FOR THE REPAIR OF THE PRIMARY AIRCRAFT MAINTENANCE HANGAR (BUILDING 801) AT CHANNEL ISLANDS AIR GUARD STATION, CA. Key points: 1. Contract focuses on essential infrastructure repair for military readiness. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Project duration of 598 days indicates a significant scope of work. 5. Geographic location in California may influence labor and material costs. 6. The contract value is substantial for a single building repair project.

Value Assessment

Rating: good

The contract value of $32.27 million for the repair of a primary aircraft maintenance hangar appears to be within a reasonable range for a project of this scope and complexity. Benchmarking against similar large-scale construction and repair projects for military facilities suggests that the pricing is competitive, especially considering the firm-fixed-price nature which includes contractor risk. The specific details of the repair work will ultimately determine the true value, but initial assessment indicates a fair price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and multiple bids were likely received. The presence of three bids suggests a healthy level of competition for this project. A competitive environment generally leads to better price discovery and ensures that the government receives proposals from qualified contractors, potentially resulting in more favorable terms and pricing.

Taxpayer Impact: The competitive bidding process for this hangar repair project is beneficial for taxpayers as it likely drove down costs and ensured the selection of a contractor offering the best value. This approach minimizes the risk of overpayment and promotes efficiency in the use of public funds.

Public Impact

The primary beneficiaries are the U.S. Air National Guard units stationed at Channel Islands Air Guard Station, ensuring operational readiness. The contract delivers critical repair and maintenance services for a vital piece of military infrastructure. The geographic impact is localized to the Channel Islands Air Guard Station in California. The project will likely involve a significant number of construction workers, providing employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues are discovered during repair.
Risk of project delays due to supply chain disruptions or labor shortages.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Award to a single contractor streamlines project management and accountability.
The project directly supports military readiness and operational capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically serving the defense industry's infrastructure needs. The market for military facility construction and repair is substantial, driven by the need to maintain and modernize aging bases and support evolving operational requirements. Comparable spending benchmarks for large-scale construction projects on federal installations can vary widely based on location, scope, and specific requirements, but a $32 million project for a primary hangar repair is a significant undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses for specialized services. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified repairs within the agreed-upon budget and timeline. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight activities and inspector general jurisdiction would depend on the agency's internal policies and any potential issues that arise.

Related Government Programs

Military Base Infrastructure Modernization
Aircraft Hangar Construction and Repair
Department of Defense Facilities Maintenance
Air National Guard Readiness Programs

Risk Flags

Potential for scope creep if unforeseen issues arise.
Dependence on contractor's ability to manage supply chain and labor.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to LEAD BUILDERS INC. THE CONTRACTOR SHALL PROVIDE ALL PLANT, LABOR, TRANSPORTATION, MATERIALS, TOOLS, EQUIPMENT, APPLIANCES, AND SUPERVISION NECESSARY FOR THE REPAIR OF THE PRIMARY AIRCRAFT MAINTENANCE HANGAR (BUILDING 801) AT CHANNEL ISLANDS AIR GUARD STATION, CA.

Who is the contractor on this award?

The obligated recipient is LEAD BUILDERS 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 $32.3 million.

What is the period of performance?

Start: 2024-08-28. End: 2026-04-18.

What is the track record of Lead Builders Inc. in completing similar large-scale government construction projects on time and within budget?

A review of Lead Builders Inc.'s contract history with the federal government would be necessary to assess their track record. This would involve examining past performance evaluations, any instances of contract disputes or terminations, and their history of meeting project deadlines and budget constraints. Without specific data on their past performance on comparable projects, it is difficult to definitively assess their reliability for this significant hangar repair. Federal procurement databases and past performance information systems are key resources for this type of analysis.

How does the awarded price of $32.27 million compare to the estimated cost or bids from other contractors for similar hangar repair projects?

To benchmark the value, we would need to compare this $32.27 million award against the estimated costs provided by the agency during the solicitation phase, as well as the bids submitted by the other two competing contractors. Additionally, comparing this figure to publicly available data on similar aircraft hangar repair projects at other military installations, considering factors like size, complexity, and geographic location, would provide further context. A higher-than-average bid relative to benchmarks might indicate potential issues with pricing, while a competitive bid suggests good value.

What are the primary risks associated with this specific contract, and what mitigation strategies are in place?

Key risks for this contract include potential unforeseen structural issues within the existing hangar that could increase repair costs or extend the timeline, supply chain disruptions for specialized materials, and labor availability in the project's region. Mitigation strategies typically involve detailed site surveys before award, contingency planning within the contractor's schedule and budget, and robust contract management by the government to monitor progress and address issues proactively. The firm-fixed-price nature also places the primary financial risk on the contractor, incentivizing them to manage these risks effectively.

How effective is the firm-fixed-price contract type in ensuring cost control and performance for this type of infrastructure repair?

The firm-fixed-price (FFP) contract type is generally considered effective for infrastructure repair projects where the scope of work is well-defined and risks can be reasonably anticipated. It shifts the primary cost risk to the contractor, incentivizing them to manage expenses efficiently and complete the project within the agreed price. For this hangar repair, FFP provides budget certainty for the government. However, it requires careful initial scope definition to avoid change orders, and the government must ensure robust oversight to verify that the contractor is meeting quality standards and performance requirements.

What is the historical spending trend for aircraft maintenance hangar repairs at Channel Islands Air Guard Station or similar facilities?

Analyzing historical spending for similar projects at Channel Islands Air Guard Station or comparable Air National Guard facilities would provide context for the current $32.27 million award. This would involve examining past contracts for hangar construction, renovation, or major repair, noting their values, durations, and any cost growth. A trend of increasing costs or frequent repairs might indicate aging infrastructure or rising material/labor expenses. Conversely, consistent spending within a certain range could suggest stable market conditions and predictable project costs.

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: W50S7524B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lead Builders, Inc.

Address: 2568 TURQUOISE CIR UNIT B, NEWBURY PARK, CA, 91320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,274,070

Exercised Options: $32,274,070

Current Obligation: $32,274,070

Actual Outlays: $2,946,225

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $23,283,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline