DoD awards $17.3M contract for vehicle maintenance and aerospace ground equipment complex in Wyoming

Contract Overview

Contract Amount: $17,336,000 ($17.3M)

Contractor: Recco Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-12

End Date: 2027-01-05

Contract Duration: 572 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT VEHICLE MAINTENANCE/AEROSPACE GROUND EQUIPMENT (VM/AGE) COMPLEX

Place of Performance

Location: FE WARREN AFB, LARAMIE County, WYOMING, 82005

State: Wyoming Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to RECCO INC for work described as: CONSTRUCT VEHICLE MAINTENANCE/AEROSPACE GROUND EQUIPMENT (VM/AGE) COMPLEX Key points: 1. Contract awarded to RECCO INC for construction of a vehicle maintenance and aerospace ground equipment complex. 2. The contract type is a Firm Fixed Price Definitive Contract, indicating predictable costs for the government. 3. Competition was full and open after exclusion of sources, suggesting a deliberate but potentially limited bidding process. 4. The contract duration is approximately 572 days, aligning with typical construction project timelines. 5. The project is located in Wyoming, potentially bringing economic benefits to the local workforce and businesses. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $17.3 million for a vehicle maintenance and aerospace ground equipment complex appears within a reasonable range for such specialized construction projects. Benchmarking against similar facilities would provide a clearer picture of value for money. The firm fixed price structure helps mitigate cost overruns, but the initial bid price is critical for assessing overall affordability. Without specific details on the scope of work and comparable project costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a specific reason or requirement that narrowed the field. The number of bidders (5) is moderate, and the exclusion of sources might limit the breadth of competition, potentially impacting price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: The exclusion of sources, even with a moderate number of bidders, could mean taxpayers did not benefit from the widest possible competitive pricing. However, if the exclusion was based on necessary qualifications, it ensures the selected contractor meets specific technical requirements.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, who will receive a new facility for critical maintenance operations. The contract will result in the construction of a specialized complex for vehicle maintenance and aerospace ground equipment. The geographic impact is concentrated in Wyoming, likely creating temporary construction jobs and potentially long-term operational employment. The project supports the operational readiness and logistical capabilities of military forces stationed or operating in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if the 'exclusion of sources' was not fully justified and limited competitive pricing.
Risk associated with the specific qualifications of the 5 bidders if the pool was significantly smaller than a truly open competition.
Dependence on RECCO INC's performance for timely and quality construction of a critical military facility.

Positive Signals

Firm Fixed Price contract type helps control costs and provides budget certainty.
The project addresses a clear need for enhanced maintenance and ground equipment facilities for the military.
Award to a single contractor streamlines project management and execution.

Sector Analysis

The construction sector, particularly for specialized government facilities, is a significant market. This contract falls under commercial and institutional building construction, a segment that often involves complex requirements for durability, security, and specific operational functionalities. The $17.3 million value is moderate for a federal construction project of this nature. Comparable spending benchmarks would typically look at cost per square foot or cost per specialized function for similar military or industrial 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 mandated by a small business set-aside. The prime contractor, RECCO INC, may still choose to subcontract portions of the work, and opportunities for small businesses could arise through those arrangements, but it is not a requirement of this specific award.

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 delivery of the specified facility. Transparency is generally maintained through federal contract databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Base Operations Support
Aerospace Ground Equipment Procurement
Vehicle Maintenance Facilities
Department of Defense Construction Contracts

Risk Flags

Limited Competition
Potential for Unjustified Source Exclusion
Reliance on Prime Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to RECCO INC. CONSTRUCT VEHICLE MAINTENANCE/AEROSPACE GROUND EQUIPMENT (VM/AGE) COMPLEX

Who is the contractor on this award?

The obligated recipient is RECCO 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 $17.3 million.

What is the period of performance?

Start: 2025-06-12. End: 2027-01-05.

What is the track record of RECCO INC in completing similar federal construction projects, particularly those involving military or specialized ground equipment facilities?

Assessing RECCO INC's track record requires a review of their past performance on federal contracts. Key indicators include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract terminations. Information on previous projects, especially those with similar scope and complexity to the VM/AGE complex, would be crucial. A review of their contract history within the SAM.gov database or through agency performance evaluations would provide insights into their reliability and capability to execute this $17.3 million project successfully.

How does the awarded price of $17.3 million compare to the estimated cost or benchmark for similar vehicle maintenance and aerospace ground equipment facilities?

To benchmark the $17.3 million award, one would typically compare it against the General Services Administration (GSA) cost per square foot data for similar building types, or against historical data for military construction projects of comparable size and function. Factors such as location (labor and material costs), specific technological requirements for aerospace ground equipment, and the complexity of vehicle maintenance bays would influence the comparison. Without access to the government's cost estimate or data on recently awarded, similar facilities, it is difficult to definitively state if this represents excellent or questionable value. However, the firm fixed price nature suggests the government aimed for cost certainty.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' contract award method for this project?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is that it inherently limits the pool of potential bidders compared to unrestricted full and open competition. This exclusion could be based on specific security clearances, specialized certifications, or geographic proximity requirements. If the exclusion criteria were overly restrictive or not fully justified, it could lead to reduced price competition, potentially resulting in a higher price for the government than might have been achieved otherwise. There's also a risk that a qualified contractor was excluded erroneously, impacting the overall fairness of the process.

What is the expected impact of this new facility on the operational effectiveness and readiness of the military units it will serve?

The construction of a dedicated Vehicle Maintenance and Aerospace Ground Equipment (VM/AGE) complex is expected to significantly enhance operational effectiveness and readiness. Such a facility centralizes critical maintenance functions, potentially reducing downtime for vehicles and aircraft. Improved access to specialized equipment and trained personnel within a purpose-built environment can lead to faster, more efficient repairs and servicing. This directly supports the military's ability to deploy and sustain its assets, ensuring they are mission-ready when needed.

How has federal spending on similar construction projects for military maintenance facilities trended over the past five years?

Analyzing federal spending trends on similar construction projects requires examining data related to military construction (MILCON) appropriations and specific contract awards for maintenance depots, vehicle repair facilities, and aerospace ground equipment infrastructure. Over the past five years, there has been a consistent need for modernization and expansion of such facilities to support evolving military hardware and operational demands. Spending in this category is often influenced by defense budgets, strategic priorities, and the lifecycle of existing infrastructure. Increases or decreases in spending would reflect the overall investment in maintaining military readiness and technological superiority.

What are the potential long-term economic implications for Wyoming resulting from this $17.3 million federal construction contract?

The $17.3 million contract is likely to have positive short-to-medium term economic implications for Wyoming. During the construction phase (approximately 572 days), it will create jobs for construction workers, engineers, and related trades. Local suppliers may benefit from providing materials and equipment. Furthermore, the completed facility may lead to the establishment or expansion of military personnel and support staff in the area, potentially boosting the local economy through increased demand for housing, services, and retail. The long-term impact depends on the ongoing operational presence associated with 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W50S8W25RA003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3496 AGATE RD, CHEYENNE, WY, 82009

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

Financial Breakdown

Contract Ceiling: $17,336,000

Exercised Options: $17,336,000

Current Obligation: $17,336,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline