DoD Awards $28.6M Contract for 57,400 Sq Ft Aircraft Maintenance Facility in Tennessee
Contract Overview
Contract Amount: $28,633,134 ($28.6M)
Contractor: P & W Construction Company, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-19
End Date: 2026-05-03
Contract Duration: 957 days
Daily Burn Rate: $29.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT 57,400 SQUARE FOOT FACILITY TO SUPPORT AIRCRAFT MAINTENANCE OPERATIONS FOR THE 134TH AIR REFUELING WING
Place of Performance
Location: KNOXVILLE, KNOX County, TENNESSEE, 37912
Plain-Language Summary
Department of Defense obligated $28.6 million to P & W CONSTRUCTION COMPANY, LLC for work described as: CONSTRUCT 57,400 SQUARE FOOT FACILITY TO SUPPORT AIRCRAFT MAINTENANCE OPERATIONS FOR THE 134TH AIR REFUELING WING Key points: 1. The contract supports critical aircraft maintenance operations for the 134th Air Refueling Wing. 2. P & W Construction Company, LLC secured the award. 3. The project is located in Tennessee, a state with a significant defense presence. 4. The firm fixed-price contract type aims to control costs. 5. The project duration is 957 days, indicating a substantial construction undertaking.
Value Assessment
Rating: good
The contract value of $28.6 million for a 57,400 sq ft facility appears reasonable given the scope and firm fixed-price nature. Benchmarking against similar institutional building construction projects in the region would provide a more precise assessment.
Cost Per Unit: $499/sq ft
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process that initially considered all sources but ultimately excluded some. This method can still yield competitive pricing if well-executed.
Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for necessary infrastructure development.
Public Impact
Enhances critical aircraft maintenance capabilities for the Air National Guard. Supports military readiness and operational effectiveness. Contributes to local economy through construction jobs and related services. Invests in long-term infrastructure for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependency on a single contractor for project completion.
- Schedule delays could impact operational readiness.
Positive Signals
- Firm fixed-price contract mitigates cost escalation risk.
- Supports a vital military unit's operational needs.
- Investment in modern infrastructure.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for supporting government operations and infrastructure. Spending in this sector is often driven by modernization needs and readiness requirements.
Small Business Impact
The contract was awarded to P & W Construction Company, LLC, a private entity. Analysis of whether small businesses were subcontracted or involved in the bidding process is not detailed in the provided data.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The firm fixed-price contract and defined duration provide a framework for accountability, but ongoing monitoring is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays impacting operational readiness.
- Risk of unforeseen site conditions requiring additional funding.
- Dependency on contractor's performance and financial stability.
- Need for robust government oversight to ensure quality and compliance.
Tags
commercial-and-institutional-building-co, department-of-defense, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to P & W CONSTRUCTION COMPANY, LLC. CONSTRUCT 57,400 SQUARE FOOT FACILITY TO SUPPORT AIRCRAFT MAINTENANCE OPERATIONS FOR THE 134TH AIR REFUELING WING
Who is the contractor on this award?
The obligated recipient is P & W CONSTRUCTION COMPANY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.6 million.
What is the period of performance?
Start: 2023-09-19. End: 2026-05-03.
What is the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award method, and how did this impact the final price?
The exclusion of sources typically occurs when specific capabilities, past performance, or security requirements are necessary, and only a subset of potential bidders can meet them. While intended to ensure suitability, this can sometimes limit the breadth of competition, potentially affecting price discovery. A thorough review of the solicitation documents would clarify the exact reasons for exclusion and its influence on the final negotiated price.
What are the key performance indicators (KPIs) for this construction project, and how will the government measure the facility's effectiveness in supporting aircraft maintenance operations post-comple
Key performance indicators likely include adherence to construction timelines, budget compliance, quality of materials and workmanship, and meeting all specified design and functional requirements for aircraft maintenance. Post-completion effectiveness will be measured by the facility's ability to reduce maintenance turnaround times, improve safety, accommodate new aircraft technologies, and meet operational readiness goals for the 134th Air Refueling Wing.
Given the 957-day duration, what are the primary risks associated with potential schedule slippage, and what mitigation strategies are in place to ensure timely completion?
Primary risks include weather delays, unforeseen site conditions (e.g., soil issues, hazardous materials), supply chain disruptions for materials, and labor shortages. Mitigation strategies typically involve detailed project planning, contingency allowances for time and cost, robust contractor management, regular progress reviews, and clearly defined contract clauses for managing delays and potential liquidated damages.
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: W50S9823B0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6705 KECK RD, KNOXVILLE, TN, 37912
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,633,134
Exercised Options: $28,633,134
Current Obligation: $28,633,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-19
Current End Date: 2026-05-03
Potential End Date: 2026-05-03 00:00:00
Last Modified: 2025-08-22
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