Fort Wainwright Hangar Construction Contract Awarded for $71.5 Million

Contract Overview

Contract Amount: $71,484,406 ($71.5M)

Contractor: Watterson Construction CO

Awarding Agency: Department of Defense

Start Date: 2012-06-07

End Date: 2014-11-18

Contract Duration: 894 days

Daily Burn Rate: $80.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCT GENERAL SUPPORT AVIATION BATTALION HANGAR AT FORT WAINWRIGHT, ALASKA

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $71.5 million to WATTERSON CONSTRUCTION CO for work described as: DESIGN AND CONSTRUCT GENERAL SUPPORT AVIATION BATTALION HANGAR AT FORT WAINWRIGHT, ALASKA Key points: 1. Contract value represents a significant investment in military aviation infrastructure. 2. The project was awarded through full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The duration of the contract (894 days) indicates a substantial construction timeline. 5. The project is located in Alaska, potentially involving unique logistical and environmental challenges. 6. The awardee, Watterson Construction Co., is responsible for delivering a critical facility.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparable projects in similar remote or arctic environments. The total award amount of $71.5 million for a general support aviation battalion hangar suggests a substantial facility. However, without data on the size, complexity, and specific features of the hangar, a direct comparison to other construction projects is difficult. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can sometimes lead to higher initial bids to account for unforeseen issues, especially in challenging locations like Alaska.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bids suggests a competitive environment for this project. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government, as contractors vie for the award. The fact that multiple companies were willing and able to bid on this project implies a healthy market for this type of construction service.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process ensures that the government receives the best value by considering a wide range of potential contractors.

Public Impact

The primary beneficiaries are the U.S. Army units stationed at Fort Wainwright, Alaska, who will gain enhanced aviation support capabilities. The project delivers a new general support aviation battalion hangar, crucial for aircraft maintenance, storage, and operations. The geographic impact is concentrated at Fort Wainwright, Alaska, supporting military readiness in the region. The construction phase will likely create temporary jobs for skilled trades and laborers in the local Alaska economy. The completed facility will support ongoing military aviation operations, contributing to national defense objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or logistical challenges in Alaska are not adequately managed by the contractor.
Schedule delays could occur due to Alaska's harsh weather conditions, impacting operational readiness.
Ensuring long-term durability and maintenance of the facility in an extreme climate requires careful planning and execution.

Positive Signals

The firm fixed-price contract structure shifts cost risk to the contractor, potentially protecting the government from budget overruns.
Awarding through full and open competition suggests a competitive pricing environment and a thorough vetting of bidders.
The selection of an experienced construction company like Watterson Construction Co. indicates a focus on capability and past performance.

Sector Analysis

The construction sector, particularly for large-scale institutional and commercial buildings, is a significant part of the federal contracting landscape. This contract falls under the Commercial and Institutional Building Construction category. Federal spending in this area often supports military installations, government facilities, and infrastructure projects. The market size for such projects can be substantial, with competition often driven by factors like geographic location, specialized requirements, and security clearances. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar military or government construction projects, adjusted for location and complexity.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award went to Watterson Construction Co., a large business. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of explicit set-aside provisions means that small businesses were not prioritized in the prime contract award. Further analysis would be needed to determine if Watterson Construction Co. has a history of subcontracting with small businesses on similar projects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Military Construction (MILCON)
General Services Administration (GSA) Public Buildings Service
Department of Defense Facilities Engineering
Army Corps of Engineers Construction Contracts

Risk Flags

Geographic Location Risk (Alaska)
Weather-Related Delays
Logistical Challenges
Permafrost/Foundation Stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.5 million to WATTERSON CONSTRUCTION CO. DESIGN AND CONSTRUCT GENERAL SUPPORT AVIATION BATTALION HANGAR AT FORT WAINWRIGHT, ALASKA

Who is the contractor on this award?

The obligated recipient is WATTERSON CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $71.5 million.

What is the period of performance?

Start: 2012-06-07. End: 2014-11-18.

What is the track record of Watterson Construction Co. with federal contracts, particularly with the Department of Defense?

Watterson Construction Co. has a history of performing federal contracts, including work for the Department of Defense. Analyzing their past performance on similar construction projects, especially those involving military installations or large-scale facilities, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Federal procurement data often includes past performance ratings and contract award histories that can be reviewed to assess their suitability for projects of this magnitude. A review of their contract portfolio might reveal experience with firm fixed-price contracts and projects in challenging environments, which are relevant to the Fort Wainwright hangar.

How does the cost per square foot of this hangar compare to similar military aviation facilities?

To compare the cost per square foot, we would need the total square footage of the hangar, which is not provided in the summary data. Assuming a typical size for a general support aviation battalion hangar, we could then divide the $71.5 million award amount by that estimated square footage. This figure would then be benchmarked against publicly available data for similar military hangar construction projects, adjusted for inflation and geographic location. Projects in Alaska often incur higher costs due to logistical challenges, climate, and specialized labor requirements. Therefore, a direct comparison without these adjustments might be misleading. Further research into the specific design requirements and dimensions of the Fort Wainwright hangar is necessary for an accurate cost-per-square-foot analysis.

What are the primary risks associated with constructing a large hangar in Fort Wainwright, Alaska?

Constructing a large hangar in Fort Wainwright, Alaska, presents several significant risks. The extreme cold weather and limited construction season can lead to delays and increased costs for materials and labor. Permafrost conditions can complicate foundation design and stability, requiring specialized engineering solutions. Logistical challenges associated with transporting materials and equipment to a remote location like Fort Wainwright can also increase costs and lead times. Furthermore, ensuring the long-term durability and performance of the facility in such a harsh environment requires robust design and construction standards. The firm fixed-price contract structure places the burden of managing these risks on the contractor, Watterson Construction Co.

What is the expected impact of this hangar on the operational readiness of aviation units at Fort Wainwright?

The construction of a new general support aviation battalion hangar is expected to significantly enhance the operational readiness of aviation units at Fort Wainwright. A modern, purpose-built facility provides improved capabilities for aircraft maintenance, repair, and storage, reducing downtime and ensuring aircraft are mission-ready. It can also offer better protection for aircraft from the elements, extending their service life. Furthermore, the hangar may provide enhanced command and control facilities, training spaces, and logistical support, all contributing to a more efficient and effective aviation battalion. This improved infrastructure directly supports the Army's ability to conduct its missions in the region.

How has federal spending on similar construction projects at military installations in Alaska trended over the past decade?

Federal spending on similar construction projects at military installations in Alaska has likely seen fluctuations influenced by defense budgets, strategic priorities, and infrastructure modernization needs. Over the past decade, there has been a general emphasis on maintaining and upgrading military facilities across all branches, including those in strategically important but challenging locations like Alaska. Specific trends might include increased investment in arctic-capable infrastructure, energy efficiency upgrades, and modernization of aging facilities. Analyzing historical contract awards for construction projects at Fort Wainwright and other Alaskan bases would reveal specific spending patterns, dominant contract types, and the types of construction services most frequently procured.

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: TWO STEP

Solicitation ID: W911KB11R0010

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6500 INTERSTATE CIR, ANCHORAGE, AK, 99518

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

Financial Breakdown

Contract Ceiling: $71,946,906

Exercised Options: $71,484,406

Current Obligation: $71,484,406

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $58,974,571

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline