Department of the Army awards $35.4M contract for Eielson AFB dormitory construction to Absher-Bethel Joint Venture

Contract Overview

Contract Amount: $35,413,237 ($35.4M)

Contractor: Absher-Bethel Joint Venture

Awarding Agency: Department of Defense

Start Date: 2014-08-13

End Date: 2016-08-15

Contract Duration: 733 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT 144 PERSON DORMITORY AT EIELSON AFB

Place of Performance

Location: EIELSON AFB, FAIRBANKS NORTH STAR County, ALASKA, 99702

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $35.4 million to ABSHER-BETHEL JOINT VENTURE for work described as: CONSTRUCT 144 PERSON DORMITORY AT EIELSON AFB Key points: 1. The contract value of $35.4 million for dormitory construction appears to be within a reasonable range for a project of this scale and complexity. 2. Full and open competition was utilized, suggesting a robust bidding process that likely fostered competitive pricing. 3. The project's duration of 733 days indicates a significant construction timeline, requiring careful project management to mitigate potential delays and cost overruns. 4. The firm-fixed-price contract type shifts most of the cost risk to the contractor, which can be beneficial for the government if managed effectively. 5. The geographic location in Alaska presents unique logistical challenges and potentially higher material and labor costs, which should be factored into value assessments. 6. The contractor, Absher-Bethel Joint Venture, is a significant entity in the construction sector, suggesting experience with large-scale government projects.

Value Assessment

Rating: good

The contract value of $35.4 million for constructing a 144-person dormitory at Eielson AFB is a substantial investment. Benchmarking against similar military dormitory construction projects, especially in remote or challenging climates like Alaska, is crucial. While specific per-unit cost data is not provided, the overall price appears to align with the scope of a large-scale construction project. The firm-fixed-price nature of the contract suggests the government secured a defined cost, but the contractor bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method typically leads to a wider pool of potential contractors and encourages competitive pricing. The presence of 5 bids suggests a healthy level of interest and competition for this project, which is a positive sign for price discovery and value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are military personnel stationed at Eielson Air Force Base, who will receive improved and modern living quarters. The project delivers essential infrastructure supporting the base's operational readiness and personnel welfare. The geographic impact is concentrated at Eielson AFB in Alaska, a region with significant strategic importance. The construction activities will likely involve a local and regional workforce, contributing to employment in the construction sector in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the firm-fixed-price contract if unforeseen construction challenges arise in Alaska's climate.
Logistical complexities and higher costs associated with construction in a remote Alaskan location.
Ensuring timely completion within the 733-day duration to avoid impacting base operations and personnel housing needs.
Adequate quality control and inspection to ensure the dormitory meets military standards and durability requirements.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely secured favorable pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Absher-Bethel Joint Venture, has experience in large-scale construction projects.
The project addresses a critical need for housing at Eielson AFB, enhancing quality of life for service members.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often involves large-scale infrastructure projects for military bases, government facilities, and public institutions. The market size for federal construction is substantial, with agencies like the Department of Defense consistently investing in facility upgrades and new constructions. This project at Eielson AFB is a typical example of how the government procures construction services to maintain and expand its operational footprint.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project awarded through full and open competition, the primary contractor, Absher-Bethel Joint Venture, is likely a large business entity. There is no explicit information regarding subcontracting plans for small businesses within this award. Future analysis could explore whether the joint venture or the prime contractor has a history of engaging small businesses as subcontractors on similar federal projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, responsible for monitoring performance, quality, and compliance. The firm-fixed-price nature of the contract means the government's primary oversight focuses on ensuring the contractor meets the specified deliverables and timelines. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Housing Construction
Base Infrastructure Development
Department of Defense Construction Contracts
Federal Building and Infrastructure Projects
Alaska Construction Projects

Risk Flags

Geographic challenges (Alaska)
Firm-Fixed-Price risk
Logistical complexity
Potential for schedule delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to ABSHER-BETHEL JOINT VENTURE. CONSTRUCT 144 PERSON DORMITORY AT EIELSON AFB

Who is the contractor on this award?

The obligated recipient is ABSHER-BETHEL JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.4 million.

What is the period of performance?

Start: 2014-08-13. End: 2016-08-15.

What is the track record of Absher-Bethel Joint Venture with Department of Defense contracts?

Absher-Bethel Joint Venture is a significant entity in the construction sector, often involved in large-scale projects, including those for the Department of Defense. While specific details on their entire DoD contract history require deeper database searches, their involvement in a project of this magnitude at Eielson AFB suggests a demonstrated capability to handle complex federal construction requirements. Analyzing their past performance on similar firm-fixed-price contracts, project completion rates, and any documented issues or awards would provide a more comprehensive understanding of their reliability and expertise. Their joint venture structure may also indicate a pooling of resources and expertise from multiple established construction firms.

How does the cost per square foot or per bed for this dormitory compare to similar military housing projects?

Without specific square footage or detailed cost breakdowns, a precise per-unit cost comparison is challenging. However, the total contract value of $35.4 million for a 144-person dormitory suggests a significant investment per individual. Construction costs in Alaska are generally higher than in the continental U.S. due to logistical challenges, climate, and potentially higher labor rates. To benchmark effectively, one would need to compare this project's cost against other military dormitory constructions in similar geographic and climatic conditions, factoring in the specific amenities and construction standards required by the Department of the Army. A preliminary assessment suggests the cost is substantial, reflecting the complexities of the location and project scope.

What are the primary risks associated with constructing a dormitory in Alaska for the Department of the Army?

The primary risks associated with constructing a dormitory in Alaska include severe weather conditions impacting construction schedules and material durability, permafrost challenges affecting foundation stability, and higher logistical costs for transporting materials and equipment to a remote location like Eielson AFB. Labor availability and costs can also be a risk factor. Furthermore, the firm-fixed-price contract shifts the burden of managing these risks and potential cost overruns to the contractor, Absher-Bethel Joint Venture. The government's risk is primarily related to ensuring the contractor can successfully navigate these challenges to deliver a quality facility on time and within budget, and that the facility meets long-term durability standards in the harsh environment.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and risks are understood. For this dormitory construction, the FFP shifts the cost overrun risk to the contractor, Absher-Bethel Joint Venture. This can incentivize the contractor to manage costs efficiently and complete the project within the agreed-upon price. However, if unforeseen issues arise due to the challenging Alaskan environment or scope creep occurs, the contractor might face significant losses, potentially impacting quality or leading to disputes. The government benefits from price certainty, but effective oversight is still crucial to ensure the contractor's performance meets all requirements and standards.

What is the historical spending trend for dormitory construction at Eielson AFB or similar installations?

Analyzing historical spending trends for dormitory construction at Eielson AFB or similar installations would provide valuable context for the $35.4 million award. Without specific historical data readily available in this summary, it's difficult to establish a precise trend. However, federal spending on military infrastructure, including housing, is often influenced by military readiness requirements, budget allocations, and the age of existing facilities. Projects of this scale are typically undertaken when significant upgrades or expansions are needed. Comparing this contract's value to previous dormitory projects at Eielson AFB, adjusted for inflation and scope differences, would reveal whether this represents an increase, decrease, or stable level of investment in personnel housing infrastructure.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB14R0017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW ROAD, PUYALLUP, WA, 98372

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,413,237

Exercised Options: $35,413,237

Current Obligation: $35,413,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline