Army awards $37.1M for UAS hangar construction at Fort Wainwright, Alaska, with 6 bidders

Contract Overview

Contract Amount: $37,129,200 ($37.1M)

Contractor: Unit Company

Awarding Agency: Department of Defense

Start Date: 2017-04-12

End Date: 2019-07-30

Contract Duration: 839 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FTW376 DESIGN AND CONSTRUCT UAS HANGAR AT FT WAINWRIGHT, AK

Place of Performance

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

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to UNIT COMPANY for work described as: IGF::OT::IGF FTW376 DESIGN AND CONSTRUCT UAS HANGAR AT FT WAINWRIGHT, AK Key points: 1. The contract value appears reasonable given the scope of constructing a specialized hangar. 2. Full and open competition suggests a healthy market for this type of construction. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Project duration of approximately 2.7 years is typical for large construction projects. 5. The contract falls within the commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of $37.1 million for a UAS hangar is within a reasonable range for specialized military construction. Benchmarking against similar projects for aircraft hangars, especially those requiring specific environmental controls or security features for unmanned systems, would provide further context. The firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. Without specific cost breakdowns or comparisons to similar recent awards, a precise value-for-money assessment is challenging, but the overall price appears aligned with industry standards for such a facility.

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 bids. Six bids were received, suggesting a competitive environment for this specialized construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value. The presence of multiple bidders implies that the market has sufficient capacity and interest in undertaking such work for the Department of the Army.

Taxpayer Impact: The full and open competition with six bidders is positive for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently by leveraging market forces to drive down costs.

Public Impact

The primary beneficiaries are the U.S. Army and its aviation units operating Unmanned Aircraft Systems (UAS) at Fort Wainwright. The contract delivers a critical infrastructure asset: a dedicated hangar designed for the maintenance, storage, and operation of UAS. The geographic impact is localized to Fort Wainwright, Alaska, enhancing its operational capabilities. The project will likely create jobs in the construction sector in Alaska, supporting local and regional economies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price contract.
Dependence on contractor's ability to meet specialized UAS hangar requirements.
Logistical challenges associated with construction in remote Alaska.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a robust market response.
Award to a single contractor streamlines project management and accountability.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for military construction, particularly specialized facilities like UAS hangars, is a niche within this sector. It requires contractors with experience in government contracting, adherence to strict building codes, and potentially specialized knowledge related to aviation or defense infrastructure. The award value is significant for a single project, reflecting the complexity and scale of military infrastructure development.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. The contractor, Unit Company, is not identified as a small business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on small business set-asides appears minimal for this specific prime contract, though opportunities may exist further down the subcontracting chain.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer's representative (COR) and the relevant Army contracting command. The firm-fixed-price nature of the contract places the onus on the contractor to manage costs and performance within the agreed-upon terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Aircraft Maintenance and Repair Facilities
Unmanned Aircraft Systems Infrastructure
Department of Defense Facilities Construction

Risk Flags

Potential for schedule delays due to remote location and Alaskan climate.
Ensuring specialized technical requirements for UAS are met.
Contractor's ability to manage costs under a firm-fixed-price agreement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to UNIT COMPANY. IGF::OT::IGF FTW376 DESIGN AND CONSTRUCT UAS HANGAR AT FT WAINWRIGHT, AK

Who is the contractor on this award?

The obligated recipient is UNIT COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2017-04-12. End: 2019-07-30.

What is the track record of Unit Company in performing similar federal construction contracts?

A review of federal contract databases indicates that Unit Company has a history of performing construction services for the government. While specific details on past performance for UAS hangars are not immediately available from the provided data, their award for this project suggests they met the necessary qualifications and experience requirements set forth by the Department of the Army. Further investigation into their past performance ratings, contract completion history, and any past disputes or claims would provide a more comprehensive understanding of their reliability and capability in executing complex federal construction projects.

How does the $37.1 million cost compare to similar UAS hangar construction projects?

Benchmarking the $37.1 million cost requires comparing it to similar UAS hangar projects, considering factors like size, complexity, location, and specific technological requirements. Without access to a database of comparable projects, a precise comparison is difficult. However, large-scale specialized construction for military aviation, especially for advanced systems like UAS, can range significantly. Factors such as specialized environmental controls, security features, and the need for robust infrastructure in potentially remote locations (like Alaska) can drive up costs. The firm-fixed-price nature also implies the contractor has factored in potential risks. Generally, this figure appears substantial but potentially justifiable for a dedicated, modern UAS facility.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns (though mitigated by the firm-fixed-price structure), schedule delays due to weather or logistical challenges in Alaska, and ensuring the contractor meets the specific technical requirements for a UAS hangar. Mitigation strategies include the firm-fixed-price contract, which shifts cost risk to the contractor, and the government's oversight through a COR to monitor progress and quality. The selection process under full and open competition also aims to identify capable contractors. However, unforeseen site conditions or contractor performance issues remain potential risks that require ongoing management.

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

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for projects where the scope of work is well-defined, as is typical for construction. It provides the government with cost certainty, as the contractor agrees to a set price regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and complete the project within budget. For this UAS hangar project, the FFP structure shifts the risk of cost overruns to Unit Company. This can lead to better value for the government, provided the initial price negotiated was competitive and the contractor is capable of executing the work within that price.

What are the historical spending patterns for UAS hangar construction by the Department of the Army?

Historical spending patterns for UAS hangar construction by the Department of the Army would reveal trends in project frequency, average contract values, and the types of competition utilized. Given the relatively recent and rapid development of UAS technology, dedicated hangar construction is likely a growing area of investment. Analyzing past awards would show if this $37.1 million contract is an outlier or representative of current spending levels. It would also indicate whether the Army typically uses full and open competition for such facilities or if sole-source awards are more common, impacting price discovery and overall value.

What is the significance of awarding this contract under 'Full and Open Competition' with 6 bidders?

Awarding this contract under 'Full and Open Competition' with six bidders is significant because it indicates a healthy and accessible market for UAS hangar construction services. This approach maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and securing the best possible price and value for the government. The presence of six bidders suggests that multiple companies possess the capability and interest to undertake such specialized military construction projects. This level of competition is generally favorable for taxpayers, as it drives efficiency and innovation among contractors vying for the award.

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: SEALED BID

Solicitation ID: W911KB16R0017

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620 E WHITNEY RD, ANCHORAGE, AK, 99501

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

Financial Breakdown

Contract Ceiling: $37,129,200

Exercised Options: $37,129,200

Current Obligation: $37,129,200

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $28,870,562

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline