DoD's $26.1M F-35 weather shelter renovation awarded to ASRC Builders LLC shows fair value

Contract Overview

Contract Amount: $26,123,099 ($26.1M)

Contractor: Asrc Builders LLC

Awarding Agency: Department of Defense

Start Date: 2018-04-16

End Date: 2021-06-01

Contract Duration: 1,142 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EIE393 CONTRACT F-35 RENOVATE B1338 AMU WEATHER SHELTER

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99701

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to ASRC BUILDERS LLC for work described as: EIE393 CONTRACT F-35 RENOVATE B1338 AMU WEATHER SHELTER Key points: 1. Contract awarded to ASRC Builders LLC for $26.1M for F-35 facility renovation. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. Performance period spans over 3 years, suggesting a substantial project scope. 5. The project is located in Alaska, potentially impacting labor and material costs. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $26.1M for renovating a weather shelter for the F-35 program appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, construction projects of this nature, especially in remote or challenging environments like Alaska, can incur significant costs. The firm fixed price structure suggests that the initial pricing was deemed acceptable by the government, aiming for cost certainty. Benchmarking against similar military construction projects would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific qualifications or pre-existing relationships. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery. However, the exclusion of sources warrants a closer look to ensure it did not unduly limit competition.

Taxpayer Impact: A competitive process, even with exclusions, generally leads to better pricing for taxpayers compared to sole-source awards. The fact that multiple bids were received suggests that the government likely secured a fair market price.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at the F-35 facility, ensuring readiness and operational capability. The contract delivers essential renovation services for a weather shelter, crucial for protecting sensitive aircraft and equipment. The geographic impact is localized to Eielson Air Force Base in Alaska, supporting critical military infrastructure in a strategic location. The project likely involves a workforce of construction laborers, project managers, and specialized trades, contributing to local employment in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Alaska's challenging environment.
Risk of schedule delays due to weather or logistical challenges inherent in remote construction.
Ensuring compliance with stringent military construction standards and specifications.

Positive Signals

Firm Fixed Price contract structure mitigates cost uncertainty for the government.
Full and open competition, even with exclusions, suggests a structured procurement process.
Award to ASRC Builders LLC, a company with experience in construction, implies a degree of contractor capability.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by the need to maintain and upgrade aging infrastructure and build new facilities to support advanced defense systems like the F-35. Spending in this area is often characterized by large-scale projects, stringent regulatory requirements, and a focus on specialized contractors capable of working in diverse and sometimes challenging environments. Benchmarks for similar military construction projects can vary widely based on location, scope, and specific requirements.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While ASRC Builders LLC is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether ASRC utilizes small businesses for any portion of the work, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the Firm Fixed Price contract, requiring the contractor to deliver the specified renovation within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

F-35 Program Support Contracts
Military Construction Projects
Department of Defense Facility Renovations
Air Force Base Infrastructure

Risk Flags

Potential for cost overruns due to remote location and environmental factors.
Risk of schedule delays impacting operational readiness.
Ensuring compliance with stringent military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to ASRC BUILDERS LLC. EIE393 CONTRACT F-35 RENOVATE B1338 AMU WEATHER SHELTER

Who is the contractor on this award?

The obligated recipient is ASRC BUILDERS 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 $26.1 million.

What is the period of performance?

Start: 2018-04-16. End: 2021-06-01.

What is the track record of ASRC Builders LLC in performing similar government construction contracts?

ASRC Builders LLC has a history of performing construction services for government entities. While specific details on past F-35 related projects are not provided, their classification under NAICS code 236220 suggests experience in commercial and institutional building construction. A deeper dive into their contract history, including past performance reviews, on-time delivery rates, and any past disputes or claims on similar federal projects, would offer a more comprehensive understanding of their capabilities and reliability for this specific renovation.

How does the awarded amount compare to similar weather shelter renovation projects for military aircraft?

Directly comparing the $26.1M award for this F-35 weather shelter renovation to similar projects is challenging without detailed project specifications, location-specific cost indices, and the exact scope of work. However, military construction projects, particularly those supporting advanced aircraft like the F-35, often involve higher costs due to stringent security, environmental, and technical requirements. Projects in remote locations like Alaska can also incur additional logistical and labor cost premiums. A benchmark analysis would require identifying comparable projects in terms of size, complexity, and geographic challenges.

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 due to unforeseen site conditions in Alaska's challenging environment, schedule delays caused by weather or logistical issues, and ensuring adherence to complex military construction standards. Mitigation strategies are primarily addressed through the Firm Fixed Price contract type, which places the financial risk of cost overruns on the contractor. The selection process, including the 'Full and Open Competition After Exclusion of Sources,' aims to choose a capable contractor. Robust project management, clear communication channels, and detailed site investigations before and during construction are also crucial for mitigating risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers in this case?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with the need for specific qualifications. In this case, with 3 bidders, it suggests a reasonable level of competition was achieved, likely leading to competitive pricing. However, the 'exclusion of sources' element means that not all potentially capable contractors were considered. The effectiveness in ensuring optimal value depends on whether the excluded sources were genuinely unqualified or if their exclusion unnecessarily limited the competitive pool. If the excluded sources were capable, the value might have been further optimized with their inclusion. The final value achieved is a result of the bids received from the qualified, competing entities.

What is the historical spending trend for similar construction projects at Eielson Air Force Base or for the F-35 program?

Analyzing historical spending trends for similar construction projects at Eielson Air Force Base or for the F-35 program would provide valuable context. Without access to specific historical data for this base or program, it's difficult to establish a precise trend. However, military bases often undergo cyclical infrastructure upgrades and renovations. Spending can fluctuate based on defense budget allocations, modernization priorities, and the aging of existing facilities. The F-35 program, being a major defense initiative, likely sees consistent investment in supporting infrastructure across various bases. Examining past military construction contracts awarded by the Department of the Army or Air Force in similar climates could offer comparative spending insights.

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: W911KB18R0020

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 3900 C ST STE 305, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,123,099

Exercised Options: $26,123,099

Current Obligation: $26,123,099

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $802,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline