DoD's $51.1M Eielson AFB F-35A utility project awarded to Haskell/Davis JV shows strong competition

Contract Overview

Contract Amount: $51,119,077 ($51.1M)

Contractor: Haskell Corporation/Davis Constructors JV

Awarding Agency: Department of Defense

Start Date: 2018-02-15

End Date: 2020-06-12

Contract Duration: 848 days

Daily Burn Rate: $60.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EIE405 F-35A EXTEND STEAM/WATER TO THE SOUTH LOOP, EIELSON AFB, ALASKA. PROVIDES UTILITIES TO ALL THE F-35A FACILITIES.

Place of Performance

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

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to HASKELL CORPORATION/DAVIS CONSTRUCTORS JV for work described as: EIE405 F-35A EXTEND STEAM/WATER TO THE SOUTH LOOP, EIELSON AFB, ALASKA. PROVIDES UTILITIES TO ALL THE F-35A FACILITIES. Key points: 1. The contract's firm-fixed-price structure aims to control costs for essential utility infrastructure. 2. Full and open competition suggests a robust market for this type of construction service. 3. The project's duration of 848 days indicates a significant, multi-year construction effort. 4. The award value of $51.1 million falls within a typical range for large-scale federal infrastructure projects. 5. The project's focus on utility provision for F-35A facilities highlights its strategic importance to Air Force operations. 6. The geographic location in Alaska presents unique logistical and environmental challenges for construction.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost certainty for the government. Benchmarking against similar large-scale utility construction projects for military bases would be necessary for a precise value-for-money assessment. However, the competitive award process suggests a reasonable price was achieved. The base bid of $60.2 million indicates the initial estimate was higher than the final award, potentially reflecting successful negotiation or competitive pressure.

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. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bidders typically leads to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality. The presence of at least two bidders suggests that taxpayers likely received a fair price for the services rendered.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating F-35A aircraft at Eielson Air Force Base, Alaska, ensuring reliable utility services. The project delivers essential water and steam utilities to support the new F-35A facilities, crucial for aircraft maintenance and operations. The geographic impact is concentrated at Eielson Air Force Base in Alaska, a critical strategic location in the Indo-Pacific region. The project supports the construction workforce in Alaska, providing employment opportunities for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexity and remote location of the project in Alaska.
Logistical challenges in delivering materials and equipment to a remote base could impact project timelines and costs.
Environmental considerations specific to Alaska's climate and terrain may pose unforeseen construction hurdles.

Positive Signals

Firm-fixed-price contract type helps mitigate cost uncertainty for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
Project directly supports critical F-35A operational capabilities, aligning with national defense priorities.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and utility infrastructure. The North American Industry Classification System (NAICS) code 237110, 'Water and Sewer Line and Related Structures Construction,' is relevant. The market for large-scale federal utility construction is often dominated by a few large, experienced firms capable of handling complex projects in challenging environments. The total contract value of $51.1 million is substantial for a single project within this sub-sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). This suggests the prime contractor, Haskell Corporation/Davis Constructors JV, is likely a large business. The absence of set-asides means opportunities for small businesses would primarily be through subcontracting, if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this Department of the Army contract would typically be managed by the Army Corps of Engineers or the contracting command responsible for Eielson Air Force Base. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified utilities within the agreed-upon price. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-35 Program Infrastructure Support
Military Base Utility Modernization
Department of Defense Construction Contracts
Alaska Military Construction Projects
Water and Sewer Infrastructure Development

Risk Flags

Potential for cost overruns due to remote location and environmental factors.
Risk of schedule delays impacting F-35 operational readiness.
Ensuring long-term reliability and maintenance of new utility infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to HASKELL CORPORATION/DAVIS CONSTRUCTORS JV. EIE405 F-35A EXTEND STEAM/WATER TO THE SOUTH LOOP, EIELSON AFB, ALASKA. PROVIDES UTILITIES TO ALL THE F-35A FACILITIES.

Who is the contractor on this award?

The obligated recipient is HASKELL CORPORATION/DAVIS CONSTRUCTORS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2018-02-15. End: 2020-06-12.

What is the track record of Haskell Corporation/Davis Constructors JV in executing large-scale federal utility construction projects, particularly in remote or challenging environments like Alaska?

Assessing the specific track record of the Haskell Corporation/Davis Constructors JV requires a deep dive into their past performance on similar federal contracts. Information on their experience with firm-fixed-price contracts, projects of similar magnitude (around $50 million), and construction in Arctic or sub-Arctic conditions would be crucial. Past performance evaluations, if publicly available, would provide insights into their ability to manage schedules, budgets, and quality control. Given the specialized nature of utility construction for advanced military assets like the F-35, their experience with Department of Defense standards and requirements would also be a key factor in evaluating their capability to successfully execute this contract.

How does the awarded price of $51.1 million compare to the estimated cost or benchmark pricing for similar utility extension projects at military installations?

The awarded price of $51.1 million for extending steam and water utilities to F-35A facilities at Eielson AFB needs to be benchmarked against comparable projects. Without access to the government's independent cost estimate or detailed market research data used during the procurement, a precise comparison is difficult. However, factors such as the remote Alaskan location, the specific technical requirements for F-35 support infrastructure, and the firm-fixed-price nature of the contract suggest that costs could be higher than in more accessible locations. The base bid of $60.2 million indicates the initial estimate was higher, and the final award suggests competitive pressure or negotiation led to savings relative to that initial bid.

What are the primary risks associated with this contract, and what mitigation strategies were likely employed by the government and the contractor?

Key risks for this contract include logistical challenges inherent in construction in Alaska (e.g., weather delays, transportation of materials), potential for unforeseen site conditions impacting excavation and utility installation, and ensuring the long-term reliability of the delivered utilities for critical F-35 operations. Mitigation strategies likely involved thorough site investigations prior to award, detailed planning for material procurement and delivery, and robust quality assurance/quality control processes during construction. The firm-fixed-price contract shifts some cost risk to the contractor, incentivizing them to manage these challenges effectively. The government's role includes diligent oversight and contract administration.

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

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money in construction projects where the scope of work is well-defined, as is the case with extending utilities. FFP shifts the risk of cost overruns to the contractor, incentivizing them to control costs and work efficiently to maximize their profit margin. This provides the government with cost certainty. For this project, the FFP structure helps protect taxpayers from unexpected cost increases related to labor, materials, or contractor inefficiencies, provided the initial scope and specifications were accurate and comprehensive.

What is the historical spending trend for utility construction and infrastructure at Eielson Air Force Base or similar Arctic installations?

Analyzing historical spending trends for utility construction at Eielson AFB or similar Arctic installations would provide context for the $51.1 million award. Such analysis would involve examining past contracts for water, sewer, steam, and electrical infrastructure upgrades or new installations. Trends might reveal increasing costs due to inflation, the unique challenges of Arctic construction (e.g., permafrost, short construction seasons), and the specific demands of supporting advanced military platforms. Understanding these trends helps determine if the current contract represents a reasonable investment compared to historical patterns and if spending is escalating disproportionately.

Given the project's focus on F-35A facilities, what are the implications of potential delays or performance issues on the Air Force's operational readiness?

Delays or performance issues in delivering essential utilities to F-35A facilities at Eielson AFB could have significant implications for the Air Force's operational readiness. The F-35 requires a stable and reliable supply of power, heating (steam), and water for its maintenance, testing, and operational functions. Any disruption or inadequacy in these utilities could ground aircraft, impede maintenance schedules, and ultimately reduce the combat capability of the deployed F-35 squadrons. Therefore, ensuring timely and high-quality completion of this utility project is critical for maintaining the intended operational tempo and readiness of the base.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures 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: W911KB18R0017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6591 A STREET STE 300, ANCHORAGE, AK, 99518

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

Financial Breakdown

Contract Ceiling: $52,523,525

Exercised Options: $51,119,077

Current Obligation: $51,119,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline