DoD Awards $53.8M for AWACS Hangar Construction at JBER, Alaska, Under Full and Open Competition
Contract Overview
Contract Amount: $53,811,648 ($53.8M)
Contractor: Unit Company
Awarding Agency: Department of Defense
Start Date: 2020-04-01
End Date: 2022-09-15
Contract Duration: 897 days
Daily Burn Rate: $60.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF THE ADDITION/ALTERATION OF THE AWACS HANGAR, JBER, AK
Place of Performance
Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $53.8 million to UNIT COMPANY for work described as: DESIGN AND CONSTRUCTION OF THE ADDITION/ALTERATION OF THE AWACS HANGAR, JBER, AK Key points: 1. The contract awarded is for the design and construction of an addition/alteration to the AWACS hangar. 2. The project is located at Joint Base Elmendorf-Richardson (JBER) in Alaska. 3. The contract type is Firm Fixed Price, indicating a defined cost for the work. 4. The awarding agency is the Department of the Army, part of the Department of Defense.
Value Assessment
Rating: good
The awarded amount of $53.8M for a hangar addition/alteration appears reasonable for a project of this scope and complexity, especially considering the location in Alaska. Benchmarking against similar large-scale construction projects for military aviation facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple contractors vie for the award.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting efficiency and potentially lower costs through market forces.
Public Impact
Enhances critical infrastructure for AWACS aircraft operations at JBER. Supports military readiness and operational capabilities in the Arctic region. Provides construction jobs and economic activity in Alaska. Ensures specialized facilities are available for advanced surveillance aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to remote location and specialized construction needs.
- Schedule delays are possible given the project's duration and complexity.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition likely secured competitive pricing.
- Project addresses a specific and critical military infrastructure need.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on geopolitical needs and modernization efforts. The $53.8M award is substantial for a single facility construction project.
Small Business Impact
The data indicates the prime contractor is 'UNIT COMPANY' and that small business participation (sb) is false. This suggests the contract was awarded to a large business, and there is no explicit indication of subcontracting goals for small businesses within this award.
Oversight & Accountability
The Department of the Army, as the awarding agency, is responsible for oversight. The firm fixed price contract and the full and open competition method imply a structured process, but ongoing monitoring of performance, quality, and adherence to schedule will be crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Remote location may increase costs and logistical complexity.
- Specialized nature of AWACS hangar requires specific expertise.
- Firm Fixed Price contract shifts cost overrun risk to contractor.
- Potential for schedule delays due to weather and construction complexity.
Tags
commercial-and-institutional-building-co, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.8 million to UNIT COMPANY. DESIGN AND CONSTRUCTION OF THE ADDITION/ALTERATION OF THE AWACS HANGAR, JBER, 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 $53.8 million.
What is the period of performance?
Start: 2020-04-01. End: 2022-09-15.
What is the estimated cost per square foot for this hangar construction, and how does it compare to similar projects in similar climates?
Without specific details on the square footage or detailed cost breakdowns, calculating an exact cost per square foot is not possible from the provided data. However, construction costs in Alaska are generally higher due to logistics, climate, and labor. A benchmark comparison would require access to project blueprints and cost data from comparable military or commercial hangar projects in Arctic or sub-Arctic regions.
What are the primary risks associated with constructing a specialized hangar for AWACS aircraft in a remote location like JBER, Alaska?
Key risks include logistical challenges for material and personnel transport, potential for extreme weather delays impacting construction schedules, specialized foundation requirements due to permafrost, and the need for highly skilled labor familiar with aviation facility construction. Ensuring compliance with stringent environmental regulations in Alaska also presents a risk.
How effectively does this contract leverage competition to ensure value for taxpayer money, given the specialized nature of the project?
The contract's award under 'full and open competition' is a strong indicator of an effort to maximize value. This approach allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The firm fixed price structure further locks in costs, providing taxpayer protection against cost overruns.
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: W911KB17R0011
Offers Received: 9
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: $53,811,648
Exercised Options: $53,811,648
Current Obligation: $53,811,648
Subaward Activity
Number of Subawards: 76
Total Subaward Amount: $39,591,473
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-04-01
Current End Date: 2022-09-15
Potential End Date: 2022-09-15 00:00:00
Last Modified: 2024-03-28
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