Fort Wainwright building repair contract awarded to Watterson Construction for $43.7M, completed over 3 years

Contract Overview

Contract Amount: $43,728,338 ($43.7M)

Contractor: Watterson Construction CO

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2023-07-23

Contract Duration: 1,032 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FTW410 REPAIR BUILDING 1001, FORT WAINWRIGHT ALASKA

Place of Performance

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

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to WATTERSON CONSTRUCTION CO for work described as: FTW410 REPAIR BUILDING 1001, FORT WAINWRIGHT ALASKA Key points: 1. Contract value of $43.7M for building repair suggests a significant investment in infrastructure. 2. The contract was awarded using full and open competition, indicating a competitive bidding process. 3. A duration of 1032 days (approx. 3 years) points to a complex and extensive repair project. 4. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing final costs. 5. The project's completion in Alaska highlights the logistical challenges and costs associated with remote operations. 6. The award was made by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: good

The contract value of $43.7 million for building repair appears substantial. Benchmarking against similar large-scale construction projects for federal facilities is necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract suggests that the government secured a defined cost, which is a positive indicator for budget predictability. The contractor, Watterson Construction Co., has a track record with federal contracts, which can imply experience in managing such projects effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With 6 bidders participating, the competition level appears healthy, which typically drives more competitive pricing and better value for the government. The presence of multiple bidders suggests that the market has sufficient capacity and interest in undertaking such projects for the Department of the Army.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by ensuring that the contract is awarded to the most advantageous offer, likely at a more favorable price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Wainwright, Alaska, who will utilize the repaired facilities. The contract delivered essential repair and maintenance services for a critical building infrastructure at a military installation. The geographic impact is localized to Fort Wainwright, Alaska, supporting military readiness in a remote region. The project likely supported local and potentially regional construction workforce employment during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive repair period, despite the fixed-price nature.
Logistical complexities and higher costs associated with construction in remote Alaskan environments.
Ensuring the quality of repairs meets long-term durability standards for military infrastructure.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor Watterson Construction Co. has experience with federal projects, suggesting familiarity with government requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector supports the maintenance and modernization of government facilities, including military bases. The market for federal construction contracts is competitive, with numerous firms capable of undertaking large-scale projects. The value of this contract, approximately $43.7 million, is significant and aligns with major infrastructure investments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of small business subcontracting goals (sb: false). This suggests that the primary award went to a larger firm, and opportunities for small businesses would likely be through subcontracting if Watterson Construction Co. chooses to engage them. Without specific subcontracting plans, the direct impact on the small business ecosystem for this particular contract appears limited.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, implying oversight from relevant Army contracting and engineering commands. The firm-fixed-price structure provides a degree of accountability for the contractor regarding cost. Transparency would be enhanced by public contract data, but specific oversight mechanisms like regular progress reviews, quality assurance inspections, and potential Inspector General involvement would be detailed in the contract's terms and conditions.

Related Government Programs

Military Base Infrastructure Modernization
Department of Defense Facilities Maintenance
Federal Building Construction Contracts
Army Corps of Engineers Construction Projects

Risk Flags

Potential for cost escalation in remote locations
Long project duration increases risk exposure
Complexity of building repairs in established infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to WATTERSON CONSTRUCTION CO. FTW410 REPAIR BUILDING 1001, FORT WAINWRIGHT ALASKA

Who is the contractor on this award?

The obligated recipient is WATTERSON CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2020-09-24. End: 2023-07-23.

What is the track record of Watterson Construction Co. with federal contracts, particularly with the Department of Defense?

Watterson Construction Co. has a history of securing federal contracts, including those with the Department of Defense. While this specific contract for Fort Wainwright is a significant award, their broader federal contracting portfolio would need to be examined to fully assess their track record. This includes reviewing past performance evaluations, the types and values of previous contracts, and any instances of disputes or contract modifications. A strong history with similar projects, especially those involving military installations or complex construction in challenging environments, would indicate a higher likelihood of successful project completion and adherence to federal standards.

How does the $43.7 million contract value compare to similar building repair projects at military installations?

The $43.7 million contract value for building repair at Fort Wainwright is substantial and falls within the range of significant infrastructure projects for military bases. To benchmark its value, one would compare it to similar projects in terms of scope (e.g., size of building, type of repairs), location (considering regional construction cost variations), and the specific agency (e.g., Army, Air Force, Navy). For instance, major renovations or construction of new facilities on military bases can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract also influences its comparability, as it locks in costs upfront, unlike cost-plus contracts which can fluctuate.

What are the primary risks associated with a 3-year firm-fixed-price construction contract in Alaska?

A significant risk with a 3-year firm-fixed-price contract in Alaska is the potential for unforeseen site conditions or material price escalation that could strain the contractor's profit margin, despite the fixed price. Alaska's remote location presents logistical challenges, increasing transportation costs for materials and personnel, and potentially leading to delays due to weather. Furthermore, the extended duration increases the risk of discovering latent defects in the existing structure that require more extensive repairs than initially scoped. While the fixed price protects the government from cost overruns, the contractor might face financial difficulties if these risks materialize significantly, potentially impacting project continuity or quality if not managed proactively.

How effective is full and open competition in ensuring value for money for large federal construction projects?

Full and open competition is generally considered the most effective method for ensuring value for money in large federal construction projects. By allowing all responsible sources to bid, it maximizes the pool of potential contractors, fostering robust competition that typically drives down prices and encourages innovation. The presence of multiple bidders, as seen with the 6 bidders on this contract, increases the likelihood that the government will receive competitive offers. This process allows for a thorough evaluation of technical capabilities and price, leading to the selection of the best overall value. However, the effectiveness also depends on clear solicitation requirements and a fair evaluation process.

What are the historical spending patterns for building repair and construction at Fort Wainwright?

Analyzing historical spending patterns for building repair and construction at Fort Wainwright would involve examining contract data over several fiscal years. This would reveal the frequency, scale, and types of construction projects undertaken at the installation. It would also show which agencies or departments within the military are the primary sources of funding for these projects and which contractors have been historically awarded significant work. Understanding these patterns can help identify trends in infrastructure needs, potential budget cycles, and the typical cost ranges for various types of construction or repair work at this specific base.

What are the implications of the contract's duration (1032 days) on project management and oversight?

A contract duration of 1032 days (approximately 3 years) for building repair necessitates robust, long-term project management and oversight. This extended timeline requires sustained attention to detail, regular progress monitoring, and proactive risk management to ensure the project stays on schedule and within budget. Oversight bodies must maintain consistent communication with the contractor, conduct frequent site inspections, and manage any necessary contract modifications or change orders effectively. The longevity also increases the importance of quality assurance throughout the project lifecycle, as issues identified early can be addressed before they become more costly or complex to rectify later in the project.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB20R0027

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6500 INTERSTATE CIR, ANCHORAGE, AK, 99518

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

Financial Breakdown

Contract Ceiling: $43,728,338

Exercised Options: $43,728,338

Current Obligation: $43,728,338

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $24,858,917

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline