DoD Awards $13.3M Missile Field Power Redundancy Contract to Heritage Homes LLC
Contract Overview
Contract Amount: $13,291,198 ($13.3M)
Contractor: Heritage Homes LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-08
End Date: 2026-09-23
Contract Duration: 684 days
Daily Burn Rate: $19.4K/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: FTG258 POWER REDUNDANCY FOR MISSILE FIELD 3
Place of Performance
Location: FORT GREELY, SOUTHEAST FAIRBANKS County, ALASKA, 99731
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to HERITAGE HOMES LLC for work described as: FTG258 POWER REDUNDANCY FOR MISSILE FIELD 3 Key points: 1. Contract awarded for critical power redundancy at Missile Field 3. 2. Heritage Homes LLC secured the $13.3 million definitive contract. 3. Competition method indicates potential for price discovery challenges. 4. Sector is Construction, specifically power and communication infrastructure.
Value Assessment
Rating: fair
The contract value of $13.3 million for power redundancy construction appears within a reasonable range for specialized infrastructure projects. However, without specific benchmarks for missile field power systems, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting initial broad competition was narrowed. This method can sometimes lead to less competitive pricing compared to truly open solicitations.
Taxpayer Impact: Taxpayer funds are allocated for essential defense infrastructure upgrades, aiming to enhance operational reliability and security.
Public Impact
Ensures uninterrupted power supply for critical missile defense systems. Enhances national security by fortifying a key military installation. Supports infrastructure development in Alaska, potentially creating local jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may impact price.
- Potential for cost overruns in specialized construction.
- Contract duration is substantial, increasing risk exposure.
Positive Signals
- Addresses critical infrastructure need.
- Awarded to a single entity for focused execution.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Construction sector, specifically focusing on power and communication line construction. Spending in this area is often driven by infrastructure modernization, defense needs, and geographic challenges, as seen with the Alaska location.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses were likely not primary participants in this specific procurement, though they may be subcontractors.
Oversight & Accountability
The definitive contract structure implies a defined scope and price, allowing for oversight. However, the 'exclusion of sources' aspect warrants scrutiny to ensure the exclusion was justified and did not unduly limit competition.
Related Government Programs
- Power and Communication Line and Related Structures Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition method.
- Potential for cost overruns in specialized construction.
- Long contract duration.
- Remote location (Alaska) may increase logistical costs and risks.
- Exclusion of sources requires justification.
Tags
power-and-communication-line-and-related, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to HERITAGE HOMES LLC. FTG258 POWER REDUNDANCY FOR MISSILE FIELD 3
Who is the contractor on this award?
The obligated recipient is HERITAGE HOMES 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 $13.3 million.
What is the period of performance?
Start: 2024-11-08. End: 2026-09-23.
What specific technical requirements justified the exclusion of certain sources, and did this exclusion significantly limit the potential for competitive pricing?
The justification for excluding sources is crucial for understanding the competitive landscape. If specific technical expertise or unique capabilities were required for missile field power redundancy, excluding sources might be warranted. However, agencies must demonstrate that such exclusions were necessary and did not artificially restrict competition, which could lead to higher costs for taxpayers.
How does the $13.3 million cost compare to similar power infrastructure projects in remote or high-security environments?
Benchmarking this $13.3 million contract against similar projects is challenging without detailed cost breakdowns and project specifics. Specialized infrastructure in remote locations like Alaska, coupled with the high-security demands of a missile field, typically incurs higher costs due to logistical complexities, specialized labor, and stringent compliance requirements. A thorough analysis would require comparing scope, materials, labor, and risk factors.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Effectiveness will likely be measured by the successful installation and sustained operation of the power redundancy system, meeting all specified technical requirements and uptime guarantees. Key performance indicators would include system reliability, adherence to construction timelines, compliance with safety and security protocols, and successful integration with existing missile field infrastructure. Regular inspections and performance reports will be vital for oversight.
Industry Classification
NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: W911KB24R0025
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: HC 60 BOX 4690-1, DELTA JUNCTION, AK, 99737
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,291,198
Exercised Options: $13,291,198
Current Obligation: $13,291,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-11-08
Current End Date: 2026-09-23
Potential End Date: 2026-09-23 00:00:00
Last Modified: 2025-10-24
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