DoD awards $47M for Alaska National Guard Readiness Center, highlighting construction sector activity

Contract Overview

Contract Amount: $46,964,000 ($47.0M)

Contractor: Unit Company

Awarding Agency: Department of Defense

Start Date: 2025-12-30

End Date: 2029-01-08

Contract Duration: 1,105 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AK ARMY NATIONAL GUARD READINESS CENTER (APPROX. 50,641 SF) AT CAMP CARROLL IN THE FT. RICHARDSON SIDE OF JBER, ALASKA.

Place of Performance

Location: JBER, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $47.0 million to UNIT COMPANY for work described as: AK ARMY NATIONAL GUARD READINESS CENTER (APPROX. 50,641 SF) AT CAMP CARROLL IN THE FT. RICHARDSON SIDE OF JBER, ALASKA. Key points: 1. Contract awarded for a significant construction project in Alaska, indicating sustained federal investment in military infrastructure. 2. The project involves the construction of a readiness center, crucial for troop training and operational readiness. 3. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 4. The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty. 5. Project duration of over three years points to a complex undertaking requiring substantial resources and management. 6. The location in Alaska presents unique logistical and environmental considerations for construction.

Value Assessment

Rating: good

The contract value of $46.96 million for a 50,641 square foot readiness center appears reasonable given the scope and location. Construction costs in Alaska are typically higher due to logistical challenges and climate. Benchmarking against similar military construction projects of this size and complexity would provide a more precise value assessment, but initial indicators suggest fair pricing for the services rendered.

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 four bids suggests a healthy level of competition for this significant construction project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value and prevent inflated pricing for essential military infrastructure.

Public Impact

The primary beneficiaries are the Alaska Army National Guard personnel who will utilize the new readiness center for training and operations. The project will deliver a modern, functional facility designed to support readiness and operational effectiveness. The geographic impact is concentrated in the Joint Base Elmendorf-Richardson (JBER) area near Anchorage, Alaska. The construction phase will likely create numerous jobs for skilled trades and support personnel in the local Alaska economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the complexities of construction in remote, cold-weather environments.
Logistical challenges in transporting materials and equipment to the site could impact project timelines and costs.
Ensuring compliance with environmental regulations specific to Alaska's sensitive ecosystems.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in a competitive bid from qualified contractors.
The project supports critical military readiness infrastructure, aligning with national defense objectives.

Sector Analysis

The commercial and institutional building construction sector is a significant part of the federal contracting landscape, particularly for infrastructure projects like military bases and readiness centers. This contract falls within the broader defense construction market, which is characterized by large-scale projects often requiring specialized expertise and adherence to stringent government standards. Comparable spending benchmarks for similar military facilities can vary widely based on size, complexity, and geographic location, with remote or challenging environments like Alaska typically commanding higher costs.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While the primary awardee may not be a small business, the contract's scale often necessitates subcontracting opportunities. It is important to assess whether the prime contractor has a robust subcontracting plan that includes meaningful participation from small businesses to foster broader economic impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially involving contracting officers' representatives (CORs) and quality assurance personnel. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases, but detailed project progress and specific oversight activities may not be publicly disclosed.

Related Government Programs

Military Construction, Army
Facilities Sustainment, Restoration, and Modernization
Defense Infrastructure Projects
Army National Guard Readiness Centers

Risk Flags

Potential for cost overruns due to remote location and climate.
Logistical challenges in material and equipment delivery.
Risk of weather-related delays impacting project schedule.
Contractor performance risk on large-scale construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.0 million to UNIT COMPANY. AK ARMY NATIONAL GUARD READINESS CENTER (APPROX. 50,641 SF) AT CAMP CARROLL IN THE FT. RICHARDSON SIDE OF JBER, ALASKA.

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 $47.0 million.

What is the period of performance?

Start: 2025-12-30. End: 2029-01-08.

What is the track record of the awarded contractor (UNIT COMPANY) in executing similar large-scale military construction projects?

Information regarding the specific track record of 'UNIT COMPANY' in executing large-scale military construction projects is not directly provided in the data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal contracts. Understanding their experience with projects in similar climates or geographic locations, particularly Alaska, would be crucial for evaluating their capability to successfully deliver this readiness center on time and within budget. Further research into their financial stability and past performance ratings would be necessary for a comprehensive risk assessment.

How does the per-square-foot cost of this readiness center compare to other recently awarded military construction projects of similar size and scope?

The contract value is approximately $46.96 million for 50,641 square feet, equating to roughly $927 per square foot. Construction costs in Alaska are known to be significantly higher than the national average due to factors like transportation of materials, specialized labor requirements, and the harsh climate. To benchmark effectively, comparisons should be made with other Department of Defense construction projects in Alaska or other high-cost-of-living/remote regions. Without specific comparable data points for similar projects in Alaska, it is difficult to definitively state if this cost is high or low, but it is likely influenced by the unique environmental and logistical challenges of the location.

What are the primary risk indicators associated with this specific contract, considering its scope, duration, and location?

The primary risk indicators for this contract include the inherent complexities of large-scale construction, particularly in a remote and environmentally challenging location like Alaska. Potential risks involve logistical hurdles in material and personnel transport, weather-related delays impacting the schedule, and the potential for unforeseen site conditions. The firm-fixed-price contract type shifts cost risk to the contractor, but significant delays or scope changes could still lead to disputes or contractor performance issues. The duration of over three years also increases the exposure to market fluctuations in material costs and labor availability.

How effective is the firm-fixed-price contract type in ensuring cost control and value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring cost control and value for money when the scope of work is well-defined and risks are understood. For this construction project, the FFP structure places the responsibility for managing costs and potential overruns on the contractor, UNIT COMPANY. This provides budget certainty for the Department of the Army. However, the effectiveness relies heavily on the accuracy of the initial cost estimates and the contractor's ability to manage their own expenses. If unforeseen issues arise that significantly impact the contractor's costs, it could lead to claims or performance issues, potentially undermining the intended value.

What is the historical spending pattern for readiness center construction within the Department of the Army, and how does this award fit within that trend?

Historical spending on readiness center construction within the Department of the Army reflects a consistent need for modernizing and expanding facilities to support troop training and operational readiness. Awards for such projects typically range from tens to hundreds of millions of dollars, depending on the size, complexity, and location. This $46.96 million award for the Alaska National Guard Readiness Center appears to be within the typical range for a significant facility of this nature. It aligns with the Army's ongoing efforts to upgrade infrastructure across its installations to meet current and future defense requirements, suggesting a sustained investment trend rather than an anomaly.

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: W911KB25R0002

Offers Received: 4

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: $46,964,000

Exercised Options: $46,964,000

Current Obligation: $46,964,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline