DoD awards $57.9M for Hill AFB infrastructure, with HHI Corp. managing utility systems

Contract Overview

Contract Amount: $57,883,995 ($57.9M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2027-12-24

Contract Duration: 830 days

Daily Burn Rate: $69.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: F-35 T-7A EAST CAMPUS INFRASTRUCTURE, HILL AFB DBB SATOC IDIQ TASK ORDER #1 - AMERICAN WATER UTILITY

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $57.9 million to HHI CORPORATION for work described as: F-35 T-7A EAST CAMPUS INFRASTRUCTURE, HILL AFB DBB SATOC IDIQ TASK ORDER #1 - AMERICAN WATER UTILITY Key points: 1. Contract focuses on essential utility systems, indicating a need for reliable infrastructure. 2. The firm-fixed-price structure shifts risk to the contractor, potentially stabilizing costs. 3. A long performance period suggests a complex or phased project. 4. The contract is a task order under a larger IDIQ, implying a pre-vetted contractor. 5. Geographic focus on Utah highlights regional infrastructure investment. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $57.9 million for utility infrastructure at Hill AFB appears reasonable given the scope and duration. Benchmarking against similar large-scale civil engineering projects for military bases suggests this falls within expected cost ranges. The firm-fixed-price contract type helps control costs, but detailed cost breakdowns would be needed for a more precise value assessment. The contract's duration of over two years also implies a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages contractors to offer competitive pricing to win the award. The use of an IDIQ (Indefinite Delivery, Indefinite Quantity) contract vehicle suggests that pre-qualification may have occurred, potentially streamlining the task order competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the value for public funds.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Hill Air Force Base, who will receive reliable utility services. The contract will deliver essential infrastructure upgrades and maintenance for water and potentially other utility systems. The geographic impact is concentrated at Hill Air Force Base in Utah. Workforce implications include potential job creation for construction and utility management professionals in the Utah region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals could limit opportunities for smaller firms.
The long duration might present challenges in adapting to evolving utility technologies or regulations.
Reliance on a single task order under an IDIQ could indicate a narrow focus, potentially missing broader infrastructure needs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Awarding to HHI Corporation, likely a pre-qualified entity under the IDIQ, implies a level of established capability.
Focus on essential utility infrastructure ensures operational readiness of the base.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on utility infrastructure. The market for military base construction and maintenance is substantial, with significant government spending allocated annually to ensure operational readiness and modernization of facilities. This contract represents a specific investment in critical utility systems, a common requirement across defense installations.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While this allows for broader competition, it raises questions about potential subcontracting opportunities for small businesses. The prime contractor, HHI Corporation, will need to demonstrate its approach to engaging small businesses, either through voluntary subcontracting or as mandated by broader federal policies, to ensure the small business ecosystem benefits from this significant federal expenditure.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant program managers within the Department of the Army and Air Force. The firm-fixed-price nature of the contract provides a degree of accountability for cost overruns, as the contractor assumes that risk. Transparency is facilitated through contract award databases, and the Inspector General's office may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Hill Air Force Base Operations and Maintenance Contracts
Department of Defense Utility Privatization Programs
Army Corps of Engineers Civil Works Projects
Federal Infrastructure Modernization Initiatives

Risk Flags

Potential for cost overruns if material prices escalate significantly.
Risk of delays due to unforeseen site conditions or regulatory hurdles.
Dependency on the contractor's ability to manage complex utility systems over a long period.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.9 million to HHI CORPORATION. F-35 T-7A EAST CAMPUS INFRASTRUCTURE, HILL AFB DBB SATOC IDIQ TASK ORDER #1 - AMERICAN WATER UTILITY

Who is the contractor on this award?

The obligated recipient is HHI CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2025-09-15. End: 2027-12-24.

What is HHI Corporation's track record with similar large-scale utility infrastructure projects for the federal government?

HHI Corporation's track record with similar projects is crucial for assessing their capability to execute this $57.9 million contract. While the provided data doesn't detail past performance, a review of federal contract databases (like SAM.gov or FPDS) would reveal their history with large civil engineering and utility projects, particularly for defense agencies. Key indicators include successful completion of projects of comparable size and complexity, adherence to schedules and budgets, and any history of performance issues or disputes. Understanding their experience with firm-fixed-price contracts and IDIQ task orders would also provide insight into their suitability for this specific award.

How does the awarded amount compare to the estimated value or benchmark for similar utility infrastructure projects at military installations?

The awarded amount of $57.9 million for the F-35 T-7A EAST CAMPUS INFRASTRUCTURE project at Hill AFB needs to be benchmarked against similar federal contracts. Without specific cost data or a detailed scope of work, a precise comparison is difficult. However, general benchmarks for large-scale utility upgrades (water, wastewater, power distribution) on military bases can be established. Factors influencing cost include the age and condition of existing infrastructure, the complexity of the terrain, environmental considerations, and the specific technologies required. A comparison with recent awards for similar projects at other Air Force or Army installations, considering contract size, duration, and type of work, would help determine if this award represents good value for money.

What are the primary risks associated with the long performance period (2027-12-24) for this utility infrastructure contract?

The extended performance period, ending in late 2027, introduces several risks. Firstly, there's the risk of scope creep or unforeseen changes in requirements due to evolving military needs or technological advancements in utility management. Secondly, material costs and labor rates can fluctuate significantly over a multi-year period, potentially impacting the contractor's profitability under a firm-fixed-price contract if not adequately managed. Thirdly, regulatory changes related to environmental standards or utility operations could necessitate costly adaptations. Finally, maintaining consistent oversight and quality control over such an extended duration requires sustained effort from the government's contracting team to ensure the project remains on track and meets all objectives.

What is the expected impact of this contract on the operational effectiveness and readiness of Hill Air Force Base?

This contract is expected to significantly enhance the operational effectiveness and readiness of Hill Air Force Base by ensuring the reliability and modernization of critical utility systems. Upgraded water and potentially other utility infrastructure are fundamental to supporting base operations, including housing, training facilities, flight operations, and maintenance activities. Reliable utilities prevent disruptions that could impair mission accomplishment. By addressing infrastructure needs, the contract contributes to a safer and more efficient working and living environment for military personnel and civilian staff, thereby bolstering overall base readiness and supporting the F-35 program's infrastructure requirements.

How has federal spending on similar heavy and civil engineering construction contracts for military bases trended in recent years?

Federal spending on heavy and civil engineering construction for military bases has generally remained robust, driven by the need to modernize aging infrastructure, adapt to new military technologies, and address security requirements. Recent years have seen consistent investment across branches of the Department of Defense, often prioritizing projects related to energy resilience, cybersecurity of infrastructure, and upgrades to support advanced weapon systems like the F-35. While specific trends fluctuate based on budget allocations and strategic priorities, there's a sustained focus on ensuring bases are equipped with state-of-the-art facilities. This contract aligns with that broader trend of investing in critical base infrastructure.

What are the implications of this contract being a task order under an existing IDIQ contract for competition and contractor selection?

This contract being a task order under an existing IDIQ (Indefinite Delivery, Indefinite Quantity) contract signifies that HHI Corporation was likely pre-qualified through a prior competitive process to be on the IDIQ vehicle. This streamlines the award process for task orders, as much of the vetting has already occurred. For this specific task order, the competition level depends on the terms of the IDIQ – it could range from directed orders to further competitive bidding among IDIQ holders. While it reduces administrative burden, it might limit the pool of potential contractors compared to a standalone solicitation. Taxpayers benefit from the initial competition for the IDIQ, but the specific competition for this task order is key to ensuring optimal pricing.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 736 W HARRISVILLE RD, OGDEN, UT, 84404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $57,883,995

Exercised Options: $57,883,995

Current Obligation: $57,883,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9123825DA020

IDV Type: IDC

Timeline