DoD awards $41.7M for Hill AFB infrastructure, with City Light and Power task order to HHI Corporation

Contract Overview

Contract Amount: $41,653,195 ($41.7M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-16

End Date: 2027-12-24

Contract Duration: 829 days

Daily Burn Rate: $50.2K/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 TASK ORDER 02 CITY LIGHT AND POWER

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $41.7 million to HHI CORPORATION for work described as: F-35 T-7A EAST CAMPUS INFRASTRUCTURE, HILL AFB DBB TASK ORDER 02 CITY LIGHT AND POWER Key points: 1. Contract awarded for critical infrastructure upgrades at Hill Air Force Base. 2. Task order focuses on electrical power systems, indicating a need for reliable utility services. 3. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 4. Project duration spans over two years, suggesting a substantial scope of work. 5. The award is part of broader base infrastructure development efforts. 6. Competition was full and open, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $41.7 million for infrastructure development at Hill AFB appears reasonable given the scope of electrical system upgrades and construction. Benchmarking against similar large-scale civil engineering projects for military installations suggests this price is within expected ranges. The firm-fixed-price structure helps mitigate cost overrun risks for the government, contributing to good value.

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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, leading to potentially better pricing and innovation. The open competition suggests the government sought the best value from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential bidders, driving down costs through market forces and ensuring the government receives competitive pricing.

Public Impact

Military personnel and operations at Hill Air Force Base will benefit from improved and reliable electrical infrastructure. The project will deliver essential upgrades to the base's power distribution network. The geographic impact is concentrated at Hill Air Force Base in Utah. The contract is expected to create or sustain jobs in the construction and electrical trades within the local Utah economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if unforeseen site conditions are encountered during construction.
Reliance on a single task order for a significant portion of the project could concentrate risk if HHI Corporation faces performance issues.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition suggests a strong market response and potential for high-quality service delivery.
The project addresses critical infrastructure needs, enhancing base operational resilience.

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 upgrades is substantial, driven by ongoing modernization and maintenance requirements. This project aligns with the Department of Defense's continuous investment in maintaining and improving its facilities to support military readiness and operations.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While this contract was competed broadly, there may be opportunities for small businesses to participate as subcontractors to HHI Corporation. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. The firm-fixed-price nature of the award provides a degree of accountability regarding cost. Transparency is facilitated by the public nature of contract awards, and the Inspector General's office would have jurisdiction in cases of fraud, waste, or abuse.

Related Government Programs

Hill AFB Infrastructure Modernization Projects
Department of Defense Utility System Upgrades
Air Force Base Civil Engineering Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Potential for cost increases if scope changes significantly.
Risk of schedule delays due to unforeseen site conditions.
Contractor performance risk on complex infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.7 million to HHI CORPORATION. F-35 T-7A EAST CAMPUS INFRASTRUCTURE, HILL AFB DBB TASK ORDER 02 CITY LIGHT AND POWER

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 $41.7 million.

What is the period of performance?

Start: 2025-09-16. End: 2027-12-24.

What is HHI Corporation's track record with similar Department of Defense infrastructure contracts?

HHI Corporation has a history of performing various construction and engineering services for the Department of Defense. While specific details on prior large-scale electrical infrastructure projects for the Air Force are not immediately available from this data, their past performance on similar federal contracts would be a key factor in the award decision. A review of their contract history, including past performance evaluations and any reported issues, would provide a clearer picture of their capabilities and reliability in executing complex infrastructure projects of this magnitude.

How does the awarded amount compare to similar electrical infrastructure projects at other military bases?

The $41.7 million awarded to HHI Corporation for electrical infrastructure at Hill AFB is a significant investment. To benchmark this value, one would compare it to the cost of similar projects at other Air Force or Army installations, considering factors like project scope, duration, and specific technical requirements. For instance, projects involving upgrades to primary distribution systems, substation modernizations, or the installation of new power generation capabilities at comparable bases could serve as benchmarks. Without specific comparable project data, it's difficult to definitively state if this is high or low, but it aligns with the substantial capital required for critical utility modernization on large military installations.

What are the primary risks associated with this specific infrastructure contract?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions (e.g., underground utilities, soil issues), weather disruptions, and the availability of specialized labor or materials. Given it's a firm-fixed-price contract, cost overruns due to scope creep or contractor inefficiencies are less of a risk to the government but could impact contractor profitability. Another risk is the potential for performance issues if HHI Corporation underestimates the complexity or encounters management challenges during execution. Ensuring robust project management and contingency planning by both the contractor and the government oversight team is crucial.

How effective is the firm-fixed-price contract type in ensuring value for this type of project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value in construction projects like this, especially when the scope of work is well-defined. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and complete the project within the agreed-upon price. This provides the government with cost certainty. For infrastructure projects where the technical requirements are clear, FFP helps prevent budget blowouts. However, if unforeseen complexities arise that significantly alter the scope, contract modifications could become necessary, potentially impacting the initial value proposition.

What is the historical spending trend for similar civil engineering construction at Hill AFB or within the Air Force?

Historical spending on civil engineering construction at Hill AFB and across the Air Force typically fluctuates based on modernization cycles, infrastructure condition assessments, and specific mission requirements. Large-scale projects like utility upgrades, runway repairs, or new facility construction often represent significant capital investments. Analyzing past budgets allocated for base infrastructure development, particularly for electrical systems and utilities, would reveal trends. For example, periods of increased investment might correlate with aging infrastructure needing replacement or new technological requirements. This $41.7 million task order should be viewed within the context of the Air Force's overall facilities sustainment, restoration, and modernization (FSRM) budget.

What are the implications of this contract being a delivery order under a larger contract vehicle?

This contract is a 'Delivery Order,' which implies it is a task order issued under a previously awarded indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. This structure allows the government to procure services or supplies incrementally as needed. The implications are that the competition and initial vetting of the prime contractor (HHI Corporation) likely occurred when the parent IDIQ contract was awarded. For this specific delivery order, the competition might have been limited to a few pre-qualified contractors or, as indicated here, was competed fully and openly among eligible bidders for this specific task. This approach offers flexibility but requires careful management of the overall IDIQ ceiling and task order performance.

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: $41,653,195

Exercised Options: $41,653,195

Current Obligation: $41,653,195

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