DoD Awards $28.4M C-17 Hangar to Cleveland Construction Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $28,409,352 ($28.4M)
Contractor: Cleveland Construction Inc
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2022-10-31
Contract Duration: 1,312 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF C-17 CORROSION CONTROL AND FUEL CELL HANGAR FOR THE NORTH CAROLINA AIR NATIONAL GUARD, CHARLOTTE, NORTH CAROLINA.
Place of Performance
Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28208
Plain-Language Summary
Department of Defense obligated $28.4 million to CLEVELAND CONSTRUCTION INC for work described as: CONSTRUCTION OF C-17 CORROSION CONTROL AND FUEL CELL HANGAR FOR THE NORTH CAROLINA AIR NATIONAL GUARD, CHARLOTTE, NORTH CAROLINA. Key points: 1. The contract for the C-17 corrosion control and fuel cell hangar was awarded to Cleveland Construction Inc. for $28.4 million. 2. This project falls under the Commercial and Institutional Building Construction sector, a significant area for federal infrastructure spending. 3. The award utilized full and open competition, suggesting a competitive bidding process aimed at achieving fair market value. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor, potentially protecting taxpayers from cost overruns.
Value Assessment
Rating: good
The contract value of $28.4 million for a specialized military hangar appears reasonable given the scope and complexity. Benchmarking against similar large-scale construction projects for military aviation facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple bidders were likely considered, fostering a competitive environment that should drive down prices and ensure the best value is obtained for the government.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair price, maximizing the value of taxpayer funds allocated to this critical infrastructure project.
Public Impact
Enhances operational readiness for the North Carolina Air National Guard by providing essential maintenance facilities. Supports critical infrastructure development within the Department of Defense's aviation maintenance capabilities. Contributes to the local economy in Charlotte, North Carolina, through construction jobs and related services. Ensures the longevity and safety of C-17 aircraft through specialized corrosion control and fuel cell maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the 3-year duration and fixed-price nature.
- Scope creep could increase costs if not managed tightly.
- Reliance on a single contractor for a critical facility.
Positive Signals
- Clear definition of work scope through Firm Fixed Price contract.
- Competitive award process likely secured a fair market price.
- Addresses a specific, critical need for aircraft maintenance.
Sector Analysis
This project falls within the broader construction sector, specifically commercial and institutional building construction. Federal spending in this area is substantial, supporting military bases, government facilities, and public infrastructure. Benchmarks for similar military hangar construction vary widely based on size, complexity, and location.
Small Business Impact
The data indicates that neither small business set-asides nor subcontracting were explicitly mentioned for this contract. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, awarded this contract. Standard oversight mechanisms for federal construction projects, including site inspections and progress reporting, would apply to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope is not strictly managed.
- Risk of schedule delays impacting operational readiness.
- Dependence on contractor's financial stability and performance.
- Adequacy of the competitive process in securing specialized expertise.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to CLEVELAND CONSTRUCTION INC. CONSTRUCTION OF C-17 CORROSION CONTROL AND FUEL CELL HANGAR FOR THE NORTH CAROLINA AIR NATIONAL GUARD, CHARLOTTE, NORTH CAROLINA.
Who is the contractor on this award?
The obligated recipient is CLEVELAND CONSTRUCTION INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2019-03-29. End: 2022-10-31.
What was the specific basis for the $28.4 million cost estimate, and how did it compare to initial projections?
The provided data does not detail the basis for the $28.4 million cost estimate or compare it to initial projections. A thorough review of the contract's pre-award documentation and cost analysis would be necessary to understand the cost drivers and justification for the final award amount.
Were there any significant cost variances or change orders during the contract performance period?
The data indicates the contract was Firm Fixed Price, which typically aims to minimize cost variances. However, without access to contract performance reports or modification history, it's impossible to definitively state whether significant cost variances or change orders occurred during the project's execution.
How effectively did the full and open competition process ensure the best value was achieved for this specialized facility?
The full and open competition process is designed to maximize value by encouraging multiple bids. While the award suggests a competitive outcome, a detailed analysis of the number of bids received, their pricing, and the technical proposals would be needed to confirm the extent to which the process ensured the absolute best value for this specific C-17 hangar.
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: SEALED BID
Solicitation ID: W9124218B0891
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8620 TYLER BLVD, MENTOR, OH, 44060
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,409,352
Exercised Options: $28,409,352
Current Obligation: $28,409,352
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-29
Current End Date: 2022-10-31
Potential End Date: 2022-10-31 00:00:00
Last Modified: 2023-02-02
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