Solis Constructors awarded $17.3M for Army aircraft maintenance hangar construction in Texas

Contract Overview

Contract Amount: $17,305,131 ($17.3M)

Contractor: Solis Constructors, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-27

End Date: 2010-09-29

Contract Duration: 732 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN & CONSTRUCTION CH-47, AIRCRAFT MAINTENANCE HANGAR

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to SOLIS CONSTRUCTORS, INC. for work described as: DESIGN & CONSTRUCTION CH-47, AIRCRAFT MAINTENANCE HANGAR Key points: 1. Contract awarded for a critical aviation infrastructure project. 2. Project duration of 732 days indicates a substantial construction undertaking. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Awarded under full and open competition, implying a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the Department of the Army, a major defense spender. 7. The project is located in Texas, a state with significant military presence and construction activity.

Value Assessment

Rating: good

The contract value of $17.3 million for an aircraft maintenance hangar appears reasonable given the scope of a large construction project. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed price structure helps mitigate cost overrun risks for the government, contributing to a good value proposition if the final product meets specifications.

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. With 5 bidders, the competition level suggests a healthy market interest and provides the government with multiple options to choose from, likely driving competitive pricing. The presence of multiple bidders is a positive sign for price discovery and achieving a fair market price.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive bid and a lower overall cost for the hangar construction compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Army personnel and units stationed at the Texas facility, who will gain access to a modern, dedicated aircraft maintenance hangar. The services delivered include the design and construction of a specialized facility essential for maintaining aircraft, ensuring operational readiness. The geographic impact is concentrated in Texas, supporting military operations within the state. The project implies a positive impact on the construction workforce in Texas through job creation and economic activity related to the building of this facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness if unforeseen issues arise.
Ensuring the hangar's design meets all current and future aircraft maintenance requirements.
Managing the environmental impact during the construction phase.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Awarded by the Department of the Army, indicating a focus on critical defense infrastructure.
Project located in Texas, potentially leveraging local construction expertise.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant part of the U.S. economy. Federal spending on military infrastructure, such as aircraft maintenance hangars, represents a substantial segment within this sector. This contract fits within the broader category of defense construction, which often involves specialized requirements and larger project values compared to typical commercial builds. Comparable spending benchmarks would involve looking at other large-scale military facility construction projects awarded by the Department of Defense.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Solis Constructors, Inc., there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain and their overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm fixed price contract, requiring the contractor to deliver the specified product within the agreed budget. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not be publicly disclosed.

Related Government Programs

Department of Defense Military Construction
Aircraft Maintenance Facilities
Army Aviation Support
Federal Building Construction Contracts

Risk Flags

Potential for cost overruns if scope changes significantly.
Risk of construction delays impacting military readiness.
Ensuring compliance with environmental regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to SOLIS CONSTRUCTORS, INC.. DESIGN & CONSTRUCTION CH-47, AIRCRAFT MAINTENANCE HANGAR

Who is the contractor on this award?

The obligated recipient is SOLIS CONSTRUCTORS, 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 $17.3 million.

What is the period of performance?

Start: 2008-09-27. End: 2010-09-29.

What is the track record of Solis Constructors, Inc. with federal contracts, particularly with the Department of Defense?

Solis Constructors, Inc. has a history of federal contracting, primarily with the Department of Defense. Reviewing their past performance on similar construction projects, especially those involving military facilities or aircraft-related infrastructure, would be crucial. Information on their on-time and on-budget performance, quality of work, and any past disputes or contract terminations would provide insight into their reliability and capability. A deeper dive into their contract history could reveal patterns in project size, complexity, and agency focus, helping to assess their suitability for this specific hangar construction project.

How does the awarded price of $17.3 million compare to similar aircraft maintenance hangar construction projects?

Benchmarking the $17.3 million award against similar aircraft maintenance hangar projects requires access to data on comparable contracts in terms of size, complexity, location, and specific features. Factors such as square footage, specialized equipment requirements, and prevailing construction costs in the region (Texas, in this case) significantly influence pricing. Without specific comparable contract data, it's challenging to definitively state if this price represents excellent, good, or fair value. However, for a specialized military facility, this figure suggests a substantial investment, and a detailed cost breakdown would be necessary for a thorough value assessment.

What are the primary risks associated with this specific construction contract and how are they being mitigated?

Key risks for this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the Army's operational readiness. Design changes or scope creep could also lead to cost increases, although the Firm Fixed Price (FFP) contract structure aims to mitigate this. Mitigation strategies likely involve robust project management by the Army, detailed site investigations prior to construction, contingency planning for weather and supply issues, and strict change order control. The contractor's experience and the competitive bidding process also serve as risk-reduction factors.

How effective is the firm fixed price contract type in ensuring value for money for this aircraft hangar project?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money for the government in construction projects like this hangar, as it shifts most of the cost risk to the contractor. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon budget. For the government, it provides budget certainty and predictability, making financial planning easier. However, the initial price must be competitive and reflect a fair market value, as the government may end up paying a premium if the contractor has underestimated costs or included significant contingency. Effective oversight is still crucial to ensure the contractor meets quality standards without cutting corners.

What are the historical spending patterns for aircraft maintenance hangar construction by the Department of the Army?

Historical spending patterns for aircraft maintenance hangar construction by the Department of the Army typically show significant investment in infrastructure to support aviation units. These projects are often large-scale, complex, and costly due to specialized design requirements, such as high ceilings, heavy-duty flooring, specialized ventilation, and robust security measures. Spending can fluctuate based on modernization needs, force structure changes, and overall defense budgets. Analyzing past awards for similar facilities can reveal average contract values, typical durations, and common contracting approaches (e.g., design-build vs. design-bid-build), providing context for the current $17.3 million award.

What is the significance of the NAICS code 236220 in understanding this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' is significant because it categorizes the primary business activity of the contract. This code indicates that the project involves the construction of buildings intended for commercial or institutional use, which includes facilities like aircraft maintenance hangars for government entities. It helps in classifying the contract within the broader construction industry, allowing for comparisons with other similar types of construction projects and providing insights into the types of firms that typically bid on such work. This classification is essential for statistical analysis and understanding the market landscape.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9126G08R0198

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2514 BUELL AVE, AUSTIN, TX, 90

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,305,131

Exercised Options: $17,305,131

Current Obligation: $17,305,131

Contract Characteristics

Cost or Pricing Data: NO

Timeline