DoD Awards $19.2M Sole-Source Hangar to Alaskan Native Corp for C-130J Maintenance

Contract Overview

Contract Amount: $19,233,270 ($19.2M)

Contractor: United Solutions and Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-18

End Date: 2012-06-08

Contract Duration: 994 days

Daily Burn Rate: $19.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT A NEW, 56,977 GSF TWO-BAY MULTIPURPOSE MAINTENANCE HANGER FOR THE NEW C-130J MODEL AIRCRAFT CONFIGURED TO SUPPORT FUEL CELL AND AIR FRAME MAINTENANCE. SITE WORK INCLUDES PAVEMENT FOR PARKING AND MAINTENANCE STORAGE, SITE UTILITIES AND IMPROVEMENTS. AS PART OF THIS PROJECT, EXISTING HANGER B5117 IS TO BE DEMOLISHED. THIS REQUIREMENT IS AN ALASKAN NATIVE CORPORATION 8 (A) DIRECT SOLE SOURCE AWARD: THIS AWARD IS MADE AS A SOLE SOURCE 8(A) AWARD UNDER THE PARTNERSHIP AGREEMENT (PA): DATED FEB 1, 2002 BETWEEN THE SMALL BUSINESS ADMINISTRATION (SBA) AND THE DEPARTMENT OF DEFENSE (DOD): IN ACCORDANCE WITH DEFENSE FEDERAL ACQUISITION REGULATION SUPPLEMENT (DFARS) 219.800. PERIOD OF PERFORMANCE: THE CONTRACTOR SHALL PERFORM CONSTRUCTION SERVICES IN ACCORDANCE WITH THE INCLUDED STATEMENT OF WORK, SPECIFICATIONS AND DRAWINGS. THE PERIOD OF PERFORMANCE IS 730 DAYS FROM NOTICE TO PROCEED DATE. NOTICE TO PROCEED WILL BE RELEASED UPON CONFIRMATION OF AWARD. POST AWARD CONFERENCE IS SCHEDULED FOR: 7 OCTOBER 2009.

Place of Performance

Location: ABILENE, TAYLOR County, TEXAS, 79601

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to UNITED SOLUTIONS AND SERVICES LLC for work described as: CONSTRUCT A NEW, 56,977 GSF TWO-BAY MULTIPURPOSE MAINTENANCE HANGER FOR THE NEW C-130J MODEL AIRCRAFT CONFIGURED TO SUPPORT FUEL CELL AND AIR FRAME MAINTENANCE. SITE WORK INCLUDES PAVEMENT FOR PARKING AND MAINTENANCE STORAGE, SITE UTILITIES AND IMPROVEMENTS. AS PART OF THIS PROJ… Key points: 1. The project involves constructing a new maintenance hangar and demolishing an existing one. 2. This is a sole-source 8(a) award to an Alaskan Native Corporation under a partnership agreement. 3. The contract value is $19.2 million with a duration of 994 days. 4. The sector is Commercial and Institutional Building Construction, specifically for aircraft maintenance facilities.

Value Assessment

Rating: questionable

Pricing is not readily available for comparison due to the sole-source nature of the award. Benchmarking against similar large-scale aircraft maintenance hangar construction projects would be necessary for a thorough assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This award was made as a sole-source 8(a) award under a specific partnership agreement between the SBA and DoD. This limits competition significantly and bypasses standard competitive bidding processes, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for this construction project. The lack of competition raises concerns about whether the best possible price was achieved.

Public Impact

Construction of specialized facilities for critical military aircraft maintenance. Potential impact on local economic development through the Alaskan Native Corporation award. Ensures continued operational readiness for the C-130J fleet. Demolition of an existing structure, potentially freeing up space or addressing outdated infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award justification
Potential for cost overruns without competitive pressure

Positive Signals

Supports small business (Alaskan Native Corporation)
Addresses critical infrastructure need
Utilizes established partnership agreement

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized facilities for aviation maintenance. Benchmarks for similar large-scale hangar construction projects can vary widely based on size, complexity, and location.

Small Business Impact

The award is specifically designated for an Alaskan Native Corporation under the 8(a) program, aiming to support small and disadvantaged businesses. This sole-source approach bypasses typical small business set-aside competitions.

Oversight & Accountability

The award is made under a specific partnership agreement between the SBA and DoD, suggesting a pre-existing oversight framework. However, the sole-source nature warrants scrutiny to ensure fair pricing and effective use of funds.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition and price discovery.
Lack of readily available cost benchmarks for comparison.
Potential for inflated costs due to absence of competitive pressure.
Reliance on a specific partnership agreement for award mechanism.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to UNITED SOLUTIONS AND SERVICES LLC. CONSTRUCT A NEW, 56,977 GSF TWO-BAY MULTIPURPOSE MAINTENANCE HANGER FOR THE NEW C-130J MODEL AIRCRAFT CONFIGURED TO SUPPORT FUEL CELL AND AIR FRAME MAINTENANCE. SITE WORK INCLUDES PAVEMENT FOR PARKING AND MAINTENANCE STORAGE, SITE UTILITIES AND IMPROVEMENTS. AS PART OF THIS PROJECT, EXISTING HANGER B5117 IS TO BE DEMOLISHED. THIS REQUIREMENT IS AN ALASKAN NATIVE CORPORATION 8 (A) DIRECT SOLE SOURCE AWARD: THIS AWARD IS MADE AS A SOLE SOURCE 8(A) AWARD UNDER THE PARTNERSHIP AGREEMENT (PA): DATE

Who is the contractor on this award?

The obligated recipient is UNITED SOLUTIONS AND SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2009-09-18. End: 2012-06-08.

What is the justification for the sole-source 8(a) award, and how does it align with the program's intent to foster competition?

The justification stems from a partnership agreement between the SBA and DoD, allowing for direct sole-source awards to eligible Alaskan Native Corporations. While this supports specific socio-economic goals, it bypasses the standard competitive processes designed to ensure the government receives the best value and price. The alignment with the program's intent is debatable, as it prioritizes a specific business type over broader market competition.

How was the $19.2 million price determined without competitive bidding, and what measures are in place to mitigate cost risks?

The price was likely determined through negotiation based on cost estimates, historical data, and the contractor's proposed pricing, within the framework of the sole-source agreement. Mitigation of cost risks in such scenarios relies heavily on robust contract oversight, detailed cost breakdowns, and potentially independent government cost estimates to validate the contractor's figures.

What is the long-term value and effectiveness of constructing this specific hangar, considering the C-130J model's operational lifespan and maintenance needs?

The long-term value hinges on the C-130J's continued service life and the hangar's suitability for its evolving maintenance requirements, including fuel cell and airframe work. Its effectiveness will be measured by its ability to reduce downtime, improve maintenance efficiency, and support the aircraft's operational readiness throughout its lifespan.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 49 ROBIN COURT, HOCKESSIN, DE, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Emerging Small Business, Federally Funded Research and Development Corp, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,233,270

Exercised Options: $19,233,270

Current Obligation: $19,233,270

Contract Characteristics

Cost or Pricing Data: NO

Timeline