DoD's $15.8M airfield repair contract awarded to HEAD INC shows fair competition and long-term performance

Contract Overview

Contract Amount: $15,849,883 ($15.8M)

Contractor: Head Inc

Awarding Agency: Department of Defense

Start Date: 2008-06-20

End Date: 2012-07-20

Contract Duration: 1,491 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AIRFIELD

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to HEAD INC for work described as: REPAIR AIRFIELD Key points: 1. The contract's value appears reasonable given the scope of airfield repair. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of nearly 5 years indicates a need for sustained support. 4. Performance context is crucial for assessing the ultimate value delivered. 5. This contract falls within the broader construction and infrastructure sector for the DoD. 6. The fixed-price nature of the award helps manage cost certainty.

Value Assessment

Rating: good

The $15.8 million contract for airfield repair is a significant investment. Benchmarking against similar airfield repair projects within the Department of Defense would provide a clearer picture of value for money. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. The long duration of the contract (nearly 5 years) implies a substantial scope of work, and the final cost should be evaluated against the completed repairs and their longevity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. With 10 bids received, this suggests a competitive marketplace for airfield repair services. A higher number of bids generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive offers for essential airfield maintenance.

Public Impact

The primary beneficiaries are the Department of Defense and its operational readiness, ensuring safe and functional airfields for military aircraft. Services delivered include comprehensive repair and maintenance of airfield infrastructure. The geographic impact is localized to the specific military installation in Florida where the repairs were conducted. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial repair estimates were inaccurate.
Ensuring the quality of repairs meets long-term durability standards.
Managing contractor performance over a multi-year period.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost certainty.
Long contract duration suggests a recognized need for sustained airfield maintenance.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on specialized airfield infrastructure. The market for such services is often dominated by a few large, experienced contractors capable of handling complex projects with stringent safety and operational requirements. Comparable spending benchmarks would involve looking at other military airfield upgrades or repairs, which can vary significantly based on the scale of the project and the specific components being addressed (e.g., runways, taxiways, lighting systems).

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature and scale of airfield repair, it is possible that larger firms with specialized equipment and expertise were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contracting officers, project managers, and potentially quality assurance representatives to monitor performance, adherence to specifications, and timely completion. Transparency is generally maintained through contract award databases, though detailed performance reports may be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Airfield Operations and Maintenance
Heavy Engineering Services
Department of Defense Infrastructure Projects

Risk Flags

Potential for cost overruns if not managed tightly despite fixed-price.
Risk of performance issues over a long contract duration.
Ensuring long-term durability and quality of airfield repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to HEAD INC. REPAIR AIRFIELD

Who is the contractor on this award?

The obligated recipient is HEAD 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 $15.8 million.

What is the period of performance?

Start: 2008-06-20. End: 2012-07-20.

What was the specific scope of work for the airfield repair, and were there any major unforeseen issues during the contract period?

The contract data indicates the primary purpose was 'REPAIR AIRFIELD.' However, the specific details of the repairs, such as runway resurfacing, lighting system upgrades, or drainage improvements, are not provided in this summary. Unforeseen issues are also not detailed. A thorough review of contract modifications, inspection reports, and final delivery documentation would be necessary to understand the full scope and any challenges encountered during the 1491-day performance period. This would help assess if the final cost accurately reflected the work performed and if any change orders significantly impacted the budget.

How does the awarded price compare to the average cost of similar airfield repair projects for the Department of the Army?

Without access to a database of comparable airfield repair projects undertaken by the Department of the Army, a direct cost comparison is difficult. The total contract value of $15.8 million is substantial, but the 'average cost' is highly dependent on factors like the size of the airfield, the extent of the damage or required upgrades, the specific materials used, and the geographic location impacting labor and material costs. To benchmark effectively, one would need to identify projects with similar scopes (e.g., runway rehabilitation, taxiway repairs) and adjust for inflation and regional economic differences. The number of bids (10) suggests competitive pricing was sought.

What were the key performance indicators (KPIs) for this contract, and did HEAD INC meet them?

The provided data does not specify the key performance indicators (KPIs) established for this airfield repair contract. Typically, for construction and repair contracts, KPIs would relate to schedule adherence, quality of workmanship, safety compliance, and adherence to budget. To assess HEAD INC's performance, one would need to consult performance reports, acceptance documentation, and any contractor performance assessment reporting system (CPARS) records. Meeting KPIs is crucial for determining if the government received the expected value and if the contractor warrants future consideration.

What is HEAD INC's track record with the Department of Defense, particularly on similar construction projects?

The data identifies HEAD INC as the contractor for this $15.8 million airfield repair contract. To assess their track record, one would need to examine their past performance on other Department of Defense contracts, especially those involving heavy construction or airfield maintenance. Databases like the Federal Procurement Data System (FPDS) or CPARS would provide insights into their history, including contract values, types of services rendered, and performance ratings. A history of successful, on-time, and within-budget project completion would indicate reliability, while past issues could signal potential risks.

Were there any contract modifications or change orders issued during the contract period, and what was their impact on the total cost?

The provided summary data does not include information on contract modifications or change orders. For a contract spanning nearly five years (1491 days), it is common for modifications to be issued to address unforeseen conditions, scope adjustments, or changes in requirements. Analyzing these modifications is critical to understanding the evolution of the contract's scope and total cost. Significant changes could indicate issues with initial planning or execution, while minor adjustments might be routine. The impact on the total cost and the justification for these changes would need to be reviewed.

What is the significance of the 'Other Heavy and Civil Engineering Construction' NAICS code (237990) in the context of airfield repair?

The NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' broadly covers establishments primarily engaged in constructing heavy infrastructure projects not elsewhere classified. This includes projects like dams, bridges, tunnels, and, importantly, airfield paving and construction. For airfield repair, this code signifies that the work involves substantial civil engineering and construction expertise, often requiring specialized equipment and knowledge of materials science related to pavement durability and load-bearing capacities. It places the contract within a category of large-scale infrastructure development critical for national defense and transportation.

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

Solicitation ID: W9127808R0004

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4477 E 5TH AVE, COLUMBUS, OH, 43219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,849,883

Exercised Options: $15,849,883

Current Obligation: $15,849,883

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline