Dod's $39.2M Aircraft Hangar Contract Awarded to Empresa DE Construccion Y Transporte Eterna S.A. DE C.V

Contract Overview

Contract Amount: $39,227,936 ($39.2M)

Contractor: Empresa DE Construccion Y Transporte Eterna S.A. DE C.V.

Awarding Agency: Department of Defense

Start Date: 2021-10-08

End Date: 2025-08-31

Contract Duration: 1,423 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AIRCRAFT MX HANGAR SCAB

Plain-Language Summary

Department of Defense obligated $39.2 million to EMPRESA DE CONSTRUCCION Y TRANSPORTE ETERNA S.A. DE C.V. for work described as: AIRCRAFT MX HANGAR SCAB Key points: 1. The contract is for aircraft maintenance hangar construction, a critical infrastructure need for military operations. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The firm fixed-price contract type aims to control costs and transfer risk to the contractor. 4. The project duration of 1423 days indicates a significant construction undertaking.

Value Assessment

Rating: fair

The contract value of $39.2M for a large hangar project appears within a reasonable range for major construction. However, without specific details on scope, size, and location, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as it allows multiple qualified contractors to bid. This process generally leads to more competitive pricing.

Taxpayer Impact: The firm fixed-price contract type helps ensure taxpayer funds are protected from cost overruns, assuming the initial bid was competitive.

Public Impact

Supports military readiness by providing essential maintenance facilities. Potential for job creation in the construction sector. Ensures compliance with safety and operational standards for aircraft maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of unforeseen site conditions affecting cost and schedule.
Contractor performance risk for a large-scale project.

Positive Signals

Full and open competition promotes fairness and potentially better pricing.
Firm fixed-price contract provides cost certainty.
Clear contract award for a necessary facility.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense is substantial, driven by the need for infrastructure to support global operations and training.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.

Oversight & Accountability

The award of a definitive contract under full and open competition suggests a structured procurement process. Oversight will be crucial during the execution phase to monitor progress, quality, and adherence to the fixed-price terms.

Related Government Programs

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

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of schedule delays impacting military operational readiness.
Contractor's capacity to manage a project of this scale and complexity.
Dependence on a single contractor for a critical infrastructure asset.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to EMPRESA DE CONSTRUCCION Y TRANSPORTE ETERNA S.A. DE C.V.. AIRCRAFT MX HANGAR SCAB

Who is the contractor on this award?

The obligated recipient is EMPRESA DE CONSTRUCCION Y TRANSPORTE ETERNA S.A. DE C.V..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.2 million.

What is the period of performance?

Start: 2021-10-08. End: 2025-08-31.

What is the specific scope of work and size of the aircraft maintenance hangar being constructed?

The provided data does not detail the specific scope of work or the exact dimensions of the aircraft maintenance hangar. This information is critical for a comprehensive understanding of the project's complexity, the materials required, and the labor involved. Without these details, it's challenging to fully assess the value proposition and potential risks associated with the $39.2 million contract.

What were the key performance indicators and evaluation criteria used during the full and open competition?

The data does not specify the key performance indicators or the evaluation criteria used in the full and open competition. Understanding these factors is essential to assess how the contractor, EMPRESA DE CONSTRUCCION Y TRANSPORTE ETERNA S.A. DE C.V., was selected. It would reveal the emphasis placed on technical capability, past performance, price, and other relevant aspects, providing insight into the rigor of the selection process and potential risks.

Are there any provisions for sustainability or environmental impact mitigation within the contract terms?

The provided data does not contain information regarding sustainability or environmental impact mitigation clauses within the contract. For a large construction project of this magnitude, it is increasingly common for such provisions to be included to ensure compliance with environmental regulations and promote sustainable building practices. Further review of the contract document would be necessary to ascertain their presence and scope.

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: W9127820R0012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: KM 1 CARRETERA A OCCIDENTE, SAN PEDRO SULA

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $39,871,529

Exercised Options: $39,227,936

Current Obligation: $39,227,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline