Department of Defense awards $15.87M C-17 parking ramp contract to San Juan Construction, Inc. at Hickam Air Force Base

Contract Overview

Contract Amount: $15,871,753 ($15.9M)

Contractor: SAN Juan Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-27

End Date: 2010-02-10

Contract Duration: 685 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD, KNMD063025, FY08 MCAF PN KNMD063025 C-17 PARKING RAMP, HICKAM AIR FORCE BASE, OAHU, HAWAII

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to SAN JUAN CONSTRUCTION, INC. for work described as: AWARD, KNMD063025, FY08 MCAF PN KNMD063025 C-17 PARKING RAMP, HICKAM AIR FORCE BASE, OAHU, HAWAII Key points: 1. Contract awarded for specialized construction services at a major military installation. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of 685 days indicates a significant project timeline. 4. Fixed-price contract type aims to control costs for the government. 5. Project located in Hawaii may present unique logistical challenges. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The award amount of $15.87 million for a C-17 parking ramp at Hickam Air Force Base appears to be within a reasonable range for specialized construction projects of this nature. However, without specific benchmarks for comparable C-17 parking ramp construction costs or detailed project scope, a precise value-for-money assessment is challenging. The firm fixed-price contract type is generally favorable for cost control, but the final cost is dependent on the contractor's efficiency and any unforeseen circumstances during the project lifecycle. Further analysis would require detailed cost breakdowns and comparisons to similar projects in similar geographic locations.

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. The data shows 5 bids were received, suggesting a healthy level of competition for this specialized construction project. A competitive bidding process typically leads to better price discovery and can result in more favorable pricing for the government compared to sole-source or limited competition procurements. The presence of multiple bidders implies that the market has sufficient capacity and interest to undertake this type of work.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive bid price, maximizing the value of taxpayer dollars spent on this critical infrastructure project.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating C-17 aircraft at Hickam Air Force Base, ensuring adequate parking and maintenance facilities. The contract delivers essential infrastructure improvements, specifically a parking ramp designed for large cargo aircraft. The geographic impact is localized to Oahu, Hawaii, supporting military operations in the Pacific region. The project will likely involve a workforce of skilled construction laborers, engineers, and project managers in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price contract.
Logistical challenges associated with construction in Hawaii could impact project timelines and costs.
Ensuring the long-term durability and maintenance of the parking ramp requires robust quality control during construction.

Positive Signals

The use of full and open competition is a positive signal for achieving competitive pricing.
The firm fixed-price contract structure provides cost certainty for the government.
The project addresses a specific operational need for C-17 aircraft at a key military installation.

Sector Analysis

This contract falls within the specialty trade contractors sector, specifically related to construction and infrastructure development for government facilities. The North American Industry Classification System (NAICS) code 238990, 'All Other Specialty Trade Contractors,' encompasses a broad range of specialized construction activities. The market for large-scale military infrastructure projects is often characterized by a limited number of highly qualified contractors capable of meeting stringent security and technical requirements. Benchmarking this contract's value would ideally involve comparing it to similar airfield or large vehicle parking structure construction projects, both military and civilian, considering factors like size, materials, and location.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The fact that it was competed under full and open competition suggests that larger, established firms were likely the primary bidders. This approach may limit direct opportunities for small businesses to participate as prime contractors on this specific project, although they could potentially be involved as subcontractors if opportunities arise and are sought by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army or Air Force. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through the public award data, though detailed project progress and financial oversight reports are generally not publicly disseminated. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airfield Paving and Construction
Military Base Infrastructure Modernization
Specialty Trade Construction Services
Department of Defense Facilities Management
C-17 Globemaster III Support Equipment

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays due to logistical challenges in Hawaii.
Ensuring compliance with stringent military aviation standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to SAN JUAN CONSTRUCTION, INC.. AWARD, KNMD063025, FY08 MCAF PN KNMD063025 C-17 PARKING RAMP, HICKAM AIR FORCE BASE, OAHU, HAWAII

Who is the contractor on this award?

The obligated recipient is SAN JUAN 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 $15.9 million.

What is the period of performance?

Start: 2008-03-27. End: 2010-02-10.

What is the track record of San Juan Construction, Inc. with Department of Defense contracts?

San Juan Construction, Inc. has a history of performing contracts with the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their past performance on similar projects would be necessary. This would include examining contract completion timeliness, adherence to budget, quality of work, and any past performance evaluations or disputes. Understanding their experience with large-scale construction, particularly airfield infrastructure, would provide further insight into their capability to successfully execute this current contract. Without specific historical data on past performance metrics, it's difficult to definitively gauge their reliability beyond the fact that they were selected for this significant project.

How does the awarded amount compare to similar C-17 parking ramp projects?

Comparing the $15.87 million award for this C-17 parking ramp to similar projects is challenging without access to a comprehensive database of comparable construction contracts. Factors such as the specific dimensions of the ramp, the type of materials used, site preparation requirements, and prevailing labor costs in Hawaii can significantly influence project costs. Generally, specialized airfield infrastructure projects are substantial investments. The firm fixed-price nature of this contract suggests an effort to cap costs, but the actual value-for-money depends on the contractor's efficiency and the thoroughness of the initial project scope definition. A detailed cost-benefit analysis would require benchmarking against projects with identical or very similar specifications and geographic locations.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential construction delays due to the remote island location of Hawaii, which can impact material delivery and labor availability. Unforeseen geological or environmental conditions at Hickam Air Force Base could also lead to scope changes or cost increases, despite the firm fixed-price structure. Furthermore, ensuring the long-term structural integrity and compliance with stringent military aviation standards for a C-17 parking ramp presents a technical risk. The contractor's ability to manage these factors effectively will be crucial for successful project completion within the allocated budget and timeline.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For this C-17 parking ramp project, the FFP structure places the primary cost risk on the contractor, incentivizing them to control expenses and complete the work efficiently to maximize profit. This provides the government with a high degree of cost certainty. However, if significant unforeseen issues arise that necessitate changes to the scope, the government may still incur additional costs through contract modifications, although the base price remains fixed. The effectiveness hinges on the accuracy of the initial requirements and the contractor's project management capabilities.

What is the historical spending pattern for similar construction projects at Hickam Air Force Base?

Analyzing historical spending patterns for similar construction projects at Hickam Air Force Base would provide valuable context for this $15.87 million award. Without specific data on past airfield construction, facility upgrades, or other large-scale infrastructure projects at this base, it's difficult to establish a precise trend. However, military bases, especially those in strategic locations like Hawaii, often undergo continuous modernization and require significant investment in infrastructure. Spending patterns can fluctuate based on military readiness needs, budget allocations, and the lifecycle of existing facilities. A review of previous years' spending on construction and maintenance at Hickam AFB would reveal whether this award represents a typical investment or an outlier.

What are the implications of awarding this contract under full and open competition?

Awarding this contract under full and open competition has several implications. Firstly, it suggests that the government sought to maximize the pool of potential bidders, increasing the likelihood of receiving competitive offers and potentially securing a lower price. Secondly, it implies that the project's requirements were not so specialized or restrictive as to limit participation to a narrow set of contractors. This approach generally fosters a more dynamic market and can lead to innovation. For taxpayers, it signifies an effort to ensure that public funds are used efficiently by leveraging market forces to achieve the best possible value for the construction of this critical military asset.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W9128A08R0003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 924 SPRING CREEK RD STE C, MONTROSE, CO, 81401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,871,753

Exercised Options: $15,871,753

Current Obligation: $15,871,753

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline