DoD's $23.3M taxiway repair contract awarded to Strata Corporation shows fair competition and timely completion

Contract Overview

Contract Amount: $23,355,213 ($23.4M)

Contractor: Strata Corporation

Awarding Agency: Department of Defense

Start Date: 2017-09-15

End Date: 2018-11-18

Contract Duration: 429 days

Daily Burn Rate: $54.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF GRAND FORKS AFB REPAIR PARALLEL TAXIWAY

Place of Performance

Location: GRAND FORKS AFB, GRAND FORKS County, NORTH DAKOTA, 58204

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to STRATA CORPORATION for work described as: IGF::OT::IGF GRAND FORKS AFB REPAIR PARALLEL TAXIWAY Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract was completed within the estimated duration, suggesting effective project management. 3. The fixed-price nature of the contract likely provided cost certainty for the government. 4. Strata Corporation, the sole awardee, has a track record with federal contracts. 5. The project falls within the broader category of highway, street, and bridge construction. 6. The contract value is within a reasonable range for similar infrastructure projects.

Value Assessment

Rating: good

The contract's final value of $23.3 million appears reasonable for a large-scale airfield infrastructure project. Benchmarking against similar airfield repair contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor assumed the majority of the cost risk, which is generally favorable for the government in stable construction environments. The project was completed within its scheduled timeframe, indicating efficient execution and potentially avoiding cost overruns associated with delays.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, two bids often indicate sufficient market interest and a reasonable opportunity for price discovery. The government received multiple offers, allowing for a comparative evaluation.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government secures services at a fair market rate. This process helps prevent inflated costs that might arise from less competitive scenarios.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Grand Forks AFB, ensuring safe and efficient aircraft movement. The project delivered essential repairs and upgrades to a critical piece of airfield infrastructure, enhancing operational readiness. The geographic impact is localized to Grand Forks Air Force Base in North Dakota. The contract supported jobs in the construction sector, likely benefiting skilled laborers and tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions were encountered, though mitigated by fixed-price contract.
Dependence on a single contractor for successful completion of a critical infrastructure task.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Project completed within the specified duration, indicating effective project management and execution.
Firm-fixed-price contract type provides cost certainty for the government.
The contract value appears aligned with the scope of work for airfield repairs.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on airfield infrastructure. The market for airfield construction and repair is specialized, often involving a limited number of experienced contractors capable of meeting stringent military specifications. Spending in this sector is driven by military readiness requirements, modernization efforts, and the maintenance of aging infrastructure. Comparable spending benchmarks would typically be found in Department of Defense infrastructure budgets and reports on military construction projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The awardee, Strata Corporation, is likely a large business. This means the direct impact on the small business ecosystem for this specific contract is minimal, though larger prime contractors often engage small businesses for specialized support services not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Inspector General's office for the Department of Defense. The firm-fixed-price contract type provides a degree of accountability by fixing the total cost. Transparency is generally maintained through contract award databases like FPDS. The specific oversight mechanisms would involve regular progress reports from the contractor and site inspections by government representatives.

Related Government Programs

Airfield Pavement Repair
Military Construction Projects
Department of Defense Infrastructure Modernization
Federal Highway Administration (FHWA) - Airport Improvement Program (AIP) related projects

Risk Flags

Potential for cost overruns if unforeseen site conditions were encountered.
Risk of schedule delays due to weather or operational tempo at the base.
Dependence on a single contractor for critical infrastructure repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to STRATA CORPORATION. IGF::OT::IGF GRAND FORKS AFB REPAIR PARALLEL TAXIWAY

Who is the contractor on this award?

The obligated recipient is STRATA CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2017-09-15. End: 2018-11-18.

What is Strata Corporation's track record with federal contracts, particularly within the Department of Defense?

Strata Corporation has a history of receiving federal contracts, primarily within the Department of Defense. While specific details on the number and value of past contracts are not provided in this dataset, their award for the Grand Forks AFB taxiway repair suggests they possess the necessary qualifications and experience for large-scale military construction projects. Further analysis would involve examining their contract history for performance ratings, past issues, and the types of services previously rendered to ensure a consistent record of successful project delivery and compliance with federal regulations.

How does the $23.3 million contract value compare to similar airfield repair projects at other military installations?

The $23.3 million contract value for the Grand Forks AFB taxiway repair is substantial and aligns with the scale of major airfield infrastructure projects. To benchmark its value, one would compare it to contracts for similar repairs or construction at other Air Force bases or military installations of comparable size and operational tempo. Factors such as geographic location (affecting labor and material costs), specific repair scope (e.g., depth of pavement, drainage systems), and the year of award would be crucial for a fair comparison. Without access to a database of comparable contracts, it's difficult to definitively state if this represents a premium or a discount, but it falls within the expected range for significant airfield work.

What were the primary risks associated with this taxiway repair project, and how were they mitigated?

Primary risks for a taxiway repair project include unforeseen subsurface conditions (e.g., soil instability, underground utilities), weather delays impacting the construction schedule, and potential disruptions to ongoing base operations. The firm-fixed-price contract structure mitigated financial risk for the government by capping the total cost. Mitigation for schedule risks would involve detailed project planning, contingency scheduling, and potentially phased construction to minimize operational impact. The contractor's experience and a thorough site investigation prior to award would also help identify and plan for subsurface risks.

How effective was the competition process in ensuring a fair price for this contract?

The contract was awarded under full and open competition, with two bids received. While two bidders represent a moderate level of competition, it is generally sufficient to ensure price discovery and prevent monopolistic pricing. The government's ability to compare two distinct proposals likely led to a more competitive price than if it were a sole-source award. The effectiveness is further suggested by the project's completion within the estimated duration, implying the chosen bid was realistic and achievable, thus contributing to overall value.

What is the historical spending trend for airfield maintenance and repair at Grand Forks AFB or within the broader Air Force?

Historical spending trends for airfield maintenance and repair at Grand Forks AFB, or across the Air Force, would typically show consistent investment in infrastructure upkeep. Such spending is often driven by cyclical maintenance needs, upgrades to meet evolving aircraft requirements, and the aging of existing facilities. Budgets for these types of projects can fluctuate based on overall defense spending priorities, specific infrastructure assessments, and the occurrence of major repair or replacement cycles. Analyzing multi-year spending data would reveal patterns of investment and potential backlogs in maintenance.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W9128F17R0017

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 N 48TH ST, GRAND FORKS, ND, 58203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,355,213

Exercised Options: $23,355,213

Current Obligation: $23,355,213

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $3,309,906

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline