DoD awards $12.9M for Arnold AFB tank repairs, highlighting infrastructure needs in Tennessee

Contract Overview

Contract Amount: $12,929,564 ($12.9M)

Contractor: S & B Infrastructure Ltd

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2028-08-25

Contract Duration: 976 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: API 653 REPAIRS AND MAINTENANCE ITEMS ON 7 TANKS AT ARNOLD AFB, TN.

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to S & B INFRASTRUCTURE LTD for work described as: API 653 REPAIRS AND MAINTENANCE ITEMS ON 7 TANKS AT ARNOLD AFB, TN. Key points: 1. Contract focuses on essential repairs and maintenance for critical infrastructure at Arnold AFB. 2. Full and open competition suggests a potentially competitive bidding process. 3. Delivery order structure indicates a phased approach to project execution. 4. The contract duration of nearly 1000 days points to a significant, long-term maintenance requirement. 5. The award to S & B Infrastructure Ltd. represents a substantial investment in base facilities. 6. This contract addresses specific needs within the Oil and Gas Pipeline and Related Structures Construction NAICS code.

Value Assessment

Rating: good

The contract value of $12.9 million for tank repairs and maintenance at Arnold AFB appears reasonable given the scope and duration. While direct comparisons are difficult without more granular data on the specific repairs, the price seems aligned with typical infrastructure maintenance costs for federal facilities. The firm fixed-price structure provides cost certainty for the government. Benchmarking against similar large-scale infrastructure projects at other military bases would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level was moderate. This suggests that while there was interest from multiple contractors, the market for this specialized service might be somewhat concentrated. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives fair market value for services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel operating at Arnold Air Force Base, ensuring operational readiness. Services delivered include critical repairs and maintenance to seven tanks, vital for base operations. The geographic impact is localized to Arnold Air Force Base in Tennessee. Workforce implications include employment opportunities for skilled labor in construction and maintenance within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the firm fixed-price structure.
Dependence on a single contractor for a critical infrastructure maintenance task could pose a risk if performance issues emerge.
The limited number of bidders might indicate a specialized market, potentially limiting future competition for similar services.

Positive Signals

Awarded under full and open competition, suggesting a robust process for selecting the contractor.
Firm fixed-price contract type provides cost predictability for the government.
Long contract duration allows for sustained focus on critical infrastructure maintenance.
The contract addresses essential operational needs for a key military installation.

Sector Analysis

This contract falls within the construction sector, specifically related to infrastructure maintenance for industrial facilities. The market for specialized tank repair and maintenance services can be niche, often requiring specific certifications and expertise. The total federal spending on Oil and Gas Pipeline and Related Structures Construction (NAICS 237120) is significant, with this award representing a portion of that investment focused on maintaining critical government assets. Comparable spending benchmarks would typically involve analyzing other large-scale repair and maintenance contracts awarded to military installations or similar industrial sites.

Small Business Impact

This contract was not set aside for small businesses and the prime contractor, S & B Infrastructure Ltd., is not a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may engage small businesses for specific services.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command responsible for Arnold AFB. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics and oversight reports are not publicly available.

Related Government Programs

Military Base Infrastructure Maintenance
Department of Defense Facilities Management
Arnold Air Force Base Operations
Tank and Pipeline Construction
Federal Infrastructure Repair Contracts

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Limited competition may affect long-term pricing.
Contractor performance risk.
Dependency on specialized market capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to S & B INFRASTRUCTURE LTD. API 653 REPAIRS AND MAINTENANCE ITEMS ON 7 TANKS AT ARNOLD AFB, TN.

Who is the contractor on this award?

The obligated recipient is S & B INFRASTRUCTURE LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2025-12-23. End: 2028-08-25.

What is the track record of S & B Infrastructure Ltd. in performing similar large-scale infrastructure repair contracts for the Department of Defense?

S & B Infrastructure Ltd. has a history of performing various construction and infrastructure projects, including those for government entities. To assess their track record specifically for large-scale tank repair and maintenance for the DoD, a deeper dive into their past performance evaluations, contract history, and any reported issues or successes on similar projects would be necessary. Reviewing federal procurement databases and past performance information systems can provide insights into their reliability, quality of work, and adherence to schedules and budgets on comparable contracts. This analysis would help determine their suitability and reduce perceived risk for this current award.

How does the awarded price of $12.9 million compare to the estimated cost or benchmark for similar tank repair projects at other military installations?

Benchmarking the $12.9 million award against similar projects requires access to detailed cost data for comparable tank repair and maintenance contracts at other military installations. Factors such as the size and condition of the tanks, the specific types of repairs needed (e.g., lining, structural reinforcement, corrosion control), labor costs in the region, and the overall scope of work significantly influence pricing. Without specific comparable contract data, a precise value-for-money assessment is challenging. However, the firm fixed-price nature suggests the government has negotiated a definitive cost for the defined scope, aiming for cost certainty.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential cost overruns if unforeseen structural issues are discovered during repairs, delays due to weather or supply chain disruptions, and contractor performance issues. Mitigation strategies likely involve thorough pre-award assessments of the contractor's capabilities and financial stability, detailed contract specifications to clearly define the scope of work, and robust oversight by the contracting officer's representative. The firm fixed-price contract itself mitigates cost risk for the government, shifting much of the financial risk to the contractor. Performance bonds and liquidated damages clauses may also be included to ensure timely completion and quality.

How effective is the current competition level (2 bidders) in ensuring optimal pricing and service quality for this type of specialized infrastructure work?

A competition level of two bidders suggests a moderately competitive environment. While it is better than a sole-source award, it may not represent the full potential for price discovery compared to a scenario with numerous bidders. For highly specialized services like critical tank repairs, the market may naturally be limited to a few qualified firms. The effectiveness in ensuring optimal pricing and quality depends on the government's ability to clearly define requirements and evaluate bids rigorously. If these two bidders were highly capable and their proposals were thoroughly vetted, the outcome could still be favorable for the government.

What is the historical spending trend for tank repairs and maintenance at Arnold AFB or similar facilities within the Department of Defense?

Analyzing historical spending trends for tank repairs and maintenance at Arnold AFB and similar DoD facilities is crucial for understanding long-term investment patterns and identifying potential anomalies. This would involve examining past contract awards for similar services over several fiscal years. Significant fluctuations or a consistent upward trend in spending could indicate aging infrastructure, increased operational demands, or changes in maintenance strategies. Understanding these patterns helps in budgeting, forecasting future needs, and assessing whether current spending levels are appropriate or indicative of under/over-investment.

What are the specific performance metrics or deliverables expected under this contract, and how will they be measured?

The specific performance metrics and deliverables are detailed within the contract's Statement of Work (SOW). Typically, for repair and maintenance contracts, metrics would include adherence to schedules, quality of workmanship (e.g., meeting industry standards like API 653), completion of all specified repair tasks on the seven tanks, and compliance with safety regulations. Deliverables would include completed repair reports, inspection documentation, and potentially warranties on materials and labor. Measurement would be conducted by government quality assurance personnel who monitor progress, inspect completed work, and verify compliance with the SOW.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15150 MEMORIAL DR, HOUSTON, TX, 77079

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,973,634

Exercised Options: $12,929,564

Current Obligation: $12,929,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F22D0019

IDV Type: IDC

Timeline