Altus Air Force Base taxiway repair contract awarded to Head Inc. for over $19 million

Contract Overview

Contract Amount: $19,051,151 ($19.1M)

Contractor: Head Inc

Awarding Agency: Department of Defense

Start Date: 2010-02-04

End Date: 2011-09-13

Contract Duration: 586 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY10 REPAIR TAXIWAY, ALTUS AIRFORCE BASE

Place of Performance

Location: ALTUS AFB, JACKSON County, OKLAHOMA, 73523

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to HEAD INC for work described as: FY10 REPAIR TAXIWAY, ALTUS AIRFORCE BASE Key points: 1. Contract value appears reasonable for a large-scale infrastructure project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 586 days indicates a significant project scope. 4. Fixed-price contract type shifts risk to the contractor, Head Inc. 5. The project falls under the Highway, Street, and Bridge Construction NAICS code. 6. Awarded by the Department of the Army, indicating defense infrastructure investment.

Value Assessment

Rating: good

The contract value of approximately $19 million for taxiway repair at a major Air Force base is within the expected range for such infrastructure projects. Benchmarking against similar large-scale airfield construction and repair contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor, Head Inc., assumed the primary risk for cost overruns, which is generally favorable for the government.

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. The presence of 6 bidders suggests a healthy level of competition for this project. This competitive environment is expected to drive down prices and ensure the government receives a fair market value for the services rendered.

Taxpayer Impact: A competitive bidding process for this significant infrastructure project likely resulted in taxpayer savings compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the United States Air Force and personnel at Altus Air Force Base, ensuring operational readiness. The contract delivers essential infrastructure improvements, specifically the repair of taxiways, which are critical for aircraft movement. The geographic impact is localized to Altus Air Force Base in Oklahoma. The project likely involved a significant number of construction workers and related support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite the fixed-price nature.
Ensuring timely completion within the 586-day duration is crucial for base operations.

Positive Signals

Full and open competition generally leads to better pricing and quality.
Firm fixed-price contract aligns contractor incentives with project completion.
Award to Head Inc. suggests they met the technical and financial requirements for the bid.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction. The market for airfield construction and repair is specialized, often involving significant government contracts due to the unique requirements of military bases. Comparable spending benchmarks would typically be found in large-scale transportation infrastructure projects or other major military base development initiatives.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While Head Inc. won the prime contract, there may be opportunities for small businesses to participate as subcontractors, depending on Head Inc.'s subcontracting plan. The overall impact on the small business ecosystem would depend on the extent of subcontracting opportunities created by this large prime contract.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and potentially the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price contract, requiring Head Inc. to deliver the specified work within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided.

Related Government Programs

Military Base Infrastructure Projects
Airfield Pavement Repair
Federal Highway and Bridge Construction Contracts
Department of Defense Construction Spending

Risk Flags

Contract Duration
Project Scope
Contractor Performance History (Unknown)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to HEAD INC. FY10 REPAIR TAXIWAY, ALTUS AIRFORCE BASE

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 $19.1 million.

What is the period of performance?

Start: 2010-02-04. End: 2011-09-13.

What is Head Inc.'s track record with similar large-scale construction contracts, particularly for government or military projects?

Information regarding Head Inc.'s specific track record with similar large-scale construction contracts, especially those for government or military projects, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on contracts of comparable size, scope, and complexity. This would involve examining contract close-out data, any reported disputes or claims, and client satisfaction feedback. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific taxiway repair project at Altus Air Force Base.

How does the awarded amount of $19,051,151.35 compare to the estimated cost or budget for this taxiway repair project?

The provided data does not include the government's estimated cost or budget for the taxiway repair project. Therefore, a direct comparison to the awarded amount of $19,051,151.35 cannot be made. However, the fact that the contract was awarded under full and open competition with 6 bidders suggests that the awarded price was deemed acceptable and competitive by the procuring agency. To fully assess value for money, one would need to compare this awarded price against independent cost estimates or benchmarks for similar airfield construction projects.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for Head Inc.?

The provided data specifies the contract type as 'FIRM FIXED PRICE' (pt: "FIRM FIXED PRICE"), which inherently places the primary cost risk on the contractor, Head Inc. While specific KPIs and detailed risk mitigation strategies are not listed, the contract duration (dur: 586 days) and completion date (ed: 2011-09-13) serve as key performance benchmarks. The government's primary concern would be the timely and quality completion of the taxiway repairs. Potential risks could include unforeseen site conditions, material price fluctuations, or labor shortages, all of which Head Inc. would be responsible for managing under the fixed-price agreement.

What is the historical spending pattern for taxiway repair and general airfield maintenance at Altus Air Force Base over the last decade?

The provided data snippet focuses on a single contract awarded in FY10 for taxiway repair at Altus Air Force Base. It does not offer historical spending patterns for this specific base or for taxiway repairs in general over the last decade. To analyze historical spending, one would need to query federal procurement databases for all contracts related to Altus Air Force Base, filtering for relevant NAICS codes (like 237310) and service descriptions (e.g., 'taxiway repair,' 'airfield maintenance,' 'pavement construction') across multiple fiscal years. This would reveal trends in spending, contract values, and potentially identify periods of significant investment or neglect in airfield infrastructure.

How does the number of bidders (6) for this contract compare to the average number of bids received for similar Department of the Army construction projects?

Receiving 6 bids for a full and open competition contract, especially for a significant infrastructure project like taxiway repair valued at over $19 million, generally indicates a healthy level of market interest and competition. While the average number of bids can vary widely depending on the specific type of construction, location, and project complexity, 6 bidders is often considered a strong showing. For large-scale civil engineering or heavy construction projects within the Department of the Army, receiving anywhere from 3 to 10+ bids might be considered typical. A higher number of bidders typically suggests greater competition, which can lead to more favorable pricing for the government.

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: W912BV10R2000

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 4477 E 5TH AVE, COLUMBUS, OH, 90

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: $19,204,474

Exercised Options: $19,204,474

Current Obligation: $19,051,151

Contract Characteristics

Cost or Pricing Data: NO

Timeline