DoD awards $21.6M contract for Tulsa Air National Guard fuel storage facility to Bodell Construction Company

Contract Overview

Contract Amount: $21,629,141 ($21.6M)

Contractor: Bodell Construction Company

Awarding Agency: Department of Defense

Start Date: 2021-07-19

End Date: 2024-07-08

Contract Duration: 1,085 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TULSA AIR NATIONAL GUARD FUEL STORAGE FACILITY

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to BODELL CONSTRUCTION COMPANY for work described as: TULSA AIR NATIONAL GUARD FUEL STORAGE FACILITY Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type indicates a defined scope and cost, transferring risk to the contractor. 3. The contract duration of 1085 days suggests a significant construction project. 4. The project is located in Oklahoma, potentially impacting the local construction workforce. 5. The North American Industry Classification System (NAICS) code 237120 points to pipeline and related structures construction. 6. The award amount of approximately $21.6 million falls within a moderate spending range for construction projects of this nature.

Value Assessment

Rating: good

The contract value of $21.6 million for a fuel storage facility appears reasonable given the scope of construction for a military installation. Benchmarking against similar projects would require more detailed specifications, but the firm fixed-price structure suggests cost control. The contractor, Bodell Construction Company, has a history of government contracts, which can indicate experience and reliability in managing such projects.

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 number of bidders is not specified, but this method generally promotes competitive pricing and allows the government to select the best value offer. The open competition is a positive indicator for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition helps ensure that the government receives competitive pricing, which is beneficial for taxpayers by potentially lowering the overall cost of the project.

Public Impact

The Tulsa Air National Guard will benefit from improved fuel storage infrastructure. The project will deliver construction services for a critical military facility. The geographic impact is primarily in Tulsa, Oklahoma, supporting local economic activity. The construction project will likely involve a skilled labor force, impacting the local construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price contract.
Delays in project completion could impact the operational readiness of the Tulsa Air National Guard.
Ensuring compliance with environmental regulations during construction of fuel storage facilities is critical.

Positive Signals

The use of firm fixed-price contract type helps to control costs and provides budget certainty.
Awarding to a single contractor with a defined scope can lead to efficient project execution.
The project's focus on essential military infrastructure demonstrates a commitment to national security.

Sector Analysis

The construction sector, particularly for specialized infrastructure like fuel storage facilities for military bases, is a significant part of federal spending. This contract falls under the broader category of heavy civil construction, which includes projects like pipelines, utilities, and transportation infrastructure. Federal spending in this area is often driven by modernization needs, readiness requirements, and national security imperatives. Comparable spending benchmarks would depend on the specific size, complexity, and materials used in the facility.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Bodell Construction Company is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the nature of the work packages required for the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost and timeline. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Military Construction Projects
Defense Infrastructure Modernization
Fuel Storage and Handling Facilities
Air National Guard Readiness Programs

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen conditions
Environmental compliance during construction
Ensuring contractor's adherence to safety standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to BODELL CONSTRUCTION COMPANY. TULSA AIR NATIONAL GUARD FUEL STORAGE FACILITY

Who is the contractor on this award?

The obligated recipient is BODELL CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2021-07-19. End: 2024-07-08.

What is the track record of Bodell Construction Company with Department of Defense contracts?

Bodell Construction Company has a history of performing contracts for the Department of Defense and other federal agencies. Reviewing their past performance on similar construction projects, particularly those involving specialized infrastructure or military installations, would provide further insight into their capabilities and reliability. Data on past performance ratings, any contract disputes, or timely completion rates would be valuable in assessing their suitability for this project. While specific details of their DoD contract history are not provided here, their selection suggests they met the necessary qualifications and experience requirements for this award.

How does the $21.6 million award compare to similar fuel storage facility construction projects?

Benchmarking the $21.6 million award requires a detailed comparison of project scope, size, materials, and location. Fuel storage facilities can vary significantly in complexity, from simple above-ground tanks to extensive underground systems with advanced safety and containment features. Factors such as seismic requirements, environmental regulations, and integration with existing base infrastructure also influence cost. Without specific technical details of the Tulsa facility, a precise comparison is difficult. However, for a significant military installation, $21.6 million is within a plausible range for specialized construction of this nature, assuming it includes all necessary components and safety measures.

What are the primary risks associated with this construction contract?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns due to unforeseen site conditions (e.g., unexpected soil issues, underground utilities), material price fluctuations, labor shortages, or design changes. Schedule delays are also a risk, which could impact the operational readiness of the Air National Guard. Furthermore, ensuring strict adherence to environmental and safety regulations during the construction of fuel storage facilities is paramount to prevent accidents or environmental contamination. The contractor bears the primary financial risk, but delays can still impact the government's objectives.

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 a construction project like a fuel storage facility, FFP transfers the majority of the cost risk to the contractor. This incentivizes the contractor to control expenses and complete the project efficiently to maximize profit. However, if unforeseen issues arise that necessitate changes to the scope, the government may face higher costs through change orders, or the contractor might incur losses if they cannot manage unexpected expenses within the fixed price. The success of FFP relies heavily on accurate initial cost estimation and a clearly defined statement of work.

What is the historical spending pattern for fuel storage facilities at Air National Guard bases?

Historical spending patterns for fuel storage facilities at Air National Guard bases can vary widely based on the age of the base, existing infrastructure, specific mission requirements, and regulatory updates. Older bases may require significant investment in modernization or replacement of aging tanks and systems to meet current safety and environmental standards. Newer facilities or expansions would reflect current construction costs and technological advancements. Analyzing past contracts for similar projects across the ANG would reveal trends in project scale, cost per unit of storage capacity, and the typical duration of such construction efforts. This specific contract represents a significant investment for a single facility.

What are the implications of the 1085-day duration for project management and oversight?

A contract duration of 1085 days (approximately three years) for a fuel storage facility construction project indicates a substantial undertaking. This extended timeline necessitates robust project management and oversight from the government. It allows for detailed planning, phased construction, and thorough quality control throughout the process. However, it also increases the potential for risks such as material price escalation, changes in regulations, or shifts in military priorities. Continuous government oversight is crucial to ensure the contractor maintains progress, adheres to specifications, manages risks effectively, and remains accountable for delivering the project on schedule and within budget over the long term.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912BV20R0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 586 FINE DR, SALT LAKE CITY, UT, 84115

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

Financial Breakdown

Contract Ceiling: $21,730,485

Exercised Options: $21,629,141

Current Obligation: $21,629,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline