DOD awards $20.8M construction contract for Riley UAV Hangar, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $20,857,309 ($20.9M)

Contractor: THE LAW Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-01-07

End Date: 2016-09-30

Contract Duration: 997 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RILEY UAV HANGAR, CONSTRUCTION CONTRACT,

Place of Performance

Location: FORT RILEY, GEARY County, KANSAS, 66442

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to THE LAW COMPANY, INC. for work described as: IGF::OT::IGF RILEY UAV HANGAR, CONSTRUCTION CONTRACT, Key points: 1. The contract utilized a firm fixed-price structure, aiming to control costs and provide predictability. 2. Full and open competition was employed, suggesting a broad market engagement for this construction project. 3. The contract duration of 997 days indicates a significant, multi-year construction effort. 4. The award was made to The Law Company, Inc., a single entity for this specific project. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded by the Department of the Army, a component of the DOD.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction contract is challenging without detailed cost breakdowns and comparable project data. However, the firm fixed-price nature suggests an attempt to lock in costs. The total award amount of $20.8 million for a UAV hangar construction project needs to be assessed against the scope of work, materials, and labor involved. Without more granular data on the project's specifications and market rates for similar construction in Kansas, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of the Army sought bids from all responsible sources. The presence of 7 bidders (as indicated by 'no': 7) suggests a healthy level of interest and competition for this construction project. This broad competition is generally favorable for price discovery and potentially achieving a more competitive price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces, ensuring that the government receives competitive bids for its construction needs.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Army, gaining enhanced facilities for UAV operations. The service delivered is the construction of a specialized hangar facility, crucial for military aviation infrastructure. The geographic impact is localized to Kansas, where the Fort Riley facility is located. The project likely involved a significant construction workforce, including skilled trades and laborers, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on a single contractor for the entire project duration could lead to performance risks if issues emerge.
The specific requirements for a UAV hangar might involve specialized construction techniques or materials that could impact cost and timeline.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process that likely yielded competitive pricing.
The award to a single entity streamlines project management and accountability.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for military construction is substantial, driven by ongoing modernization and operational needs. Comparable spending benchmarks would involve analyzing other large-scale military facility construction projects, particularly hangars or specialized aviation support structures, to gauge cost-effectiveness relative to project scope and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, The Law Company, Inc., would determine any subcontracting opportunities based on their own business practices and project needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project management personnel within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally provided through contract award databases, though detailed project progress and inspection reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Aviation Infrastructure
Construction Services Contracts
Firm Fixed-Price Contracts

Risk Flags

Potential for scope creep if project requirements evolve significantly post-award.
Contractor performance risk, particularly concerning quality and timely completion.
Market volatility in construction material prices could impact contractor profitability under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to THE LAW COMPANY, INC.. IGF::OT::IGF RILEY UAV HANGAR, CONSTRUCTION CONTRACT,

Who is the contractor on this award?

The obligated recipient is THE LAW COMPANY, 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 $20.9 million.

What is the period of performance?

Start: 2014-01-07. End: 2016-09-30.

What was the specific scope of work for the Riley UAV Hangar construction contract?

The provided data indicates the contract was for the 'RILEY UAV HANGAR, CONSTRUCTION CONTRACT'. While the specific scope of work is not detailed, it implies the construction of a facility designed to house, maintain, and potentially operate Unmanned Aerial Vehicles (UAVs). This would typically include aspects like hangar space, maintenance areas, control rooms, storage, and associated utilities and infrastructure. The firm fixed-price nature suggests the scope was defined sufficiently at the time of award to allow for a fixed price to be established, though change orders could occur for unforeseen circumstances.

How does the $20.8 million award compare to similar military hangar construction projects?

Direct comparison of the $20.8 million award for the Riley UAV Hangar to similar projects is difficult without detailed project specifications, location-specific construction costs, and the exact timeframe of comparable projects. Military construction costs can vary significantly based on size, materials, technological integration (e.g., specialized climate control, security features), and geographic location. However, $20.8 million is a substantial sum, indicative of a significant construction undertaking. Benchmarking would require access to data on other UAV or aircraft hangar projects awarded by the DOD or other military branches, considering factors like square footage, complexity, and prevailing market rates at the time of award.

What are the potential risks associated with a firm fixed-price contract for a large construction project?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, they carry risks, particularly for large, complex projects like hangar construction. The primary risk for the contractor is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise (e.g., unexpected site conditions, material price escalations beyond contract provisions, labor shortages). For the government, the risk is that the contractor may cut corners on quality or scope to protect their profit margin if costs increase unexpectedly. However, FFP contracts also incentivize the contractor to manage costs efficiently and complete the project within budget.

What does the number of bidders (7) suggest about the market for this type of construction service?

The fact that seven bids were received for this construction contract under full and open competition suggests a reasonably competitive market for this type of specialized military construction service. A higher number of bidders generally indicates that multiple firms possess the capability and interest to undertake such projects, which can lead to more competitive pricing and better value for the government. It implies that the requirements were clear enough and the opportunity attractive enough to draw significant interest from the construction industry.

What is the historical spending pattern for construction contracts at Fort Riley or for similar UAV facilities?

The provided data does not include historical spending patterns for Fort Riley or for similar UAV facilities. To assess this, one would need to query federal procurement databases (like FPDS or USASpending) for contracts awarded to Fort Riley or for UAV-related construction across the Department of Defense over several fiscal years. Analyzing this data would reveal trends in contract values, types of services procured, and the frequency of such awards, providing context for the $20.8 million contract.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DQ13B4005

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 345 RIVERVIEW ST STE 300, WICHITA, KS, 67203

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: $20,857,309

Exercised Options: $20,857,309

Current Obligation: $20,857,309

Subaward Activity

Number of Subawards: 1064

Total Subaward Amount: $455,971,665

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline