McConnell Air Force Base Hangar Construction Contract Exceeds $155 Million, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $155,851,400 ($155.9M)

Contractor: Archer Western Aviation Partners

Awarding Agency: Department of Defense

Start Date: 2014-05-22

End Date: 2022-07-08

Contract Duration: 2,969 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF PROJECT REQUIRES THE CONSTRUCTION OF A 2-BAY CORROSION CONTROL/FUEL CELL HANGAR, A 3-BAY GENERAL MAINTENANCE HANGAR, A GENERAL PURPOSE HANGAR AND AIRCRAFT PARKING APRON LOCATED AT MCCONNELL AIR FORCE BASE, KANSAS.

Place of Performance

Location: MCCONNELL AFB, SEDGWICK County, KANSAS, 67221

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $155.9 million to ARCHER WESTERN AVIATION PARTNERS for work described as: IGF::OT::IGF PROJECT REQUIRES THE CONSTRUCTION OF A 2-BAY CORROSION CONTROL/FUEL CELL HANGAR, A 3-BAY GENERAL MAINTENANCE HANGAR, A GENERAL PURPOSE HANGAR AND AIRCRAFT PARKING APRON LOCATED AT MCCONNELL AIR FORCE BASE, KANSAS. Key points: 1. The contract awarded to Archer Western Aviation Partners represents a significant investment in aviation infrastructure at McConnell Air Force Base. 2. The project scope includes multiple hangar types and an aircraft parking apron, indicating a comprehensive upgrade to base facilities. 3. Awarded under a firm-fixed-price contract, the pricing structure aims to provide cost certainty for the government. 4. The use of full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 5. The duration of the contract, spanning over 8 years, indicates a complex and lengthy construction project. 6. The project's location in Kansas positions it within a region with established military aviation presence.

Value Assessment

Rating: good

The contract value of over $155 million for the construction of multiple hangars and an aircraft apron at an Air Force base appears to be within a reasonable range for such large-scale military infrastructure projects. Benchmarking against similar large-scale construction projects for military aviation facilities would provide a more precise assessment of value for money. The firm-fixed-price nature of the contract suggests that the initial bid was considered competitive and offered cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this significant construction project. A competitive bidding process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. The multiple bids received suggest that taxpayer funds were used efficiently to secure the best possible outcome for the construction project.

Public Impact

The primary beneficiaries are the United States Air Force personnel and operations at McConnell Air Force Base, who will gain access to modern and expanded aviation facilities. The contract delivers essential services related to the construction of corrosion control/fuel cell hangars, general maintenance hangars, a general purpose hangar, and an aircraft parking apron. The geographic impact is localized to McConnell Air Force Base in Kansas, enhancing its operational capabilities. The project implies a significant impact on the construction workforce, requiring skilled labor for its multi-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of the contract (over 8 years) could introduce risks related to cost escalation or changes in project requirements over time.
Large-scale construction projects are inherently susceptible to unforeseen site conditions or material availability issues that could impact timelines and costs.

Positive Signals

The firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
Awarding through full and open competition with 5 bidders suggests a competitive environment that likely drove a favorable price.
The project addresses critical infrastructure needs for aviation maintenance and operations, enhancing base readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for large-scale military infrastructure. The market for military construction is characterized by significant government investment, stringent requirements, and often long-term projects. Comparable spending benchmarks would involve analyzing other large hangar or military facility construction contracts awarded by the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses (smb: false). This suggests that the primary award went to a large contractor, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified scope within the agreed price. Transparency is generally facilitated through contract award databases and public reporting, though specific project oversight details may not be publicly detailed.

Related Government Programs

Military Construction, Air Force
Aircraft Maintenance Facilities
Base Infrastructure Development
Department of Defense Construction Contracts

Risk Flags

Long Contract Duration
Potential for Cost Escalation
Scope Definition Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $155.9 million to ARCHER WESTERN AVIATION PARTNERS. IGF::OT::IGF PROJECT REQUIRES THE CONSTRUCTION OF A 2-BAY CORROSION CONTROL/FUEL CELL HANGAR, A 3-BAY GENERAL MAINTENANCE HANGAR, A GENERAL PURPOSE HANGAR AND AIRCRAFT PARKING APRON LOCATED AT MCCONNELL AIR FORCE BASE, KANSAS.

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN AVIATION PARTNERS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $155.9 million.

What is the period of performance?

Start: 2014-05-22. End: 2022-07-08.

What is the track record of Archer Western Aviation Partners in executing large-scale military construction projects?

Archer Western Aviation Partners, as a contractor, would have a project history that can be reviewed for performance on similar military construction endeavors. Assessing their past performance on projects of comparable size, complexity, and scope, particularly those involving aviation facilities, is crucial. This includes examining on-time and on-budget delivery rates, quality of work, and any history of disputes or contract modifications. A review of their financial stability and capacity to manage such a large undertaking would also be pertinent. Information on their safety records and compliance with military construction standards would further inform an assessment of their capabilities and reliability for this specific contract.

How does the per-square-foot construction cost of this project compare to similar military hangar projects?

To benchmark the per-square-foot cost, one would need detailed breakdowns of the total contract value allocated to construction area (hangars and apron) and the total square footage. Comparing this figure to publicly available data on similar military hangar construction projects, adjusted for inflation and regional cost differences, would provide insight. For instance, if the average cost per square foot for similar Air Force hangars in the Midwest region is $X, and this project comes in at $Y per square foot, a significant deviation would warrant further investigation into the reasons, such as specialized requirements, unique site conditions, or market fluctuations.

What are the primary risks associated with the long duration (over 8 years) of this construction contract?

The extended duration of this contract presents several key risks. Firstly, there's the risk of 'scope creep,' where project requirements may evolve over the 8+ years, potentially leading to change orders and increased costs if not managed tightly. Secondly, material and labor costs can fluctuate significantly over such a long period, impacting the contractor's profitability and potentially leading to claims if not adequately accounted for in the fixed-price agreement. Thirdly, technological advancements in aviation or maintenance could render certain aspects of the new facilities less optimal by the time they are completed. Finally, personnel turnover within both the government oversight team and the contractor's project management can lead to knowledge gaps and inconsistencies in project execution.

How effective are the firm-fixed-price contract terms in mitigating cost overruns for this project?

Firm-fixed-price (FFP) contracts are designed to place the majority of the cost risk on the contractor, thereby providing the government with cost certainty. For this project, the FFP structure means that Archer Western Aviation Partners is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases they encounter. This incentivizes the contractor to manage costs efficiently and accurately estimate expenses upfront. However, the effectiveness can be diminished if the initial scope is poorly defined, leading to numerous change orders, or if the contract contains escalation clauses for specific materials. In essence, FFP is highly effective when the scope is well-defined and risks are thoroughly assessed during the bidding phase.

What is the historical spending trend for similar aviation infrastructure projects at Air Force bases?

Historical spending on similar aviation infrastructure projects at Air Force bases typically shows a consistent demand driven by modernization needs, aging facilities, and evolving operational requirements. Budgets for these projects are often allocated through specific military construction (MILCON) appropriations. Trends can indicate an increase in spending on projects requiring advanced capabilities, such as specialized hangars for new aircraft types or facilities incorporating sustainable design principles. Analyzing past MILCON budgets and awarded contract values for hangar construction can reveal patterns in project scale, cost escalation, and the types of facilities prioritized by the Air Force over different fiscal years.

What are the implications of having 5 bidders for a project of this magnitude?

Having 5 bidders for a project valued at over $155 million suggests a competitive market for large-scale military construction. This level of competition is generally positive for the government, as it increases the likelihood of receiving competitive pricing and innovative solutions. It indicates that multiple firms possessed the capability and interest to undertake such a significant contract. The presence of several bidders also provides a stronger basis for the government to evaluate proposals and select the offer that represents the best value, considering factors beyond just price, such as technical approach, past performance, and management capability.

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: TWO STEP

Solicitation ID: W912DQ14R4001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,851,400

Exercised Options: $155,851,400

Current Obligation: $155,851,400

Subaward Activity

Number of Subawards: 3641

Total Subaward Amount: $7,083,542,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline