DoD awards $33.5M for Whiteman AFB consolidated nuclear air operations and support facilities

Contract Overview

Contract Amount: $33,469,400 ($33.5M)

Contractor: BL Harbert International LLC

Awarding Agency: Department of Defense

Start Date: 2019-01-31

End Date: 2022-01-31

Contract Duration: 1,096 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF A DESIGN-BUILD-BUILD CONSOLIDATED NUCLEAR AIR OPERATIONS AND SUPPORT FACILITIES, LOCATED AT WHITEMANT AIR FORCE BASE.

Place of Performance

Location: WHITEMAN AFB, JOHNSON County, MISSOURI, 65305

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to BL HARBERT INTERNATIONAL LLC for work described as: CONSTRUCTION OF A DESIGN-BUILD-BUILD CONSOLIDATED NUCLEAR AIR OPERATIONS AND SUPPORT FACILITIES, LOCATED AT WHITEMANT AIR FORCE BASE. Key points: 1. Contract awarded to BL Harbert International LLC for construction services. 2. Project scope includes design-build-build for consolidated nuclear air operations and support facilities. 3. Full and open competition was utilized for this procurement. 4. The contract type is a definitive contract with a firm-fixed-price payment structure. 5. The contract duration is 1096 days, spanning from January 31, 2019, to January 31, 2022. 6. The facility is located at Whiteman Air Force Base, Missouri. 7. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The award amount of $33.5 million for the construction of consolidated nuclear air operations and support facilities at Whiteman AFB appears reasonable given the project's complexity and the firm-fixed-price nature of the contract. While direct comparisons are difficult without specific project details, construction projects of this scale for military installations typically involve significant costs due to stringent security, specialized requirements, and robust quality control measures. The firm-fixed-price structure suggests that the contractor assumed a significant portion of the cost risk, which can lead to better price certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Eleven bids were received, suggesting a healthy level of competition for this significant construction project. The presence of multiple bidders generally contributes to price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition with eleven bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition procurement. This process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the United States Air Force personnel and operations at Whiteman Air Force Base, who will gain improved facilities for nuclear air operations and support. The project delivers essential infrastructure upgrades, enhancing the operational capabilities and safety of critical military functions. The geographic impact is concentrated at Whiteman Air Force Base in Missouri, supporting regional defense infrastructure. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel, contributing to local and regional employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design challenges arise, despite the firm-fixed-price contract.
Ensuring timely completion within the 1096-day duration is critical to avoid operational disruptions.
Quality control and adherence to specialized nuclear facility construction standards require rigorous oversight.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition with 11 bidders suggests a competitive pricing environment.
The project addresses critical infrastructure needs for national security operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for government facilities. The construction of specialized military infrastructure, particularly for nuclear operations, represents a niche within this sector. Comparable spending benchmarks for large-scale military construction projects can vary widely based on location, specific requirements, and security protocols. The market for such specialized construction is often dominated by a few large, experienced firms capable of meeting the stringent demands of government defense contracts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, BL Harbert International LLC, is a large business. The absence of set-asides or explicit subcontracting goals means that the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses as subcontractors on their own initiative.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army, overseeing the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Nuclear Infrastructure
Air Force Base Construction
Design-Build Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions or design challenges arise.
Risk of project delays impacting operational readiness.
Ensuring compliance with stringent nuclear facility construction standards.
Contractor's financial stability and capacity to manage a large, long-term project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to BL HARBERT INTERNATIONAL LLC. CONSTRUCTION OF A DESIGN-BUILD-BUILD CONSOLIDATED NUCLEAR AIR OPERATIONS AND SUPPORT FACILITIES, LOCATED AT WHITEMANT AIR FORCE BASE.

Who is the contractor on this award?

The obligated recipient is BL HARBERT INTERNATIONAL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2019-01-31. End: 2022-01-31.

What is the track record of BL Harbert International LLC in completing similar large-scale government construction projects, particularly those involving specialized facilities?

BL Harbert International LLC has a significant track record in constructing large-scale projects, including military facilities and complex infrastructure. They have been involved in numerous projects for the Department of Defense and other federal agencies, often under design-build or firm-fixed-price contracts. Their experience includes a variety of building types, from barracks and training facilities to more specialized structures. While specific details on nuclear-related facilities require deeper investigation, their history suggests a capacity to handle demanding government construction requirements. Reviewing past performance evaluations and project completion data for similar contracts would provide a more precise assessment of their reliability and expertise in this specific niche.

How does the $33.5 million award compare to the estimated cost or budget for similar consolidated nuclear air operations and support facilities?

Directly comparing the $33.5 million award to a precise benchmark for 'consolidated nuclear air operations and support facilities' is challenging without detailed project specifications and market data for comparable facilities. However, construction costs for specialized military infrastructure, especially those related to nuclear operations, are inherently high due to stringent security, environmental, and operational requirements. The firm-fixed-price nature of this contract suggests that the government secured a defined cost, and the presence of 11 bidders indicates competitive market forces were at play. Generally, projects of this magnitude for critical defense infrastructure can range from tens to hundreds of millions of dollars, depending on scale, complexity, and location. The award appears within a plausible range for such a specialized undertaking.

What are the primary risk indicators associated with this specific contract, considering its scope and the contractor?

Key risk indicators for this contract include the inherent complexity of constructing specialized nuclear facilities, which can lead to unforeseen technical challenges or delays. The firm-fixed-price structure, while beneficial for cost control, places a higher burden on the contractor to manage risks effectively; failure to do so could impact their financial stability or project quality. The duration of the project (1096 days) also presents risks related to potential changes in requirements, material cost fluctuations (though mitigated by FFP), and the contractor's sustained performance over a long period. Ensuring strict adherence to nuclear safety and construction standards throughout the project lifecycle is paramount.

How effective is the firm-fixed-price contract type in ensuring value for money for this type of construction project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money in construction projects where the scope of work is well-defined and risks can be reasonably anticipated. For this project, the FFP structure incentivizes the contractor, BL Harbert International LLC, to control costs and manage resources efficiently to maximize profit. This shifts significant cost risk from the government to the contractor. By establishing a fixed price upfront, the government gains budget certainty. The value for money is realized if the contractor successfully delivers the facility to the specified quality standards within the agreed-upon price, avoiding the cost overruns common in cost-reimbursement contracts for well-defined scopes.

What are the historical spending patterns for similar construction projects at Whiteman Air Force Base or for nuclear support facilities within the DoD?

Historical spending patterns for similar construction projects at Whiteman Air Force Base or for nuclear support facilities within the DoD would likely show significant investment in infrastructure upgrades and new construction over the years. Military bases often undergo modernization to meet evolving operational needs and security standards. Projects involving specialized facilities, such as those for nuclear operations, typically represent substantial capital outlays due to their unique requirements. Analyzing past contracts for construction at Whiteman AFB, or similar projects at other nuclear-capable bases (e.g., Minot AFB, F.E. Warren AFB), would reveal trends in contract values, durations, and the types of contractors typically engaged. This data could provide context for the $33.5 million award, indicating whether it aligns with historical investment levels for comparable infrastructure.

What are the implications of the 'full and open competition' with 11 bidders on the final contract price and overall taxpayer value?

The 'full and open competition' with 11 bidders is a strong positive indicator for taxpayer value. A larger number of bidders generally intensifies competition, pressuring each offeror to submit their most competitive price to win the contract. This process helps ensure that the government is not overpaying for the goods or services. For taxpayers, this means that the $33.5 million awarded is more likely to represent a fair market price, reflecting the efficiencies and cost-saving efforts driven by the competitive bidding environment. It reduces the risk of a contractor inflating prices due to a lack of alternatives, thereby maximizing the efficient use of public funds.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DQ18R4000

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: B.L. Harbert Holdings, L.L.C.

Address: 820 SHADES CREEK PKWY STE 3000, BIRMINGHAM, AL, 35209

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

Financial Breakdown

Contract Ceiling: $37,214,400

Exercised Options: $33,469,400

Current Obligation: $33,469,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline