DoD awards $41.6M for Andrews AFB taxiway construction, with Southern-RC-JV-01 LLC as prime

Contract Overview

Contract Amount: $41,557,556 ($41.6M)

Contractor: Southern-Rc-Jv-01 LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-10

End Date: 2023-09-26

Contract Duration: 655 days

Daily Burn Rate: $63.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAXIWAY WHISKEY PHASE IV, JOINT BASE ANDREWS, MD.

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.6 million to SOUTHERN-RC-JV-01 LLC for work described as: TAXIWAY WHISKEY PHASE IV, JOINT BASE ANDREWS, MD. Key points: 1. Contract value of $41.6M for taxiway construction at Joint Base Andrews. 2. Awarded under full and open competition, indicating a broad market approach. 3. Definitive contract type suggests a long-term or complex project. 4. Project duration of 655 days points to a significant construction undertaking. 5. Firm Fixed Price contract type aims to control costs for the government. 6. Small business participation was not a specific set-aside, but subcontracting opportunities may exist.

Value Assessment

Rating: fair

The contract value of $41.6 million for taxiway construction at Joint Base Andrews appears within a reasonable range for a project of this scale and complexity. However, without specific benchmarks for similar taxiway projects at military installations, a precise value-for-money assessment is challenging. The firm fixed-price structure is a positive indicator for cost control. The number of bidders (2) suggests some level of competition, but a higher number could potentially lead to more aggressive pricing.

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. Two bids were received, which suggests a moderate level of competition for this specific project. While two bidders indicate some market interest, a higher number of bids often correlates with more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive bidding.

Public Impact

Benefits military operations by improving airfield infrastructure at Joint Base Andrews. Ensures safer and more efficient aircraft movement on the ground. Supports the operational readiness of the U.S. Air Force units stationed at the base. The project is geographically focused on Maryland, specifically within the Washington D.C. metropolitan area. Likely to create construction jobs and stimulate economic activity in the local region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than if more firms had participated.
The definitive contract type, while suitable for complex projects, can sometimes be less transparent than other contract types if not managed carefully.
The project duration of over 1.5 years presents potential risks related to material cost fluctuations and schedule delays.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition ensures a wide pool of potential contractors was considered.
The project addresses critical infrastructure needs for a key military installation.

Sector Analysis

The construction sector, particularly heavy and civil engineering construction (NAICS 237310), is a significant area of federal spending. This contract for taxiway construction falls within the broader category of infrastructure development and maintenance, which is a recurring need for military bases. Federal spending in this sector often involves large-scale projects requiring specialized equipment and expertise, with competition typically driven by project complexity and value.

Small Business Impact

This contract was not awarded as a small business set-aside. While the prime contractor, SOUTHERN-RC-JV-01 LLC, may be a joint venture, the award itself was not specifically targeted to small businesses. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for smaller firms to participate in this significant federal project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and project management offices. The firm fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency would be enhanced through regular progress reports and site inspections. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Airfield Pavement Construction
Military Base Infrastructure Modernization
Joint Base Andrews Capital Improvement Projects
Department of Defense Construction Contracts
Highway, Street, and Bridge Construction Contracts

Risk Flags

Limited competition may impact price.
Long project duration increases risk of cost/schedule changes.
Potential for unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.6 million to SOUTHERN-RC-JV-01 LLC. TAXIWAY WHISKEY PHASE IV, JOINT BASE ANDREWS, MD.

Who is the contractor on this award?

The obligated recipient is SOUTHERN-RC-JV-01 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 $41.6 million.

What is the period of performance?

Start: 2021-12-10. End: 2023-09-26.

What is the track record of SOUTHERN-RC-JV-01 LLC in performing similar large-scale construction projects for the federal government?

Information regarding the specific track record of SOUTHERN-RC-JV-01 LLC for large-scale federal construction projects is not detailed in the provided data. As a joint venture, its performance history would depend on the combined experience of its constituent members. A deeper dive into past performance evaluations, contract completion records, and any past performance issues or commendations would be necessary for a comprehensive assessment. Federal procurement databases and past performance reviews would be the primary sources for this information. Understanding their experience with airfield construction, in particular, would be crucial given the nature of this contract.

How does the awarded amount of $41.6 million compare to similar taxiway construction projects at other military installations?

Benchmarking this $41.6 million contract against similar taxiway construction projects at other military installations requires access to a database of comparable federal contracts. Factors such as project scope (e.g., length and width of taxiway, required upgrades), geographic location (which influences labor and material costs), and the specific year of award significantly impact pricing. Without such comparative data, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, the firm fixed-price nature suggests an effort to contain costs within the agreed-upon budget.

What are the primary risks associated with a definitive contract type for a project of this duration?

Definitive contracts, especially those with longer durations like this 655-day project, carry inherent risks. For the government, the primary risk is potential cost escalation if the contract terms do not adequately account for inflation or unforeseen material price increases, although the firm fixed-price structure mitigates this to some extent. Schedule delays are another significant risk, which can impact operational readiness and incur additional costs. For the contractor, risks include underestimating project complexity, encountering unforeseen site conditions, or facing challenges in securing necessary labor and materials over an extended period. Effective project management and contingency planning are crucial to mitigate these risks.

What is the expected impact of this taxiway upgrade on aircraft operational efficiency and safety at Joint Base Andrews?

Upgrading taxiways at a busy military installation like Joint Base Andrews is expected to significantly enhance operational efficiency and safety. Modernized taxiways typically feature improved pavement integrity, better drainage, and potentially updated lighting and signage, all contributing to reduced wear and tear on aircraft and minimizing the risk of ground incidents. Enhanced efficiency can translate to faster taxi times, reduced fuel consumption, and improved aircraft turnaround times, supporting the base's overall mission readiness. Safer ground operations are paramount for protecting valuable assets and personnel.

How has federal spending on airfield construction and maintenance evolved over the past five years, and where does this contract fit?

Federal spending on airfield construction and maintenance has generally remained robust, driven by the ongoing need to modernize aging infrastructure across military bases and federal aviation facilities. While specific year-over-year figures fluctuate based on budget appropriations and priority shifts, there's a consistent demand for projects that ensure safety, efficiency, and compliance with modern standards. This $41.6 million contract for taxiway improvements at Joint Base Andrews represents a significant, albeit localized, investment within this broader federal spending trend. It aligns with the government's commitment to maintaining critical operational infrastructure for national defense.

Given the firm fixed-price nature, what mechanisms are in place to ensure the contractor meets quality standards throughout the project?

Even with a firm fixed-price contract, quality assurance is paramount. The government typically employs a Quality Assurance Surveillance Plan (QASP) to monitor the contractor's performance and ensure adherence to contract specifications and quality standards. This involves regular inspections of work performed, material testing, and verification that the contractor's own quality control processes are effective. Government representatives, such as contracting officers' representatives (CORs) or construction representatives, are responsible for overseeing the work on-site and ensuring that the final product meets all contractual requirements and industry best practices.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DR21B0012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 777 ALLOY DR, NEWBERN, TN, 38059

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,557,556

Exercised Options: $41,557,556

Current Obligation: $41,557,556

Actual Outlays: $5,872,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline