DoD Awards $44.8M Hangar Contract for JBLM Blackhawk Helicopters, Raising Value Concerns

Contract Overview

Contract Amount: $44,836,308 ($44.8M)

Contractor: Archer Western Federal JV

Awarding Agency: Department of Defense

Start Date: 2014-08-25

End Date: 2020-05-19

Contract Duration: 2,094 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF LARGE AVIATION MAINTENANCE HANGAR AT GRAY ARMY AIRFIELD (GAAF) PN 76777 FOR JOINT BASE LEWIS-MCCHORD (JBLM), WASHINGTON. PROJECT INCLUDES THE HANGAR WITH ASSOCIATED MAINTENANCE SPACE FOR SIX (6) BLACKHAWK UH-60 HELICOPTER, ADMINISTRATIVE SPACE, PARTS AND TOOL STORAGE, GENERAL STORAGE, A HAZARDOUS MATERIALS STORAGE FACILITY, PETROLEUM OILS AND LUBRICANT STORAGE, ORGANIZATIONAL EQUIPMENT STORAGE, AND ORGANIZATIONAL PARKING, BUILDING INFORMATION SYSTEMS, FIRE PROTECTION AND ALARM SYSTEMS, AND AN ENERGY MONITORING CONTROL SYSTEMS (EMCS) CONNECTION. SUSTAINABILITY AND ENERGY FEATURES ARE PART OF THE DESIGN. SUPPORTING FACILITIES INCLUDE SITE DEVELOPMENT, UTILITIES AND CONNECTIONS, LIGHTING, PAVING OF PARKING LOTS, CURBS AND SIDEWALKS, GUTTERS, STORM DRAINAGE, INFORMATION SYSTEMS, LANDSCAPING AND SIGNAGE. CONSTRUCTION STANDARDS IN ACCORDANCE WITH THE DEPARTMENT OF DEFENSE (DOD) MINIMUM ANTITERRORISM FOR BUILDINGS STANDARDS WILL BE REQUIRED.

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to ARCHER WESTERN FEDERAL JV for work described as: IGF::OT::IGF LARGE AVIATION MAINTENANCE HANGAR AT GRAY ARMY AIRFIELD (GAAF) PN 76777 FOR JOINT BASE LEWIS-MCCHORD (JBLM), WASHINGTON. PROJECT INCLUDES THE HANGAR WITH ASSOCIATED MAINTENANCE SPACE FOR SIX (6) BLACKHAWK UH-60 HELICOPTER, ADMINISTRATIVE SPACE, PARTS AND TOOL STORAG… Key points: 1. The $44.8 million contract for a large aviation maintenance hangar at Joint Base Lewis-McChord appears to be on the higher end for similar construction projects. 2. Archer Western Federal JV secured the full and open competition contract, indicating a competitive bidding process. 3. Potential risks include cost overruns or schedule delays common in large construction projects, though the firm fixed price contract mitigates some financial risk. 4. The project falls within the Commercial and Institutional Building Construction sector, with a focus on specialized aviation maintenance facilities.

Value Assessment

Rating: questionable

The contract value of $44.8 million for a 2094-day project seems high when compared to typical construction costs for large institutional buildings. Benchmarking against similar military aviation facilities is recommended to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids. However, the final price may still be elevated if the initial cost estimates were too high or if unforeseen complexities arose during the project.

Taxpayer Impact: Taxpayer funds are being utilized for this significant infrastructure project. While competition is present, ensuring the final cost reflects fair market value is crucial for responsible spending.

Public Impact

Enhances critical aviation maintenance capabilities for Blackhawk helicopters at a key military installation. Supports the operational readiness of the U.S. Army by providing specialized facilities. The project incorporates sustainability and energy efficiency features, aligning with modern construction standards. Creates jobs and stimulates economic activity in the Washington state region during its construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation despite firm fixed price.
Complexity of specialized aviation maintenance requirements.
Long project duration increases exposure to market fluctuations.

Positive Signals

Full and open competition ensures market participation.
Firm fixed price contract provides cost certainty.
Focus on sustainability and energy efficiency.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, specifically for specialized military aviation support. Spending benchmarks for similar large-scale military construction projects, particularly those involving aircraft hangars, would provide a clearer picture of cost-effectiveness.

Small Business Impact

While the contract was awarded to Archer Western Federal JV, there is no explicit information provided regarding subcontracting opportunities for small businesses. Further investigation into the prime contractor's small business utilization plan would be necessary.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve project management teams, contracting officers, and potentially inspectors general to ensure adherence to contract terms and quality standards.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High contract value relative to project scope.
Long project duration increases risk exposure.
Lack of explicit small business participation details.
Potential for scope creep in complex construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to ARCHER WESTERN FEDERAL JV. IGF::OT::IGF LARGE AVIATION MAINTENANCE HANGAR AT GRAY ARMY AIRFIELD (GAAF) PN 76777 FOR JOINT BASE LEWIS-MCCHORD (JBLM), WASHINGTON. PROJECT INCLUDES THE HANGAR WITH ASSOCIATED MAINTENANCE SPACE FOR SIX (6) BLACKHAWK UH-60 HELICOPTER, ADMINISTRATIVE SPACE, PARTS AND TOOL STORAGE, GENERAL STORAGE, A HAZARDOUS MATERIALS STORAGE FACILITY, PETROLEUM OILS AND LUBRICANT STORAGE, ORGANIZATIONAL EQUIPMENT STORAGE, AND ORGANIZATIONAL PARKING, BUILDING INFORMATION SYSTEMS, FIRE PROTECTION AND ALARM SYST

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN FEDERAL JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2014-08-25. End: 2020-05-19.

What is the specific justification for the high contract value, and how does it compare to industry benchmarks for similar aviation maintenance facilities?

The high contract value of $44.8 million warrants further scrutiny. While the project includes extensive specialized facilities for six Blackhawk helicopters, administrative space, and hazardous material storage, a detailed cost breakdown and comparison with industry benchmarks for similar military aviation hangars are needed. This will help determine if the price reflects fair market value or if there are opportunities for cost savings in future procurements.

What are the primary risks associated with the long duration of this project, and what mitigation strategies are in place?

The 2094-day duration (approximately 5.7 years) presents risks such as potential material cost inflation, labor availability fluctuations, and changes in technological requirements for aviation maintenance. Mitigation strategies likely include contract clauses addressing escalation, robust project scheduling, and contingency planning for unforeseen site conditions or regulatory changes. The firm fixed price nature offers some protection against cost overruns, but scope creep remains a concern.

How effectively will the completed hangar meet the evolving needs of Blackhawk helicopter maintenance and operations over its lifecycle?

The design incorporates administrative space, parts storage, and hazardous materials handling, suggesting a comprehensive approach. However, the long construction timeline means the facility must be adaptable to future technological advancements in helicopter maintenance and operational requirements. Ensuring flexibility in the design and incorporating future-proofing measures will be critical for long-term effectiveness and to avoid costly retrofits.

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: W912DW14R0011

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

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

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

Financial Breakdown

Contract Ceiling: $44,836,308

Exercised Options: $44,836,308

Current Obligation: $44,836,308

Subaward Activity

Number of Subawards: 1551

Total Subaward Amount: $1,001,542,661

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline