Department of the Army awards $52.6M for Joint Base Lewis-McChord rigging facility, highlighting construction sector activity

Contract Overview

Contract Amount: $52,605,379 ($52.6M)

Contractor: Absher Construction CO

Awarding Agency: Department of Defense

Start Date: 2025-11-06

End Date: 2027-12-16

Contract Duration: 770 days

Daily Burn Rate: $68.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MILITARY CONSTRUCTION OF CONSOLIDATED RIGGING FACILITY, JOINT BASE LEWIS-MCCHORD, WASHINGTON

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $52.6 million to ABSHER CONSTRUCTION CO for work described as: MILITARY CONSTRUCTION OF CONSOLIDATED RIGGING FACILITY, JOINT BASE LEWIS-MCCHORD, WASHINGTON Key points: 1. Contract awarded to ABSHER CONSTRUCTION CO for a significant military construction project. 2. Project scope includes building a consolidated rigging facility, indicating infrastructure investment. 3. The contract utilizes a firm-fixed-price structure, aiming to control costs. 4. Competition was robust, with 5 bidders vying for the project. 5. The duration of the contract is approximately 770 days. 6. Geographic focus is Washington State, supporting regional construction employment.

Value Assessment

Rating: good

The contract value of $52.6 million for a consolidated rigging facility appears reasonable given the scope of military construction projects. Benchmarking against similar large-scale construction contracts for specialized facilities within the Department of Defense suggests this price falls within expected ranges. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, implying a focus on value for money.

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 bids. With five bidders participating, the competition level suggests a healthy market interest in this type of government construction work. This broad competition is generally expected to drive competitive pricing and ensure the government receives a fair market value for the services rendered.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that typically leads to lower prices and higher quality bids.

Public Impact

Military personnel at Joint Base Lewis-McChord will benefit from improved rigging facilities, enhancing operational readiness. The construction project will create jobs in the commercial and institutional building construction sector in Washington State. The facility will support various military operations requiring specialized rigging equipment and services. The project contributes to the modernization of military infrastructure at a key installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Ensuring compliance with all environmental and safety regulations during construction.
Managing the complexity of a large-scale construction project with multiple stakeholders.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Robust competition indicates market interest and potential for quality.
Project supports critical military infrastructure needs.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of infrastructure development and facility modernization, which are ongoing priorities for the Department of Defense. The value of this single contract is substantial, reflecting the scale of projects undertaken to support military readiness and operations.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions, large prime contractors are often required to meet subcontracting goals for small businesses. The scale of this project may offer opportunities for small businesses to participate as subcontractors, contributing to the broader small business ecosystem within the construction industry.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance, and compliance checks will be crucial throughout the construction period. Transparency is generally maintained through contract award databases and reporting requirements, with potential for Inspector General review if specific concerns arise.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Building Construction

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting project timeline.
Ensuring compliance with stringent military specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.6 million to ABSHER CONSTRUCTION CO. MILITARY CONSTRUCTION OF CONSOLIDATED RIGGING FACILITY, JOINT BASE LEWIS-MCCHORD, WASHINGTON

Who is the contractor on this award?

The obligated recipient is ABSHER CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52.6 million.

What is the period of performance?

Start: 2025-11-06. End: 2027-12-16.

What is the track record of ABSHER CONSTRUCTION CO on similar federal construction projects?

ABSHER CONSTRUCTION CO has a history of performing federal construction contracts. A review of federal procurement data indicates they have been awarded multiple contracts across various agencies, including the Department of Defense and other federal entities. Their past performance on projects of similar scale and complexity, particularly those involving military facilities or specialized construction, would be a key factor in the government's decision-making process. Assessing their on-time completion rates, adherence to budget, and quality of work on previous federal contracts provides insight into their reliability and capability for this current project.

How does the awarded amount compare to the estimated cost or budget for this project?

The awarded contract value of $52,605,379 represents the final negotiated price for the construction of the consolidated rigging facility. Without access to the government's initial cost estimates or the bids submitted by the other four competitors, a direct comparison is challenging. However, the fact that it was awarded under full and open competition with five bidders suggests that the awarded price is likely competitive and reflects market conditions. If the awarded amount is significantly below the government's estimate, it could indicate strong competition or efficient bidding. Conversely, if it is close to or exceeds the estimate, further scrutiny of the bidding process and cost breakdown might be warranted.

What are the primary risks associated with the construction of a military rigging facility?

Key risks in constructing a military rigging facility include potential delays due to weather, supply chain disruptions for specialized materials, and unforeseen site conditions (e.g., soil issues, existing utilities). Ensuring the facility meets stringent military specifications for safety and operational functionality is paramount. Labor availability and cost fluctuations for construction materials are also significant risks. Furthermore, managing the interface between construction activities and ongoing base operations requires careful planning to minimize disruption and maintain security. The firm-fixed-price contract helps mitigate cost escalation risks for the government, but performance risks remain.

What is the expected impact of this facility on the operational readiness of Joint Base Lewis-McChord?

The construction of a consolidated rigging facility is expected to significantly enhance the operational readiness of Joint Base Lewis-McChord. Consolidating rigging operations into a single, modern facility likely improves efficiency, reduces downtime for equipment maintenance and preparation, and provides a safer working environment. This modernization allows for better organization and accessibility of rigging equipment, which is crucial for various military deployments and training exercises. Ultimately, a more efficient and capable rigging support system directly contributes to the base's ability to rapidly and effectively support its mission requirements.

How has federal spending on military construction in Washington State trended over the past five years?

Federal spending on military construction in Washington State has historically been substantial due to the significant military presence in the region, including bases like Joint Base Lewis-McChord, Naval Base Kitsap, and Fairchild Air Force Base. Over the past five years, trends have likely been influenced by national defense priorities, infrastructure modernization initiatives, and specific base improvement projects. While precise aggregate data requires detailed analysis of federal budget outlays and contract awards, it's reasonable to assume consistent, significant investment in maintaining and upgrading military facilities in Washington. Factors such as readiness requirements, technological advancements, and force structure changes would drive year-to-year variations in spending.

What is the significance of the 'Commercial and Institutional Building Construction' NAICS code in federal contracting?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' is highly significant in federal contracting as it encompasses a broad range of construction services essential for government operations. This code covers the construction of non-residential buildings such as administrative facilities, training centers, laboratories, hospitals, and, as in this case, specialized operational support structures like rigging facilities. Federal agencies frequently procure services under this code to build, renovate, and maintain their physical infrastructure. Contracts awarded under this NAICS code represent a substantial portion of the federal government's construction spending, supporting both large-scale projects and smaller renovation efforts across the country.

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: W912DW25R0021

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 SHAW RD, PUYALLUP, WA, 98372

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: $58,443,387

Exercised Options: $52,605,379

Current Obligation: $52,605,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline