Department of Defense awards $23.8M contract for facility construction at Seymour Johnson AFB, North Carolina

Contract Overview

Contract Amount: $23,756,142 ($23.8M)

Contractor: Daniels & Daniels Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2009-12-31

Contract Duration: 825 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KC-135 FLIGHT SIMULATOR, CORROSION CONTROL HANGAR, ADD/ALTER SQUADRON OPERATION/AMU FACILITY AT SEYMOUR JOHNSON AFB, NORTH CAROLINA

Place of Performance

Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27532

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to DANIELS & DANIELS CONSTRUCTION CO INC for work described as: KC-135 FLIGHT SIMULATOR, CORROSION CONTROL HANGAR, ADD/ALTER SQUADRON OPERATION/AMU FACILITY AT SEYMOUR JOHNSON AFB, NORTH CAROLINA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $23.8 million falls within a moderate spending range for facility construction projects. 3. Project involves construction and alteration of squadron operations and maintenance facilities. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The project duration of approximately 2.75 years indicates a significant construction undertaking. 6. The contractor, Daniels & Daniels Construction Co Inc, has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of $23.8 million for a corrosion control hangar and squadron operations facility appears reasonable given the scope of work. Benchmarking against similar construction projects for military bases would provide a more precise value-for-money assessment. The firm-fixed-price structure is standard for construction and helps control costs, but does not inherently guarantee the best value without strong competition.

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. The presence of 5 bidders suggests a healthy level of competition for this project, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through multiple bids, ensuring the government receives the best possible deal for its investment in infrastructure.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel stationed at Seymour Johnson AFB, who will gain improved operational and maintenance facilities. The project delivers essential infrastructure improvements, including a corrosion control hangar and squadron operations/maintenance facilities. The geographic impact is localized to Seymour Johnson AFB in North Carolina. The construction project will likely create temporary jobs for skilled trades and laborers in the North Carolina region during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Delays in construction schedule could impact operational readiness at the base.
Quality of construction must be rigorously monitored to ensure long-term durability and safety.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Construction in North Carolina may leverage local workforce and resources.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for government facilities. The construction of military base infrastructure is a significant segment of the broader construction market. Comparable spending benchmarks for similar military construction projects can vary widely based on location, size, and specific requirements.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Daniels & Daniels Construction Co Inc. The level of subcontracting to small businesses is not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Quality assurance representatives would likely be assigned to monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases, though specific oversight reports are not provided here.

Related Government Programs

Military Base Construction
Air Force Facility Modernization
Corrosion Control Facilities
Squadron Operations Buildings
Department of Defense Infrastructure Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns if unforeseen conditions arise
Ensuring quality of construction meets long-term durability standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to DANIELS & DANIELS CONSTRUCTION CO INC. KC-135 FLIGHT SIMULATOR, CORROSION CONTROL HANGAR, ADD/ALTER SQUADRON OPERATION/AMU FACILITY AT SEYMOUR JOHNSON AFB, NORTH CAROLINA

Who is the contractor on this award?

The obligated recipient is DANIELS & DANIELS CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2007-09-28. End: 2009-12-31.

What is the track record of Daniels & Daniels Construction Co Inc with federal contracts, particularly within the Department of Defense?

Daniels & Daniels Construction Co Inc has a history of performing federal contracts, including work for the Department of Defense. While specific details on past performance metrics, such as on-time delivery or budget adherence for previous projects, are not provided in this summary, their selection as a prime contractor suggests they met the qualifications and requirements set forth by the Army Corps of Engineers or relevant contracting agency. Further investigation into their contract history, including any past performance reviews or awards/debarments, would be necessary for a comprehensive assessment of their track record.

How does the awarded amount of $23.8 million compare to similar corrosion control hangar and squadron operations facility projects at other military installations?

Without access to a database of comparable construction projects with detailed cost breakdowns, a precise benchmark is difficult. However, $23.8 million for a facility of this nature at a major air force base is within a plausible range. Factors influencing cost include geographic location (labor and material costs), specific design requirements (e.g., specialized equipment for corrosion control), and the overall size and complexity of the facility. A thorough value analysis would involve comparing square footage, specific functionalities, and construction methods against recently awarded contracts for similar military infrastructure projects across different bases.

What are the primary risks associated with this firm-fixed-price construction contract, and what mitigation strategies are likely in place?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may face financial losses if costs exceed the agreed-upon price, potentially leading to pressure to cut corners on quality or schedule. For the government, the risk is that the contractor might not deliver the expected quality or may seek change orders to recoup unexpected costs. Mitigation strategies typically include robust pre-award technical evaluations, detailed statement of work, clear specifications, and diligent government oversight during construction to ensure quality standards are met and to manage any necessary contract modifications fairly.

How effective is the full and open competition process in ensuring optimal value for taxpayer dollars in large-scale construction projects like this?

The full and open competition process is generally considered the most effective method for ensuring optimal value for taxpayer dollars in large-scale construction projects. By allowing all qualified contractors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of five bidders in this case suggests that the process was successful in attracting multiple interested parties. However, the ultimate value realization depends on the clarity of the solicitation, the fairness of the evaluation criteria, and the government's ability to effectively manage the awarded contract to ensure quality and adherence to scope.

What is the historical spending trend for facility construction and maintenance at Seymour Johnson AFB or similar Air Force installations?

Historical spending trends for facility construction and maintenance at Seymour Johnson AFB or similar Air Force installations are not detailed in the provided data. However, such spending is typically driven by military readiness requirements, infrastructure modernization programs, and the lifecycle of existing facilities. Major construction projects like this are often part of larger, multi-year capital investment plans. Analyzing past appropriations and contract awards for the base would reveal patterns in investment, with fluctuations based on specific modernization needs or new mission requirements.

What are the potential long-term implications of this facility upgrade on the operational capabilities and efficiency of the units it serves?

The upgrade to a corrosion control hangar and squadron operations/maintenance facility is expected to have positive long-term implications for operational capabilities and efficiency. A modern, well-equipped corrosion control facility can extend the lifespan and maintain the airworthiness of aircraft, reducing costly repairs and downtime. Improved squadron operations facilities can enhance maintenance workflows, provide better working environments for personnel, and potentially streamline support functions, all contributing to increased mission readiness and effectiveness for the units based at Seymour Johnson AFB.

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: W912HN07R0033

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 178 NC HIGHWAY 111 S, GOLDSBORO, NC, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $23,756,142

Exercised Options: $23,756,142

Current Obligation: $23,756,142

Contract Characteristics

Cost or Pricing Data: NO

Timeline