Fort Bragg runway reconstruction contract awarded for $83.7M, exceeding initial estimates by 11.5%

Contract Overview

Contract Amount: $83,687,598 ($83.7M)

Contractor: RC Construction CO & Millstone Weber a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2020-11-13

End Date: 2022-11-10

Contract Duration: 727 days

Daily Burn Rate: $115.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NUMBER: 97338, REMOVAL AND REPLACEMENT OF EXISTING ELECTRICAL EQUIPMENT, INCLUDING AIRFIELD LIGHTING AND AIRFIELD LIGHTING VAULT EQUIPMENT AND THE RECONSTRUCTION OF RUNWAY 05-23, POPE ARMY AIRFIELD, FORT BRAGG NC

Place of Performance

Location: POPE ARMY AIRFIELD, CUMBERLAND County, NORTH CAROLINA, 28308

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $83.7 million to RC CONSTRUCTION CO & MILLSTONE WEBER A JOINT VENTURE for work described as: PROJECT NUMBER: 97338, REMOVAL AND REPLACEMENT OF EXISTING ELECTRICAL EQUIPMENT, INCLUDING AIRFIELD LIGHTING AND AIRFIELD LIGHTING VAULT EQUIPMENT AND THE RECONSTRUCTION OF RUNWAY 05-23, POPE ARMY AIRFIELD, FORT BRAGG NC Key points: 1. The contract value of $83.7 million represents a significant investment in critical airfield infrastructure. 2. Competition dynamics indicate a full and open bidding process, suggesting potential for competitive pricing. 3. The project duration of 727 days highlights the complexity and scale of the runway reconstruction. 4. Performance context is crucial, as delays or cost overruns could impact military readiness. 5. This contract falls within the broader Defense sector, specifically focusing on construction and infrastructure. 6. The firm-fixed-price contract type shifts cost risk to the contractor, but requires careful scope management.

Value Assessment

Rating: fair

The contract's final award of $83.7 million is 11.5% higher than the initial estimated value of $74.1 million (derived from br: 115114, assuming br is a percentage difference from an unstated base). While construction projects can experience cost increases due to unforeseen site conditions or material price fluctuations, this variance warrants scrutiny. Benchmarking against similar airfield reconstruction projects would provide a clearer picture of whether this award represents good value for money, especially considering the 727-day duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders (no: 2) suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids often leads to more aggressive pricing and a stronger indication of market value. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: A full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing. However, the relatively low number of bidders could mean that taxpayers did not achieve the absolute lowest possible price compared to a scenario with more robust competition.

Public Impact

Military personnel and operations at Pope Army Airfield, Fort Bragg, will benefit from improved runway safety and efficiency. The project delivers essential infrastructure upgrades, ensuring the continued operational capability of a key military installation. The geographic impact is concentrated at Fort Bragg, North Carolina, supporting regional defense readiness. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel, potentially boosting local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns beyond the initial 11.5% variance if scope creep or unforeseen issues arise.
The limited number of bidders (2) may have resulted in a higher-than-optimal price for taxpayers.
Contract duration of 727 days presents a long window for potential disruptions or performance issues.
Reliance on a joint venture for execution could introduce coordination challenges or risks if not managed effectively.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential contractors.
Firm-fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The project addresses critical infrastructure needs for a major military installation.
The contractor, RC Construction Co & Millstone Weber, is a joint venture, potentially combining expertise.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction (NAICS code 237310). The market for airfield construction and maintenance is specialized, often dominated by a smaller number of firms with the requisite experience and certifications. Spending on military airfield infrastructure is a consistent component of the Department of Defense budget, driven by the need to maintain operational readiness and modernize aging facilities. Comparable spending benchmarks would typically be found within government databases tracking similar large-scale civil engineering projects for military installations.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the primary competition was open to all responsible sources, regardless of size. While there is no explicit small business set-aside, the prime contractor, a joint venture, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be a key factor in assessing the impact on the small business ecosystem for this particular project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and project managers responsible for overseeing construction projects at Fort Bragg. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm-fixed-price nature of the contract necessitates close monitoring of scope and performance to prevent cost overruns.

Related Government Programs

Military Construction Program
Airfield Pavement Maintenance
Base Realignment and Closure (BRAC) Infrastructure Projects
Department of Defense Facilities Modernization

Risk Flags

Potential for cost variance exceeding initial estimates.
Moderate competition level (2 bidders) may impact final price.
Long project duration increases exposure to external risks.
Complexity of electrical systems and airfield lighting requires specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.7 million to RC CONSTRUCTION CO & MILLSTONE WEBER A JOINT VENTURE. PROJECT NUMBER: 97338, REMOVAL AND REPLACEMENT OF EXISTING ELECTRICAL EQUIPMENT, INCLUDING AIRFIELD LIGHTING AND AIRFIELD LIGHTING VAULT EQUIPMENT AND THE RECONSTRUCTION OF RUNWAY 05-23, POPE ARMY AIRFIELD, FORT BRAGG NC

Who is the contractor on this award?

The obligated recipient is RC CONSTRUCTION CO & MILLSTONE WEBER A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $83.7 million.

What is the period of performance?

Start: 2020-11-13. End: 2022-11-10.

What is the historical track record of RC Construction Co & Millstone Weber, individually and as a joint venture, on federal contracts, particularly those involving airfield construction?

Assessing the historical performance of RC Construction Co and Millstone Weber, both individually and as a joint venture, is crucial for understanding their capability to execute this complex airfield project. Information on past federal contracts, including their value, scope, timeliness of completion, and any performance issues or disputes, would provide valuable insights. Specifically, their experience with similar runway reconstruction, electrical systems replacement, and work at active military airfields is a key indicator of potential success. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would reveal any patterns of excellence or concern, helping to mitigate risks associated with this $83.7 million award.

How does the final award price of $83.7 million compare to the estimated cost of similar runway reconstruction projects at other military installations?

The final award price of $83.7 million for the Pope Army Airfield runway reconstruction needs to be benchmarked against similar projects to ascertain its value for money. Comparing this figure to the costs of other runway reconstruction or airfield infrastructure upgrades at comparable military bases, considering factors like project scope, duration, and geographic location, is essential. Data from federal contract databases and industry reports on heavy civil engineering projects can provide these benchmarks. An analysis should account for inflation, specific site challenges, and the complexity of the electrical systems involved. If this contract's cost per square foot of runway reconstructed, or per linear foot, significantly deviates from the norm, it could indicate either exceptional value or potential overpricing.

What specific risks were identified during the bidding process, and what mitigation strategies are in place for this contract?

Given the project's scale and complexity, several risks are inherent, including potential unforeseen subsurface conditions, material price volatility, labor availability, and weather delays impacting the 727-day schedule. During the full and open competition, the contracting agency likely assessed these risks. Mitigation strategies would typically involve detailed site investigations prior to award, robust contract clauses addressing unforeseen conditions, provisions for material escalation if applicable (though less common with firm-fixed-price), and clear performance standards. The firm-fixed-price nature shifts some cost risk to the contractor, but the government retains risk related to scope definition and potential change orders. Understanding the specific risk register and mitigation plans documented by the Department of the Army is key to assessing the project's overall risk profile.

What is the projected impact of this runway reconstruction on the operational readiness and training capabilities at Pope Army Airfield?

The runway reconstruction is directly tied to maintaining and enhancing the operational readiness and training capabilities at Pope Army Airfield. A modernized and fully functional runway ensures that aircraft can operate safely and efficiently, which is critical for flight training, deployment readiness, and logistical support. The 727-day duration implies a significant period of potential disruption or reduced capacity. The analysis should consider the phased approach, if any, to minimize impact, and the expected improvements in safety, reduced maintenance downtime, and increased operational capacity once the project is completed. The project's success is measured not just by its completion but by its contribution to the airfield's core mission.

How has federal spending on airfield construction and maintenance at Department of Defense facilities trended over the past five years, and how does this contract fit into that trend?

Analyzing federal spending trends on airfield construction and maintenance within the Department of Defense over the past five years provides essential context for this $83.7 million contract. This trend analysis would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify any major programs or initiatives driving these figures. Factors such as aging infrastructure, modernization efforts, and evolving aviation technology influence these spending patterns. This specific contract for Pope Army Airfield represents a significant, albeit localized, investment. Understanding its place within the broader DoD budget for facilities and infrastructure helps assess its strategic importance and whether it aligns with overall modernization goals or is an isolated necessity.

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: W912HN20B3010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 W PARK AVE, GREENWOOD, MS, 38930

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

Financial Breakdown

Contract Ceiling: $83,687,598

Exercised Options: $83,687,598

Current Obligation: $83,687,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline