DoD Awards $32.2M for Taxiway B Repair, Facing Limited Competition Amidst Infrastructure Needs
Contract Overview
Contract Amount: $32,244,150 ($32.2M)
Contractor: PCC Ventures
Awarding Agency: Department of Defense
Start Date: 2022-11-26
End Date: 2025-01-05
Contract Duration: 771 days
Daily Burn Rate: $41.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAXIWAY B REPAIR OF PAAF TAXIWAYS
Place of Performance
Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301
Plain-Language Summary
Department of Defense obligated $32.2 million to PCC VENTURES for work described as: TAXIWAY B REPAIR OF PAAF TAXIWAYS Key points: 1. Significant investment in critical airfield infrastructure for the Department of the Army. 2. Competition was limited, raising questions about price discovery and potential cost efficiencies. 3. The contract's firm fixed-price structure aims to control costs, but the limited competition is a risk. 4. Construction sector spending for infrastructure projects remains a key area for federal oversight.
Value Assessment
Rating: fair
The award of $32.2M for taxiway repair appears within a reasonable range for large-scale construction projects. However, without detailed cost breakdowns and comparison to similar airfield repair contracts, a precise value assessment is difficult. The limited competition may have inflated the final price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competitive environment. This method can restrict the pool of potential bidders, potentially leading to higher prices than a fully open competition might yield. Price discovery may have been less robust.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this essential infrastructure repair. Further justification for the exclusion of sources is needed to ensure value for money.
Public Impact
Ensures operational readiness and safety of critical military aviation infrastructure. Supports economic activity through construction contracts, though competition limitations are noted. Highlights the ongoing need for infrastructure investment within federal agencies. Potential for increased costs due to restricted bidding processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Lack of transparency in source exclusion.
- Long contract duration (771 days) increases risk exposure.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Addresses critical infrastructure needs for national defense.
- Awarded to a known entity (PCC Ventures).
Sector Analysis
This contract falls within the Highway, Street, and Bridge Construction sector, a significant area of federal spending for infrastructure maintenance and upgrades. Benchmarks for similar airfield repairs are essential for evaluating cost-effectiveness, especially given the limited competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Federal efforts to ensure small business participation in large construction projects should be reviewed in the context of this award.
Oversight & Accountability
Oversight is crucial to ensure the quality of work and adherence to the contract terms, especially given the limited competition. The Department of the Army's contracting activity should provide clear justification for the exclusion of sources to ensure accountability.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Potential for cost overruns if contractor contingency is high.
- Lack of small business participation.
- Long contract duration increases exposure to unforeseen risks.
Tags
highway-street-and-bridge-construction, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to PCC VENTURES. TAXIWAY B REPAIR OF PAAF TAXIWAYS
Who is the contractor on this award?
The obligated recipient is PCC VENTURES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.2 million.
What is the period of performance?
Start: 2022-11-26. End: 2025-01-05.
What specific factors necessitated the exclusion of sources, and how was the final price determined to be fair and reasonable under these constraints?
The justification for excluding certain sources needs to be thoroughly documented and reviewed by oversight bodies. Without this, it's difficult to ascertain if the limited competition resulted in a fair price. The contracting officer must demonstrate that the price reflects market conditions as closely as possible, even with a reduced bidder pool, potentially through detailed cost analysis and comparison to historical data for similar projects.
What are the potential long-term implications of awarding infrastructure contracts with limited competition on overall federal spending efficiency?
Consistently awarding contracts with limited competition can establish a precedent that reduces incentives for contractors to offer competitive pricing. Over time, this can lead to inflated costs for essential services and infrastructure, diminishing the overall efficiency of federal spending. It also limits opportunities for new or smaller businesses to enter the market and compete, potentially stifling innovation and reducing the available supplier base.
How does the firm fixed-price structure mitigate risks associated with the 771-day contract duration and potential unforeseen issues during taxiway repair?
A firm fixed-price (FFP) contract shifts most of the risk to the contractor, obligating them to complete the work for a predetermined price regardless of actual costs incurred. This structure provides budget certainty for the government and incentivizes the contractor to manage costs efficiently. However, for long-duration projects with potential for unforeseen site conditions, the contractor may build in significant contingency, potentially leading to a higher initial price.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: W912HN22B3004
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4477 E 5TH AVE, COLUMBUS, OH, 43219
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,615,892
Exercised Options: $32,244,150
Current Obligation: $32,244,150
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-26
Current End Date: 2025-01-05
Potential End Date: 2025-01-05 00:00:00
Last Modified: 2025-07-23
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