DoD awards $102M for facility hangar construction, with 3 bids received

Contract Overview

Contract Amount: $102,251,644 ($102.3M)

Contractor: ACC Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2027-01-09

Contract Duration: 1,438 days

Daily Burn Rate: $71.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ABMS FACILITY HANGAR

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $102.3 million to ACC CONSTRUCTION CO., INC. for work described as: ABMS FACILITY HANGAR Key points: 1. Value for money appears reasonable given the scope of construction. 2. Competition dynamics suggest a healthy market for this type of construction. 3. Risk indicators are moderate, typical for large construction projects. 4. Performance context is standard for infrastructure development. 5. Sector positioning is within the broader defense construction market.

Value Assessment

Rating: good

The contract value of $102.25 million for a facility hangar appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar Department of Defense construction contracts for specialized facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final cost will depend on execution and potential change orders. Without specific details on the hangar's size, complexity, and location, a definitive comparison is challenging, but the award amount suggests a substantial undertaking.

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. Three bids were received, which suggests a moderate level of competition for this project. While three bidders are better than one or two, a higher number of bids could potentially drive prices down further. The agency's decision to use full and open competition is a positive sign for ensuring a broad search for qualified contractors and competitive pricing.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the construction services required.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the new facility hangar. The contract delivers essential infrastructure for military operations and equipment maintenance. The geographic impact is localized to the state of Georgia, where the construction will take place. Workforce implications include job creation for construction workers, engineers, and project managers in the Georgia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns common in large construction projects.
Delays in construction timelines can impact operational readiness.
Ensuring compliance with environmental and safety regulations during construction.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Full and open competition promotes competitive pricing.
Experienced contractor likely selected through a competitive process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The defense sector represents a substantial portion of government construction spending, often involving specialized requirements and large-scale projects. Comparable spending benchmarks for military facility construction can vary widely based on size, purpose, and location, but projects in the tens to hundreds of millions of dollars are not uncommon for major infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated in the provided data. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem will depend on whether the prime contractor utilizes small businesses for subcontracting opportunities. Further investigation into the subcontracting plan would be necessary to assess the full impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and project management teams within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, which incentivize the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details and inspector general jurisdiction would depend on the contract's specific clauses and the agency's internal policies.

Related Government Programs

Military Construction Projects
Defense Infrastructure Development
Base Realignment and Closure (BRAC) Facilities
Airfield and Hangar Construction
General Building Construction Services

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Risk of cost increases if scope changes significantly from the initial SOW.
Ensuring adequate small business subcontracting participation if not explicitly mandated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.3 million to ACC CONSTRUCTION CO., INC.. ABMS FACILITY HANGAR

Who is the contractor on this award?

The obligated recipient is ACC 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 $102.3 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-09.

What is the specific type and size of the facility hangar being constructed?

The provided data identifies the project as 'ABMS FACILITY HANGAR' and the North American Industry Classification System (NAICS) code as 236220, which pertains to Commercial and Institutional Building Construction. However, specific details regarding the hangar's dimensions (e.g., square footage, height), intended use (e.g., for specific aircraft types, maintenance, storage), and unique architectural or engineering requirements are not included in this summary. This information is crucial for a comprehensive understanding of the project's scope and for accurate cost benchmarking against similar facilities.

How does the awarded amount compare to similar hangar construction projects by the DoD?

The awarded amount of $102.25 million is substantial, placing it in the category of major construction projects. To benchmark effectively, one would need to compare it with other DoD hangar construction contracts awarded within the last 3-5 years, considering factors like size, complexity, location, and specific functionalities. For instance, a hangar designed for large transport aircraft or advanced fighter jets with specialized environmental controls and maintenance bays would naturally command a higher price than a simpler storage hangar. Without access to a database of comparable projects with detailed specifications, a precise comparison is difficult, but this value suggests a significant and complex facility.

What are the key performance indicators (KPIs) and milestones for this contract?

The provided data indicates a contract duration of 1438 days, which translates to approximately four years, from the start date of February 1, 2023, to the estimated completion date of January 9, 2027. Key performance indicators would typically include adherence to the construction schedule, quality of workmanship meeting specified standards, compliance with safety regulations, and successful completion of all project milestones. Specific KPIs and milestones are usually detailed in the contract's statement of work (SOW) and performance work statement (PWS), which are not included here. The firm-fixed-price nature implies penalties for delays and incentives for early completion, though these are not detailed.

What is the track record of ACC CONSTRUCTION CO., INC. with the Department of Defense?

ACC CONSTRUCTION CO., INC. has been awarded this definitive contract by the Department of the Army, valued at $102.25 million. To assess their track record, one would need to examine their past performance on similar government contracts, particularly with the DoD. This includes reviewing past project completion records, any history of contract disputes or terminations, client satisfaction feedback, and their experience with projects of comparable size and complexity. A thorough review of their contract history in federal databases like SAM.gov or FPDS would provide insights into their reliability and expertise in executing large-scale construction projects for the military.

Are there any specific risks associated with constructing facilities in Georgia for the DoD?

Constructing facilities in Georgia for the DoD can involve several risks common to large construction projects, amplified by specific regional factors. These include potential weather-related delays (e.g., hurricanes, heavy rainfall), which can impact schedules and costs. Environmental considerations, such as soil conditions, protected species, or historical site preservation, may require extensive surveys and mitigation efforts. Labor availability and costs in the specific region of Georgia can also be a factor. Furthermore, base access, security protocols, and coordination with existing military operations present unique challenges for DoD construction projects. The firm-fixed-price contract aims to mitigate cost risks for the government, but schedule and quality risks remain.

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: SEALED BID

Solicitation ID: W912HN22B3005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 635 NW FRONTAGE RD STE A, AUGUSTA, GA, 30907

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: $103,521,935

Exercised Options: $102,251,644

Current Obligation: $102,251,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline