DoD awards $13.3M for Libby AAF pavement repairs, with limited competition impacting price discovery

Contract Overview

Contract Amount: $13,280,902 ($13.3M)

Contractor: Koman Integrated Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-29

End Date: 2025-12-09

Contract Duration: 436 days

Daily Burn Rate: $30.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR LIBBY AAF PAVEMENT OVERRUNS/SHOULDERS/LIGHTING, FT. HUACHUCA, ARIZONA

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to KOMAN INTEGRATED SOLUTIONS, LLC for work described as: REPAIR LIBBY AAF PAVEMENT OVERRUNS/SHOULDERS/LIGHTING, FT. HUACHUCA, ARIZONA Key points: 1. The contract's value of $13.3 million for pavement repairs at Libby AAF presents a significant investment in critical infrastructure. 2. Limited competition for this contract raises concerns about achieving optimal value for taxpayer dollars. 3. The firm-fixed-price contract type aims to control costs, but the procurement method may have influenced the final price. 4. The project's duration of 436 days indicates a substantial undertaking for infrastructure improvement. 5. The contract is positioned within the broader Defense sector's infrastructure maintenance and construction spending. 6. The lack of small business set-aside suggests potential missed opportunities for smaller contractors in this project.

Value Assessment

Rating: fair

Benchmarking the $13.3 million award for pavement repairs against similar Department of Defense infrastructure projects is challenging without more granular data on scope and location. However, the firm-fixed-price structure suggests an attempt to cap costs. The absence of a competitive bidding process, as indicated by the procurement type, may have led to a higher price than could have been achieved in a fully open market. Further analysis would require comparing unit costs for specific repair elements (e.g., per square yard of pavement, per linear foot of shoulder) to industry standards or other government contracts for comparable work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed openly, falling under a 'not available for competition' category. This suggests that only one source was considered or available for this specific requirement. The limited competition means that the government did not benefit from a range of proposals and pricing strategies that typically emerge from a broader bidding process. This can potentially lead to less favorable pricing and reduced innovation compared to a fully competed contract.

Taxpayer Impact: The lack of robust competition means taxpayers may not have received the most cost-effective solution. The government's ability to negotiate favorable terms is diminished when only one or a limited number of contractors are considered.

Public Impact

Military personnel and operations at Fort Huachuca will benefit from improved airfield pavement and lighting, enhancing safety and efficiency. The services delivered include essential repairs to overruns, shoulders, and lighting systems of the airfield. The geographic impact is localized to Fort Huachuca, Arizona, supporting the operational readiness of this specific military installation. The contract supports the construction and maintenance workforce, likely involving skilled laborers, equipment operators, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open solicitation.
Lack of transparency in the selection process for 'not available for competition' contracts.
Potential for cost overruns if unforeseen issues arise, despite the firm-fixed-price structure.
The contract duration of over a year could lead to extended disruptions if not managed effectively.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs, ensuring operational safety and efficiency at Libby AAF.
The contract award signifies investment in military readiness and base infrastructure.
The specific nature of the repairs may require specialized expertise, justifying a targeted approach.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction related to transportation infrastructure. The market for airfield pavement repair is driven by government spending on military bases and civilian airports. Comparable spending benchmarks would involve analyzing other Department of Defense or Federal Aviation Administration contracts for similar airfield maintenance and construction projects, considering factors like project scale, complexity, and geographic location. The total federal spending on highway, street, and bridge construction (NAICS 237310) is substantial, with military infrastructure forming a significant portion.

Small Business Impact

The contract details indicate that this was not a small business set-aside. The absence of specific subcontracting requirements for small businesses means there is no mandated pathway for them to participate in this project. This could limit opportunities for small businesses to gain experience and revenue within the federal contracting ecosystem for large infrastructure projects. Without explicit subcontracting goals, the prime contractor has discretion over their use of small business partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant personnel within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed price. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction Program
Airfield Pavement Maintenance
Department of Defense Infrastructure Modernization
Federal Aviation Administration Airport Improvement Program

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to KOMAN INTEGRATED SOLUTIONS, LLC. REPAIR LIBBY AAF PAVEMENT OVERRUNS/SHOULDERS/LIGHTING, FT. HUACHUCA, ARIZONA

Who is the contractor on this award?

The obligated recipient is KOMAN INTEGRATED SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2024-09-29. End: 2025-12-09.

What is the track record of KOMAN INTEGRATED SOLUTIONS, LLC with the Department of Defense?

KOMAN INTEGRATED SOLUTIONS, LLC has a history of contracts with the Department of Defense, primarily in construction and facilities maintenance. Analyzing their past performance, including contract values, types of services rendered, and any reported issues or successes, is crucial for assessing their capability to execute this specific pavement repair project. A review of their award history would reveal their experience with similar projects, their on-time delivery rates, and their adherence to quality standards. Understanding their past performance provides insight into their reliability and potential risks associated with awarding them this contract. Without specific data on past performance metrics for this contractor, a definitive assessment is difficult, but their presence in the DoD contracting space suggests some level of established capability.

How does the $13.3 million cost compare to similar airfield pavement repair projects at other military installations?

Directly comparing the $13.3 million cost without detailed project scope, specific repair types (e.g., resurfacing, crack sealing, drainage improvements), and geographic cost variations is difficult. However, airfield pavement projects can range significantly in cost. For instance, major runway rehabilitation can cost tens to hundreds of millions, while smaller shoulder and overrun repairs might fall within the single-digit to low double-digit millions. The firm-fixed-price nature of this contract suggests a defined scope and budget. To benchmark effectively, one would need to identify comparable projects at other Army or Air Force bases, analyze their square footage of work, materials used, and labor costs, and adjust for regional economic differences. The limited competition aspect also implies the price might be higher than a fully competed project of similar scope.

What are the primary risks associated with a 'not available for competition' contract of this magnitude?

The primary risk associated with a 'not available for competition' contract of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not achieve the best possible value for its investment. Another risk is reduced transparency in the procurement process, potentially leading to perceptions of unfairness or favoritism. Furthermore, the government may miss out on innovative solutions or cost-saving approaches that a competitive bidding process could have generated. There's also a risk that the selected contractor, while perhaps uniquely qualified, may not be as incentivized to perform efficiently as they would be under intense competition. Finally, reliance on a single source can create dependency and limit future options.

How effective are firm-fixed-price contracts in controlling costs for large construction projects like this?

Firm-fixed-price (FFP) contracts are generally considered effective in controlling costs for large construction projects when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the risk for cost overruns, as they are obligated to complete the work for the agreed-upon price. This incentivizes the contractor to manage their costs efficiently. However, if the scope is not precisely defined or unforeseen issues arise (e.g., subsurface conditions, material price volatility), the contractor may seek change orders, which can increase the total cost. For complex projects, a fixed-price incentive fee or cost-plus-fixed-fee structure might offer better flexibility while still providing some cost control. The success of an FFP contract heavily relies on the thoroughness of the initial planning and specification.

What is the historical spending pattern for airfield pavement maintenance at Fort Huachuca?

Analyzing historical spending patterns for airfield pavement maintenance at Fort Huachuca would require access to historical contract databases and budget allocations for the installation. This specific contract award of $13.3 million suggests a significant investment, potentially indicating a backlog of maintenance needs or a planned upgrade cycle. Without historical data, it's difficult to determine if this spending is an anomaly or part of a consistent maintenance program. Typically, military installations have recurring needs for pavement upkeep due to heavy use and environmental factors. Understanding past spending levels would help contextualize the current award and assess whether it represents an increase, decrease, or continuation of previous investment trends in airfield infrastructure at Fort Huachuca.

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 BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912PL24R0041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 GAMBELL ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,280,902

Exercised Options: $13,280,902

Current Obligation: $13,280,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline