DOD Awards $28M Design-Build Contract for Nellis AFB Hangar Repair and Expansion

Contract Overview

Contract Amount: $27,932,071 ($27.9M)

Contractor: WU & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-31

End Date: 2027-10-21

Contract Duration: 720 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ONE-PHASE DESIGN-BUILD TO REPAIR A 1950S HANGAR AT NELLIS AFB FOR AN F-35 SQUADRON. INCLUDES HANGAR, ADMIN UPGRADES, AND 4,062 GSF ADDITION. 100% SMALL BUSINESS SET-ASIDE. POP: 720 DAYS. MAGNITUDE: $25M-$100M. NAICS 236220; PSC Y1BZ.

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to WU & ASSOCIATES INC for work described as: ONE-PHASE DESIGN-BUILD TO REPAIR A 1950S HANGAR AT NELLIS AFB FOR AN F-35 SQUADRON. INCLUDES HANGAR, ADMIN UPGRADES, AND 4,062 GSF ADDITION. 100% SMALL BUSINESS SET-ASIDE. POP: 720 DAYS. MAGNITUDE: $25M-$100M. NAICS 236220; PSC Y1BZ. Key points: 1. The contract focuses on repairing a 1950s hangar and adding administrative space for F-35 operations. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. The project is a firm-fixed-price definitive contract, providing cost certainty for the government. 4. The magnitude of $25M-$100M suggests a significant infrastructure investment. 5. The project duration is 720 days, indicating a substantial construction timeline.

Value Assessment

Rating: good

The awarded amount of $27,932,071 falls within the lower end of the estimated magnitude. As a firm-fixed-price contract, it provides clear cost expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting that initial solicitations may have been limited, but ultimately a broad competition was held. This method aims to achieve fair pricing through market forces.

Taxpayer Impact: The firm-fixed-price nature of the contract helps control costs, and the competitive bidding process is intended to secure a reasonable price for taxpayers.

Public Impact

Enhances operational readiness for F-35 squadrons at Nellis AFB. Modernizes aging infrastructure, improving safety and efficiency. Supports military personnel with upgraded administrative facilities. The project represents a significant investment in Air Force base infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise in the 1950s hangar.
Schedule delays due to the complexity of integrating new construction with existing structures.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Design-build approach can streamline project delivery.
Focus on critical F-35 operational support.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector critical for maintaining and upgrading government facilities. Spending benchmarks for similar military construction projects vary widely based on scope and location, but this contract appears to be a moderate-sized investment.

Small Business Impact

Although the data indicates the contract was not a small business set-aside (ss: false, sb: false), the NAICS code 236220 is often associated with small businesses. Further investigation may be needed to understand the specific subcontracting opportunities for small businesses within this larger contract.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is the awarding agency. Oversight will likely involve contract management teams ensuring adherence to specifications, timelines, and budget. The definitive contract type suggests a clear scope of work.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for unforeseen structural issues in aging infrastructure.
Complexity of integrating new construction with existing 1950s facilities.
Schedule adherence given the 720-day duration and scope.
Ensuring compliance with modern F-35 operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to WU & ASSOCIATES INC. ONE-PHASE DESIGN-BUILD TO REPAIR A 1950S HANGAR AT NELLIS AFB FOR AN F-35 SQUADRON. INCLUDES HANGAR, ADMIN UPGRADES, AND 4,062 GSF ADDITION. 100% SMALL BUSINESS SET-ASIDE. POP: 720 DAYS. MAGNITUDE: $25M-$100M. NAICS 236220; PSC Y1BZ.

Who is the contractor on this award?

The obligated recipient is WU & ASSOCIATES 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 $27.9 million.

What is the period of performance?

Start: 2025-10-31. End: 2027-10-21.

What specific factors led to the 'Exclusion of Sources' in the initial stages of the competition, and how did this impact the final price?

The exclusion of sources likely stemmed from specific technical requirements or pre-qualification criteria necessary for the unique demands of repairing a 1950s hangar for F-35 operations. While this might initially limit the pool of bidders, the subsequent 'Full and Open' competition ensures that the final award is made to the most advantageous offer, aiming to achieve competitive pricing despite any initial restrictions.

What are the primary risks associated with renovating a 1950s structure for modern F-35 operations, and how are these mitigated?

Key risks include discovering unforeseen structural deficiencies, asbestos or lead paint, and outdated utility systems within the 1950s hangar. Mitigation strategies typically involve thorough pre-construction surveys, contingency planning in the contract, and the use of a design-build approach which allows for integrated problem-solving between design and construction teams to address issues as they arise.

How does the design-build approach for this project contribute to project effectiveness and taxpayer value?

The design-build approach consolidates design and construction under a single contract, fostering collaboration and potentially reducing delays and conflicts. This can lead to a more efficient project delivery, better cost control, and a higher quality final product. For taxpayers, this integrated approach can translate to better value by minimizing change orders and ensuring the project meets its objectives within the allocated budget.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912PL25RA023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 GAITHER DR, MOUNT LAUREL, NJ, 08054

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,115,298

Exercised Options: $27,932,071

Current Obligation: $27,932,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline