DoD Awards $20.7M for MQ-9 Maintenance Hangar at Hill AFB, Completed in 2015
Contract Overview
Contract Amount: $20,726,768 ($20.7M)
Contractor: Hew-Phelps
Awarding Agency: Department of Defense
Start Date: 2013-06-17
End Date: 2015-03-23
Contract Duration: 644 days
Daily Burn Rate: $32.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MQ-9 MAINTENANCE HANGAR, HAFB --- PROJECT 370034
Place of Performance
Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310
Plain-Language Summary
Department of Defense obligated $20.7 million to HEW-PHELPS for work described as: MQ-9 MAINTENANCE HANGAR, HAFB --- PROJECT 370034 Key points: 1. Project cost of $20.7 million for a specialized maintenance hangar. 2. Contract awarded to HEW-PHELPS, a single entity. 3. Construction falls under the Commercial and Institutional Building Construction sector. 4. Project duration was 644 days, completed in March 2015.
Value Assessment
Rating: fair
The contract value of $20.7 million for a specialized maintenance hangar appears within a reasonable range for similar government construction projects of this scale and complexity. Benchmarking against other large-scale institutional building projects would provide a more precise assessment.
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 competition scenario. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall cost-effectiveness.
Taxpayer Impact: Taxpayer funds totaling $20.7 million were allocated for this construction project. The specific impact on taxpayers depends on whether the limited competition resulted in a price above what full and open competition might have yielded.
Public Impact
Ensures operational readiness for MQ-9 aircraft by providing dedicated maintenance facilities. Supports military infrastructure development and modernization efforts. Creates jobs in the construction sector during the project's execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have led to higher costs.
- Lack of small business participation noted.
Positive Signals
- Project completed within the specified timeframe.
- Addresses a critical military operational need.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense often involves specialized facilities like hangars, barracks, and training centers, with costs varying significantly based on size, complexity, and location.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (sb: false). This suggests that the prime contractor did not subcontract to small businesses, or the contract was not specifically set aside for them.
Oversight & Accountability
The contract was a definitive contract awarded by the Department of the Army. Oversight would typically involve contract administration, quality assurance during construction, and final inspection to ensure compliance with specifications and standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have resulted in suboptimal pricing.
- No small business participation identified.
- Contract type (FIRM FIXED PRICE) offers limited flexibility for cost adjustments.
- Project duration was substantial (644 days).
Tags
commercial-and-institutional-building-co, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to HEW-PHELPS. MQ-9 MAINTENANCE HANGAR, HAFB --- PROJECT 370034
Who is the contractor on this award?
The obligated recipient is HEW-PHELPS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2013-06-17. End: 2015-03-23.
What was the specific justification for excluding other sources in the competition?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions require a documented rationale, such as specialized capabilities, urgent needs, or specific technical requirements that only a limited number of contractors can meet. Further investigation into the contract file would be needed to ascertain the precise reason.
How did the limited competition impact the final price compared to potential full and open competition?
It is difficult to definitively quantify the price impact without a benchmark from a full and open competition scenario for an identical or highly similar project. However, limited competition generally carries a higher risk of inflated pricing due to reduced bidder pressure. The awarded price of $20.7 million would need to be compared against market rates for comparable construction to assess potential overpayment.
What is the long-term value of this hangar to MQ-9 operational capabilities?
The hangar provides essential infrastructure for the maintenance and readiness of MQ-9 aircraft, which are critical assets for intelligence, surveillance, and reconnaissance missions. Its long-term value lies in ensuring the operational availability and extending the service life of these aircraft, thereby supporting ongoing military operations and national security objectives.
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: W912PP13R0002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6448 E HWY 290 STE D105, AUSTIN, TX, 78723
Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,726,768
Exercised Options: $20,726,768
Current Obligation: $20,726,768
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-06-17
Current End Date: 2015-03-23
Potential End Date: 2015-03-23 00:00:00
Last Modified: 2021-06-04
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