DoD Awards $35.6M for Fort Campbell Hangar Construction Amidst Firm Fixed Price Contract

Contract Overview

Contract Amount: $35,585,767 ($35.6M)

Contractor: Caddell/Whitesell-Green, Joint Venture

Awarding Agency: Department of Defense

Start Date: 2012-03-29

End Date: 2015-02-15

Contract Duration: 1,053 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF SOF ROTARY WING HANGAR, FORT CAMPBELL, KENTUCKY

Place of Performance

Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to CADDELL/WHITESELL-GREEN, JOINT VENTURE for work described as: DESIGN AND CONSTRUCTION OF SOF ROTARY WING HANGAR, FORT CAMPBELL, KENTUCKY Key points: 1. The contract awarded to Caddell/Whitesell-Green Joint Venture for hangar construction at Fort Campbell represents a significant investment in military infrastructure. 2. Full and open competition was utilized, suggesting a robust market for such construction services. 3. The firm-fixed-price contract type aims to transfer risk to the contractor, potentially controlling costs. 4. The project falls within the Commercial and Institutional Building Construction sector, a vital area for economic activity and government services.

Value Assessment

Rating: good

The contract's value of $35.6 million for a large-scale hangar project appears reasonable given the scope and firm-fixed-price nature. Benchmarking against similar military construction projects would provide a more precise assessment, but the award suggests competitive pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The award to Caddell/Whitesell-Green Joint Venture suggests they offered the best value under these competitive conditions.

Taxpayer Impact: The firm-fixed-price contract aims to protect taxpayers by capping the government's liability, while full and open competition helps ensure the price reflects market rates.

Public Impact

Enhances critical military aviation support capabilities at Fort Campbell. Supports local and regional economies through construction jobs and material sourcing. Demonstrates commitment to maintaining and upgrading essential defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business participation noted.
Project duration of 1053 days is substantial, requiring careful management.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition ensures market-driven pricing.
Awarded by Department of the Army, indicating strategic military need.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector crucial for government infrastructure development. Spending benchmarks for similar military construction projects can vary widely based on location, scale, and specific requirements, but this award appears aligned with typical investments for specialized facilities.

Small Business Impact

The data indicates that small business participation was not a factor in this specific contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

The firm-fixed-price contract structure inherently provides a degree of cost oversight by setting a ceiling. However, ongoing monitoring by the Department of the Army is crucial to ensure adherence to specifications, quality standards, and timely completion, mitigating potential risks of cost overruns or delays.

Related Government Programs

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

Risk Flags

Potential for cost overruns if unforeseen issues arise, despite FFP contract.
Lack of explicit small business participation noted.
Long project duration increases exposure to market fluctuations.
Dependency on contractor's financial stability and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to CADDELL/WHITESELL-GREEN, JOINT VENTURE. DESIGN AND CONSTRUCTION OF SOF ROTARY WING HANGAR, FORT CAMPBELL, KENTUCKY

Who is the contractor on this award?

The obligated recipient is CADDELL/WHITESELL-GREEN, JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2012-03-29. End: 2015-02-15.

What is the estimated cost per square foot for this hangar construction, and how does it compare to industry benchmarks for similar military facilities?

The provided data does not include square footage, making a direct cost per square foot calculation impossible. To assess value, one would need the total square footage of the hangar and compare the resulting cost per square foot against industry benchmarks for military aviation facilities. This comparison would reveal if the $35.6 million award was cost-effective relative to market standards for similar construction.

What specific risks were identified during the full and open competition process, and how were they mitigated by the firm-fixed-price contract?

While the data doesn't detail specific risks identified during competition, a firm-fixed-price contract inherently mitigates cost overrun risks for the government. Risks related to material availability, labor shortages, or unforeseen site conditions are primarily borne by the contractor. The government's mitigation would involve thorough pre-bid assessments and clear contract specifications to minimize ambiguity.

How effectively does this hangar construction project contribute to the overall operational readiness and mission capabilities of the Special Operations Forces at Fort Campbell?

The construction of a dedicated rotary wing hangar directly enhances operational readiness by providing secure, climate-controlled, and maintenance-ready facilities for SOF aircraft. This improves aircraft longevity, reduces downtime, and ensures aircraft are mission-ready. The project's effectiveness is measured by its contribution to maintaining and improving the critical aviation support infrastructure necessary for SOF operations.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR12R0014

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2700 LAGOON PARK DR, MONTGOMERY, AL, 36109

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,585,767

Exercised Options: $35,585,767

Current Obligation: $35,585,767

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline