DoD awards $31.7M for Westover ARB runway repair, with Lagan Construction LLC securing the contract

Contract Overview

Contract Amount: $31,712,462 ($31.7M)

Contractor: Lagan Construction LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-19

End Date: 2021-10-20

Contract Duration: 580 days

Daily Burn Rate: $54.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WESTOVER ARB REPAIR RUNWAY 05/23

Place of Performance

Location: CHICOPEE, HAMPDEN County, MASSACHUSETTS, 01022

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.7 million to LAGAN CONSTRUCTION LLC for work described as: WESTOVER ARB REPAIR RUNWAY 05/23 Key points: 1. Contract value appears reasonable for a large-scale infrastructure project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type with a firm fixed price indicates a clear scope and cost control. 4. Project duration of 580 days is substantial, requiring careful management and oversight. 5. The North American Industry Classification System (NAICS) code 237310 points to significant highway, street, and bridge construction expertise. 6. The contract is located in Massachusetts, potentially impacting local employment and businesses.

Value Assessment

Rating: good

The contract value of $31.7 million for runway repair is substantial. Benchmarking against similar large-scale airfield infrastructure projects, this figure appears to be within a reasonable range, assuming the scope includes significant structural work and material costs. The firm fixed-price nature of the contract suggests that the contractor has a defined cost expectation, which can be a positive indicator of value if the work is completed within budget. However, without detailed project specifications and a comparison of unit costs for specific construction elements, a precise value-for-money assessment is challenging.

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. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection. The agency's decision to proceed with full and open competition is a positive sign for market engagement.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open bidding process. This approach aims to ensure that the government receives the best value by allowing multiple qualified contractors to compete for the work.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other military branches utilizing Westover Air Reserve Base, ensuring operational readiness. The project delivers essential infrastructure repair for Runway 05/23, critical for aircraft operations and safety. The geographic impact is localized to Westover Air Reserve Base in Chicopee, Massachusetts. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Massachusetts region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the 580-day construction period.
Risk of project delays impacting base operations if scheduling is not meticulously managed.
Dependence on a single contractor (Lagan Construction LLC) for the entirety of the project scope.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to a single contractor streamlines project management and accountability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on airfield infrastructure. The market for airfield construction and repair is specialized, often involving significant regulatory compliance and technical expertise. The value of this contract, at over $31 million, places it in the mid-to-large size category for individual construction projects within this niche. Comparable spending benchmarks would typically be found in other military or major civilian airport runway renovation projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and specialized nature of runway repair, it is common for such large projects to be competed on a broader scale. There is no explicit information on subcontracting plans for small businesses, but it is possible that the prime contractor may engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. As a definitive contract with a firm fixed price, accountability is established through adherence to the contract terms and specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airfield Pavement Repair
Military Construction Projects
Infrastructure Modernization Programs
Department of Defense Facilities Maintenance

Risk Flags

Potential for schedule delays due to project duration.
Risk of unforeseen site conditions impacting cost and schedule.
Need for robust quality assurance to ensure runway integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to LAGAN CONSTRUCTION LLC. WESTOVER ARB REPAIR RUNWAY 05/23

Who is the contractor on this award?

The obligated recipient is LAGAN CONSTRUCTION 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 $31.7 million.

What is the period of performance?

Start: 2020-03-19. End: 2021-10-20.

What is the track record of Lagan Construction LLC in completing similar large-scale federal construction projects on time and within budget?

Assessing the track record of Lagan Construction LLC requires a review of their past performance on federal contracts, particularly those involving airfield infrastructure. Information on past performance, including on-time completion rates and adherence to budget, is typically available through sources like the Federal Procurement Data System (FPDS) or agency-specific performance evaluation systems. A detailed analysis would involve examining contract close-out data, any documented disputes or claims, and client feedback. Without specific data on Lagan Construction LLC's historical performance on similar projects, it is difficult to definitively assess their reliability for this $31.7 million runway repair contract. However, the fact that they were awarded this contract under full and open competition suggests they met the agency's pre-qualification criteria.

How does the awarded amount of $31.7 million compare to the estimated cost or budget for this runway repair project?

The awarded amount of $31,712,461.75 represents the final negotiated price for the Westover ARB runway repair. To assess value, this figure should be compared against the government's independent government cost estimate (IGCE) or the initial budget allocated for the project. If the awarded amount is significantly lower than the IGCE, it suggests potential cost savings achieved through competition. Conversely, if it is higher, it might indicate an underestimation by the government or a more complex scope than initially anticipated. Without access to the IGCE or the initial budget, it's challenging to determine if this award represents exceptional value or if it met expectations. The firm fixed-price nature, however, caps the government's financial exposure at this amount, barring any change orders.

What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract for the 580-day duration?

The contract likely includes specific Key Performance Indicators (KPIs) related to construction milestones, quality control, safety compliance, and environmental standards. Given the 580-day duration, KPIs would focus on phased completion of different runway sections, material testing, and adherence to airfield operational safety protocols. Risk mitigation strategies would typically involve detailed project scheduling, contingency planning for weather delays or unforeseen site conditions, robust quality assurance processes, and clear communication protocols between the contractor and base personnel. The firm fixed-price structure itself acts as a risk mitigation tool for the government by capping costs. However, the contractor bears the primary risk of cost overruns due to schedule delays or unexpected issues.

What is the historical spending trend for runway maintenance and repair at Westover Air Reserve Base over the past five years?

Analyzing historical spending on runway maintenance and repair at Westover Air Reserve Base would provide context for the $31.7 million award. This involves reviewing past contract awards for similar services at the base. A trend of consistently high spending might indicate ongoing infrastructure challenges or a proactive maintenance program. Conversely, a sudden increase in spending could signal deferred maintenance or a major upgrade initiative. Understanding this historical pattern helps determine if the current contract represents a typical investment or an exceptional expenditure. Without access to historical procurement data specific to Westover ARB's runway projects, this analysis remains speculative.

How does the level of competition (3 bidders) for this contract compare to similar airfield construction projects awarded by the Department of Defense?

The presence of three bidders for this $31.7 million runway repair contract suggests a moderate level of competition. For large, specialized construction projects like airfield repairs, the number of qualified bidders can vary significantly. Some highly specialized or geographically constrained projects might see fewer than three bidders, while more common infrastructure work could attract a larger pool. Comparing this to similar DoD airfield projects would involve analyzing the number of bids received on contracts of comparable value and scope. If three bidders is typical or above average for such projects, it indicates healthy competition. If it's below average, it might suggest barriers to entry for other potential contractors or a limited market for these services.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W912QR19B0013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2500 HUNTER PL STE 201, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $31,712,462

Exercised Options: $31,712,462

Current Obligation: $31,712,462

Actual Outlays: $986,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline