DoD's $14.5M aircraft hangar renovation at Homestead ARB awarded to WEB, LLC, completed on time

Contract Overview

Contract Amount: $14,505,199 ($14.5M)

Contractor: WEB, LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-25

End Date: 2023-08-18

Contract Duration: 904 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF AN AIRCRAFT MAINTENANCE HANGAR AND THE CONSTRUCTION OF AN ADDITION TO THE HANGAR LOCATED AT HOMESTEAD ARB, FL. POP IS 590 DAYS FROM NTP. FUNDED AMOUNT IS BASE PLUS OPTIONS 1 AND 7.

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33039

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to WEB, LLC for work described as: RENOVATION OF AN AIRCRAFT MAINTENANCE HANGAR AND THE CONSTRUCTION OF AN ADDITION TO THE HANGAR LOCATED AT HOMESTEAD ARB, FL. POP IS 590 DAYS FROM NTP. FUNDED AMOUNT IS BASE PLUS OPTIONS 1 AND 7. Key points: 1. Contract awarded to WEB, LLC for hangar renovation and addition, indicating a focus on infrastructure modernization. 2. The project was completed within the estimated duration, suggesting effective project management and execution. 3. The firm fixed-price contract type likely provided cost certainty for the government. 4. The project's location in Florida suggests a need for upgraded facilities in a key operational area. 5. The absence of small business set-asides indicates the contract was not specifically targeted to smaller enterprises.

Value Assessment

Rating: good

The contract value of $14.5 million for renovating and adding to an aircraft maintenance hangar appears reasonable for a project of this scope and complexity. While specific benchmarks for hangar construction and renovation are not readily available, the duration of 904 days (including options) suggests a substantial undertaking. The firm fixed-price nature of the contract helps control costs, and the completion within the estimated timeframe is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is designed to ensure the government receives the best value by encouraging a range of proposals. The fact that it was competed fully suggests a healthy market for this type of construction service.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which is beneficial for taxpayers by potentially lowering the overall cost of the project.

Public Impact

Benefits military personnel and operations at Homestead Air Reserve Base by providing improved maintenance facilities. Delivers essential infrastructure upgrades for aircraft maintenance, enhancing operational readiness. Geographic impact is localized to Homestead ARB, Florida, supporting regional defense capabilities. Workforce implications include construction jobs and support roles during the renovation and construction period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite firm fixed-price contract.
Dependence on contractor performance for timely completion and quality of work.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty.
Project completed within the estimated duration, indicating good execution.
Located at a significant military installation, supporting critical defense infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures like hangars, which are critical for military operations. Spending in this area is often driven by modernization needs, capacity expansion, and infrastructure maintenance within government agencies, particularly the Department of Defense.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, WEB, LLC, was selected based on overall qualifications and price, rather than a mandate to engage small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes them in their subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and budget. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

Military Base Infrastructure Projects
Aircraft Maintenance Facilities
Department of Defense Construction Contracts
Federal Building Renovations

Risk Flags

Potential for cost growth if scope changes or unforeseen conditions arise.
Contractor performance risk related to quality and timeliness.
Dependency on specific materials and labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to WEB, LLC. RENOVATION OF AN AIRCRAFT MAINTENANCE HANGAR AND THE CONSTRUCTION OF AN ADDITION TO THE HANGAR LOCATED AT HOMESTEAD ARB, FL. POP IS 590 DAYS FROM NTP. FUNDED AMOUNT IS BASE PLUS OPTIONS 1 AND 7.

Who is the contractor on this award?

The obligated recipient is WEB, 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 $14.5 million.

What is the period of performance?

Start: 2021-02-25. End: 2023-08-18.

What is the track record of WEB, LLC in performing similar federal construction contracts?

Information regarding WEB, LLC's specific track record with federal construction contracts, particularly those involving aircraft maintenance hangars, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) on similar projects, including their history of on-time delivery, budget adherence, and quality of work. Without this specific performance data, it is difficult to definitively assess their reliability for this type of specialized construction.

How does the awarded amount compare to similar aircraft hangar renovation projects?

Benchmarking the $14.5 million award for this aircraft hangar renovation and addition against similar federal projects is challenging without more specific details on the scope of work, square footage, and specific renovation requirements. Aircraft hangar projects can vary significantly in complexity, from basic structural repairs to extensive upgrades involving specialized equipment and environmental controls. A detailed comparison would necessitate analyzing the contract's specific deliverables, the age and condition of the existing structure, and the extent of the new addition, alongside data from comparable projects awarded by the Department of Defense or other agencies.

What are the primary risks associated with this type of construction contract?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature. Schedule delays are another risk, stemming from weather, labor shortages, or supply chain disruptions. Quality control is also a risk, ensuring the renovation and addition meet stringent military specifications. The contractor's financial stability and management capacity are also critical risk factors. The government's risk is mitigated by the competitive bidding process and oversight, but the contractor bears the primary financial risk.

How effective is the firm fixed-price contract type in managing costs for hangar construction?

The firm fixed-price (FFP) contract type is generally effective in managing costs for construction projects like hangar renovations when the scope of work is well-defined and risks are understood. It shifts the majority of the cost risk to the contractor, incentivizing them to control expenses and complete the project efficiently to maximize profit. For the government, an FFP contract provides budget certainty. However, if the scope is not clearly defined or unforeseen issues arise, contractors may build in higher contingency costs, or change orders could increase the total price, potentially negating some of the cost-saving benefits.

What is the historical spending trend for aircraft maintenance hangar construction by the Department of the Army?

Analyzing the historical spending trend for aircraft maintenance hangar construction by the Department of the Army would require access to comprehensive historical contract data. This would involve querying databases like FPDS or SAM.gov for contracts categorized under relevant NAICS codes (e.g., 236220) and PSC codes related to building construction and maintenance, specifically for hangars. Trends would likely reflect modernization initiatives, base realignments, and responses to aging infrastructure. Without specific historical data, it's difficult to provide precise figures or growth rates, but such spending is typically cyclical and tied to military readiness and infrastructure investment priorities.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR20R0078

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8134 OLD KEENE MILL RD STE 200, SPRINGFIELD, VA, 22152

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,588,345

Exercised Options: $14,505,199

Current Obligation: $14,505,199

Actual Outlays: $3,192,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline