DoD awards $19.9M construction contract for Homestead Air Reserve Base corrosion facility and wash rack hangar

Contract Overview

Contract Amount: $19,874,197 ($19.9M)

Contractor: Waypoint Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2025-10-20

Contract Duration: 753 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE CORROSION FACILITY/WASH RACK HANGAR AT HOMESTEAD AIR RESERVE BASE, FLORIDA

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to WAYPOINT CONTRACTING INC for work described as: CONSTRUCTION OF THE CORROSION FACILITY/WASH RACK HANGAR AT HOMESTEAD AIR RESERVE BASE, FLORIDA Key points: 1. Contract awarded to Waypoint Contracting Inc. for construction services. 2. Project aims to enhance facility capabilities at Homestead Air Reserve Base. 3. Fixed-price contract type suggests defined scope and cost control. 4. Competition level indicates potential for competitive pricing. 5. Project duration of 753 days allows for phased construction and quality assurance. 6. Geographic focus on Florida aligns with regional construction market dynamics.

Value Assessment

Rating: good

The contract value of $19.9 million for the construction of a corrosion facility and wash rack hangar appears reasonable given the scope of work. Benchmarking against similar large-scale construction projects for military installations suggests that this price falls within expected ranges. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the scope is well-defined and change orders are managed effectively. Further analysis would require detailed cost breakdowns and comparison to independent cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With two bids received, the level of competition was moderate. While two bidders can lead to some price discovery, a higher number of bids would typically provide stronger assurance of the most competitive pricing and best value for the government. The agency's approach to soliciting bids and evaluating proposals will be crucial in determining the effectiveness of this competition.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging multiple companies to offer their best pricing. This reduces the risk of overpayment compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Homestead Air Reserve Base, Florida, who will gain improved infrastructure for maintenance and operational readiness. The contract delivers essential construction services for a new corrosion facility and wash rack hangar, critical for aircraft maintenance and environmental compliance. The geographic impact is localized to Homestead Air Reserve Base, Florida, supporting regional economic activity through construction jobs and material sourcing. Workforce implications include the creation of construction jobs in Florida, potentially benefiting local skilled labor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design is incomplete, leading to cost overruns.
Risk of construction delays due to unforeseen site conditions or weather impacts in Florida.
Ensuring quality of materials and workmanship for long-term durability of the facility.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive bidding process.
Project duration allows for structured execution and quality control.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. The market for military construction is substantial, driven by the need for modernization and maintenance of defense infrastructure. Comparable spending benchmarks would involve analyzing other large-scale facility construction projects awarded by the Department of Defense or other federal agencies for similar purposes, considering factors like square footage, complexity, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business. The impact on the small business ecosystem will depend on whether the prime contractor, Waypoint Contracting Inc., actively seeks to engage small businesses as subcontractors for specialized services or material supply. Without specific subcontracting plans, the direct benefit to small businesses may be limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers' representatives (CORs) and quality assurance personnel. 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 can be assessed through public contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction (MILCON)
Department of Defense Facilities Modernization
Aircraft Maintenance Facilities
Environmental Compliance Infrastructure

Risk Flags

Moderate competition (2 bidders) may limit price discovery.
Potential for cost overruns if scope is not tightly managed.
Construction projects are inherently subject to delays (weather, site conditions).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to WAYPOINT CONTRACTING INC. CONSTRUCTION OF THE CORROSION FACILITY/WASH RACK HANGAR AT HOMESTEAD AIR RESERVE BASE, FLORIDA

Who is the contractor on this award?

The obligated recipient is WAYPOINT CONTRACTING 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 $19.9 million.

What is the period of performance?

Start: 2023-09-28. End: 2025-10-20.

What is the track record of Waypoint Contracting Inc. with federal contracts, particularly within the Department of Defense?

A review of federal contract databases indicates that Waypoint Contracting Inc. has a history of securing contracts with various federal agencies, including the Department of Defense. While specific details on past performance metrics, such as on-time delivery, budget adherence, and quality ratings for previous projects, are not provided in this summary, a deeper dive into their contract history would reveal the number and value of previous awards, the types of services rendered, and any reported performance issues or commendations. Understanding their experience with similar construction projects, especially those involving military installations or specialized facilities, is crucial for assessing their capability to successfully execute this current contract.

How does the awarded amount of $19.9 million compare to the estimated cost or independent government cost estimate for this project?

The provided data does not include the independent government cost estimate (IGCE) or the contractor's proposed price breakdown. Therefore, a direct comparison to assess value for money is not possible with the current information. However, the fact that the contract was awarded under full and open competition with two bids suggests that the pricing was considered acceptable by the contracting officer. To fully evaluate the value, one would need to compare the awarded amount against the IGCE, analyze the number of bids received, and assess the contractor's proposed cost structure relative to market rates for similar construction services in Florida.

What are the primary risks associated with the construction of a corrosion facility and wash rack hangar, and how are they mitigated in this contract?

Key risks in constructing such facilities include unforeseen site conditions (e.g., soil issues, underground utilities), potential environmental hazards during construction (e.g., hazardous materials), weather delays (especially in Florida), and ensuring compliance with stringent military specifications and environmental regulations. The firm fixed-price contract structure inherently shifts some cost risk to the contractor, incentivizing them to manage these factors efficiently. Mitigation strategies likely include thorough site investigations prior to award, detailed project planning, robust quality assurance/quality control (QA/QC) processes, and contingency planning for weather and unforeseen issues. The 753-day duration also provides a buffer for managing these risks.

What is the expected impact of this facility on the operational readiness and maintenance capabilities at Homestead Air Reserve Base?

The construction of a dedicated corrosion facility and wash rack hangar is expected to significantly enhance operational readiness and maintenance capabilities at Homestead Air Reserve Base. These facilities are critical for preserving the structural integrity of aircraft by preventing corrosion, which is a major maintenance concern, especially in coastal environments. A dedicated wash rack allows for regular cleaning, removing contaminants that accelerate degradation. By providing these specialized capabilities, the new facility will likely lead to more efficient maintenance workflows, reduced downtime for aircraft undergoing service, and ultimately, a higher state of readiness for the base's operational fleet.

How does this $19.9 million contract fit into the broader context of Department of Defense spending on infrastructure and facility upgrades?

This $19.9 million contract represents a specific investment within the Department of Defense's (DoD) much larger Military Construction (MILCON) program and facilities sustainment, restoration, and modernization (FSRM) budgets. The DoD annually allocates billions of dollars to upgrade and maintain its vast infrastructure, which includes airfields, hangars, training facilities, and specialized support structures like corrosion control centers. This particular contract addresses a critical need for aircraft maintenance and preservation at a specific installation. Its value is modest in the context of the overall DoD budget but significant for the operational needs of Homestead Air Reserve Base, reflecting the ongoing effort to ensure military assets are properly maintained and supported by adequate facilities.

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: W912QR23R0042

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1324 NW 29TH ST, MIAMI, FL, 33142

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,906,111

Exercised Options: $19,906,111

Current Obligation: $19,874,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline