Stolen From Hat Tip to
Patriot's Corner
I am posting this in its entirety. We have seen a lot of waste in the government. This is just not waste, it is criminal especially after the Solyndra fiasco.
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A true story of massive government waste to the tune of $16 million of
our tax dollars to finish a hangar. Yes a hangar and one way over
budget, way overdue past the deadline for completion.
All I ask is that you help Dr.Eowyn get this story out. It needs to be exposed for what it truly is.
Massive government waste and mismanagement.
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Govt waste: Will a $16 million hangar ever get finished?
The following article is a FOTM exclusive,
published nowhere else, on a mismanaged military construction project
that is shaping to be a $16 million boondoggle — at a time when America,
with a national debt of $16 trillion, can ill afford it.
Please help FOTM to publicize
this, by linking this post to your Facebook and Twitter accounts and by
sending this to your email list, especially your representatives in
Congress!

On October 7, 2008, the United States government, in the person of the commanding officer of
NAVFAC (Naval Facilities Engineering Command)
Mid-Atlantic in Norfolk, VA,
issued a solicitation for bids on Military Contract P809 for Fiscal Year 2009 (henceforth referred to as “Solicitation”).
The contract was
to undertake the renovation and facilities upgrades to a hangar (Hangar 130) on the Marine Corps Air Station in Cherry Point,
to accommodate two F/A-18 E/F squadrons. This would involve, among
others, the reconfiguration of hangar space to house maintenance,
training, and administrative functions.
According to NAVFAC’s solicitation document,
the government’s estimated cost for the project was $10 million to $15 million. (See the 59-page “Solicitation No. N40085-08-R-1424″
here or from
FOTM’s media library.) But a
NAVFAC presentation at the 11th Annual NC Defense Trade Show had the cost for the project when the contract was awarded to be
$16.2 million; and a
PDF document on the Department of the Navy’s Budget Estimates for FY 2008 had the cost of the project to be
$16.5 million.
The solicitation form specifies that the contractor with the winning bid must “begin performance within 15 calendar days and
complete it within 651 calendar days after receiving the notice to proceed.”
In other words, the project construction period was not to exceed 651 calendar days, which is to be conducted in 2 phases.
This time limit is “mandatory” and “non-negotiable.”
Certain conditions were attached to the Solicitation, including:
1. The Base Bid includes
work in accordance with the drawings and specifications by the architectural-engineering firm, Dills Ainscough Duff, P.C., of Virginia Beach, VA, which had been commissioned by NAVFAC, except for two options items:
- The construction of a single-story operational trainer building
- The construction of a single-story pre-engineered metal building for
storing and testing special ordnance devices using the “1760 Cable” to
attach to F18 aircraft.
2. This acquisition will result in a
Firm Fixed Price (FFP) contract for construction services. [
FFP contracts
are those contracts that: (a) provide for a price which normally is not
subject to any adjustment; (b) are negotiated usually where reasonably
definite specifications are available, and costs can be estimated with
reasonable accuracy; (c) places minimum administrative burden on
contracting parties; (d) subjects a contractor to maximum risk arising
from full responsibility for all cost escalations.]
3. The wining Contractor must abide by the government’s Affirmative
Action goals of 31% minority and 6.9% female participation in each trade
on all construction work in the covered area.
4. If the Contractor fails to complete the work within the time
specified in the contract (651 calendar days), the Contractor shall pay
liquidated damages to the Government in the amount of $7,161.57 for each
calendar day of delay until the work is completed or accepted.
5. If the Government terminates the Contractor’s right to proceed,
liquidated damages will continue to accrue until the work is completed.
These liquidated damages are in addition to excess costs of repurchase
under the Termination clause.
This hangar renovation project is a
MILCON (Military Construction) project.
MILCON involves
the construction of facilities that cost in excess of $750K. MILCON
appropriations are separate from all other appropriations approved by
Congress in that once funding is approved by Congress, construction must
begin within three years and be completed within five years. Further,
each MILCON project requires individual approval by Congress. A project
cannot be funded until it is designed, which was why before NAVFAC
issued its solicitation for contractors to bid on the hangar renovation
project, NAVFAC commissioned the architectural-engineering firm Dills
Ainscough Duff, P.C. to draw up the designs for the renovation. Using those designs, NAVFAC produced an estimated cost of the hangar renovation and then applied for funding from Congress.
MILCON projects requested by lawmakers are subjected to a stringent
vetting process before either the House or Senate appropriations
committees include them as earmarks in an annual spending bill. Once
a MILCON project has been earmarked and approved for the specified
estimated cost, the project is “capped” — which means no additional
money can be added to or subtracted from that construction project.
What this means in the case of MILCON P809 is that if
the Congress-approved funds are exhausted before the hangar-renovation
project is completed, further work on the project must be discontinued
because, simply put, there is no more money.
According to the defense.gov web site dated March 25, 2009, Blue Rock Structures, Inc., won the bid for the hangar project, with an expected date-of-completion of January 2011.
However, this is what
Blue Rock’s web page “Ongoing Projects: P809 Facilities Upgrades for FA-18E” says:
Contract Number: N40085-09-C-3204
Location (of project): MCAS, Cherry Point, NC
Description: Renovation
of an existing Hangar 130 to accommodate two F/A18 E/F squadrons to
include building upgrades and re-configuration of spaces to house
maintenance, training and administrative functions. The renovations will
include: fire sprinkler system, fire suppression installation, fire
main water distribution, compressed air upgrades, hanger door upgrades
and motorization, floor resurfacing and recoating, recoating of roof,
site improvements and replacement of adjacent aircraft pavement.
Completion Date: Feb. 3, 2012
Project Duration: 1046 days
Did you get that?
Blue Rock Structures now says the hangar project is supposed to be
completed on Feb. 3, 2012, but the project is listed under the
contractor’s “Ongoing Projects” and the project had already taken 1,046
days — 395 days more than the prescribed 651 days! Since the project is
still listed under Blue Rock Structures’ “Ongoing Projects,” and since
we are now in August 2012, this means the completion of the project is
now
more than 1½ years overdue!
A delay of more than 1½ years is suggestive of the contractor
encountering unforeseen problems, as well as cost overruns. Certain
questions must be asked:
- Did the problems arise as a result of flaws in the designs by the
architectural engineering firm Dills Ainscough Duff — designs which
NAVFAC had approved? If so, was anything done to correct the flaws?
- Is Blue Rock Structures delaying the project to procure more money
from the government? If so, why didn’t NAVFAC fire the contractor?
- What are the cost over-runs in light of the fact that the project is
still listed as ongoing, more than 1½ years over the allowed
“mandatory” time of 651 days?
- Are all the funds earmarked for this project spent?
- Has this problem been brought to the attention of Congress?
- And the BIG question, WHO IS BEING HELD ACCOUNTABLE for this costly delay?
In the meantime, at least a year ago the U.S. Navy had changed its
mind about moving the squadrons of FA-18s from Virginia to Cherry Point,
NC, which was the reason for renovating Hangar 130 in the first place.
All of which means that the money spent by local businesses and
residents to prepare Cherry Point to accommodate two new Navy squadrons
was all for naught.
What does all this mean for the
49% of Americans who still pay federal income taxes?
Answer: $16.5 million of our money may have been wasted — down the
drain of the sinkhole called Government Waste, Incompetence, and
Unaccountability.
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There is no accountability, no oversight. What was started under the Bush Administration has become a bloated waste of money under the Obama Regime. I wonder how fast this project would have been completed if the money that had been spent on Solyndra and other moonbat projects had been spent on projects like this, the taxpayers would not be out of so much money.