DoD's $12.2M Industrial Building Construction Contract Awarded to The Haskell Company Shows Fair Value

Contract Overview

Contract Amount: $12,261,078 ($12.3M)

Contractor: THE Haskell Company

Awarding Agency: Department of Defense

Start Date: 2008-02-29

End Date: 2009-09-20

Contract Duration: 569 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INDUSTRIAL MAC

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to THE HASKELL COMPANY for work described as: INDUSTRIAL MAC Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price nature of the contract shifts performance risk to the contractor. 3. The contract duration of 569 days indicates a substantial project scope. 4. The award was made by the Department of the Navy, a major defense procurement agency. 5. The contract falls under the Industrial Building Construction category, a common requirement for military infrastructure. 6. The contractor, The Haskell Company, has a history of performing similar government contracts.

Value Assessment

Rating: good

The contract's total value of $12.2 million for industrial building construction appears reasonable when benchmarked against similar projects. While specific per-unit cost data is not provided, the firm fixed-price structure implies that the contractor has assessed costs and risks to offer a competitive bid. The duration of the contract (569 days) suggests a significant scope of work, and the award under full and open competition further supports the likelihood of a fair market price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion period. The presence of 5 bids suggests a healthy level of competition for this industrial building construction project. This competitive environment is generally favorable for price discovery and achieving a cost-effective outcome for the government.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving essential industrial building infrastructure. The services delivered include the construction of industrial facilities, crucial for military operations and readiness. The geographic impact is concentrated in Virginia, where the contract was performed. The contract likely supported a workforce of construction professionals, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by fixed-price.
Schedule delays could impact operational readiness if construction is not completed on time.
Quality control issues could lead to long-term maintenance problems if not addressed during construction.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, indicating competitive pricing.
Contractor has experience in government contracting, suggesting familiarity with requirements.
Project duration aligns with the complexity of industrial building construction.

Sector Analysis

This contract falls within the Construction sector, specifically industrial building construction, which is a vital component of maintaining and expanding military infrastructure. The Department of Defense is a significant investor in construction projects to support its global operations. Benchmarking this $12.2 million contract against other similar industrial construction projects for federal agencies would provide further context on its scale and cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, The Haskell Company, may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Military Construction
Naval Facilities Engineering Command Contracts
Industrial Facility Development
Department of Defense Infrastructure Projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control concerns
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to THE HASKELL COMPANY. INDUSTRIAL MAC

Who is the contractor on this award?

The obligated recipient is THE HASKELL COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2008-02-29. End: 2009-09-20.

What is The Haskell Company's track record with federal contracts, particularly in industrial construction?

The Haskell Company has a significant history of performing federal contracts, including those for industrial construction. Their experience with government agencies like the Department of Defense and Department of the Navy suggests a familiarity with federal procurement regulations, project requirements, and performance expectations. Analyzing their past performance ratings, any contract disputes, and the types of projects they have successfully completed would provide a more comprehensive understanding of their capabilities and reliability for this specific award. Their ability to secure this $12.2 million contract under full and open competition further indicates a competitive standing and a demonstrated capacity to meet government needs in this sector.

How does the $12.2 million value compare to similar industrial building construction contracts awarded by the DoD?

The $12.2 million value for this industrial building construction contract is a substantial but not extraordinary figure for the Department of Defense. The DoD frequently awards construction contracts ranging from a few million to tens or even hundreds of millions of dollars, depending on the scale and complexity of the facility. To assess value, this contract should be compared to similar projects in terms of square footage, type of industrial facility (e.g., warehouse, manufacturing plant, maintenance facility), location, and specific construction requirements. Without detailed project specifications, it's difficult to make a precise comparison, but the award under full and open competition with 5 bids suggests it was competitively priced within the typical range for such projects.

What are the primary risks associated with this type of industrial building construction contract for the government?

The primary risks for the government in industrial building construction contracts, even firm fixed-price ones, include potential schedule delays that could impact operational readiness, unforeseen site conditions requiring costly remediation, and quality control issues that might lead to long-term maintenance burdens. While the firm fixed-price structure shifts the financial risk of cost overruns to the contractor, the government still bears the risk of non-performance or substandard work. Effective oversight, clear contract specifications, and robust inspection protocols are crucial to mitigate these risks. The 569-day duration also presents a longer window for potential issues to arise.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects?

The 'Full and Open Competition After Exclusion of Sources' method is designed to maximize competition while allowing for initial exclusions based on specific criteria, which can sometimes streamline the process. For construction projects, this method aims to ensure that a wide range of qualified contractors are considered, thereby fostering competitive pricing. The fact that 5 bids were received indicates that the exclusion criteria did not unduly limit the pool of potential offerors. This level of competition generally leads to better price discovery and a higher likelihood of the government securing a fair market price, as contractors must bid competitively to win the award.

What is the historical spending pattern for industrial building construction by the Department of the Navy?

The Department of the Navy consistently allocates significant funds towards industrial building construction to support its vast network of bases, shipyards, and operational facilities. Historical spending patterns reveal a continuous need for new construction, renovation, and modernization of these critical infrastructure assets. Annual spending can fluctuate based on strategic priorities, budget allocations, and specific infrastructure upgrade initiatives. Analyzing multi-year spending data for this category would show trends, identify peak spending periods, and highlight the consistent demand for such construction services, underscoring the importance of contracts like this one.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation ID: N4008506R6013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 RIVERSIDE AVENUE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,261,078

Exercised Options: $12,261,078

Current Obligation: $12,261,078

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247201D0075

IDV Type: IDC

Timeline