DoD's $16.9M NAS Jax Renovation Contract Awarded to Haskell Company Amidst Industrial Building Construction

Contract Overview

Contract Amount: $16,914,962 ($16.9M)

Contractor: THE Haskell Company

Awarding Agency: Department of Defense

Start Date: 2007-01-29

End Date: 2008-12-05

Contract Duration: 676 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ENGINEERING OPERATIONS CENTER & RENOVATIONS TO BLDG. 135 AT NAS JAX

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to THE HASKELL COMPANY for work described as: ENGINEERING OPERATIONS CENTER & RENOVATIONS TO BLDG. 135 AT NAS JAX Key points: 1. Contract value of $16.9 million for engineering operations center and building renovations. 2. Awarded to The Haskell Company, indicating a specific contractor's role in defense infrastructure. 3. The contract falls under Industrial Building Construction, a key sector for military base support. 4. Duration of 676 days suggests a significant scope of work for the renovation project. 5. Firm Fixed Price contract type implies defined costs and risks for both parties. 6. Awarded by the Department of the Navy, highlighting a specific branch's infrastructure needs.

Value Assessment

Rating: fair

The contract value of $16.9 million for building renovations and an engineering operations center appears within a reasonable range for a project of this nature, especially considering the location and scope. However, without specific benchmarks for comparable renovations at Naval Air Stations or similar military facilities, a precise value-for-money assessment is challenging. The firm fixed-price nature suggests cost certainty, but the final value could be impacted by change orders if not managed tightly. Benchmarking against similar construction projects in Florida could provide further insight into pricing.

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 specific project. While more than one bidder is positive, a higher number typically leads to more aggressive pricing and better value for the government. The competition level here implies that while there was a choice, the market may not have been saturated with potential offerors for this specialized construction task.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution. The 3 bidders suggest a reasonable, though not intense, competitive environment, which should have contributed to fair pricing.

Public Impact

Naval Air Station Jacksonville (NAS Jax) personnel will benefit from an updated engineering operations center and renovated facilities. The project directly supports the operational readiness and infrastructure of a key naval installation. The geographic impact is concentrated at NAS Jax in Florida, enhancing local military capabilities. The construction work likely involved a workforce of skilled tradespeople and project managers in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs in the renovation project.
Ensuring timely completion within the 676-day duration is critical to avoid operational disruptions.
Quality control during construction is paramount to ensure long-term durability and safety.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Firm Fixed Price contract type provides cost certainty for the government.
The project addresses necessary infrastructure upgrades at a significant military installation.

Sector Analysis

This contract falls within the Industrial Building Construction sector, which is vital for maintaining and upgrading military infrastructure. The market for such services is characterized by specialized firms capable of handling large-scale, complex projects often requiring specific security clearances and adherence to stringent government standards. Spending in this sector is driven by the need for modernization, expansion, and repair of defense facilities globally. Comparable spending benchmarks would involve analyzing other large construction contracts awarded by the Department of Defense or other federal agencies for similar facility upgrades.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests the contract was competed broadly, and while small businesses could have potentially bid or subcontracted, there was no explicit mandate for their inclusion. The absence of set-aside provisions means the prime contractor, The Haskell Company, has discretion regarding subcontracting opportunities. It is possible they may engage small businesses, but it's not guaranteed by the contract's structure, potentially limiting direct benefits to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring adherence to specifications and timelines. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract execution.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Military Construction Projects
Department of Defense Infrastructure Modernization
Base Realignment and Closure (BRAC) related construction

Risk Flags

Potential for scope creep in renovation projects.
Ensuring adherence to construction quality standards.
Timely completion within the contract duration.
Accurate cost estimation for fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to THE HASKELL COMPANY. ENGINEERING OPERATIONS CENTER & RENOVATIONS TO BLDG. 135 AT NAS JAX

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 $16.9 million.

What is the period of performance?

Start: 2007-01-29. End: 2008-12-05.

What is the track record of The Haskell Company with the Department of the Navy and similar federal construction projects?

The Haskell Company has a significant history of working with the Department of Defense and other federal agencies on various construction and engineering projects. Their portfolio often includes large-scale infrastructure development, facility renovations, and specialized construction for military installations. Analyzing their past performance on similar firm fixed-price contracts, particularly those involving renovations of operational facilities or construction of command centers, would provide insight into their ability to deliver projects on time and within budget. Past performance reviews and any documented issues or commendations from previous government contracts would be crucial for a comprehensive assessment of their reliability and expertise in executing this specific NAS Jax project.

How does the $16.9 million contract value compare to similar industrial building construction projects at naval installations?

Benchmarking the $16.9 million contract value requires comparing it against similar industrial building construction projects, specifically renovations or new constructions of engineering operations centers or similar facilities at naval installations. Factors such as project scope, square footage, complexity of systems (e.g., HVAC, IT infrastructure), geographic location (influencing labor and material costs), and the specific year of award are critical for a meaningful comparison. Without access to a detailed database of comparable projects, it's difficult to definitively state if this value represents excellent, fair, or concerning pricing. However, projects of this scale at major naval bases typically involve substantial investment, and this figure appears plausible for a significant renovation and facility upgrade.

What are the primary risks associated with a firm fixed-price contract for building renovations, and how were they mitigated?

The primary risk for the government in a firm fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. For the contractor, the risk lies in underestimating costs or encountering unforeseen issues (e.g., hazardous materials, structural problems) that erode profit margins. Mitigation strategies for the government include thorough pre-bid site assessments, clearly defined specifications and SOW, robust quality assurance surveillance plans (QASP), and careful review of the contractor's proposed pricing and technical approach. The number of bidders (3) suggests some level of market confidence in the project's feasibility and profitability under an FFP structure.

How effective is the 'full and open competition' approach in ensuring optimal value for taxpayer money in defense construction contracts?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer money in defense construction contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process fosters price discovery and encourages contractors to offer their best value propositions. While it requires more administrative effort upfront to solicit and evaluate bids, the potential savings and improved outcomes typically outweigh these costs. The presence of multiple bidders, as seen with 3 offers in this case, indicates the process was functional, though a higher number of bidders could potentially yield even greater value.

What are the potential long-term implications of renovating facilities at NAS Jacksonville for its operational capabilities?

Renovating facilities at Naval Air Station Jacksonville (NAS Jax), such as the engineering operations center and Building 135, has significant long-term implications for its operational capabilities. Modernized facilities enhance efficiency, improve working conditions for personnel, and can incorporate advanced technological infrastructure necessary for current and future naval aviation operations. Upgraded buildings are often more energy-efficient and require less maintenance, reducing long-term operational costs. Furthermore, ensuring that critical infrastructure is up-to-date contributes to the overall readiness and resilience of the base, supporting its strategic mission effectively for years to come.

Can the $16.9M contract value be broken down into major cost categories (e.g., labor, materials, overhead) based on available data?

The provided data for this contract does not include a detailed cost breakdown into categories such as labor, materials, or overhead. The total award amount of $16.9 million represents the overall price agreed upon for the Engineering Operations Center & Renovations to Building 135 at NAS Jax. To determine such a breakdown, one would typically need access to the contractor's detailed proposal, cost-plus data (if applicable, though this is FFP), or internal government cost estimates. In a Firm Fixed Price (FFP) contract, the breakdown is primarily the contractor's internal responsibility for managing their bid, with the government focused on the total price and adherence to scope and quality.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 111 RIVERSIDE AVENUE, JACKSONVILLE, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,914,962

Exercised Options: $16,914,962

Current Obligation: $16,914,962

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6927203D0030

IDV Type: IDC

Timeline