Forest Service awards $4.48M design-build contract for Placerville Nursery expansion to J.I. Garcia Construction

Contract Overview

Contract Amount: $4,475,789 ($4.5M)

Contractor: J. I. Garcia Construction, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-09-02

End Date: 2026-09-11

Contract Duration: 739 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 140FGA23D0100 / 127EAW24F0008 - PLACERVILLE NURSERY EXPANSION DESIGN/BUILD

Place of Performance

Location: PLACERVILLE, EL DORADO County, CALIFORNIA, 95667

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.5 million to J. I. GARCIA CONSTRUCTION, INC. for work described as: 140FGA23D0100 / 127EAW24F0008 - PLACERVILLE NURSERY EXPANSION DESIGN/BUILD Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Project aims to expand nursery facilities, likely to increase plant production for reforestation efforts. 4. The duration of the contract is approximately two years, suggesting a focused project timeline. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract value is within a moderate range for construction projects of this nature.

Value Assessment

Rating: good

The contract value of $4.48 million for a design-build expansion project appears reasonable given the scope. Benchmarking against similar-sized nursery or institutional building construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means it was broadly advertised, but specific sources might have been excluded based on pre-qualification or other criteria. The presence of two bids suggests a moderate level of competition for this specific project.

Taxpayer Impact: A competitive process, even with two bidders, generally leads to better pricing for taxpayers compared to sole-source awards. It ensures that the government receives proposals from multiple qualified contractors, driving down costs.

Public Impact

The primary beneficiaries are likely the U.S. Forest Service, which will gain expanded nursery capacity for its reforestation and restoration programs. The project will deliver expanded design and construction services for critical infrastructure at the Placerville Nursery. The geographic impact is focused on Placerville, California, supporting local economic activity through construction. The contract may have implications for the construction workforce in the Placerville area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction, despite the fixed-price nature.
Dependence on the timely delivery of materials and specialized equipment for construction.
Risk of schedule delays due to weather or permitting issues in California.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Award to an established construction company (J. I. Garcia Construction, Inc.) suggests a degree of contractor reliability.
The project directly supports the Forest Service's mission, indicating alignment with strategic government objectives.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The U.S. construction market is vast, with government contracts forming a substantial segment. This project's value is moderate within this sector, likely focused on specialized facility expansion rather than large-scale commercial development.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger firm, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight will likely be managed by the U.S. Forest Service contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed budget. Transparency is generally maintained through federal contract databases, though specific oversight reports are not detailed here.

Related Government Programs

Reforestation and Habitat Restoration Programs
Federal Building and Facility Construction
Forest Service Infrastructure Projects
Nursery Operations and Management

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract costs.
Risk of schedule delays due to external factors (weather, permits).
Dependency on contractor's ability to effectively integrate design and construction phases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.5 million to J. I. GARCIA CONSTRUCTION, INC.. 140FGA23D0100 / 127EAW24F0008 - PLACERVILLE NURSERY EXPANSION DESIGN/BUILD

Who is the contractor on this award?

The obligated recipient is J. I. GARCIA CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2024-09-02. End: 2026-09-11.

What is the track record of J. I. Garcia Construction, Inc. with federal contracts, particularly with the Forest Service or similar agencies?

A review of federal contract databases would be necessary to fully assess J. I. Garcia Construction, Inc.'s track record. Key metrics to examine would include the number of previous federal awards, their value, the agencies they have contracted with, and their performance history. Specifically, looking for past projects related to construction, facility expansion, or work with environmental agencies like the Forest Service would provide relevant context. Any history of contract disputes, performance issues, or successful project completions would inform the assessment of their reliability for this current project.

How does the $4.48 million cost compare to similar nursery expansion or institutional building projects awarded by the government?

Benchmarking this $4.48 million contract against similar projects is crucial for assessing value. Comparable projects would include other design-build expansions of government facilities, particularly those related to agricultural or research nurseries. Factors such as square footage, complexity of design, site conditions, and geographic location influence costs. A preliminary comparison suggests the cost is within a typical range for such projects, but a detailed analysis would require access to data on specific, recent awards for similar scopes of work to determine if it represents excellent, good, or fair value.

What are the primary risks associated with this specific design-build contract for the Placerville Nursery expansion?

The primary risks for this design-build contract include potential cost overruns if unforeseen site conditions are encountered during construction, despite the firm-fixed-price nature. Schedule delays are another significant risk, stemming from factors like adverse weather in California, permitting complexities, or supply chain disruptions affecting materials and labor. Furthermore, the success hinges on effective coordination between the design and construction phases, which is inherent to the design-build model. The government also faces the risk that the final facility may not perfectly meet all operational needs if the design phase is not meticulously managed and reviewed.

How effective is the Forest Service in managing design-build contracts to ensure successful project outcomes and value for money?

The Forest Service's effectiveness in managing design-build contracts can vary. Their success often depends on the expertise of their contracting officers and project managers, the clarity of the initial requirements, and the robustness of their oversight processes. Design-build contracts can be highly effective when requirements are well-defined upfront and when there is strong collaboration between the agency and the contractor. However, challenges can arise if the agency's needs evolve significantly post-award or if oversight is insufficient, potentially leading to scope creep or disputes. Historical performance data and Inspector General reports related to Forest Service construction projects would offer deeper insights into their management effectiveness.

What has been the historical spending trend for nursery infrastructure or similar construction projects by the Forest Service over the past five years?

Analyzing historical spending trends for nursery infrastructure and similar construction projects by the Forest Service over the past five years would provide valuable context. This would involve examining annual outlays for facility construction, expansion, and renovation. An increasing trend might indicate a growing need for such infrastructure, potentially driven by increased reforestation efforts or aging facilities. Conversely, a decreasing trend could suggest budget constraints or a shift in priorities. Understanding these patterns helps in evaluating whether the current $4.48 million award is consistent with past investment levels or represents a significant deviation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 127EAW24R0023

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4717 E HEDGES AVE, FRESNO, CA, 93703

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,475,789

Exercised Options: $4,475,789

Current Obligation: $4,475,789

Actual Outlays: $4,202,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140FGA23D0100

IDV Type: IDC

Timeline