J.I. Garcia Construction awarded $3.97M for Forest Service facility replacement in California

Contract Overview

Contract Amount: $3,970,920 ($4.0M)

Contractor: J. I. Garcia Construction, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-10-10

End Date: 2026-09-30

Contract Duration: 720 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WESTERN DIVIDE R.D. FIRE DESTROYED FACILITIES REPLACEMENT DESIGN/BUILD PROJECT

Place of Performance

Location: PORTERVILLE, TULARE County, CALIFORNIA, 93257

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.0 million to J. I. GARCIA CONSTRUCTION, INC. for work described as: WESTERN DIVIDE R.D. FIRE DESTROYED FACILITIES REPLACEMENT DESIGN/BUILD PROJECT Key points: 1. Project aims to rebuild fire-damaged facilities, addressing critical infrastructure needs. 2. Contract awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Project duration of 720 days indicates a significant construction undertaking. 5. Location in California places the project within a region prone to wildfires. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $3.97 million for a design/build project to replace fire-destroyed facilities appears reasonable given the scope. Without specific details on the size and complexity of the destroyed facilities, a direct comparison is challenging. However, for commercial and institutional building construction of this nature, the price point is within expected ranges for projects of significant scale. The firm fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially due to specific qualifications or prior relationships. The number of bids received (3) suggests a moderate level of competition. While not a completely unrestricted competition, it likely allowed for price discovery among qualified bidders.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from competitive pricing, though a broader competition might have yielded even lower bids. The exclusion of some sources warrants scrutiny to ensure it did not unduly limit competitive pressure.

Public Impact

The Forest Service will benefit from the replacement of critical infrastructure, enhancing its operational capabilities in wildfire management and prevention. The project will deliver new or rebuilt facilities essential for supporting personnel and equipment in the region. The geographic impact is concentrated in California, a state heavily affected by wildfires. The construction project will likely create temporary employment opportunities for skilled trades and labor in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during reconstruction.
Risk of delays due to the complex nature of design/build projects and potential permitting issues.
Dependence on the contractor's ability to manage specialized construction and design expertise.
The exclusion of sources in the competition process could limit overall cost savings for taxpayers.

Positive Signals

Firm fixed-price contract type provides cost certainty and limits the government's exposure to price increases.
The project addresses a critical need for infrastructure replacement following fire damage.
Award to a single contractor for design/build streamlines project management and accountability.
The project is a delivery order, suggesting it aligns with a pre-established contract vehicle, potentially indicating prior vetting of the contractor or a streamlined process.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector. This sector is vital for developing and maintaining government facilities. The Forest Service, as part of the Department of Agriculture, requires specialized construction services for its remote and often challenging operational environments. Comparable spending benchmarks for similar government facility construction projects vary widely based on size, location, and specific requirements, but projects in the multi-million dollar range are common for significant infrastructure replacements.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business set-aside' flag is false. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the prime contractor, J.I. Garcia Construction, Inc., will likely manage the majority of the work. Further investigation into subcontracting goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Forest Service contracting officer and project managers. As a firm fixed-price contract, the primary oversight will focus on ensuring the contractor meets the design specifications and delivery schedule. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Wildfire Management Infrastructure
Federal Building Construction
Forest Service Facilities
Disaster Recovery Projects
Design-Build Contracts

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting operational readiness.
Limited competition may reduce price discovery.
Contractor performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.0 million to J. I. GARCIA CONSTRUCTION, INC.. WESTERN DIVIDE R.D. FIRE DESTROYED FACILITIES REPLACEMENT DESIGN/BUILD PROJECT

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 $4.0 million.

What is the period of performance?

Start: 2024-10-10. End: 2026-09-30.

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

A review of federal contract databases indicates that J.I. Garcia Construction, Inc. has received federal awards. To provide a comprehensive assessment of their track record, a detailed analysis of their past performance ratings, any past disputes or contract terminations, and the types and values of previous contracts would be necessary. Specifically, examining their history with the Forest Service and the Department of Agriculture would reveal their experience with similar project scopes, regulatory environments, and agency requirements. A strong history of successful project completion, adherence to schedules, and quality delivery would indicate a lower performance risk for this current project.

How does the awarded amount of $3.97 million compare to similar Forest Service facility replacement projects?

Benchmarking this $3.97 million contract against similar Forest Service facility replacement projects requires access to detailed data on comparable projects, including their size, scope, location, and specific functionalities. Without such a dataset, a precise comparison is difficult. However, considering the nature of replacing fire-destroyed facilities, which often involves complex design and construction in potentially remote areas, this value appears to be within a reasonable range for a significant infrastructure undertaking. Factors like the specific square footage, materials used, and specialized equipment required would heavily influence the final cost. The firm fixed-price nature of this contract suggests that the government has secured a defined cost for the specified scope.

What are the primary risks associated with this design/build contract for facility replacement?

The primary risks associated with this design/build contract include potential scope creep if the initial design requirements are not clearly defined or if unforeseen conditions arise during the design phase. Given that this project involves replacing fire-destroyed facilities, there's a risk of discovering additional damage or site contamination not initially apparent, which could impact both cost and schedule. Contractor performance risk is also present, relating to their ability to deliver quality construction within the agreed-upon timeline and budget. Furthermore, the 'limited' competition level, while still open, might present a risk of not achieving the absolute lowest possible price compared to a broader, unrestricted competition. Delays in permitting or regulatory approvals could also pose a schedule risk.

How effective is the firm fixed-price contract type in ensuring value for money for this project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for projects with well-defined scopes, such as facility replacement. It shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and complete the project within the agreed-upon price. This provides the government with significant cost certainty, making budgeting more predictable. For this project, where the goal is to replace fire-destroyed facilities, an FFP contract encourages the contractor to deliver the specified design and construction at the agreed price. However, the effectiveness relies heavily on the clarity and completeness of the initial design specifications and requirements to prevent disputes or change orders that could erode value.

What is the historical spending pattern for facility replacement projects by the Forest Service?

Analyzing historical spending patterns for Forest Service facility replacement projects would involve examining annual budgets allocated for infrastructure, capital improvements, and repair/rehabilitation. This would reveal trends in the volume and value of such projects over time. Key insights would include whether spending has been consistent, increasing, or decreasing, and how it correlates with factors like wildfire activity, agency priorities, and overall federal appropriations. Understanding these patterns can help contextualize the current $3.97 million award, indicating if it represents a typical investment or an outlier. It also helps in assessing the agency's long-term commitment to maintaining and upgrading its facilities.

What are the implications of the 'delivery order' contract type on project management and oversight?

The 'delivery order' designation indicates that this contract is likely a task order issued under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. This structure allows agencies to procure services or supplies incrementally over a period. For project management, it means the scope, schedule, and funding for this specific delivery order have been defined. Oversight will focus on ensuring this particular order meets its specific requirements. The existence of an underlying IDIQ contract might suggest that the contractor has already undergone some level of vetting or pre-qualification. However, it also means that the overall performance and value are tied to the broader IDIQ contract, which may have its own set of terms and conditions.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12970224R0045

Offers Received: 3

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: $3,970,920

Exercised Options: $3,970,920

Current Obligation: $3,970,920

Actual Outlays: $2,112,952

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