Interior Department awards $2.2M contract for Detroit River bunkhouse construction to J G M Property Group

Contract Overview

Contract Amount: $2,196,316 ($2.2M)

Contractor: J G M Property Group, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-25

End Date: 2026-04-30

Contract Duration: 948 days

Daily Burn Rate: $2.3K/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: DETROIT RIVER BUNKHOUSE

Place of Performance

Location: TRENTON, WAYNE County, MICHIGAN, 48183

State: Michigan Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to J G M PROPERTY GROUP, INC. for work described as: DETROIT RIVER BUNKHOUSE Key points: 1. Contract value appears reasonable for a bunkhouse construction project of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. Project duration of 948 days indicates a significant construction timeline. 5. The project is located in Michigan, potentially impacting local construction firms. 6. No small business set-aside was applied, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract value of approximately $2.2 million for the Detroit River bunkhouse construction appears to be within a reasonable range for a project of this nature. Benchmarking against similar government construction contracts for facilities of comparable size and complexity would provide a more precise assessment of value for money. The firm fixed price structure suggests that the contractor bears the primary financial risk, which can be advantageous for the government if managed effectively. However, without detailed cost breakdowns or comparisons to private sector construction costs, a definitive value assessment is challenging.

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 the solicitation was broadly advertised, but specific sources were excluded for reasons not detailed in the provided data. The presence of two bidders suggests a moderate level of competition. While more bidders would typically lead to better price discovery, the exclusion of sources might have limited the pool. The government's rationale for excluding certain sources would be crucial to understanding the full competitive landscape and its impact on pricing.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, potentially driving down costs. However, the exclusion of specific sources warrants scrutiny to ensure it did not unduly limit competition and result in a higher price than might otherwise have been achieved.

Public Impact

The U.S. Fish and Wildlife Service will benefit from the new bunkhouse facility. The project will deliver construction services for a bunkhouse, likely supporting operational needs. The geographic impact is concentrated in Michigan, specifically near the Detroit River. The construction phase will likely involve a local workforce, providing employment opportunities. The completed bunkhouse will support the agency's mission in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather, supply chain issues, or contractor performance.
The exclusion of certain sources in the competition process could limit price competitiveness.

Positive Signals

Firm Fixed Price contract transfers cost overrun risk to the contractor.
Full and open competition generally promotes competitive pricing.
The project is awarded to a known entity, J G M Property Group, Inc.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government spending on facilities and infrastructure is a consistent driver in this sector. Comparable spending benchmarks would involve analyzing other federal contracts for similar types of buildings (e.g., ranger stations, field offices, research facilities) awarded by agencies like the Department of the Interior or other land management agencies. The market size for federal construction is substantial, with numerous firms capable of undertaking such projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete. While there is no explicit small business set-aside, J G M Property Group, Inc. may be a small business itself, or they may be required to subcontract portions of the work to small businesses as part of the contract terms, although this is not specified. The absence of a set-aside suggests that the primary competition was likely among larger firms or that the nature of the work did not lend itself to a specific small business set-aside.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Fish and Wildlife Service contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through federal contract databases where award information is published. Depending on the agency's internal policies and the nature of any potential issues, an Inspector General review could be initiated if fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Construction
National Park Service Facilities
U.S. Fish and Wildlife Service Infrastructure
Department of the Interior Construction Projects

Risk Flags

Potential for limited competition due to source exclusion.
Risk of construction delays and cost overruns (though largely contractor's risk).

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to J G M PROPERTY GROUP, INC.. DETROIT RIVER BUNKHOUSE

Who is the contractor on this award?

The obligated recipient is J G M PROPERTY GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-04-30.

What is the track record of J G M Property Group, Inc. in performing federal construction contracts?

A review of federal contract databases would be necessary to fully assess J G M Property Group, Inc.'s track record. This would involve examining past performance on similar government contracts, including project types, values, completion timeliness, and any reported issues or disputes. Understanding their history with the Department of the Interior or other agencies would provide insight into their reliability and capability to execute this bunkhouse construction project successfully. Without specific historical data, it is difficult to gauge their past performance definitively.

How does the awarded price compare to similar bunkhouse construction projects by the federal government?

To benchmark the value, one would need to compare the $2.2 million contract price against similar bunkhouse or small facility construction projects undertaken by federal agencies, particularly those managed by the Department of the Interior or its bureaus like the U.S. Fish and Wildlife Service. Key comparison points would include project size (square footage), complexity, location (which influences labor and material costs), and the year of award. Analyzing the number of bids received in those comparable contracts can also indicate the competitiveness of the bidding environment at the time. A higher price relative to similar projects, especially with fewer bids, could suggest potential value concerns.

What are the primary risks associated with this specific construction contract?

The primary risks for this contract include potential construction delays due to factors such as adverse weather conditions in Michigan, unforeseen site challenges (e.g., soil conditions, environmental remediation needs), and supply chain disruptions affecting materials or labor availability. Given the 948-day duration, the risk of escalating material costs over time is also a consideration, although the Firm Fixed Price contract shifts this risk primarily to the contractor. Contractor performance is another key risk; ensuring J G M Property Group, Inc. maintains quality standards and adheres to the project schedule is crucial for successful delivery.

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

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing is variable and depends heavily on the justification for excluding sources. When used appropriately (e.g., to meet specific technical requirements or address national security concerns), it can still yield competitive prices if a sufficient number of qualified bidders remain. However, if sources are excluded without strong justification, it can artificially limit competition, potentially leading to higher prices than a truly open competition might achieve. The fact that only two bids were received suggests that the exclusion may have significantly narrowed the field, warranting further investigation into the reasons for exclusion.

What is the historical spending trend for bunkhouse or similar small facility construction by the U.S. Fish and Wildlife Service?

Analyzing historical spending data for the U.S. Fish and Wildlife Service (USFWS) on bunkhouse or comparable small facility construction projects would provide context for the current $2.2 million award. This would involve examining contract awards over the past several fiscal years to identify trends in project frequency, average contract values, and typical durations. Understanding whether this award represents an increase or decrease in spending for such facilities, and whether it aligns with inflation-adjusted costs, would help assess its significance within the agency's overall capital investment strategy. This analysis could reveal if the agency is increasing its investment in field facilities.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140FC223R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7747 25 MILE RD, SHELBY TOWNSHIP, MI, 48316

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

Financial Breakdown

Contract Ceiling: $2,196,316

Exercised Options: $2,196,316

Current Obligation: $2,196,316

Actual Outlays: $2,141,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline