Interior Department awards $3M contract for Everglades housing, bypassing competition

Contract Overview

Contract Amount: $3,018,213 ($3.0M)

Contractor: G.M. Hill Engineering, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-07-13

End Date: 2025-03-13

Contract Duration: 974 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EVER 240181, CONSTRUCT REPLACEMENT HOUSING-HARDENED TO RESIST STORMS AND FLOODING, BIG CYPRESS & EVERGLADE CITY, EVERGLADES NATIONAL PARK

Place of Performance

Location: OCHOPEE, COLLIER County, FLORIDA, 34141

State: Florida Government Spending

Plain-Language Summary

Department of the Interior obligated $3.0 million to G.M. HILL ENGINEERING, INC. for work described as: EVER 240181, CONSTRUCT REPLACEMENT HOUSING-HARDENED TO RESIST STORMS AND FLOODING, BIG CYPRESS & EVERGLADE CITY, EVERGLADES NATIONAL PARK Key points: 1. Contract awarded without competition, raising questions about price discovery and value. 2. Fixed-price contract aims to build resilient housing in a high-risk environmental zone. 3. Project duration of over two years suggests significant construction complexity. 4. Contractor G.M. Hill Engineering, Inc. has a history with federal projects. 5. Geographic focus on Everglades National Park highlights critical infrastructure needs. 6. Lack of small business set-aside noted, potentially limiting broader economic participation.

Value Assessment

Rating: questionable

The contract's value of approximately $3 million for constructing replacement housing in Everglades National Park warrants scrutiny due to the lack of competitive bidding. Without a competitive process, it is difficult to benchmark the pricing against market rates or similar government contracts to ascertain if it represents good value for money. The firm-fixed-price structure shifts risk to the contractor, but the absence of competition prevents a clear assessment of whether the price reflects the most economical outcome for taxpayers. Further analysis would require comparing the scope of work and specifications to similar construction projects in environmentally sensitive areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT COMPETED UNDER SAP' (Small Acquisition Program), suggesting it may have been justified under specific exceptions to full and open competition. The absence of multiple bidders means there was no opportunity for price negotiation or comparison among different firms, which is crucial for ensuring the government receives the best possible price. This approach can lead to higher costs compared to a competitively bid contract.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers. Without a competitive process, there is less assurance that the awarded price is the most cost-effective option available.

Public Impact

Residents and staff within Everglades National Park will benefit from improved, resilient housing. The construction of hardened housing will protect against storm and flood damage, ensuring continuity of operations. The project's geographic impact is concentrated within Everglades National Park, Florida. The construction activities will likely involve a local workforce, providing employment opportunities in the region. The National Park Service will gain enhanced infrastructure to support its mission in a challenging environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award bypasses opportunities for small business participation.
Construction in environmentally sensitive areas carries inherent risks and potential cost overruns.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on hardened housing addresses critical resilience needs in a vulnerable location.
Contractor G.M. Hill Engineering, Inc. has experience with federal construction projects.

Sector Analysis

The construction sector, particularly for government infrastructure projects, is characterized by significant capital investment and complex regulatory environments. This contract falls under Commercial and Institutional Building Construction, a segment that often involves specialized requirements for durability and resilience, especially in areas prone to natural disasters like Everglades National Park. The market for such specialized construction can be limited, but the absence of competition here is notable. Comparable spending benchmarks for similar resilient construction in national parks or other federal lands would be essential for a thorough value assessment.

Small Business Impact

The contract was not competed under SAP and does not indicate any small business set-aside provisions (ss: false, sb: false). This means that opportunities for small businesses to participate, either as prime contractors or through subcontracting, may have been limited. While the contract value is below the threshold for mandatory subcontracting plans for larger contracts, the sole-source nature of the award means there was no specific mechanism to encourage or mandate small business involvement. This could represent a missed opportunity to foster small business growth within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the National Park Service, an agency within the Department of the Interior. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the justification for the sole-source award and the contractor's performance will be key. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Everglades National Park Infrastructure Projects
National Park Service Housing Construction
Federal Disaster Resilient Construction
Department of the Interior Building Contracts

Risk Flags

Sole-source award bypasses competitive process.
Potential for higher costs due to lack of competition.
Environmental sensitivity of construction site requires careful management.
Contract duration suggests complex project with potential for delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.0 million to G.M. HILL ENGINEERING, INC.. EVER 240181, CONSTRUCT REPLACEMENT HOUSING-HARDENED TO RESIST STORMS AND FLOODING, BIG CYPRESS & EVERGLADE CITY, EVERGLADES NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is G.M. HILL ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2022-07-13. End: 2025-03-13.

What is the track record of G.M. Hill Engineering, Inc. with federal contracts, particularly those involving construction in environmentally sensitive areas?

G.M. Hill Engineering, Inc. has a history of performing federal contracts. While specific details on their experience in environmentally sensitive areas like national parks are not immediately available from the provided data, their engagement on this project suggests they possess the necessary qualifications or have been identified as capable. A deeper dive into their contract history, including past performance reviews and any awards or penalties, would provide a more comprehensive understanding of their reliability and expertise. Examining their portfolio for similar projects would also shed light on their suitability for this specific task.

How does the awarded price of approximately $3 million compare to similar construction projects for resilient housing in national parks or other federal lands?

Without access to a database of comparable federal construction projects, a precise benchmark is difficult to establish. However, the cost of building resilient housing in a challenging environment like the Everglades, which requires specialized materials and construction techniques to withstand storms and flooding, can be significantly higher than standard construction. Factors such as site accessibility, environmental mitigation requirements, and the need for specialized engineering contribute to the overall cost. A thorough comparison would involve analyzing the square footage, materials used, specific resilience features, and the geographic location of similar projects to determine if $3 million is within a reasonable range for the scope of work.

What are the primary risks associated with this construction project, and how are they being managed?

The primary risks associated with this project include potential cost overruns due to unforeseen site conditions, weather delays impacting the construction schedule, and challenges in sourcing specialized materials or labor. Environmental risks, such as disturbing sensitive ecosystems during construction, are also significant. The firm-fixed-price contract structure shifts some financial risk to the contractor. However, the National Park Service likely has oversight mechanisms in place, including regular site inspections and progress reviews, to monitor adherence to environmental regulations and construction quality. The contract's duration of over two years suggests a phased approach to risk management and execution.

What is the expected effectiveness of the new housing in resisting storms and flooding, and how will this be measured?

The effectiveness of the new housing is expected to be high, as the contract specifies construction 'hardened to resist storms and flooding.' This implies adherence to specific building codes and resilience standards designed for hurricane-prone and flood-prone areas. Measurement of effectiveness will likely occur post-construction through inspections and, more critically, during actual weather events. The long-term success will be evaluated by the housing's ability to remain functional and structurally sound when subjected to severe weather, thereby ensuring the safety of occupants and the continuity of park operations. The contract's end date of March 2025 suggests post-construction evaluation will follow.

What are the historical spending patterns for housing construction or infrastructure improvements within Everglades National Park?

Historical spending data for housing construction and infrastructure improvements within Everglades National Park is not provided in the current dataset. To assess historical patterns, one would need to analyze past contracts awarded by the National Park Service for similar projects within the park or comparable national parks. This analysis would involve examining the frequency, value, and types of construction contracts over several fiscal years. Understanding these patterns could reveal trends in investment, identify recurring needs, and provide context for the current $3 million award, particularly if it represents a significant increase or continuation of previous spending.

What is the justification for awarding this contract on a sole-source basis rather than through full and open competition?

The justification for awarding this contract on a sole-source basis is not detailed in the provided data. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or when the agency determines that full and open competition is not in the government's best interest. Reasons could include unique capabilities of the contractor, urgent and compelling needs, or specific requirements that only one firm can meet. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to definitively state why competition was bypassed for this particular contract.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140P2022R0029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9700 PHILIPS HWY STE 101, JACKSONVILLE, FL, 32256

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,018,213

Exercised Options: $3,018,213

Current Obligation: $3,018,213

Actual Outlays: $3,018,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline