Interior Department awards $14.6M contract for water system upgrades at Fort Hancock, NJ

Contract Overview

Contract Amount: $14,563,713 ($14.6M)

Contractor: Blue World Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2023-04-20

End Date: 2026-10-09

Contract Duration: 1,268 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GATE 291531 - REHAB FT. HANCOCK POTABLE WATER & WASTEWATER SYSTEM

Place of Performance

Location: FLORHAM PARK, MORRIS County, NEW JERSEY, 07932

State: New Jersey Government Spending

Plain-Language Summary

Department of the Interior obligated $14.6 million to BLUE WORLD CONSTRUCTION INC for work described as: GATE 291531 - REHAB FT. HANCOCK POTABLE WATER & WASTEWATER SYSTEM Key points: 1. Contract value represents a significant investment in critical infrastructure at a historic site. 2. Full and open competition suggests a potentially competitive bidding process. 3. The fixed-price contract type shifts risk to the contractor for cost overruns. 4. Project duration of over three years indicates a complex and extensive scope of work. 5. The National Park Service is the primary beneficiary of these infrastructure improvements. 6. Geographic focus on New Jersey highlights regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $14.6 million for water and wastewater system construction appears reasonable given the scope and duration. Benchmarking against similar large-scale utility construction projects within the National Park Service or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable, with the contractor assuming cost risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the level of competition was moderate. While more bidders could potentially drive prices lower, two offers suggest that the opportunity was sufficiently attractive and the requirements were clearly defined, allowing for meaningful price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best prices.

Public Impact

Residents and visitors to Fort Hancock will benefit from improved potable water and wastewater services. The project will deliver essential upgrades to aging water and sewer infrastructure. The geographic impact is concentrated in Sandy Hook, New Jersey, specifically within the Fort Hancock area. The construction activities will likely create temporary employment opportunities for skilled trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays given the multi-year duration and complexity of infrastructure work.
Ensuring compliance with environmental regulations during construction is crucial.
Coordination with other ongoing activities at Fort Hancock may present logistical challenges.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Full and open competition can lead to better pricing and quality.
The National Park Service's oversight will be key to successful project execution.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and utility construction. The market for such projects is often characterized by specialized firms capable of handling large-scale infrastructure development. Comparable spending benchmarks would involve looking at other federal, state, or local government contracts for water and sewer system upgrades, particularly those managed by agencies responsible for public lands or historic sites.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The prime contractor, Blue World Construction Inc., is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans for small businesses, which could represent missed opportunities for their participation in this project.

Oversight & Accountability

Oversight for this contract will primarily be managed by the National Park Service, an agency within the Department of the Interior. 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 by the public nature of federal contract awards, though detailed project progress reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Park Service Infrastructure Projects
Federal Water and Wastewater System Construction
Department of the Interior Capital Investments

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor's past performance on similar large-scale infrastructure projects.
Adequacy of competition given only two bids received.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $14.6 million to BLUE WORLD CONSTRUCTION INC. GATE 291531 - REHAB FT. HANCOCK POTABLE WATER & WASTEWATER SYSTEM

Who is the contractor on this award?

The obligated recipient is BLUE WORLD CONSTRUCTION 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 $14.6 million.

What is the period of performance?

Start: 2023-04-20. End: 2026-10-09.

What is the track record of Blue World Construction Inc. on federal contracts, particularly those involving water and wastewater systems?

A review of federal contract databases would be necessary to fully assess Blue World Construction Inc.'s track record. Specifically, one would look for past performance on similar projects, including their size, complexity, and type (e.g., water, sewer, heavy civil). Examining past performance ratings, any history of contract disputes, timely completion rates, and adherence to budget on previous federal awards would provide insight into their reliability and capability. Understanding their experience with the National Park Service or similar agencies would also be beneficial in evaluating their suitability for this specific project.

How does the awarded amount of $14.6 million compare to the estimated cost or budget for this specific Fort Hancock infrastructure project?

The provided data indicates the awarded amount but does not include the initial estimated cost or the government's budget for this project. To assess value for money, a comparison between the awarded contract price and the government's independent government cost estimate (IGCE) is crucial. If the awarded amount is significantly lower than the IGCE, it suggests strong competition and potentially good value. Conversely, if it is close to or exceeds the estimate, further scrutiny of the bidding process and the estimate itself would be warranted. Without the estimated cost, it's difficult to definitively benchmark the value.

What are the primary risks associated with the construction of water and wastewater systems, and how are they mitigated in this contract?

Key risks in such projects include unforeseen subsurface conditions (e.g., encountering unexpected soil types, bedrock, or existing utilities), environmental hazards, labor shortages, material price fluctuations, and potential delays due to weather or permitting issues. This contract, being a firm fixed-price (FFP) type, shifts the primary financial risk of cost overruns to the contractor, Blue World Construction Inc. However, risks related to scope creep or government-caused delays remain. The multi-year duration also increases the risk of material price volatility for the contractor. Mitigation strategies typically involve thorough site investigations prior to bidding, robust project management by the contractor, and clear communication channels with the contracting officer.

What is the historical spending pattern for water and wastewater system upgrades by the National Park Service or the Department of the Interior?

Historical spending data for water and wastewater system upgrades by the National Park Service (NPS) and the Department of the Interior (DOI) would reveal trends in investment in critical infrastructure. Analyzing past contract awards for similar projects would indicate the typical scale, frequency, and geographic distribution of such investments. This context helps determine if the $14.6 million award for Fort Hancock is consistent with historical spending levels or represents a significant deviation. Understanding these patterns can inform future budget allocations and highlight areas of recurring need across the NPS portfolio.

How many bids were typically received for similar water and sewer construction contracts awarded by the National Park Service in the last five years?

To determine the typical number of bids for similar NPS contracts, one would need to analyze historical contract award data. This involves querying databases for contracts categorized under 'Water and Sewer Line and Related Structures Construction' (NAICS code 237110) awarded by the National Park Service over a defined period, such as the last five fiscal years. The average number of bids received per solicitation would provide a benchmark. Receiving two bids, as in this case, can be compared to that average to assess whether competition was standard, higher, or lower than usual for NPS infrastructure projects.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140P2022R0167

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26 COLUMBIA TPKE, FLORHAM PARK, NJ, 07932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,563,713

Exercised Options: $14,563,713

Current Obligation: $14,563,713

Actual Outlays: $11,157,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline