Department of the Interior awards $8.47M contract for modular housing replacement at Cape Hatteras Island

Contract Overview

Contract Amount: $8,473,068 ($8.5M)

Contractor: Terra Site Constructors LLC

Awarding Agency: Department of the Interior

Start Date: 2024-05-24

End Date: 2026-03-31

Contract Duration: 676 days

Daily Burn Rate: $12.5K/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: THIS PROJECT INCLUDES THE SITE-ADAPTED DESIGN, CONSTRUCTION, DEMOLITION, AND SUPERVISION TO REPLACE EXISTING MODULAR HOUSING UNITS AT THE CAPE HATTERAS ISLAND DISTRICT HOUSING AREA WITH COMMERCIAL OFF-THE-SHELF MODULAR HOUSING UNITS OR AN EQUIVALENT

Place of Performance

Location: MANTEO, DARE County, NORTH CAROLINA, 27954

State: North Carolina Government Spending

Plain-Language Summary

Department of the Interior obligated $8.5 million to TERRA SITE CONSTRUCTORS LLC for work described as: THIS PROJECT INCLUDES THE SITE-ADAPTED DESIGN, CONSTRUCTION, DEMOLITION, AND SUPERVISION TO REPLACE EXISTING MODULAR HOUSING UNITS AT THE CAPE HATTERAS ISLAND DISTRICT HOUSING AREA WITH COMMERCIAL OFF-THE-SHELF MODULAR HOUSING UNITS OR AN EQUIVALENT Key points: 1. Contract awarded for demolition and construction of new modular housing units. 2. Project aims to replace existing modular housing at Cape Hatteras Island. 3. The contract is a firm-fixed-price definitive contract. 4. Duration of the contract is 676 days. 5. The contract was awarded following full and open competition after exclusion of sources. 6. The project is located in North Carolina.

Value Assessment

Rating: good

The contract value of $8.47 million for new single-family housing construction appears reasonable given the scope of demolition and replacement of modular units. Benchmarking against similar projects for coastal infrastructure replacement, especially in environmentally sensitive areas like national parks, would provide a more precise value assessment. The firm-fixed-price structure suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if managed effectively.

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 while the competition was open, certain sources may have been excluded based on specific criteria. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing, but the specific nature of the exclusion of sources could impact the breadth of competition.

Taxpayer Impact: The full and open competition, even with exclusions, aims to secure the best value for taxpayers by allowing multiple qualified contractors to bid. The presence of three bidders indicates that the government received multiple proposals, likely leading to a more competitive price than a sole-source award.

Public Impact

Residents of Cape Hatteras Island will benefit from upgraded and potentially more resilient housing. The project delivers new single-family housing construction services. The geographic impact is localized to the Cape Hatteras Island District Housing Area in North Carolina. The project will likely involve construction workforce employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays due to weather or environmental conditions common in coastal areas.
Ensuring compliance with environmental regulations during demolition and construction is critical.
Managing the transition for current residents of modular housing units.

Positive Signals

Firm-fixed-price contract helps control costs for the government.
Awarded after full and open competition, suggesting a competitive bidding process.
Project addresses a clear need for housing replacement in a national park setting.

Sector Analysis

This contract falls within the construction sector, specifically new single-family housing construction. The market for modular housing construction is growing, driven by demand for faster, more cost-effective building solutions. Projects within national parks often involve unique challenges related to environmental impact, logistics, and specialized construction requirements, potentially commanding higher costs than standard residential builds.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Terra Site Constructors LLC. The extent of small business subcontracting will depend on the prime contractor's strategy and the nature of the work required.

Oversight & Accountability

Oversight for this contract will likely 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 places cost responsibility on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Park Service Housing Projects
Modular Construction Contracts
Coastal Infrastructure Development
Federal Employee Housing

Risk Flags

Coastal environmental risks
Weather-related delays
Logistical challenges for island construction

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.5 million to TERRA SITE CONSTRUCTORS LLC. THIS PROJECT INCLUDES THE SITE-ADAPTED DESIGN, CONSTRUCTION, DEMOLITION, AND SUPERVISION TO REPLACE EXISTING MODULAR HOUSING UNITS AT THE CAPE HATTERAS ISLAND DISTRICT HOUSING AREA WITH COMMERCIAL OFF-THE-SHELF MODULAR HOUSING UNITS OR AN EQUIVALENT

Who is the contractor on this award?

The obligated recipient is TERRA SITE CONSTRUCTORS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2024-05-24. End: 2026-03-31.

What is the track record of Terra Site Constructors LLC with federal contracts, particularly for housing construction?

Terra Site Constructors LLC has a history of federal contracting, though specific details on their track record for housing construction require deeper analysis of their past performance. A review of their contract history with agencies like the Department of Defense, GSA, or other entities involved in construction would reveal their experience with similar projects, project completion rates, and any past performance issues. Understanding their specialization and success in modular construction, demolition, and work in sensitive environments like national parks is crucial for assessing their capability to deliver this specific project successfully and on time.

How does the $8.47 million cost compare to similar modular housing replacement projects in coastal or national park settings?

Benchmarking this $8.47 million contract against similar projects is essential for a comprehensive value assessment. Factors such as the number of units, square footage per unit, complexity of site preparation (especially in a coastal environment), and the inclusion of demolition services significantly influence cost. Projects in national parks often incur higher costs due to stringent environmental regulations, logistical challenges, and the need for specialized construction techniques. A detailed comparison would involve analyzing the cost per unit or per square foot of comparable projects awarded by agencies like the National Park Service or Department of Defense in similar geographic and environmental contexts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential weather-related delays common in coastal North Carolina, environmental compliance challenges during demolition and construction, and logistical complexities of delivering materials to an island location. The firm-fixed-price contract type mitigates financial risk for the government by capping costs. Mitigation strategies for other risks would likely involve detailed project scheduling that accounts for seasonal weather patterns, robust environmental impact assessments and mitigation plans, and careful coordination with local authorities and suppliers for material delivery. The contractor's experience in similar environments is also a critical risk mitigation factor.

What is the expected effectiveness of the new modular housing units in terms of durability and resilience compared to the existing units?

The effectiveness of the new modular housing units will depend on the specific 'commercial off-the-shelf' (COTS) or equivalent products selected and their design specifications for resilience. Modern modular housing, especially when specified for coastal environments, is generally expected to offer improved durability and resistance to weather events like hurricanes and flooding compared to older modular units. The National Park Service likely has performance requirements for these new units, focusing on longevity, energy efficiency, and structural integrity to withstand the local climate. A detailed review of the contract's technical specifications would clarify the expected performance enhancements.

What has been the historical spending trend for housing construction and maintenance within the National Park Service, particularly in the Cape Hatteras region?

Analyzing historical spending for housing within the National Park Service, especially in regions like Cape Hatteras, provides context for the current $8.47 million award. This would involve examining past budgets allocated for construction, renovation, and maintenance of government-owned housing. Understanding whether this contract represents a significant increase or decrease in spending, and whether it's part of a larger modernization initiative, is important. Data on previous housing projects in similar park settings could reveal patterns in contract values, duration, and the types of construction utilized, helping to assess the current contract's scale and necessity.

Industry Classification

NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 140P2023R0087

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6944 WINCHESTER RD, FRONT ROYAL, VA, 22630

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,473,068

Exercised Options: $8,473,068

Current Obligation: $8,473,068

Actual Outlays: $7,268,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline