Department of Labor awards $3.18M contract for Potomac Job Corps Center infrastructure improvements

Contract Overview

Contract Amount: $3,175,469 ($3.2M)

Contractor: Terra Site Constructors LLC

Awarding Agency: Department of Labor

Start Date: 2024-07-05

End Date: 2026-06-16

Contract Duration: 711 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: POTOMAC JCC - PROJECT 4175 DESIGN BUILD ACQUISITION STORM WATER DRAINAGE REPAIR AND BUILDING 14 STRUCTURAL REPAIR THIS SCOPE OF WORK (SOW) INCLUDES DESIGN-BUILD SERVICES NEEDED TO PROVIDE AND INSTALL IMPROVEMENTS TO THE POTOMAC JOB CORPS CENTER SWM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $3.2 million to TERRA SITE CONSTRUCTORS LLC for work described as: POTOMAC JCC - PROJECT 4175 DESIGN BUILD ACQUISITION STORM WATER DRAINAGE REPAIR AND BUILDING 14 STRUCTURAL REPAIR THIS SCOPE OF WORK (SOW) INCLUDES DESIGN-BUILD SERVICES NEEDED TO PROVIDE AND INSTALL IMPROVEMENTS TO THE POTOMAC JOB CORPS CENTER SWM Key points: 1. Contract focuses on critical stormwater drainage and building structural repairs, addressing essential facility needs. 2. The award to Terra Site Constructors LLC indicates a specific need for specialized construction services. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. Project duration of 711 days suggests a comprehensive scope of work requiring significant planning and execution. 5. The contract is categorized under 'Other Heavy and Civil Engineering Construction,' highlighting its infrastructure focus.

Value Assessment

Rating: fair

The contract value of $3.18 million for design-build services for stormwater drainage and structural repairs at the Potomac Job Corps Center appears to be within a reasonable range for such specialized infrastructure work. Without specific benchmarks for similar Job Corps Center projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an effort to control costs. Further analysis would require comparing this project's scope and cost to similar federal facility repair and construction contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the available data. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. It is important to understand why full and open competition was not pursued, as this could indicate a lack of available qualified contractors or a specific urgency that precluded a competitive process.

Taxpayer Impact: Sole-source awards can potentially result in less favorable pricing for taxpayers compared to competitively bid contracts, as the government may not benefit from the cost-saving pressures inherent in a competitive bidding environment.

Public Impact

The primary beneficiaries are students and staff at the Potomac Job Corps Center, who will gain access to safer and more functional facilities. The project will deliver essential infrastructure improvements, including enhanced stormwater drainage and structural repairs to Building 14. The geographic impact is localized to the Potomac Job Corps Center in the District of Columbia. The contract will likely involve local construction workforce employment during the design and build phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
The 'Other Heavy and Civil Engineering Construction' NAICS code is broad; specific details of the work could reveal specialized requirements that justify a sole-source award, but this is not evident from the summary.
The absence of a stated justification for the sole-source award is a transparency concern.

Positive Signals

The contract addresses critical infrastructure needs, ensuring the continued safe operation of the Job Corps Center.
The firm-fixed-price contract type provides cost predictability for the Department of Labor.
The project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses a wide range of infrastructure projects. The market for such services is generally robust, with numerous firms capable of undertaking design-build projects. Federal spending in this area often supports the maintenance and upgrade of government facilities, including educational institutions like Job Corps centers. Benchmarking would typically involve comparing costs against similar facility repair and construction projects managed by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration during the award process, unless explicitly mandated by the contracting officer. This means the direct impact on the small business ecosystem for this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified scope of work within the agreed price. Transparency is limited by the sole-source nature of the award and the lack of a publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Job Corps Center Facility Maintenance and Repair
Federal Building Construction and Renovation
Stormwater Management Infrastructure Projects
Design-Build Construction Contracts

Risk Flags

Sole-source award without clear justification
Potential for suboptimal pricing due to lack of competition
Limited transparency regarding contractor selection rationale

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.2 million to TERRA SITE CONSTRUCTORS LLC. POTOMAC JCC - PROJECT 4175 DESIGN BUILD ACQUISITION STORM WATER DRAINAGE REPAIR AND BUILDING 14 STRUCTURAL REPAIR THIS SCOPE OF WORK (SOW) INCLUDES DESIGN-BUILD SERVICES NEEDED TO PROVIDE AND INSTALL IMPROVEMENTS TO THE POTOMAC JOB CORPS CENTER SWM

Who is the contractor on this award?

The obligated recipient is TERRA SITE CONSTRUCTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-07-05. End: 2026-06-16.

What is the track record of Terra Site Constructors LLC with federal contracts, particularly with the Department of Labor?

Information regarding Terra Site Constructors LLC's specific track record with federal contracts, especially with the Department of Labor, is not detailed in the provided data. A comprehensive analysis would require accessing the Federal Procurement Data System (FPDS) or similar databases to review past performance, contract values, and any reported issues or successes. Understanding their history with similar projects, adherence to schedules and budgets, and overall performance ratings would provide crucial context for assessing the risk and value associated with this current award. Without this historical data, it is difficult to gauge their reliability and expertise in executing this specific type of infrastructure project.

How does the $3.18 million cost compare to similar stormwater drainage and structural repair projects at federal facilities?

Benchmarking the $3.18 million cost against similar federal projects is challenging without more specific comparative data. Projects involving design-build services for stormwater drainage and structural repairs can vary significantly in scope, complexity, location, and prevailing labor/material costs. To conduct a thorough comparison, one would need to identify contracts with similar NAICS codes (e.g., 237990), contract types (firm-fixed-price), and project scales at other federal facilities. Factors such as the specific structural issues of Building 14, the extent of the drainage system upgrades, and local construction market conditions in Washington D.C. would influence the cost. A preliminary assessment suggests the amount is substantial, necessitating a review of detailed cost breakdowns and justifications for the sole-source award.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for a lack of optimal value for taxpayer money due to the absence of competition. Without competing bids, there is less assurance that the price negotiated is the most economical achievable. Another risk is that the contractor, Terra Site Constructors LLC, may not have been subjected to the same level of scrutiny regarding capabilities and past performance as they would have in a competitive bidding process. Furthermore, the lack of a publicly stated justification for the sole-source award introduces a transparency risk, making it harder for oversight bodies and the public to understand the rationale behind bypassing competition. Finally, there's always a risk of scope creep or unforeseen issues during construction, which, in a sole-source scenario, might be managed with less leverage for the government.

What is the expected effectiveness of the completed infrastructure improvements in addressing the Job Corps Center's needs?

The expected effectiveness of the completed infrastructure improvements hinges on the thoroughness of the design-build process and the quality of execution by Terra Site Constructors LLC. The contract explicitly addresses 'storm water drainage repair and building 14 structural repair,' indicating a focus on critical needs. If the design adequately identifies and resolves underlying drainage issues and the structural repairs are robust, the improvements should significantly enhance the safety, functionality, and longevity of the Potomac Job Corps Center facilities. The effectiveness will be measured by the reduction in drainage problems (e.g., flooding, erosion) and the stabilization and improvement of Building 14's structural integrity, ensuring a conducive learning and living environment for students and staff.

How does this contract's value compare to the Department of Labor's overall spending on facility maintenance and construction?

The $3.18 million contract value represents a specific investment in essential infrastructure at the Potomac Job Corps Center. To compare this to the Department of Labor's overall spending on facility maintenance and construction, one would need access to the department's comprehensive budget and procurement data. Federal agencies typically allocate significant portions of their budgets to maintaining and upgrading their physical assets. This contract, while substantial for a single project, is likely a fraction of the department's total annual expenditure on facilities. Analyzing its proportion relative to the entire portfolio of maintenance and construction contracts would provide better context on its significance within the department's broader spending patterns.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605AE-24-R-00004

Offers Received: 1

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: $3,175,469

Exercised Options: $3,175,469

Current Obligation: $3,175,469

Actual Outlays: $963,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline