Department of Homeland Security awards $21.4M contract for facility repairs in Puerto Rico

Contract Overview

Contract Amount: $21,421,608 ($21.4M)

Contractor: Rq-Aecom 2 JV

Awarding Agency: Department of Homeland Security

Start Date: 2021-06-22

End Date: 2025-11-28

Contract Duration: 1,620 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REBUILD FACILITIES RESIDENT INSPECTION OFFICE (RIO) PONCE, PONCE, PUERTO RICO

Place of Performance

Location: AGUADILLA, AGUADILLA County, PUERTO RICO, 00603

Plain-Language Summary

Department of Homeland Security obligated $21.4 million to RQ-AECOM 2 JV for work described as: REBUILD FACILITIES RESIDENT INSPECTION OFFICE (RIO) PONCE, PONCE, PUERTO RICO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The project focuses on commercial and institutional building construction, specifically facility repairs. 5. The contract duration is approximately 4 years, indicating a medium-term commitment. 6. The geographic focus is Puerto Rico, addressing specific regional infrastructure needs.

Value Assessment

Rating: fair

The contract value of $21.4 million for facility repairs over approximately four years appears reasonable for a project of this nature. Benchmarking against similar large-scale construction and repair contracts for federal facilities is challenging without more specific project scope details. However, the firm-fixed-price contract type suggests that the contractor has assumed the primary cost risk, which can be beneficial for the government if managed effectively. The number of bids received (2) is on the lower side for a full and open competition, which might warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access for contractors, the low number of bidders could suggest potential market limitations, contractor capacity issues, or a lack of interest in this specific opportunity. This could potentially lead to less competitive pricing than if more bidders had participated.

Taxpayer Impact: A low number of bidders in a full and open competition may mean that taxpayers did not benefit from the most competitive pricing possible. While the process was open, fewer bids can result in higher costs compared to scenarios with robust competition.

Public Impact

The U.S. Coast Guard, a component of DHS, will benefit from improved facilities. The contract delivers essential repair and construction services for government-owned facilities. The project's geographic impact is concentrated in Ponce, Puerto Rico. The contract supports the construction and maintenance workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids (2) in a full and open competition may indicate limited market interest or potential contractor capacity constraints.
The contract is a delivery order, which relies on the terms of a potentially older IDIQ contract; the original IDIQ's competition and pricing should be reviewed.
Geographic concentration in Puerto Rico may present logistical challenges or higher costs compared to mainland projects.

Positive Signals

Firm-fixed-price contract type shifts cost overrun risk to the contractor.
Awarded under full and open competition, adhering to principles of broad market access.
The project addresses critical infrastructure needs for a federal agency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports the maintenance, repair, and new construction of government facilities, including offices, operational bases, and critical infrastructure. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. This specific contract, valued at over $21 million, represents a substantial project within this category, likely requiring specialized expertise and adherence to stringent federal building codes and standards.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, RQ-AECOM 2 JV, is likely a larger entity, and any subcontracting opportunities would be at their discretion, not as a result of a small business set-aside requirement for this particular delivery order.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard, a component of the Department of Homeland Security. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work, quality standards, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security Facility Maintenance and Repair
U.S. Coast Guard Infrastructure Projects
Federal Building Construction Contracts
Puerto Rico Infrastructure Development

Risk Flags

Low bidder count in full and open competition
Potential for schedule delays due to geographic location and project complexity
Reliance on IDIQ contract terms which may be dated

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 million to RQ-AECOM 2 JV. REBUILD FACILITIES RESIDENT INSPECTION OFFICE (RIO) PONCE, PONCE, PUERTO RICO

Who is the contractor on this award?

The obligated recipient is RQ-AECOM 2 JV.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2021-06-22. End: 2025-11-28.

What is the track record of RQ-AECOM 2 JV with federal contracts, particularly within the Department of Homeland Security or U.S. Coast Guard?

RQ-AECOM 2 JV is a joint venture, suggesting a collaboration between two or more entities to pursue specific contracts. To assess their track record, one would need to examine the past performance of both AECOM and RQ (if RQ is a distinct entity) individually, as well as any prior joint ventures they may have formed. This would involve reviewing their history of federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or terminations, and their experience with similar types of construction and repair projects. A thorough review would determine their capacity, reliability, and suitability for managing a contract of this magnitude and complexity.

How does the awarded price of $21.4 million compare to similar facility repair projects undertaken by the U.S. Coast Guard or other federal agencies in similar geographic regions?

Directly comparing the $21.4 million award to similar projects requires access to detailed cost data for comparable federal facility repair contracts, which is often not publicly available in a standardized format. Factors such as the specific scope of work (e.g., type of repairs, square footage, materials used), the age and condition of the facilities, local labor costs, and prevailing market rates in Puerto Rico would significantly influence project costs. While the firm-fixed-price nature shifts risk, a low number of bidders (2) might suggest the price is not as competitive as it could be. A more in-depth analysis would involve benchmarking against projects with similar PWS (Performance Work Statement) elements and geographic considerations.

What are the specific risks associated with performing construction and repair work in Puerto Rico for a federal agency, and how are they mitigated in this contract?

Performing construction in Puerto Rico can involve several risks, including logistical challenges related to material and equipment transport, potential for natural disasters (hurricanes, earthquakes) impacting schedules and safety, and local labor market dynamics. Additionally, navigating local regulations and permitting processes can add complexity. This contract, being a firm-fixed-price award, aims to mitigate cost overrun risks for the government by placing that burden on the contractor. However, risks related to schedule delays due to unforeseen site conditions or external factors remain. The contract's success will depend on the contractor's robust project management, contingency planning, and adherence to safety protocols, as well as the government's clear definition of scope and timely decision-making.

Given this is a delivery order under an IDIQ, what was the original competition for the IDIQ contract, and how does that impact the value proposition of this specific delivery order?

Delivery orders (DOs) under Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts leverage the competition that occurred during the initial award of the IDIQ vehicle. The value proposition of this specific delivery order is thus tied to the competitiveness of the original IDIQ competition. If the IDIQ was awarded through robust full and open competition with numerous bidders, it generally provides a strong foundation for competitive pricing on subsequent DOs. However, the fact that only two bids were received for this specific DO suggests that, for this particular task order, the competition was limited, potentially impacting the price discovery and overall value for taxpayers, irrespective of the IDIQ's initial competition level.

What is the historical spending pattern for facility maintenance and repair by the U.S. Coast Guard, particularly in regions like Puerto Rico?

Analyzing historical spending patterns for facility maintenance and repair by the U.S. Coast Guard, especially in regions like Puerto Rico, would require accessing historical contract databases and budget reports. This would reveal trends in contract values, types of services procured, and geographic distribution of spending. Such an analysis could identify if this $21.4 million award is an outlier, a continuation of a trend, or a significant increase/decrease in investment for facility upkeep in the region. Understanding these patterns helps contextualize the current award and assess its alignment with the agency's long-term infrastructure strategy and budget allocation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3194 LIONSHEAD AVE, CARLSBAD, CA, 92010

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,421,608

Exercised Options: $21,421,608

Current Obligation: $21,421,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04718DRQAECM00

IDV Type: IDC

Timeline