Coast Guard awards $16M for Petaluma water line, with 4 bids received under full and open competition

Contract Overview

Contract Amount: $15,995,595 ($16.0M)

Contractor: J. I. Garcia Construction, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-22

End Date: 2027-07-17

Contract Duration: 572 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND BUILD A NEW WATER SUPPLY LINE BETWEEN THE CITY OF PETALUMA WATER DISTRIBUTION SYSTEM AND USCG TRACENS WATER PUMP STATION AT KING ROAD AND BODEGA AVE.

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94952

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.0 million to J. I. GARCIA CONSTRUCTION, INC. for work described as: DESIGN AND BUILD A NEW WATER SUPPLY LINE BETWEEN THE CITY OF PETALUMA WATER DISTRIBUTION SYSTEM AND USCG TRACENS WATER PUMP STATION AT KING ROAD AND BODEGA AVE. Key points: 1. Contract value of $15.99M for a critical infrastructure project. 2. Competition was robust, with 4 bids submitted. 3. Project duration is approximately 1.5 years, indicating a moderate complexity. 4. The contract type is Firm Fixed Price, which shifts risk to the contractor. 5. This project addresses essential water supply needs for a key federal facility. 6. The award was a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $15.99M appears reasonable for a water supply line construction project of this scope. Benchmarking against similar infrastructure projects for federal facilities would provide a more precise assessment, but the presence of multiple bids suggests competitive pricing. The Firm Fixed Price structure indicates a commitment to a defined cost, which is generally favorable for the government when risks are well-understood.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial pool of potential sources might have been narrowed, the final competition was open to all qualified bidders. Four bids were received, suggesting a healthy level of interest and competition for this project. This level of competition is generally conducive to achieving fair market prices.

Taxpayer Impact: The open competition with multiple bidders is beneficial for taxpayers, as it increases the likelihood of securing the best possible price and value for the construction services.

Public Impact

The U.S. Coast Guard Tracens facility in Petaluma, California, will benefit from an upgraded and reliable water supply. The project will deliver essential water infrastructure improvements, ensuring operational continuity. The geographic impact is localized to Petaluma, California, specifically along King Road and Bodega Avenue. Construction activities may temporarily impact local traffic and require a skilled construction workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the operational readiness of the USCG facility.
Unforeseen ground conditions or environmental factors could increase costs or extend timelines.
Coordination with local utilities and authorities is critical to avoid disruptions.

Positive Signals

Firm Fixed Price contract limits cost overrun risk for the government.
Multiple bids indicate a competitive market for these construction services.
Project addresses a critical need for reliable water infrastructure at a federal installation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on utility infrastructure. The market for such construction services is competitive, with numerous firms capable of undertaking projects of this scale. Federal spending in infrastructure, particularly for critical facilities like Coast Guard stations, often involves significant investment to ensure operational resilience and safety. Comparable projects might include upgrades to water, sewer, or power systems at other federal installations.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor, J. I. Garcia Construction, Inc., may be a small business, the competition structure suggests larger firms could also participate. Subcontracting opportunities may exist, but their allocation to small businesses is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and potentially the Department of Homeland Security's Office of Inspector General. The Firm Fixed Price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award review.

Related Government Programs

Federal Building and Facilities Construction
Military Construction
Water Infrastructure Projects
Public Works Construction

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Reliance on contractor's past performance for successful project completion.
Ensuring long-term durability and maintenance of the new water line.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.0 million to J. I. GARCIA CONSTRUCTION, INC.. DESIGN AND BUILD A NEW WATER SUPPLY LINE BETWEEN THE CITY OF PETALUMA WATER DISTRIBUTION SYSTEM AND USCG TRACENS WATER PUMP STATION AT KING ROAD AND BODEGA AVE.

Who is the contractor on this award?

The obligated recipient is J. I. GARCIA CONSTRUCTION, INC..

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 $16.0 million.

What is the period of performance?

Start: 2025-12-22. End: 2027-07-17.

What is the track record of J. I. Garcia Construction, Inc. with federal contracts, particularly with the U.S. Coast Guard or Department of Homeland Security?

A review of federal contract databases would be necessary to fully assess J. I. Garcia Construction, Inc.'s track record. Information regarding past performance, including successful completion of similar projects, adherence to schedules and budgets, and any history of disputes or contract terminations, is crucial for evaluating their capability. Specifically, examining their prior awards from the U.S. Coast Guard and DHS would indicate their familiarity with the agency's requirements and contracting processes. A strong history with these agencies suggests a lower performance risk for this new contract.

How does the awarded price of $15.99 million compare to similar water supply line construction projects for federal facilities?

Benchmarking this $15.99 million award against similar projects requires detailed analysis of scope, complexity, location, and prevailing market conditions at the time of award. Factors such as pipe diameter, length, terrain, soil conditions, and the need for specialized equipment or environmental mitigation can significantly influence costs. Without specific comparable project data, it's challenging to definitively state if this price is high or low. However, the presence of four bids suggests the price was likely competitive within the market for this type of work in California.

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

Key risks include potential construction delays due to unforeseen site conditions (e.g., geological issues, hazardous materials), weather disruptions, or permitting challenges. Scope creep is another risk, although mitigated by the Firm Fixed Price contract type. The contractor assumes most of the cost risk. Mitigation strategies likely involve thorough site investigations prior to construction, robust project management by the contractor, clear communication protocols with the Coast Guard, and contingency planning for potential issues. The Coast Guard's oversight will also play a role in monitoring progress and addressing challenges.

What is the expected impact of this project on the operational capabilities of the USCG Tracens Petaluma facility?

The primary impact is positive: ensuring a reliable and potentially upgraded water supply to the USCG Tracens Petaluma facility. This is critical for daily operations, including sanitation, safety systems (like fire suppression), and potentially specialized equipment. An interruption or inadequacy in the water supply could significantly hinder the facility's ability to perform its mission. Therefore, this project directly supports the operational readiness and continuity of the Coast Guard's presence in Petaluma.

What has been the historical spending trend for similar water infrastructure projects by the U.S. Coast Guard or Department of Homeland Security?

Analyzing historical spending trends for similar projects by the USCG and DHS would reveal patterns in contract values, frequency of awards, and types of contractors utilized. This data can help identify if spending in this category is increasing, decreasing, or remaining stable. It can also highlight whether the agency typically uses full and open competition or other methods, and the average number of bids received. Such analysis provides context for the current $15.99M award and helps in forecasting future needs and budget allocations for infrastructure upgrades.

Were there any specific exclusions of sources prior to the full and open competition phase, and what was the justification?

The contract description 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that an initial phase may have involved limiting the pool of potential offerors, perhaps through market research or pre-qualification. However, the subsequent 'full and open competition' phase means that all responsible sources were ultimately allowed to compete. The justification for any initial exclusion would typically relate to specific technical requirements, past performance, or unique capabilities needed, which were then assessed against a broader field to ensure the best value was obtained.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4717 E HEDGES AVE, FRESNO, CA, 93703

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,995,595

Exercised Options: $15,995,595

Current Obligation: $15,995,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04724DPCNI0007

IDV Type: IDC

Timeline