DHS awards $2.15M for facility construction in Pennsylvania, highlighting full and open competition

Contract Overview

Contract Amount: $2,151,566 ($2.2M)

Contractor: APC Construction LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-30

End Date: 2026-08-23

Contract Duration: 205 days

Daily Burn Rate: $10.5K/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: FULL OPERATING CAPABILITY WCC WLR2 AT CGC OSAGE AT SEWICKLEY, PA PNUM 22992301

Place of Performance

Location: SEWICKLEY, ALLEGHENY County, PENNSYLVANIA, 15143

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to APC CONSTRUCTION LLC for work described as: FULL OPERATING CAPABILITY WCC WLR2 AT CGC OSAGE AT SEWICKLEY, PA PNUM 22992301 Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. The project was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is relatively short, indicating a focused project scope. 5. The contractor, APC CONSTRUCTION LLC, is responsible for delivering the specified operational capability. 6. The project is located in Sewickley, Pennsylvania, impacting local economic activity.

Value Assessment

Rating: good

The contract value of $2.15 million for facility construction appears reasonable given the scope of delivering full operating capability. Benchmarking against similar commercial and institutional building construction projects of this scale would provide further insight into value for money. The firm fixed-price nature of the contract is a positive indicator for cost control.

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 multiple bidders were likely considered. The presence of three bidders suggests a healthy level of competition, which typically drives better pricing and quality for the government. This approach ensures that the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source award. It demonstrates responsible stewardship of public funds by seeking out the most cost-effective solution.

Public Impact

The U.S. Coast Guard benefits from the enhanced operational capability at the CGC Osage facility. The project delivers essential infrastructure improvements, ensuring the facility can meet its operational demands. The geographic impact is localized to Sewickley, Pennsylvania, potentially creating local jobs and stimulating the regional economy. The construction activities may involve a local workforce, contributing to employment in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions arise during construction.
Ensuring adherence to all environmental and safety regulations during the construction phase.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Awarded through full and open competition, suggesting a competitive market for these services.
Clear delivery order with defined start and end dates for project management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for such services is competitive, with numerous firms capable of undertaking government projects. The value of this contract, at $2.15 million, is moderate within the context of large-scale federal construction projects, but significant for the specific facility upgrade.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While APC CONSTRUCTION LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award notice. Further review of the contract details would be needed to assess potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office, with potential involvement from the Department of Homeland Security's Office of Inspector General. The firm fixed-price nature and defined delivery order provide clear metrics for performance monitoring and accountability. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

Federal Building Construction Contracts
Department of Homeland Security Infrastructure Projects
U.S. Coast Guard Facilities Modernization
Commercial Building Construction Services

Risk Flags

Potential for cost overruns if scope changes are not managed strictly.
Risk of construction delays impacting operational readiness.
Ensuring compliance with all building codes and environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to APC CONSTRUCTION LLC. FULL OPERATING CAPABILITY WCC WLR2 AT CGC OSAGE AT SEWICKLEY, PA PNUM 22992301

Who is the contractor on this award?

The obligated recipient is APC CONSTRUCTION LLC.

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 $2.2 million.

What is the period of performance?

Start: 2026-01-30. End: 2026-08-23.

What is the track record of APC CONSTRUCTION LLC with federal contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

A review of federal procurement data would be necessary to fully assess APC CONSTRUCTION LLC's track record. This would involve examining past contract awards, performance evaluations, and any history of disputes or contract modifications. Understanding their experience with similar-sized projects and government agencies is crucial for evaluating their capability to successfully execute this current contract. Without specific historical data, it's difficult to definitively gauge their reliability and past performance.

How does the awarded price of $2.15 million compare to similar facility construction projects undertaken by the U.S. Coast Guard or other federal agencies?

Benchmarking this $2.15 million contract against similar projects requires access to a database of comparable federal construction awards. Factors such as project scope (e.g., square footage, type of facility, specific operational capabilities required), geographic location (which influences labor and material costs), and the year of award are critical for a meaningful comparison. If comparable projects of similar complexity and scale were awarded at significantly lower or higher prices, it would indicate whether this contract represents a particularly good or poor value. The firm fixed-price nature suggests an effort to control costs, but the ultimate value is determined by the market rates for such construction.

What are the primary risks associated with this specific construction contract, and what mitigation strategies are in place?

Key risks for this construction project include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions. There's also the risk of quality control issues if not properly managed. Given the firm fixed-price structure, the primary risk to the government is ensuring the contractor delivers the specified quality and functionality within the agreed budget. Mitigation strategies likely include robust project management by the U.S. Coast Guard, detailed contract specifications, regular site inspections, and adherence to safety protocols. The contractor assumes most of the financial risk for cost overruns.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for construction projects of this nature?

The 'full and open competition after exclusion of sources' method is designed to maximize competition while allowing for specific exclusions if justified. In this case, it suggests that while the competition was broad, certain sources might have been excluded for specific reasons (e.g., past performance, capability). When multiple bidders participate, as indicated by the three bidders, it generally leads to competitive pricing. The effectiveness hinges on whether the exclusion criteria were appropriate and did not unduly limit the pool of qualified bidders. For taxpayers, this method is generally favorable when it results in multiple, capable bidders vying for the contract, driving down costs.

What is the historical spending pattern for facility construction and maintenance by the U.S. Coast Guard in Pennsylvania?

Analyzing historical spending patterns for the U.S. Coast Guard in Pennsylvania would require accessing historical contract databases and filtering by agency, location, and service category (e.g., construction, maintenance). This would reveal trends in contract values, types of projects undertaken, and the frequency of awards. Understanding this historical context can help determine if the current $2.15 million award is consistent with past investments, unusually high or low, and whether there's a pattern of awarding contracts to specific types of firms or through particular procurement methods. This information is vital for assessing the long-term investment strategy in Coast Guard facilities in the region.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: PNUM 22992301

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: APC Construction, LLC

Address: 1910 PETERS ROAD, HARVEY, LA, 70058

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

Financial Breakdown

Contract Ceiling: $2,151,566

Exercised Options: $2,151,566

Current Obligation: $2,151,566

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z08219DPMV12600

IDV Type: IDC

Timeline