Coast Guard awards $5.1M for range light repairs, with limited competition and a 3-year performance period

Contract Overview

Contract Amount: $5,117,843 ($5.1M)

Contractor: Anderson Place Construction LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-22

End Date: 2026-04-30

Contract Duration: 951 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REBUILD NEW CASTLE RANGE LIGHTS AT U.S. COAST GUARD AIDS TO NAVIGATION TEAM (ANT) PHILADELPHIA, NEW CASTLE, DELAWARE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19147

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.1 million to ANDERSON PLACE CONSTRUCTION LLC for work described as: REBUILD NEW CASTLE RANGE LIGHTS AT U.S. COAST GUARD AIDS TO NAVIGATION TEAM (ANT) PHILADELPHIA, NEW CASTLE, DELAWARE Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Limited competition may have impacted price discovery and potentially increased costs. 3. Performance period of 951 days suggests a substantial and complex project. 4. The contract is for essential infrastructure maintenance for navigation safety. 5. This project falls within the 'Other Heavy and Civil Engineering Construction' NAICS code. 6. The fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: fair

The contract value of $5.1 million for heavy civil engineering construction is within a typical range for such projects. However, without specific benchmarks for range light repair or comparable projects in the Philadelphia region, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty for the government, but the limited competition raises questions about whether the most competitive pricing was achieved. Further analysis would require benchmarking against similar infrastructure repair contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed openly, falling under a 'NOT AVAILABLE FOR COMPETITION' designation. This indicates that only one offer was solicited or received. The lack of broad competition limits the government's ability to explore a wider range of potential contractors and pricing structures, potentially leading to higher costs than if multiple bids had been submitted and evaluated.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most cost-effective solution. The absence of a competitive bidding process reduces the downward pressure on prices, potentially resulting in a higher overall expenditure for this infrastructure project.

Public Impact

The U.S. Coast Guard benefits from improved navigation aids, enhancing maritime safety. The project will involve repairs to range lights, crucial for guiding vessels. The geographic impact is localized to New Castle, Delaware, supporting operations at the ANT Philadelphia. The contract is expected to create or sustain jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny to ensure no viable alternatives were overlooked.
The long performance period could introduce risks related to material cost fluctuations or unforeseen site conditions.

Positive Signals

The fixed-price contract type transfers performance risk to the contractor.
The contract addresses essential infrastructure maintenance, ensuring operational readiness for the Coast Guard.
The contractor, ANDERSON PLACE CONSTRUCTION LLC, will be responsible for delivering the specified repairs.

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 often characterized by specialized firms capable of handling complex projects. The U.S. Coast Guard, as a component of the Department of Homeland Security, relies on this sector for maintaining critical operational facilities. Comparable spending benchmarks would typically be found within federal and state transportation, maritime, and defense infrastructure budgets.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem mandated by this award. The prime contractor, ANDERSON PLACE CONSTRUCTION LLC, is responsible for its own sourcing and potential subcontracting decisions.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Coast Guard, a branch of the Department of Homeland Security. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is facilitated through contract databases like FPDS. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

U.S. Coast Guard Infrastructure Projects
Maritime Navigation Aids Maintenance
Heavy Civil Engineering Construction Contracts
Department of Homeland Security Facilities Management

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Benchmarking Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.1 million to ANDERSON PLACE CONSTRUCTION LLC. REBUILD NEW CASTLE RANGE LIGHTS AT U.S. COAST GUARD AIDS TO NAVIGATION TEAM (ANT) PHILADELPHIA, NEW CASTLE, DELAWARE

Who is the contractor on this award?

The obligated recipient is ANDERSON PLACE 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 $5.1 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-04-30.

What is the track record of ANDERSON PLACE CONSTRUCTION LLC with federal contracts, particularly with the U.S. Coast Guard or similar agencies?

A review of federal procurement data would be necessary to fully assess the track record of ANDERSON PLACE CONSTRUCTION LLC. Without access to specific contract history, it's difficult to determine their past performance, experience with similar projects, and history of compliance with federal regulations. Agencies typically rely on past performance evaluations when awarding contracts, especially in competitive scenarios. For this 'NOT AVAILABLE FOR COMPETITION' award, understanding the justification for selecting this specific contractor is crucial. Further investigation into their contract awards, completion history, and any reported issues or commendations would provide a clearer picture of their reliability and capability for this range light repair project.

How does the awarded amount of $5.1 million compare to similar range light repair or heavy civil engineering projects undertaken by the U.S. Coast Guard or other federal agencies?

Benchmarking this $5.1 million contract against similar projects is essential for assessing value for money. Comparable projects would include those involving the repair or replacement of navigation aids, particularly range lights, or other heavy civil engineering construction for maritime facilities. Factors such as geographic location, complexity of the work, material costs, and labor rates can significantly influence project costs. Without access to a database of comparable contract data, it is challenging to definitively state whether $5.1 million is high, low, or average. However, given the 951-day performance period, the scope appears substantial, suggesting the cost may be commensurate with a significant undertaking.

What specific risks are associated with the 'NOT AVAILABLE FOR COMPETITION' status of this contract, and how were they mitigated?

The primary risk associated with a 'NOT AVAILABLE FOR COMPETITION' contract is the potential for inflated pricing due to the absence of competitive pressure. This can lead to taxpayers not receiving the best possible value. Other risks include a narrower pool of qualified contractors, potentially limiting innovation or the selection of the most suitable firm. Mitigation strategies typically involve rigorous justification for the sole-source or limited-source award, ensuring that the selected contractor possesses unique capabilities or that urgent circumstances necessitate bypassing full competition. The agency must demonstrate that the chosen contractor offers fair and reasonable pricing, even without competitive bids. Documentation of this justification and pricing analysis is critical for oversight.

What is the expected impact of these range light repairs on maritime safety and operational efficiency for the U.S. Coast Guard in the Philadelphia area?

The repair of range lights is critical for ensuring the safe and efficient navigation of vessels in the Philadelphia area. Range lights provide visual cues that help mariners determine their position and course, especially in channels and harbors where precise navigation is paramount. Outdated or malfunctioning range lights can increase the risk of grounding, collisions, and other maritime accidents. By undertaking these repairs, the U.S. Coast Guard is directly enhancing maritime domain awareness and safety, supporting commercial shipping, recreational boating, and other maritime activities. This directly contributes to the Coast Guard's mission of protecting ports, waterways, and coastal areas.

How does the $5.1 million contract value compare to the overall spending on infrastructure maintenance by the U.S. Coast Guard or the Department of Homeland Security?

To assess how the $5.1 million contract fits into the broader spending picture, it's necessary to compare it against the total infrastructure maintenance budgets of the U.S. Coast Guard and the Department of Homeland Security (DHS). While this specific contract represents a significant investment for a single project, it may be a relatively small portion of the overall DHS or Coast Guard infrastructure budget, which can run into billions of dollars annually. Understanding the proportion this contract represents can help gauge its strategic importance and whether it aligns with overall infrastructure priorities. Without access to the total budget figures for infrastructure maintenance, a precise comparison is not possible, but it is likely a targeted investment for a specific critical need.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70Z08323RCLEV0062

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1936 BRENGLE AVE, ORLANDO, FL, 32808

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, 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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,117,843

Exercised Options: $5,117,843

Current Obligation: $5,117,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline