DHS Awards $4.86M for Craighill Channel Range Light Construction to Anderson Place Construction LLC

Contract Overview

Contract Amount: $4,860,821 ($4.9M)

Contractor: Anderson Place Construction LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-15

End Date: 2026-03-19

Contract Duration: 825 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE CRAIGHILL CHANNEL RANGE LIGHT, U.S. COAST GUARD ANT BALTIMORE, BALTIMORE, MD

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.9 million to ANDERSON PLACE CONSTRUCTION LLC for work described as: REPLACE CRAIGHILL CHANNEL RANGE LIGHT, U.S. COAST GUARD ANT BALTIMORE, BALTIMORE, MD Key points: 1. The contract is for heavy and civil engineering construction related to a lighthouse in Baltimore, MD. 2. Anderson Place Construction LLC secured the award, with no specific competition details provided. 3. The contract is a firm-fixed-price definitive contract with a duration of 825 days. 4. The award value is $4,860,820.69, with a reported obligated amount of $4,860,820.69. 5. The contract was not available for competition.

Value Assessment

Rating: questionable

The contract value of $4.86M for lighthouse construction is difficult to benchmark without specific details on the scope of work and comparable projects. The lack of competition raises concerns about whether this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not subject to open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition for this $4.86M contract raises concerns about potential overpayment and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The project's success and timely completion are dependent on a single contractor. The specific impact on the public is limited to the functionality of the navigational aid. Transparency in the procurement process is reduced due to the sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Definitive contract awarded
Firm fixed price agreement

Sector Analysis

This contract falls under the heavy and civil engineering construction sector, specifically for maritime infrastructure. Benchmarking is challenging without more project details, but large-scale construction projects can vary significantly in cost based on complexity and location.

Small Business Impact

The contract was awarded to Anderson Place Construction LLC, and there is no indication that small businesses were involved in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value. Further oversight is needed to understand the justification for not competing the contract.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for taxpayer overpayment.
Limited transparency in procurement.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.9 million to ANDERSON PLACE CONSTRUCTION LLC. REPLACE CRAIGHILL CHANNEL RANGE LIGHT, U.S. COAST GUARD ANT BALTIMORE, BALTIMORE, MD

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 $4.9 million.

What is the period of performance?

Start: 2023-12-15. End: 2026-03-19.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award is critical for understanding the procurement process. Agencies typically require detailed documentation outlining why competition was not feasible, such as unique capabilities of the contractor or urgent needs. Without this justification, it's difficult to assess if fair pricing was achieved, as competitive bidding is the primary mechanism for price discovery and ensuring value for taxpayer money.

How does the $4.86M contract value compare to similar lighthouse construction or maritime infrastructure projects, considering the lack of competition?

Benchmarking this $4.86M contract is challenging due to the sole-source award and limited project details. Typically, competitive bidding allows for price comparisons against market rates. In the absence of competition, it's harder to definitively state if the price is fair. A thorough review of the contractor's cost proposal and historical data for similar, competitively bid projects would be necessary for a robust comparison.

What are the potential risks associated with a sole-source contract for critical infrastructure like a navigational aid, and how are they mitigated?

Sole-source contracts carry risks such as inflated prices, reduced innovation, and potential contractor performance issues without competitive pressure. For critical infrastructure, risks include delays or quality defects impacting safety and operations. Mitigation strategies often involve stringent contract management, detailed performance metrics, and potentially independent cost reviews to ensure the government receives adequate value and the project meets its objectives.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70Z08323RCLEV0009

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: $4,860,821

Exercised Options: $4,860,821

Current Obligation: $4,860,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline