DHS awards $13.4M contract for building construction and repair in California

Contract Overview

Contract Amount: $13,372,984 ($13.4M)

Contractor: THE Haskell Company

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-09

End Date: 2024-09-03

Contract Duration: 452 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CASREP BAUER SIDING AND ROOFING AT BUILDING 544 BAUER PETALUMA, CA. PSN 5706102

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94952

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.4 million to THE HASKELL COMPANY for work described as: CASREP BAUER SIDING AND ROOFING AT BUILDING 544 BAUER PETALUMA, CA. PSN 5706102 Key points: 1. Contract value represents a significant investment in facility maintenance and upgrades. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The duration of the contract indicates a substantial project scope. 5. The award is for construction services, a critical component of infrastructure management. 6. The contractor has a track record with federal agencies, though specific performance on this contract is pending.

Value Assessment

Rating: good

The contract value of $13.4 million for building construction and repair appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is standard for this type of work and helps control costs for the government, provided the contractor manages their expenses effectively. The number of bids received (2) is on the lower side for full and open competition, which could warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. While full and open competition is the preferred method for ensuring broad market participation and potentially lower prices, the limited number of bidders might suggest potential barriers to entry, a specialized market, or insufficient outreach. Further analysis of the bidding process and the qualifications of the bidders would be beneficial.

Taxpayer Impact: The limited number of bidders in a full and open competition could mean that taxpayers did not benefit from the widest possible range of pricing options. However, the presence of multiple bidders still offers some level of price discovery compared to sole-source awards.

Public Impact

The U.S. Coast Guard benefits from improved and maintained facilities, ensuring operational readiness. The contract delivers essential construction and repair services for a federal building. The geographic impact is localized to Petaluma, California, supporting regional infrastructure. The contract may have implications for the local construction workforce, potentially creating jobs or utilizing existing labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential issues with market engagement or barriers to entry.
The specific nature of 'CASREP BAUER SIDING AND ROOFING' suggests a focus on specific repair elements, which might be part of a larger, unawarded facility management strategy.
The contract duration of 452 days is substantial, requiring sustained oversight to ensure timely and quality completion.

Positive Signals

Awarded under full and open competition, adhering to federal procurement principles.
Firm-fixed-price contract type helps manage cost certainty for the government.
The U.S. Coast Guard is a critical agency, and investment in its facilities supports national security and operational effectiveness.
The contractor, The Haskell Company, has experience with federal contracts, suggesting familiarity with government requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this sector supports infrastructure maintenance and development across various agencies. Comparable spending benchmarks would involve analyzing other large-scale construction and repair contracts awarded by agencies like the Department of Homeland Security or other branches of the military for similar facility types and geographic regions. The market size for federal construction is substantial, driven by the need to maintain and modernize aging government facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor is likely a large business, and the direct impact on the small business ecosystem may be limited unless they are engaged as subcontractors. Further review of the contract's subcontracting goals would be necessary to fully assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office and potentially the Department of Homeland Security's Office of Inspector General. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases like FPDS, where basic contract information is publicly available. The specific performance monitoring and reporting requirements would be detailed within the contract's statement of work.

Related Government Programs

Department of Homeland Security Facilities Management
U.S. Coast Guard Infrastructure Projects
Federal Building Construction Contracts
Commercial and Institutional Building Construction

Risk Flags

Limited competition (2 bidders) for a full and open solicitation.
Potential for cost overruns or quality issues if contractor faces financial pressure on fixed-price contract.
Need for robust quality assurance to ensure long-term durability of repairs/construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.4 million to THE HASKELL COMPANY. CASREP BAUER SIDING AND ROOFING AT BUILDING 544 BAUER PETALUMA, CA. PSN 5706102

Who is the contractor on this award?

The obligated recipient is THE HASKELL COMPANY.

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 $13.4 million.

What is the period of performance?

Start: 2023-06-09. End: 2024-09-03.

What is the track record of The Haskell Company with federal contracts, particularly within the Department of Homeland Security or U.S. Coast Guard?

The Haskell Company is a known entity in federal contracting, with a history of performing construction and engineering services for various government agencies. While specific details on past performance metrics for this exact contract are not provided in the summary data, their presence as a bidder and awardee suggests they meet the basic qualifications and experience requirements set by the government. To assess their track record thoroughly, one would need to examine past performance evaluations, any documented disputes or contract terminations, and the overall value and complexity of their previous federal awards. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific performance databases could offer more granular insights into their reliability and quality of work on prior federal projects.

How does the awarded amount of $13.4 million compare to similar building construction and repair contracts for federal facilities?

The $13.4 million award for building construction and repair in California is a significant sum, indicative of a substantial project. To benchmark its value, it would be necessary to compare it against contracts of similar scope, complexity, and geographic location awarded to other federal agencies or within the same branch (e.g., other U.S. Coast Guard facilities). Factors such as the specific type of construction (e.g., new build vs. renovation, specialized systems), the duration of the contract (452 days), and prevailing market rates for construction labor and materials in California would need to be considered. Without access to a detailed cost breakdown or a comprehensive database of comparable federal construction contracts, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature suggests the government sought cost certainty.

What are the potential risks associated with a firm-fixed-price contract for building construction, especially with only two bidders?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty, as the contractor assumes the risk of cost overruns. However, for complex construction projects, especially those with a limited number of bidders (like the two here), risks can emerge. If the initial price was set too low due to competitive pressure, the contractor might cut corners on quality or materials to maintain profitability, potentially leading to future maintenance issues. Conversely, if the price was inflated due to lack of robust competition, taxpayers may have overpaid. The limited competition also raises concerns about whether the government received the best possible value. Effective government oversight, clear performance standards, and thorough inspection protocols are crucial to mitigate these risks under an FFP arrangement.

What is the expected impact of this contract on the local construction workforce in Petaluma, California?

A contract of this magnitude ($13.4 million) for building construction and repair is likely to have a positive impact on the local construction workforce in Petaluma and surrounding areas. It is expected to create or sustain jobs for various trades, including carpenters, electricians, plumbers, roofers, and general laborers. The duration of the contract (452 days) suggests a sustained need for labor over an extended period. The prime contractor, The Haskell Company, may hire locally or bring in specialized crews, depending on their standard operating procedures and the availability of skilled labor in the region. Furthermore, the contract could stimulate demand for local suppliers of construction materials and equipment, indirectly benefiting other businesses in the area.

How does the U.S. Coast Guard typically manage contracts for facility maintenance and construction, and what oversight mechanisms are in place?

The U.S. Coast Guard, as part of the Department of Homeland Security, follows federal acquisition regulations (FAR) for managing contracts. For facility maintenance and construction, they typically assign contracting officers and contract specialists to oversee the procurement process, from solicitation to award and administration. Oversight mechanisms include detailed statements of work (SOW), performance work statements (PWS), regular progress meetings with the contractor, site inspections, and quality assurance surveillance plans (QASP). The firm-fixed-price nature of this contract means the government's primary oversight focuses on ensuring the work is completed according to specifications, on time, and within budget. The Coast Guard's facilities engineering commands often play a key role in technical oversight and ensuring compliance with building codes and safety standards.

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: 111 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,372,984

Exercised Options: $13,372,984

Current Obligation: $13,372,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04718DHASKLL00

IDV Type: IDC

Timeline