Hoar Construction awarded $40.3M for Jamie Whitten Delta States Research Center renovations

Contract Overview

Contract Amount: $40,341,822 ($40.3M)

Contractor: Hoar Construction, LLC

Awarding Agency: Department of Agriculture

Start Date: 2010-06-30

End Date: 2017-09-25

Contract Duration: 2,644 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::12 1402::TAS RECOVERY - RENOVATION FOR CRITICAL REPAIRS OF JAMIE WHITTEN DELTA STATES RESEARCH CENTER, STONEVILLE, MS

Place of Performance

Location: STONEVILLE, WASHINGTON County, MISSISSIPPI, 38776, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.3 million to HOAR CONSTRUCTION, LLC for work described as: TAS::12 1402::TAS RECOVERY - RENOVATION FOR CRITICAL REPAIRS OF JAMIE WHITTEN DELTA STATES RESEARCH CENTER, STONEVILLE, MS Key points: 1. Contract value represents a significant investment in critical infrastructure upgrades. 2. Project duration of over 2600 days suggests a complex, multi-phase renovation. 3. Firm Fixed Price contract type indicates defined scope and cost certainty. 4. The project was awarded by the Department of Agriculture's Agricultural Research Service. 5. Geographic focus on Mississippi highlights regional infrastructure development. 6. No small business set-aside was utilized, suggesting a focus on large-scale capabilities.

Value Assessment

Rating: fair

The contract value of $40.3 million for the renovation of a research center appears substantial. Benchmarking this against similar large-scale institutional building construction projects would be necessary for a definitive value assessment. The firm fixed-price nature provides cost certainty, but the long duration could introduce risks if not managed effectively. Without specific details on the scope of work and comparable project costs, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bids received (4) suggests a moderate level of competition for this large-scale construction project. While full and open competition is generally preferred, a low number of bidders for a project of this magnitude might warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down prices through robust bidding. However, with only four bidders, the potential for significant cost savings may have been limited compared to a scenario with more extensive competition.

Public Impact

Researchers and staff at the Jamie Whitten Delta States Research Center will benefit from modernized facilities. The project delivers essential renovation and repair services to critical scientific infrastructure. The geographic impact is concentrated in Stoneville, Mississippi, supporting local economic activity. The construction workforce in Mississippi will be engaged during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2644 days) could lead to cost overruns if not meticulously managed.
Potential for scope creep in a renovation project of this size and duration.
Reliance on a single contractor for an extended period may limit flexibility.
The moderate number of bidders (4) could indicate limited market competition for specialized large-scale construction.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition promotes a fair and transparent procurement process.
The project addresses critical repair needs for a vital research facility.
Award to a single entity streamlines management and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The value of $40.3 million places it as a substantial project within this category. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar research facility renovations or institutional building projects in the Southern United States. The market for large-scale construction is often characterized by a mix of large, established firms and specialized subcontractors.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses indicated in the provided data. This suggests that the primary contractor, Hoar Construction, LLC, was selected based on its capacity to handle a project of this scale and complexity, potentially through its own resources or by subcontracting to larger, non-small business entities. The impact on the small business ecosystem is likely indirect, through potential opportunities for specialized trades if Hoar chooses to subcontract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's Agricultural Research Service contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the specified scope within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Renovations
Research Facility Construction
Department of Agriculture Infrastructure Projects
Large-Scale Commercial Construction Contracts

Risk Flags

Long project duration may increase risk of cost escalation or delays.
Moderate number of bidders could indicate limited market competition.
Scope definition for large renovations can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.3 million to HOAR CONSTRUCTION, LLC. TAS::12 1402::TAS RECOVERY - RENOVATION FOR CRITICAL REPAIRS OF JAMIE WHITTEN DELTA STATES RESEARCH CENTER, STONEVILLE, MS

Who is the contractor on this award?

The obligated recipient is HOAR CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $40.3 million.

What is the period of performance?

Start: 2010-06-30. End: 2017-09-25.

What was the specific scope of work for the Jamie Whitten Delta States Research Center renovation?

The provided data does not detail the specific scope of work for the renovation. However, given the contract's classification under 'Commercial and Institutional Building Construction' and its award to Hoar Construction, LLC, it likely encompassed significant structural repairs, system upgrades (HVAC, electrical, plumbing), modernization of laboratory or office spaces, and potentially improvements to exterior facilities. The long duration suggests a comprehensive overhaul rather than a minor refurbishment. Further details would be available in the contract's statement of work or associated documentation.

How does the $40.3 million contract value compare to similar research facility renovation projects?

Without specific project details (e.g., square footage, specific types of labs, extent of modernization), a direct comparison is challenging. However, $40.3 million is a substantial sum for a single facility renovation. Large-scale institutional and research facility projects can range widely in cost depending on complexity, location, and specific requirements. For context, major hospital wings or university research buildings can cost hundreds of millions. This project appears to be a significant, but not unprecedented, investment for a federal research center.

What are the primary risks associated with a firm fixed-price contract lasting over 2600 days?

The primary risks with a long-duration firm fixed-price contract include potential for contractor financial strain if costs escalate unexpectedly due to unforeseen site conditions or material price volatility, and the risk of scope creep if the government requires changes not adequately captured in the initial agreement. For the government, the risk is less about cost overruns (as the price is fixed) and more about potential delays or contractor default if the project becomes financially unviable for them. Effective project management, clear change order processes, and robust contractor financial oversight are crucial mitigations.

What is the historical spending pattern for renovations at the Jamie Whitten Delta States Research Center?

The provided data only includes this single, large contract awarded in 2010 for renovations. It does not offer historical spending patterns for this specific facility or for the Agricultural Research Service in general. To understand historical spending, one would need to analyze procurement data for the center over multiple fiscal years, looking for previous renovation contracts, maintenance agreements, or construction awards. This single data point suggests a significant, potentially one-time, major capital investment.

What is the track record of Hoar Construction, LLC with federal contracts, particularly in construction?

Hoar Construction, LLC has a history of federal contracting, as indicated by this award. To assess their track record thoroughly, one would need to examine their complete federal contract history, including the number and value of past awards, performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues or disputes. Their involvement in large-scale projects like this suggests they possess the necessary experience and capacity for significant federal construction endeavors.

How does the competition level (4 bidders) impact price discovery for this type of project?

A competition level of four bidders for a project valued at over $40 million suggests a moderately competitive market. While more bidders generally lead to better price discovery and potentially lower prices for the government, four offers still provide a basis for comparison. It indicates that the project was sufficiently attractive or accessible to multiple capable firms. However, if the market typically sees 8-10 bidders for similar projects, it might suggest potential consolidation or barriers to entry that could slightly dampen the competitive pressure on pricing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 METROPLEX DR STE 400, BIRMINGHAM, AL, 35209

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,341,822

Exercised Options: $40,341,822

Current Obligation: $40,341,822

Timeline