Department of Labor awarded $17.18M for construction services, with 5 bidders competing

Contract Overview

Contract Amount: $17,182,024 ($17.2M)

Contractor: Nevilles Electric Service

Awarding Agency: Department of Labor

Start Date: 2009-11-24

End Date: 2012-09-25

Contract Duration: 1,036 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::16 0182::TAS JOB CORPS-ADMIN., OPERATIONS, CONSTRUCTION-RECOVERY ACT

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49504

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $17.2 million to NEVILLES ELECTRIC SERVICE for work described as: TAS::16 0182::TAS JOB CORPS-ADMIN., OPERATIONS, CONSTRUCTION-RECOVERY ACT Key points: 1. The contract value of $17.18 million represents a significant investment in institutional building construction. 2. Competition dynamics indicate a healthy market response with 5 bidders vying for the contract. 3. The firm-fixed-price contract type suggests a clear scope and predictable cost structure. 4. The contract duration of 1036 days points to a substantial project requiring extended execution. 5. The award was made under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 6. The project's focus on commercial and institutional building construction aligns with infrastructure development needs.

Value Assessment

Rating: good

The contract value of $17.18 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects managed by the Department of Labor would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed cost breakdowns makes a granular price assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, there was an initial exclusion of certain sources. With 5 bidders participating, the level of competition suggests that multiple firms were capable of performing the required construction services. This level of competition is generally favorable for price discovery and achieving a competitive market rate.

Taxpayer Impact: The presence of 5 bidders indicates that taxpayer dollars were likely used efficiently, as multiple companies competed to offer their best pricing and services.

Public Impact

The primary beneficiaries are likely the Job Corps program, which receives improved facilities, and potentially the local workforce through construction employment opportunities. The services delivered include construction and renovation of commercial and institutional buildings, crucial for maintaining and upgrading essential facilities. The geographic impact is focused on Michigan, where the project is located. Workforce implications include the creation of construction jobs during the project's execution phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and ensure no undue restrictions were placed on potential bidders.
Lack of detailed cost breakdowns within the award data makes it difficult to assess the granular value for money.
The specific nature of the construction services and the exact facilities being renovated are not detailed, limiting a full understanding of the project's impact.

Positive Signals

The award was made under full and open competition, indicating a broad market was considered.
The presence of 5 bidders suggests a competitive environment for this contract.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building and renovation of non-residential structures such as schools, government buildings, and commercial facilities. Spending in this area is often driven by infrastructure needs, modernization efforts, and government program requirements. Comparable spending benchmarks would involve analyzing other large federal construction projects awarded by agencies like the General Services Administration or the Department of Defense.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on overall best value rather than specific small business goals. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided award information. The impact on the small business ecosystem would depend on whether prime contractors engage small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General, responsible for ensuring the integrity and efficiency of its programs and contracts. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed project specifics might require further inquiry.

Related Government Programs

Job Corps Program
Federal Construction Contracts
Department of Labor Facilities Management
Commercial Building Construction
Institutional Building Construction

Risk Flags

Competition Type Justification
Potential for Cost Overruns (FFP Long Duration)
Limited Public Detail on Project Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $17.2 million to NEVILLES ELECTRIC SERVICE. TAS::16 0182::TAS JOB CORPS-ADMIN., OPERATIONS, CONSTRUCTION-RECOVERY ACT

Who is the contractor on this award?

The obligated recipient is NEVILLES ELECTRIC SERVICE.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2009-11-24. End: 2012-09-25.

What was the specific justification for 'full and open competition after exclusion of sources' for this contract?

The justification for 'full and open competition after exclusion of sources' typically arises when a specific set of circumstances necessitates limiting the initial pool of potential bidders, even while intending to compete broadly thereafter. This could include situations where only a few contractors possess the highly specialized skills or unique qualifications required for a particular project, or if prior market research indicated a limited number of capable vendors. Without specific documentation from the Department of Labor for this particular award, the exact reason remains speculative. However, the subsequent competition among 5 bidders suggests that while some initial exclusions may have occurred, a sufficient number of qualified firms were ultimately allowed to participate, indicating a desire to achieve competitive pricing and performance.

How does the awarded amount of $17.18 million compare to similar construction projects for federal institutions?

Comparing the $17.18 million award for commercial and institutional building construction requires context regarding the scope, scale, and specific services rendered. Large federal construction projects can vary significantly in cost based on factors like geographic location, complexity of the build or renovation, materials used, and labor costs. For instance, a major renovation of a large federal building could easily reach tens of millions of dollars, while a smaller new construction project might be in the single-digit millions. To provide a precise benchmark, one would need to analyze contracts for similar types of facilities (e.g., educational institutions, administrative buildings) awarded by agencies like the GSA or DoD within a comparable timeframe and geographic region. The fact that 5 bidders competed suggests the market perceived the value and scope as attractive and achievable within the awarded budget.

What are the potential risks associated with a firm-fixed-price contract for a construction project of this duration?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty, but they can introduce risks, especially for long-duration construction projects. The primary risk for the contractor is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise, such as material price escalations, labor shortages, or unexpected site conditions. For the government, the risk is paying a premium upfront to account for the contractor's risk tolerance. If the project scope changes significantly, managing those changes under an FFP contract can become complex and potentially costly. For this 1036-day project, the contractor must meticulously plan for potential economic fluctuations and unforeseen construction challenges to remain profitable.

What is the historical spending pattern for 'TAS JOB CORPS-ADMIN., OPERATIONS, CONSTRUCTION-RECOVERY ACT'?

The data provided indicates a single award of $17,182,023.64 for 'TAS JOB CORPS-ADMIN., OPERATIONS, CONSTRUCTION-RECOVERY ACT' to NEVILLES ELECTRIC SERVICE, awarded on 2009-11-24 and ending on 2012-09-25. This suggests that this specific contract was likely part of the economic recovery efforts following the 2008 financial crisis, potentially utilizing funds from the American Recovery and Reinvestment Act (ARRA) of 2009. Without access to broader federal procurement databases or specific program budget histories, it's difficult to establish a long-term spending pattern for this exact 'TAS' category. However, the presence of 'RECOVERY ACT' in the description strongly implies this was a targeted, time-limited funding initiative rather than a recurring operational expense. Future spending would depend on subsequent legislative appropriations and program needs.

How does the contractor, NEVILLES ELECTRIC SERVICE, perform on other federal contracts?

The provided data identifies NEVILLES ELECTRIC SERVICE as the contractor for this specific $17.18 million Department of Labor contract. To assess their overall track record, one would need to examine their performance history across all federal contracts. This includes reviewing past awards, contract modifications, past performance evaluations (if publicly available), and any instances of disputes or contract terminations. A comprehensive analysis would involve searching federal procurement databases like SAM.gov or FPDS-NG for all contracts awarded to NEVILLES ELECTRIC SERVICE, noting the agencies involved, contract types, dollar values, and completion status. Without this broader dataset, it is impossible to definitively characterize their general performance or reliability as a federal contractor.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1992 HANNAH CREEK RD, FOUR OAKS, NC, 13

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,224,961

Exercised Options: $17,224,961

Current Obligation: $17,182,024

Timeline