DOT's $57.6M LHI-026 STB RENOVATION IGF contract awarded to Manhattan Construction Company LLC

Contract Overview

Contract Amount: $57,636,089 ($57.6M)

Contractor: Manhattan Construction Company LLC

Awarding Agency: Department of Transportation

Start Date: 2012-08-22

End Date: 2015-10-09

Contract Duration: 1,143 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LHI-026 STB RENOVATION IGF::OT::IGF

Place of Performance

Location: OKLAHOMA CITY, CANADIAN County, OKLAHOMA, 73127

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $57.6 million to MANHATTAN CONSTRUCTION COMPANY LLC for work described as: LHI-026 STB RENOVATION IGF::OT::IGF Key points: 1. The contract value of $57.6 million represents a significant investment in infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictability. 4. The duration of 1143 days indicates a substantial, long-term project. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code. 6. The award was made by the Federal Aviation Administration, a key agency within DOT.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project scope details. However, the $57.6 million price tag for a multi-year construction project suggests a substantial undertaking. The firm-fixed-price nature provides cost certainty, but the ultimate value for money depends on the quality of execution and adherence to the original scope. Further analysis would require comparing it to similar large-scale renovation projects within the federal government or commercial sector, considering factors like square footage, complexity, and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a reasonable level of competition for this project. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages efficiency among bidders, leading to a more cost-effective use of public funds.

Public Impact

The primary beneficiaries are likely the Federal Aviation Administration and its personnel, who will utilize the renovated facilities. The project delivers essential renovation services for institutional buildings. The geographic impact is localized to the area where the renovation took place, likely within the operational footprint of the FAA. The project implies a need for skilled construction labor, potentially creating or sustaining jobs in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive renovation period.
Risk of schedule delays impacting the operational readiness of FAA facilities.
Dependence on the performance and financial stability of Manhattan Construction Company LLC.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive award process.
The contract duration indicates a comprehensive approach to the renovation.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The federal government is a significant consumer of construction services for its vast portfolio of buildings and infrastructure. Spending in this area is influenced by factors such as aging facilities requiring modernization, new construction needs, and infrastructure upgrades. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation or construction contracts awarded by agencies like GSA, DOD, or DOT.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, Manhattan Construction Company LLC, may still engage small businesses as subcontractors based on their own procurement strategies, but it is not a contractual requirement stemming from this award's structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Aviation Administration. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The firm-fixed-price nature implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, quality standards, and schedule. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Aviation Administration Facility Upgrades
Department of Transportation Infrastructure Projects
Commercial and Institutional Building Construction Contracts
Large-Scale Federal Renovation Projects

Risk Flags

Potential for cost overruns due to fixed-price nature on a long-term project.
Schedule adherence risk given the project's duration.
Contractor performance risk requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $57.6 million to MANHATTAN CONSTRUCTION COMPANY LLC. LHI-026 STB RENOVATION IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MANHATTAN CONSTRUCTION COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $57.6 million.

What is the period of performance?

Start: 2012-08-22. End: 2015-10-09.

What is the track record of Manhattan Construction Company LLC with federal contracts, particularly within the Department of Transportation?

Manhattan Construction Company LLC has a history of engaging in federal contracting. While specific details on their performance with the Department of Transportation require deeper database analysis, their ability to win a $57.6 million definitive contract suggests they possess the capacity and experience to handle large-scale projects. A thorough review would involve examining past performance evaluations, any past disputes or claims, and the types of federal projects they have successfully completed. This would provide a clearer picture of their reliability and expertise in executing government contracts, especially within the construction sector.

How does the awarded price of $57.6 million compare to similar large-scale federal building renovation projects?

Direct comparison of the $57.6 million award requires detailed project scope, size, and complexity metrics for similar federal renovation projects. However, for a multi-year, comprehensive renovation of institutional buildings, this figure is substantial but not necessarily outside the norm for large federal undertakings. Factors such as the age and condition of the existing structure, the extent of modernization required (e.g., HVAC, electrical, structural), and specific security or technological upgrades would influence the final cost. Benchmarking against projects of similar square footage and renovation intensity within the FAA or other federal agencies would provide a more precise value assessment.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration and scale?

The primary risk with a firm-fixed-price contract for a long-duration, large-scale project like this is the potential for unforeseen issues to significantly impact the contractor's profitability, potentially leading to claims or disputes. While the price is fixed, the contractor assumes the risk of cost overruns due to factors like unexpected site conditions, material price escalations, or labor shortages. For the government, the risk is that the contractor might cut corners on quality to maintain profitability if significant cost pressures arise, or that the fixed price may not reflect the true market value if conditions change drastically. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What does the 'OK' status for 'st' (State) and 'sn' (State Name) signify in the context of this contract?

The 'OK' status for 'st' and 'sn' (Oklahoma) likely indicates that the contract award or the contractor's primary place of business is associated with the state of Oklahoma. In federal contracting databases, these fields often denote the state where the contract was awarded from, the agency's regional office, or the contractor's headquarters or a significant operational base. For this specific contract, it might mean that the Federal Aviation Administration office overseeing this award is located in Oklahoma, or that Manhattan Construction Company LLC has a significant presence or operational hub in Oklahoma relevant to this project.

How does the number of bidders (3) influence the potential value for money achieved in this contract?

Having 3 bidders for a contract of this magnitude suggests a moderate level of competition. While more bidders generally lead to more competitive pricing, three offers can still provide sufficient pressure to achieve good value for money, especially if the bidders are well-qualified and the bidding process is robust. If the pool of potential bidders was significantly larger but only three submitted offers, it might indicate barriers to entry or a lack of interest from other firms. The quality and competitiveness of the bids submitted would be the ultimate determinant of the value achieved, rather than the raw number of bidders alone.

What is the significance of the 'DEFINITIVE CONTRACT' award type in federal procurement?

A definitive contract is a standard, legally binding agreement that specifies all terms and conditions, including price, scope, and delivery schedule. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in quantities or delivery times, definitive contracts are typically awarded for a specific project with a fixed scope and price. This award type, 'DEFINITIVE CONTRACT', for the LHI-026 STB RENOVATION IGF project indicates a clear, well-defined project with a set budget and timeline, providing a high degree of certainty for both the government and the contractor regarding the deliverables and financial commitments.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rooney Holdings, Inc. (UEI: 107125957)

Address: 5601 S 122ND EAST AVE, TULSA, OK, 74146

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

Financial Breakdown

Contract Ceiling: $57,803,089

Exercised Options: $57,636,089

Current Obligation: $57,636,089

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline