Coast Guard's $81.6M New Orleans ISC project awarded to Broadmoor LLC under full and open competition

Contract Overview

Contract Amount: $81,599,095 ($81.6M)

Contractor: Broadmoor LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-04-17

End Date: 2011-07-24

Contract Duration: 1,193 days

Daily Burn Rate: $68.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN & RECONSTRUCTION OF USCG ISC NEW ORLEANS, LA

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $81.6 million to BROADMOOR LLC for work described as: DESIGN & RECONSTRUCTION OF USCG ISC NEW ORLEANS, LA Key points: 1. The contract value represents a significant investment in critical infrastructure for the U.S. Coast Guard. 2. Competition dynamics suggest a potentially competitive bidding process for this large-scale construction project. 3. The definitive contract type indicates a fixed price for services, offering cost certainty. 4. Project duration of nearly three years points to a substantial and complex undertaking. 5. The award to a single contractor, Broadmoor LLC, highlights their capacity for large federal projects. 6. Geographic focus on Louisiana underscores regional economic impact and specialized construction needs.

Value Assessment

Rating: good

Benchmarking the $81.6 million contract value for the design and reconstruction of the U.S. Coast Guard Integrated Support Command in New Orleans is challenging without specific cost breakdowns or comparable project data. However, the scale of the project suggests a significant investment. The firm-fixed-price contract type generally indicates that the contractor assumed the risk for cost overruns, which can be favorable for the government if managed effectively. The duration of the project (1193 days) also implies a comprehensive scope of work.

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 bids. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process would provide a clearer picture of the competitive landscape. A competitive process is generally expected to drive down prices and ensure fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better quality services. It ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.

Public Impact

The primary beneficiary is the U.S. Coast Guard, which will receive modernized facilities at its New Orleans Integrated Support Command. The project delivers essential construction and reconstruction services, ensuring operational readiness and improved infrastructure. The geographic impact is concentrated in New Orleans, Louisiana, potentially creating local jobs and stimulating the regional economy. The construction workforce, including skilled trades and project management personnel, will be directly impacted by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive reconstruction period.
Dependence on a single contractor for a project of this magnitude carries inherent execution risks.
Ensuring compliance with all environmental and safety regulations during a large-scale construction project.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract provides cost certainty for the government.
The contractor, Broadmoor LLC, has experience in large-scale construction projects.
Project aims to modernize critical Coast Guard infrastructure, enhancing operational capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for federal construction projects is substantial, with agencies like the Department of Homeland Security frequently investing in facilities and infrastructure. Comparable spending benchmarks would typically involve other large-scale government building projects, considering factors like square footage, complexity, and location. The $81.6 million award is indicative of a major construction undertaking.

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 requirements for small businesses mandated by a set-aside. However, the prime contractor, Broadmoor LLC, may still engage small businesses as subcontractors to fulfill parts of the project, contributing to the broader small business ecosystem. The absence of a set-aside means the competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. Accountability measures would include contract milestones, performance reviews, and adherence to the firm-fixed-price terms. Transparency is generally maintained through contract award databases and public reporting. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security Facilities Construction
U.S. Coast Guard Infrastructure Modernization
Federal Building and Renovation Projects
Large-Scale Commercial Construction Contracts

Risk Flags

Potential for schedule delays due to complexity of reconstruction.
Risk of cost escalation if unforeseen site conditions are encountered.
Contractor performance risk on a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $81.6 million to BROADMOOR LLC. DESIGN & RECONSTRUCTION OF USCG ISC NEW ORLEANS, LA

Who is the contractor on this award?

The obligated recipient is BROADMOOR 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 $81.6 million.

What is the period of performance?

Start: 2008-04-17. End: 2011-07-24.

What is the track record of Broadmoor LLC in completing large federal construction projects on time and within budget?

Assessing Broadmoor LLC's track record requires a detailed review of their past federal contracts. While this specific contract was awarded in 2008 and completed in 2011, its duration of 1193 days (over three years) suggests a significant undertaking. To evaluate their performance, one would need to examine contract modifications, final costs versus initial award amounts, and any documented performance issues or commendations on similar projects. Federal procurement data and agency performance reports would be the primary sources for this analysis. Without access to that granular data for Broadmoor's portfolio, a definitive assessment of their historical performance on large federal projects remains incomplete.

How does the $81.6 million contract value compare to similar U.S. Coast Guard infrastructure projects?

Comparing the $81.6 million contract value for the U.S. Coast Guard Integrated Support Command in New Orleans requires identifying comparable projects in terms of scope, scale, and type of construction. Projects involving the renovation or construction of major operational facilities, such as support commands or air stations, would be the most relevant benchmarks. Factors like the age of existing facilities, specific functional requirements (e.g., housing, maintenance, administrative spaces), and geographic location (which influences labor and material costs) are crucial for a fair comparison. A preliminary search of federal contract databases might reveal similar projects awarded in the same period or to other Coast Guard districts. Without such direct comparisons, it's difficult to definitively state whether $81.6 million represents a high, low, or average cost for this type of undertaking.

What were the key risk indicators identified during the bidding process for this contract?

Key risk indicators for a large federal construction project like this typically revolve around potential cost overruns, schedule delays, technical complexity, and contractor performance. Given the firm-fixed-price nature of the contract, the primary risk for the government is ensuring the contractor can deliver the specified scope within the agreed budget. Risks for the contractor would include unforeseen site conditions, material price fluctuations, labor availability, and regulatory changes. The bidding process likely involved evaluating each bidder's technical approach, past performance, financial stability, and safety records to mitigate these risks. The presence of only two bidders might suggest potential concerns about the complexity or profitability of the project, or perhaps a highly specialized market.

How effective was the full and open competition in ensuring value for taxpayer money?

The effectiveness of full and open competition in ensuring value for taxpayer money hinges on the number of bids received and the final negotiated price relative to independent cost estimates. With two bids submitted for this $81.6 million contract, the competition was present but perhaps not as robust as it could have been. A higher number of bidders generally increases the likelihood of competitive pricing. The firm-fixed-price structure helps lock in costs, but the ultimate value depends on whether the winning bid was truly competitive. Further analysis would require comparing the awarded price against industry benchmarks and any pre-bid cost estimates to determine if taxpayers received optimal value.

What is the historical spending pattern for U.S. Coast Guard infrastructure projects of similar magnitude?

Analyzing historical spending patterns for similar U.S. Coast Guard infrastructure projects requires examining contract awards over several fiscal years. This involves looking at the frequency, size, and types of construction contracts the Coast Guard has issued for facilities maintenance, upgrades, and new builds. Understanding these patterns can reveal trends in investment, average project costs, and the typical procurement methods used. For instance, a pattern of consistent, large-scale investments might indicate a proactive approach to infrastructure management, while sporadic or smaller awards could suggest deferred maintenance or budget constraints. The $81.6 million award for the New Orleans ISC fits within the category of significant infrastructure spending.

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: TWO STEP

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BOH Bros. Construction CO., L.L.C.

Address: 2740 N ARNOULT RD, METAIRIE, LA, 70002

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $81,599,095

Exercised Options: $81,599,095

Current Obligation: $81,599,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline