DHS Coast Guard's $37.6M Galveston Rebuild contract awarded to CH2M HILL CONSTRUCTORS, INC. for construction services

Contract Overview

Contract Amount: $37,590,825 ($37.6M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-02-22

End Date: 2015-06-10

Contract Duration: 1,569 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SFRL # 08-3086425 PROJECT NAME: SFO GALVESTON REBUILD FUNDS: HURRICANE SUPPLEMENTAL

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77553

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.6 million to CH2M HILL CONSTRUCTORS, INC. for work described as: SFRL # 08-3086425 PROJECT NAME: SFO GALVESTON REBUILD FUNDS: HURRICANE SUPPLEMENTAL Key points: 1. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 2. The project, funded by a hurricane supplemental, indicates a response to disaster-related infrastructure needs. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract (1569 days) suggests a significant, long-term construction project. 5. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The project is located in Texas, a region prone to hurricane activity.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of the 'Galveston Rebuild' and the specific services rendered. However, the total award amount of $37.6 million for a multi-year construction project in response to hurricane damage appears within a reasonable range for large-scale infrastructure repair. Further analysis would require detailed project specifications and comparison to similar post-disaster rebuilding efforts.

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. The presence of 6 bidders indicates a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and potentially securing better value for the government.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the U.S. Coast Guard and the Galveston community, which benefits from restored or improved infrastructure. The services delivered involve commercial and institutional building construction, likely focused on repairing or rebuilding facilities damaged by hurricanes. The geographic impact is concentrated in Galveston, Texas. The project likely involved a significant construction workforce, contributing to local employment and economic activity in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'rebuild' was underestimated or unforeseen issues arose during construction.
Delays in project completion could impact Coast Guard operational readiness in the affected area.
Contractor performance risk associated with managing a large-scale, multi-year construction project.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty.
Hurricane supplemental funding suggests a critical need for the project, implying strong government support.
Long contract duration allows for thorough execution of complex rebuilding tasks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for post-disaster reconstruction can be highly specialized, often involving firms with experience in rapid deployment and resilience building. The total federal spending on construction services is substantial, and this contract represents a specific instance of infrastructure investment driven by natural disaster recovery.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this specific contract. While CH2M HILL CONSTRUCTORS, INC. may engage small businesses as subcontractors, there is no explicit indication of a small business set-aside in the award details provided. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office, with potential involvement from DHS's Office of Inspector General, especially given the supplemental funding source. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures would be tied to the contract's performance clauses and delivery schedules.

Related Government Programs

Hurricane Recovery Efforts
Infrastructure Rebuilding Programs
Department of Homeland Security Construction Contracts
U.S. Coast Guard Facilities Management

Risk Flags

Potential for scope creep given the nature of disaster recovery.
Contract duration may lead to challenges in maintaining consistent oversight.
Reliance on supplemental funding could indicate budget volatility for future needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.6 million to CH2M HILL CONSTRUCTORS, INC.. SFRL # 08-3086425 PROJECT NAME: SFO GALVESTON REBUILD FUNDS: HURRICANE SUPPLEMENTAL

Who is the contractor on this award?

The obligated recipient is CH2M HILL CONSTRUCTORS, INC..

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 $37.6 million.

What is the period of performance?

Start: 2011-02-22. End: 2015-06-10.

What specific facilities or infrastructure were rebuilt or repaired under this contract?

The provided data does not specify the exact facilities or infrastructure rebuilt. However, given the context of 'Galveston Rebuild' and 'Hurricane Supplemental' funding, it is highly probable that the contract addressed damage to U.S. Coast Guard installations, port facilities, or related institutional buildings in Galveston, Texas, that were impacted by hurricanes. This could include administrative buildings, operational support facilities, housing, or critical infrastructure components necessary for Coast Guard operations in the region. A detailed review of the contract statement of work would be required for precise information.

How does the $37.6 million award compare to similar post-hurricane construction contracts?

Comparing the $37.6 million award requires context on the scale and nature of the damage and the specific rebuilding scope. Post-hurricane reconstruction costs can vary widely based on the severity of the storm, the size and complexity of the affected facilities, and the duration of the rebuilding effort. For large-scale infrastructure projects following major hurricanes (e.g., Katrina, Harvey), multi-million dollar contracts are common. Without specific details on the scope of work and the condition of the facilities prior to the award, a precise benchmark is difficult. However, the amount is substantial and indicative of a significant rebuilding effort.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for a large construction contract like this include cost overruns due to unforeseen site conditions or material price fluctuations, schedule delays caused by weather or supply chain issues, and contractor performance failures. Mitigation strategies likely included a firm-fixed-price contract to cap costs, detailed site assessments, robust project management by the Coast Guard, and performance bonds from the contractor. The long duration also presents risks related to changing requirements or economic conditions, which would be managed through contract modifications and oversight.

What is the track record of CH2M HILL CONSTRUCTORS, INC. in handling large federal construction projects, particularly disaster recovery?

CH2M HILL (now part of Jacobs) has a long history of undertaking large-scale engineering and construction projects for government agencies, including significant work for the Department of Defense and other federal entities. They have experience in infrastructure development, environmental services, and program management. While specific details on their disaster recovery project portfolio are not in the provided data, their general capabilities suggest they are equipped to handle complex rebuilding efforts. A deeper dive into their past performance ratings and project history would provide a more definitive assessment.

How has federal spending on commercial and institutional building construction evolved, and where does this contract fit?

Federal spending on construction, including commercial and institutional buildings, fluctuates based on infrastructure needs, national priorities, and economic conditions. Spending often increases following major natural disasters due to supplemental appropriations for recovery and rebuilding efforts, as seen with this contract. This $37.6 million award represents a specific investment within the broader category of federal construction spending, driven by a critical need for facility restoration. It fits within the pattern of federal agencies investing in maintaining and rebuilding their physical assets, particularly in response to emergencies.

What does the 'delivery order' award type signify in the context of this contract?

The 'delivery order' award type indicates that this contract was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts allow agencies to procure supplies or services over a set period, with specific orders (delivery orders or task orders) being placed as needed. This approach provides flexibility for the government to acquire services incrementally. In this case, the U.S. Coast Guard likely had an overarching IDIQ contract for construction services, and this delivery order represented a specific task or project within that framework, such as the Galveston Rebuild.

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1500 INTERNATIONAL DR, SPARTANBURG, SC, 29303

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

Financial Breakdown

Contract Ceiling: $37,590,825

Exercised Options: $37,590,825

Current Obligation: $37,590,825

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,279,148

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4710D3EFK16

IDV Type: IDC

Timeline