Haskell Company awarded $48.9M for Sandy Hook station rebuild, a significant investment in coastal infrastructure

Contract Overview

Contract Amount: $48,877,997 ($48.9M)

Contractor: THE Haskell Company

Awarding Agency: Department of Homeland Security

Start Date: 2014-09-19

End Date: 2018-11-30

Contract Duration: 1,533 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF REBUILD STATION SANDY HOOK, NJ.

Place of Performance

Location: HIGHLANDS, MONMOUTH County, NEW JERSEY, 07732

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.9 million to THE HASKELL COMPANY for work described as: IGF::OT::IGF REBUILD STATION SANDY HOOK, NJ. Key points: 1. The contract value represents a substantial commitment to rebuilding critical coastal facilities. 2. Competition dynamics for this large-scale construction project are key to ensuring taxpayer value. 3. Performance risk is moderate given the project's duration and complexity. 4. This project is positioned within the broader context of national infrastructure resilience and homeland security. 5. The firm-fixed-price contract type aims to control costs and transfer risk to the contractor.

Value Assessment

Rating: good

The contract value of $48.9 million for the Sandy Hook station rebuild appears to be within a reasonable range for a project of this scale and complexity, involving significant construction and infrastructure development. Benchmarking against similar large-scale federal construction projects for coastal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to establish cost certainty, which is generally favorable for the government when the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of three bidders suggests a reasonable level of competition for this significant construction project.

Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayers to receive the best possible value by encouraging a wide range of qualified contractors to bid, driving down prices through market forces.

Public Impact

The U.S. Coast Guard benefits from an upgraded and modernized facility at Sandy Hook, enhancing operational capabilities. The project delivers essential infrastructure improvements, contributing to homeland security and maritime safety. The geographic impact is concentrated in New Jersey, specifically at the Sandy Hook facility. The construction activities likely created temporary employment opportunities within the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Ensuring timely completion within the established timeframe is crucial for operational continuity.
Quality control and adherence to specifications are paramount for the long-term durability of the facility.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process aimed at achieving value.
The project addresses a critical need for infrastructure modernization within the U.S. Coast Guard.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area often supports critical infrastructure, military installations, and public facilities. The market for large-scale government construction projects is competitive, with specialized firms bidding on significant opportunities. Benchmarks for similar projects would typically consider factors like square footage, complexity of systems, and location-specific costs.

Small Business Impact

While this contract was awarded under full and open competition and the data does not indicate a specific small business set-aside, large federal construction projects often have subcontracting requirements. The prime contractor, The Haskell Company, may engage small businesses for specialized services or materials, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office, with potential involvement from the Department of Homeland Security's Office of Inspector General. The firm-fixed-price nature of the contract, combined with performance milestones, provides a framework for accountability. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

U.S. Coast Guard Facility Modernization Programs
Homeland Security Infrastructure Projects
Federal Coastal Infrastructure Development
Large-Scale Government Construction Contracts

Risk Flags

Potential for scope creep if not managed tightly.
Risk of contractor performance issues impacting schedule or quality.
Dependency on specific material availability and labor resources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.9 million to THE HASKELL COMPANY. IGF::OT::IGF REBUILD STATION SANDY HOOK, NJ.

Who is the contractor on this award?

The obligated recipient is THE HASKELL COMPANY.

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 $48.9 million.

What is the period of performance?

Start: 2014-09-19. End: 2018-11-30.

What is The Haskell Company's track record with similar large-scale federal construction projects?

The Haskell Company has a significant history of undertaking large-scale construction and engineering projects, including those for federal agencies. Their portfolio often includes infrastructure development, industrial facilities, and public buildings. To assess their track record specifically for coastal infrastructure or similar complex projects, a review of their past performance ratings, any past performance issues or awards on similar contracts, and their experience with firm-fixed-price contracts of comparable value would be necessary. This would provide insight into their capacity, reliability, and ability to deliver projects on time and within budget.

How does the $48.9 million cost compare to similar U.S. Coast Guard facility rebuilds?

Comparing the $48.9 million cost directly to similar U.S. Coast Guard facility rebuilds requires access to detailed data on comparable projects, including their scope, size, location, and the year of award. Without specific comparable project data, it's challenging to provide a precise benchmark. However, for a significant facility rebuild involving construction, modernization, and potentially specialized maritime-related infrastructure, this figure suggests a substantial investment. Factors such as inflation, regional construction costs, and the specific technical requirements of the Sandy Hook station would influence the final cost. A detailed cost-benefit analysis or value engineering study would further illuminate the cost-effectiveness.

What are the primary risks associated with this firm-fixed-price contract for the government?

The primary risk for the government with a firm-fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. While FFP is designed to provide cost certainty, it places the burden of cost control on the contractor. If the contractor encounters significant, unanticievable challenges (e.g., unforeseen site conditions, material price spikes beyond reasonable expectation), they may seek change orders, which can increase the contract price. Effective government oversight and clear contract specifications are crucial to mitigate these risks and ensure the project meets all requirements.

How effective is full and open competition in ensuring optimal pricing for large construction contracts?

Full and open competition is generally considered the most effective method for ensuring optimal pricing for large construction contracts. By allowing any responsible contractor to submit a bid, it maximizes the pool of potential bidders, fostering a competitive environment. This competition incentivizes contractors to offer their most competitive pricing and efficient solutions to win the contract. The presence of multiple bidders, as indicated by the three bidders in this case, further strengthens the price discovery process. While other factors like contractor experience and technical proposals are also evaluated, a robust competitive bidding process is fundamental to achieving value for taxpayer money.

What is the historical spending trend for U.S. Coast Guard facility construction and maintenance?

Historical spending trends for U.S. Coast Guard facility construction and maintenance reflect a continuous need for modernization and upgrades to aging infrastructure, alongside investments in new facilities to support evolving operational requirements. Funding levels can fluctuate based on congressional appropriations, national priorities (such as increased focus on maritime security or climate resilience), and the lifecycle of existing assets. Analyzing past budgets and contract awards for facility projects would reveal patterns of investment, highlighting periods of significant capital outlay for major construction or renovation efforts, and periods focused more on maintenance. This specific contract represents a significant investment within that broader historical context.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $48,877,997

Exercised Options: $48,877,997

Current Obligation: $48,877,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4709D3EFK20

IDV Type: IDC

Timeline