DHS Awards $44.4M Contract for PIADC Wastewater System Replacement to A/Z Corporation
Contract Overview
Contract Amount: $44,384,256 ($44.4M)
Contractor: A/Z Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2014-07-14
End Date: 2018-06-05
Contract Duration: 1,422 days
Daily Burn Rate: $31.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF REPLACEMENT OF THE EXISTING WASTE WATER THERMAL DECONTAMINATION SYSTEM (WWTDS), PLUM ISLAND ANIMAL DISEASE CENTER (PIADC), ORIENT POINT, NEW YORK
Place of Performance
Location: ORIENT, SUFFOLK County, NEW YORK, 11957
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $44.4 million to A/Z CORPORATION for work described as: IGF::OT::IGF REPLACEMENT OF THE EXISTING WASTE WATER THERMAL DECONTAMINATION SYSTEM (WWTDS), PLUM ISLAND ANIMAL DISEASE CENTER (PIADC), ORIENT POINT, NEW YORK Key points: 1. The contract value of $44.4M is significant for a specialized facility upgrade. 2. A/Z Corporation, a single awardee, suggests potential for limited competition or specific expertise. 3. The project addresses critical infrastructure at a high-security animal disease center, indicating high risk. 4. The sector is Commercial and Institutional Building Construction, with a focus on specialized systems.
Value Assessment
Rating: fair
The contract value of $44.4M for a wastewater system replacement appears substantial. Benchmarking against similar large-scale construction projects for specialized facilities is needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the single award to A/Z Corporation warrants further investigation into the bidding process and the number of proposals received.
Taxpayer Impact: Taxpayer funds are being used for a critical infrastructure upgrade at a federal facility. Ensuring competitive pricing and efficient execution is key to maximizing taxpayer value.
Public Impact
Ensures operational continuity and safety at the Plum Island Animal Disease Center. Addresses environmental compliance and public health by upgrading wastewater treatment. Supports national biosecurity efforts by maintaining critical research infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex construction projects.
- Reliance on a single contractor for a critical system.
- Long project duration (1422 days) increases risk exposure.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical infrastructure need.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically involving specialized infrastructure for a high-security research facility. Benchmarks for similar projects would typically consider factors like facility type, system complexity, and geographic location.
Small Business Impact
The data indicates the prime contractor is A/Z Corporation, and there is no explicit mention of small business participation (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
Oversight would involve monitoring project progress, adherence to schedule and budget, and quality of work. The Federal Law Enforcement Training Center, under DHS, is responsible for ensuring accountability for this contract.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- Federal Law Enforcement Training Center Programs
Risk Flags
- Potential for cost overruns due to project duration.
- Reliance on a single contractor for critical infrastructure.
- Complexity of specialized wastewater treatment systems.
- Ensuring environmental compliance throughout construction.
- Maintaining facility operations during system replacement.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $44.4 million to A/Z CORPORATION. IGF::OT::IGF REPLACEMENT OF THE EXISTING WASTE WATER THERMAL DECONTAMINATION SYSTEM (WWTDS), PLUM ISLAND ANIMAL DISEASE CENTER (PIADC), ORIENT POINT, NEW YORK
Who is the contractor on this award?
The obligated recipient is A/Z CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).
What is the total obligated amount?
The obligated amount is $44.4 million.
What is the period of performance?
Start: 2014-07-14. End: 2018-06-05.
What was the competitive landscape during the bidding process for this contract?
While the contract was awarded under 'full and open competition,' the single award to A/Z Corporation raises questions about the number and quality of bids received. Further investigation into the solicitation documents and award rationale would clarify if effective competition was achieved and if the pricing reflects market rates.
What are the primary risks associated with the long duration and specialized nature of this project?
The 1422-day duration for replacing a wastewater system at a high-security facility presents risks of cost escalation due to inflation, material price volatility, and potential scope creep. Specialized construction also increases the risk of unforeseen technical challenges and reliance on specific expertise, potentially impacting project timelines and budget if issues arise.
How does the firm fixed price contract impact the government's risk and potential for cost savings?
A firm fixed price contract shifts most of the cost risk to the contractor, A/Z Corporation. This provides the government with budget certainty and protects against cost overruns, assuming the initial price was set competitively. However, it could also mean the government misses out on potential savings if the contractor completes the work under budget.
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
Solicitation ID: HSFLBP-14-R-00001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 46 NORWICH WESTERLY RD, NORTH STONINGTON, CT, 06359
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,591,580
Exercised Options: $44,384,256
Current Obligation: $44,384,256
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-14
Current End Date: 2018-06-05
Potential End Date: 2018-06-05 00:00:00
Last Modified: 2018-09-27
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