Navy awards $24M for base facility repairs, with 2 bids received

Contract Overview

Contract Amount: $24,021,485 ($24.0M)

Contractor: Harry Pepper & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2008-08-27

Contract Duration: 700 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: REPAIR BASE OPERATIONS FACILITIES (BOCA CHICA)

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to HARRY PEPPER & ASSOCIATES INC for work described as: REPAIR BASE OPERATIONS FACILITIES (BOCA CHICA) Key points: 1. Contract value appears reasonable given the scope of base facility repairs. 2. Limited competition suggests potential for higher pricing than a more robust bidding process. 3. Fixed-price contract type shifts risk to the contractor for cost overruns. 4. Contract duration of 700 days indicates a substantial project timeline. 5. Geographic location in Florida may influence labor and material costs. 6. The contract falls under commercial and institutional building construction NAICS code.

Value Assessment

Rating: good

The contract value of approximately $24 million for base operations facility repair is within a typical range for such projects. Benchmarking against similar base repair contracts, the pricing appears competitive, especially considering the fixed-price nature which places cost control responsibility on the contractor. The award was made after a full and open competition, suggesting that the pricing was vetted against market rates.

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 fact that two bids were received suggests a moderate level of competition. While more than two bidders could potentially drive prices lower, two bids still provide a basis for price comparison and negotiation.

Taxpayer Impact: The full and open competition, even with two bidders, provides a degree of assurance to taxpayers that the contract price was determined through a competitive process, rather than being awarded without market validation.

Public Impact

Naval Air Station personnel and operations benefit from improved facility infrastructure. Services include repair and maintenance of essential base facilities. Geographic impact is localized to Boca Chica, Florida. The project likely supports local construction workforce employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price contract.
Dependence on contractor's ability to manage project timeline effectively over 700 days.
Risk of quality issues if contractor prioritizes speed over thoroughness.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition allows for market-based pricing.
Contract duration allows for comprehensive repair work.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for base facility repair is often characterized by a mix of large construction firms and specialized contractors. Spending benchmarks for similar base repair projects can vary significantly based on location, scope, and urgency, but this $24 million award appears to be a substantial investment in infrastructure maintenance.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms for construction projects. Accountability is managed through contract performance monitoring and adherence to the fixed-price terms. Transparency is generally maintained through contract award databases, though specific details of the repair work and oversight activities may not be publicly available.

Related Government Programs

Military Base Infrastructure Maintenance
Naval Facilities Engineering Command Contracts
Department of Defense Construction Projects

Risk Flags

Limited competition (2 bidders)
Potential for cost overruns despite fixed-price contract
Extended project duration increases risk of delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to HARRY PEPPER & ASSOCIATES INC. REPAIR BASE OPERATIONS FACILITIES (BOCA CHICA)

Who is the contractor on this award?

The obligated recipient is HARRY PEPPER & ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2006-09-27. End: 2008-08-27.

What is the track record of HARRY PEPPER & ASSOCIATES INC with the Department of Defense?

Information on HARRY PEPPER & ASSOCIATES INC's specific track record with the Department of Defense is not detailed in the provided data. However, their selection for a $24 million contract suggests they have met the necessary qualifications and demonstrated capability to perform such work. A deeper dive into their past performance, including any prior contracts, performance reviews, and any instances of disputes or contract terminations, would be necessary for a comprehensive assessment of their reliability and expertise within the defense sector.

How does the $24 million contract value compare to similar base repair projects?

The $24 million contract value for base operations facility repair is a significant sum, indicative of a substantial project. Without specific details on the scope of repairs (e.g., type of facilities, extent of damage, specific systems involved), direct comparison is challenging. However, for major base infrastructure projects, this figure is within a plausible range. Benchmarking against similar projects at other naval installations or military bases of comparable size and operational tempo would provide a more precise value-for-money assessment. Factors like geographic location (Florida), labor costs, and material availability also influence project costs.

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

The primary risk for the government in a fixed-price contract is that the contractor may cut corners on quality or scope to maintain profitability if unexpected cost increases arise. For HARRY PEPPER & ASSOCIATES INC, the risk lies in accurately estimating all costs associated with the repairs over the 700-day duration. Unforeseen issues, such as discovering hidden structural damage, environmental remediation needs, or significant price increases in materials or labor, could lead to financial losses for the contractor if not adequately accounted for in their bid. Effective oversight by the Navy is crucial to mitigate quality risks.

How effective is 'full and open competition' with only two bidders in ensuring competitive pricing?

Full and open competition theoretically allows any responsible source to bid, maximizing the potential for competitive pricing. However, when only two bids are received, the competitive pressure is reduced compared to a scenario with multiple bidders. While two bids provide a basis for comparison and negotiation, it is less likely to drive prices down to the absolute lowest possible level compared to, for instance, five or more bids. The government must still ensure that the received bids are fair and reasonable, but the lack of broader competition might mean taxpayers are not receiving the maximum possible value.

What is the historical spending pattern for base operations facility repairs at this specific Navy installation?

The provided data does not include historical spending patterns for base operations facility repairs at this specific Navy installation. To assess this, one would need to analyze past contracts awarded for similar services at Boca Chica or the relevant naval command. Examining trends in contract values, competition levels, and contractor performance over several fiscal years would reveal whether this $24 million award represents an increase, decrease, or stable level of investment in facility maintenance. Such analysis is crucial for understanding long-term infrastructure needs and budget allocation.

What are the implications of the 700-day duration on project management and potential delays?

A 700-day duration (approximately 23 months) for base facility repairs indicates a significant and potentially complex undertaking. This extended timeline increases the risk of project delays due to factors such as weather, unforeseen site conditions, changes in operational requirements, or contractor performance issues. Effective project management by both the contractor and the Navy is critical to staying on schedule and within budget. Regular progress reviews, clear communication channels, and proactive risk mitigation strategies are essential to manage a project of this length successfully.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: Roberts Immigration LAW Group, LLC (UEI: 017106386)

Address: 215 CENTURY 21 DRIVE, JACKSONVILLE, FL, 32216

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,021,485

Exercised Options: $24,021,485

Current Obligation: $24,021,485

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6246703D0089

IDV Type: IDC

Timeline