Naval Shipyard Energy Conservation Project Awarded to Methuen Construction for $22.5M Under Full and Open Competition
Contract Overview
Contract Amount: $22,486,709 ($22.5M)
Contractor: Methuen Construction CO Inc
Awarding Agency: Department of Defense
Start Date: 2012-06-29
End Date: 2017-08-18
Contract Duration: 1,876 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ENERGY CONSERVATION AND STRUCTURAL REPAIRS TO SUB-ENCLOSURES AT PORTSMOUTH, NAVAL SHIPYARD, KITTERY, MAINE.
Place of Performance
Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03804
Plain-Language Summary
Department of Defense obligated $22.5 million to METHUEN CONSTRUCTION CO INC for work described as: ENERGY CONSERVATION AND STRUCTURAL REPAIRS TO SUB-ENCLOSURES AT PORTSMOUTH, NAVAL SHIPYARD, KITTERY, MAINE. Key points: 1. The contract focuses on energy conservation and structural repairs, crucial for long-term facility efficiency. 2. Methuen Construction, a significant player in the construction sector, secured this award. 3. The project's duration of over 1800 days suggests a complex scope of work. 4. The firm-fixed-price contract type aims to control costs for the Department of Defense.
Value Assessment
Rating: good
The contract value of $22.5 million for structural repairs and energy conservation at a naval shipyard appears reasonable given the project's extensive duration and scope. Benchmarking against similar large-scale institutional building construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified contractors can bid.
Taxpayer Impact: Full and open competition likely resulted in a more favorable price for taxpayers compared to sole-source or limited competition scenarios.
Public Impact
Enhances operational efficiency and reduces long-term energy costs for the Navy. Supports critical infrastructure maintenance at a key naval facility. Contributes to the local economy through construction jobs and related services. Demonstrates the government's commitment to modernizing aging federal facilities.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long project duration could lead to cost overruns if not managed effectively.
- Potential for unforeseen structural issues requiring additional funding.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests competitive pricing.
- Focus on energy conservation aligns with sustainability goals.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for federal projects can vary significantly based on infrastructure needs and modernization efforts, with large projects like this representing substantial investments.
Small Business Impact
The data indicates that Methuen Construction Co Inc, the awardee, is not a small business. There is no specific information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for contract execution and financial management. The firm-fixed-price nature of the contract also aids in accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (1876 days) increases exposure to market fluctuations and potential delays.
- Potential for unforeseen structural issues at an older naval facility.
- Lack of explicit small business subcontracting goals may limit broader economic impact.
- Firm-fixed-price contracts can incentivize contractors to cut corners if not closely monitored.
Tags
commercial-and-institutional-building-co, department-of-defense, nh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to METHUEN CONSTRUCTION CO INC. ENERGY CONSERVATION AND STRUCTURAL REPAIRS TO SUB-ENCLOSURES AT PORTSMOUTH, NAVAL SHIPYARD, KITTERY, MAINE.
Who is the contractor on this award?
The obligated recipient is METHUEN CONSTRUCTION CO 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 $22.5 million.
What is the period of performance?
Start: 2012-06-29. End: 2017-08-18.
What was the specific breakdown of costs for energy conservation versus structural repairs, and how does this align with projected energy savings?
The provided data does not detail the cost breakdown between energy conservation and structural repairs. A thorough analysis would require access to the contract's detailed financial statements and the initial cost-benefit analysis for the energy-saving components. Understanding this split is crucial for evaluating the return on investment for the energy conservation measures and verifying that taxpayer funds are allocated efficiently towards both facility integrity and long-term operational cost reduction.
Were there any performance issues or contract modifications during the 1876-day period that impacted the final cost or project outcome?
The data does not specify any performance issues or contract modifications. A comprehensive risk assessment would involve reviewing contract modification history, any incurred penalties or incentives, and post-completion performance reviews. Significant modifications could indicate unforeseen challenges or scope creep, potentially impacting the initial cost-effectiveness and highlighting areas for improved planning in future projects.
How does the final cost compare to the initial bid and the estimated value of the work performed, considering the firm-fixed-price structure?
As a firm-fixed-price contract, the award amount of $22,486,709 is the agreed-upon price. Deviations from this price would typically only occur due to approved change orders. Comparing the final cost to the initial bid and the government's estimate of the work's value is essential for confirming that the competitive bidding process yielded a fair and reasonable price and that the contractor is delivering the contracted scope within 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: N4008512R1728
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 40 LOWELL RD STE 2, SALEM, NH, 03079
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,486,709
Exercised Options: $22,486,709
Current Obligation: $22,486,709
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-29
Current End Date: 2017-08-18
Potential End Date: 2017-08-18 00:00:00
Last Modified: 2018-02-23
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