DoD's $46.8M Hurricane Michael recovery contract awarded to CH2M HILL CONSTRUCTORS, INC. for Georgia
Contract Overview
Contract Amount: $46,792,063 ($46.8M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-15
End Date: 2022-01-31
Contract Duration: 1,081 days
Daily Burn Rate: $43.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF X009 HURRICANE MICHAEL ASSESSMENT AND RECOVERY WORK
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31704
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $46.8 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IGF::OT::IGF X009 HURRICANE MICHAEL ASSESSMENT AND RECOVERY WORK Key points: 1. Contract value represents a significant investment in disaster recovery efforts. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Performance period spans over three years, indicating a substantial recovery undertaking. 5. Geographic focus on Georgia highlights the localized impact of Hurricane Michael. 6. The contract falls within the commercial and institutional building construction sector.
Value Assessment
Rating: good
The contract value of approximately $46.8 million for disaster recovery work appears reasonable given the scale of Hurricane Michael's impact. Benchmarking against similar large-scale recovery contracts is challenging without more specific details on the scope of work. However, the firm fixed-price nature suggests an effort to establish a clear cost ceiling. The award amount is within the expected range for major construction and recovery projects of this magnitude.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation criteria would provide a clearer picture of the competition's intensity. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value for its investment in disaster recovery.
Public Impact
Residents and businesses in Georgia impacted by Hurricane Michael are the primary beneficiaries through restored infrastructure and services. The contract delivers essential construction and recovery services to rebuild damaged areas. The geographic impact is concentrated in Georgia, specifically areas affected by the hurricane. The contract likely supports local and regional construction workforces, providing employment opportunities during the recovery phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during recovery, despite fixed-price contract.
- Dependence on a single contractor for a critical recovery effort could pose risks if performance falters.
- Scope creep could lead to increased costs or delays if not managed effectively.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awarded through full and open competition, suggesting a competitive selection process.
- Contract duration aligns with the significant scope of disaster recovery needs.
- Focus on a specific, critical event (Hurricane Michael) indicates targeted resource allocation.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The market for disaster recovery construction is often specialized, requiring rapid mobilization and expertise in handling complex damage assessments and repairs. The Department of Defense's involvement suggests a need for robust infrastructure support, potentially including military facilities or critical civilian infrastructure deemed vital for national security or public welfare.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large contractor. Further analysis would be needed to determine if the prime contractor has plans for small business subcontracting, which is crucial for ensuring small businesses can participate in and benefit from large federal contracts, especially in disaster recovery efforts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Navy. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency would be enhanced through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Hurricane Recovery Contracts
- Disaster Relief Efforts
- Department of Defense Construction Projects
- Federal Infrastructure Repair
Risk Flags
- Potential for cost increases due to unforeseen site conditions.
- Risk of contractor performance issues impacting recovery timelines.
- Need for clear scope definition to prevent change order inflation.
Tags
construction, department-of-defense, department-of-the-navy, georgia, hurricane-recovery, disaster-response, commercial-and-institutional-building-construction, full-and-open-competition, firm-fixed-price, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.8 million to CH2M HILL CONSTRUCTORS, INC.. IGF::OT::IGF X009 HURRICANE MICHAEL ASSESSMENT AND RECOVERY WORK
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, 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 $46.8 million.
What is the period of performance?
Start: 2019-02-15. End: 2022-01-31.
What was the specific scope of work for CH2M HILL CONSTRUCTORS, INC. under this contract?
The specific scope of work for CH2M HILL CONSTRUCTORS, INC. under contract N0018923F0001 (awarded under the larger contract vehicle) involved assessment and recovery work following Hurricane Michael in Georgia. This likely included debris removal, structural assessments of damaged buildings, temporary repairs, and potentially long-term reconstruction of government or critical civilian facilities. The 'Hurricane Michael Assessment and Recovery Work' designation suggests a focus on restoring functionality and safety to areas devastated by the storm, which can encompass a wide range of construction and engineering services.
How does the $46.8 million contract value compare to other federal disaster recovery efforts?
Comparing the $46.8 million value directly to other federal disaster recovery efforts requires context on the scale and duration of the disaster. Hurricane Michael was a Category 5 storm, causing widespread devastation in the Florida Panhandle and parts of Georgia. Contracts for major disaster recovery can range from millions to billions of dollars, depending on the affected area's size, the severity of damage, and the types of infrastructure requiring repair. For instance, recovery efforts following Hurricanes Katrina or Sandy involved significantly larger sums. This $46.8 million contract appears to be a substantial, but not unprecedented, investment for a specific recovery phase or geographic region impacted by a major hurricane.
What are the primary risks associated with this type of fixed-price disaster recovery contract?
The primary risks associated with this fixed-price disaster recovery contract include potential for unforeseen site conditions that could escalate costs beyond the initial estimate, even with a fixed price. Contractor performance is a key risk; if the contractor is unable to mobilize effectively or complete the work on time, it could delay critical recovery efforts. Scope creep, where the requirements expand beyond the original agreement, can also be a risk if not managed tightly through change orders. Furthermore, the urgency of disaster recovery can sometimes lead to less thorough planning, increasing the likelihood of encountering unexpected challenges that strain the fixed-price agreement.
What was the track record of CH2M HILL CONSTRUCTORS, INC. with federal disaster recovery contracts prior to this award?
CH2M HILL CONSTRUCTORS, INC. (now part of Jacobs) has a significant history of performing large-scale engineering and construction projects for the federal government, including extensive work in disaster recovery and resilience. They have been involved in major recovery efforts following numerous natural disasters, often providing services related to infrastructure repair, environmental remediation, and program management. Their experience typically includes responding to urgent needs, managing complex logistics, and working with various government agencies. Prior to this specific Hurricane Michael contract, their track record would likely show a capacity to handle substantial federal projects, though the specifics of their performance on similar disaster recovery contracts would require deeper investigation.
How effective are firm fixed-price contracts in ensuring value for money in disaster recovery scenarios?
Firm fixed-price (FFP) contracts are generally considered effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This encourages the contractor to manage costs efficiently and complete the work within the agreed-upon price. In disaster recovery, FFP contracts provide budget certainty for the government, which is crucial given the often unpredictable nature of funding these events. However, the effectiveness can be diminished if the initial scope is poorly defined, leading to extensive change orders that negate the fixed-price benefit, or if the contractor inflates their bid to account for high perceived risk. Careful scope definition and robust oversight are essential to maximize the value derived from FFP contracts in disaster recovery.
What historical spending patterns exist for hurricane recovery within the Department of Defense?
Historical spending patterns for hurricane recovery within the Department of Defense (DoD) show a significant and recurring investment, particularly in regions where DoD assets are located or where the agency is tasked with supporting civilian authorities. The DoD's involvement often focuses on repairing military installations, providing logistical support, and assisting in critical infrastructure restoration. Spending can fluctuate year-to-year based on the frequency and severity of hurricane seasons. Major hurricanes like Katrina, Sandy, Harvey, Irma, and Maria have resulted in hundreds of millions, and sometimes billions, of dollars in recovery-related contracts for the DoD. This spending is often channeled through various components, including the Army Corps of Engineers, Navy, and Air Force, for construction, debris removal, and emergency services.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247012R5010
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 9189 S JAMAICA ST, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,792,063
Exercised Options: $46,792,063
Current Obligation: $46,792,063
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $29,834,512
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6247013D6019
IDV Type: IDC
Timeline
Start Date: 2019-02-15
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2022-08-17
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