Navy awards $107M construction contract to Haskell Company for Panamanian facilities

Contract Overview

Contract Amount: $11,765,092 ($11.8M)

Contractor: THE Haskell Company

Awarding Agency: Department of Defense

Start Date: 2004-03-25

End Date: 2011-03-17

Contract Duration: 2,548 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200406!000537!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246703C0232 !A!N! !N! ! !20040325!20110115!106956824!106956824!106956824!N!THE HASKELL COMPANY !111 RIVERSIDE AVENUE !JACKSONVILLE !FL!32202!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000010047340!N!N!000010047340!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!004!B! !D!N!C! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! !N! ! !1710!N61331!0001! !

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to THE HASKELL COMPANY for work described as: 200406!000537!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246703C0232 !A!N! !N! ! !20040325!20110115!106956824!106956824!106956824!N!THE HASKELL COMPANY !111 RIVERSIDE AVENUE !JACKSONVILLE !FL!32202!54700!005!12!PANAMA CITY !BAY … Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development. 2. The contract was fully and openly competed, suggesting a competitive bidding process. 3. A firm-fixed-price contract type implies that the contractor bears the risk of cost overruns. 4. The duration of the contract (over 7 years) suggests a significant, long-term project. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the Department of the Navy, highlighting defense-related infrastructure needs.

Value Assessment

Rating: good

The contract value of $106,956,824 for construction services appears reasonable given the duration and scope. Benchmarking against similar large-scale construction projects for military facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government secured a predictable cost, though market fluctuations could impact the contractor's profitability and potentially long-term performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 4 bids were received, suggesting a healthy level of competition for this significant construction project. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. It also ensures that the government has access to a range of qualified contractors.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and operations in Panama who will utilize the constructed facilities. The contract delivers essential construction services for administrative and service buildings. The geographic impact is concentrated in Panama, specifically the area of Panama City. The contract supports the construction workforce, likely involving numerous skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if market prices for materials or labor increase significantly during the contract's long duration.
Ensuring consistent quality and adherence to specifications over a multi-year construction period can be challenging.
Logistical complexities of construction in a foreign country may pose risks to timely completion and budget adherence.

Positive Signals

The firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a robust selection process, likely resulting in a qualified and capable contractor.
The long contract duration allows for a sustained focus on project completion and potential for economies of scale in execution.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The U.S. construction industry is a significant part of the economy, with government contracts forming a substantial portion of demand. Comparable spending benchmarks would involve analyzing other large-scale military construction projects, both domestically and internationally, to assess cost-effectiveness.

Small Business Impact

The data indicates this was a large contract awarded to The Haskell Company. There is no explicit information regarding small business set-asides or subcontracting plans within the provided data. Further investigation would be needed to determine if small businesses were involved as subcontractors or if there were specific goals set for their participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Facilities Engineering Command (NAVFAC), which awarded the contract. Accountability measures would include contract milestones, performance reviews, and adherence to the firm-fixed-price agreement. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Naval Facilities Engineering Command Contracts
Department of Defense Construction Projects
Foreign Military Construction Contracts
Base Realignment and Closure (BRAC) related construction

Risk Flags

Long contract duration increases exposure to market volatility.
Overseas construction presents unique logistical and geopolitical risks.
Firm-fixed-price contracts can strain contractor finances if costs escalate unexpectedly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to THE HASKELL COMPANY. 200406!000537!1700!C2467 !NAVAL FACILITIES ENGINEERING COM!N6246703C0232 !A!N! !N! ! !20040325!20110115!106956824!106956824!106956824!N!THE HASKELL COMPANY !111 RIVERSIDE AVENUE !JACKSONVILLE !FL!32202!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000010047340!N!N!000010047340!Y119!OTHER ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is THE HASKELL COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2004-03-25. End: 2011-03-17.

What is the track record of The Haskell Company in performing large-scale government construction contracts, particularly overseas?

The Haskell Company has a significant history of performing large-scale construction projects, including many for government and military clients. Their portfolio often includes complex projects requiring adherence to strict specifications and timelines. While this specific contract was in Panama, Haskell has experience with international projects. A deeper dive into their past performance on similar overseas military construction contracts, including any past performance issues or commendations, would provide a more comprehensive understanding of their capabilities and reliability for this type of work.

How does the final award price compare to the initial estimated cost or the bids from other competitors?

The award amount was $106,956,824. The provided data indicates there were 4 bids received. To fully assess value, we would need to know the government's initial estimate for this project and the specific bid amounts from the other three competitors. If the award price was significantly lower than the estimate and competitive with other bids, it suggests good price discovery. Conversely, if it was close to or exceeded the estimate, further analysis of the scope and market conditions would be warranted.

What are the primary risks associated with a multi-year firm-fixed-price construction contract in a foreign location?

Key risks include potential cost escalations for materials and labor due to market volatility over the contract's long duration (2004-2011). Logistical challenges inherent in overseas operations, such as supply chain disruptions, import/export regulations, and local labor availability, can impact timelines and costs. Furthermore, geopolitical stability in the region and unforeseen site conditions can introduce significant risks. The firm-fixed-price nature means the contractor absorbs these cost overruns, potentially impacting their financial stability and motivation if risks materialize severely.

What was the specific nature of the 'Other Administrative & Service Buildings' constructed under this contract?

The designation 'Other Administrative & Service Buildings' is broad and typically encompasses structures that support the operational functions of a military installation but are not barracks, hangars, or specialized technical facilities. This could include headquarters buildings, administrative offices, commissaries, recreational facilities, maintenance shops, or other support structures. The exact nature would depend on the specific needs of the Naval command in Panama at the time the contract was awarded. Detailed architectural plans or project descriptions would clarify the precise scope.

What is the historical spending trend for similar construction contracts by the Department of the Navy in Central America?

Analyzing historical spending trends for similar construction contracts by the Department of the Navy in Central America would provide context for this $107 million award. This involves examining contract databases for projects of comparable size, scope (e.g., administrative buildings, infrastructure), and geographic region over a relevant period. Understanding whether this contract represents an increase, decrease, or steady level of investment can indicate strategic priorities, budget allocations, and the general market conditions for defense construction in the region. Without this comparative data, it's difficult to definitively assess if this contract's value is typical or an outlier.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 111 RIVERSIDE AVENUE, JACKSONVILLE, FL, 32202

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline