Navy awards $29.2M for Hurricane Sally recovery at NAS Pensacola, with CH2M HILL CONSTRUCTORS managing construction
Contract Overview
Contract Amount: $29,201,031 ($29.2M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-19
End Date: 2024-09-30
Contract Duration: 1,472 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HURRICANE SALLY RECOVERY - NAS PENSACOLA
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32501
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.2 million to CH2M HILL CONSTRUCTORS, INC. for work described as: HURRICANE SALLY RECOVERY - NAS PENSACOLA Key points: 1. Contract value represents a significant investment in base recovery efforts. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration spans over four years, indicating a substantial scope of work. 5. Geographic focus on Florida highlights regional disaster response needs. 6. The contract falls under commercial and institutional building construction, a broad category.
Value Assessment
Rating: good
The contract value of $29.2 million for Hurricane Sally recovery at NAS Pensacola appears reasonable given the scope of construction and the four-year duration. Benchmarking against similar large-scale base recovery or construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary cost risk, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for specific construction elements, a definitive value assessment is challenging.
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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and quality for the government. The open competition suggests that the Navy sought the best available solution from the market.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.
Public Impact
Naval Air Station Pensacola personnel and infrastructure will benefit from restored facilities. Construction services will be delivered, focusing on repairing and rebuilding damaged structures. The geographic impact is concentrated in Pensacola, Florida. The project will likely involve a significant construction workforce, potentially creating jobs in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during the extended construction period.
- Ensuring timely completion within the four-year timeframe is crucial for operational readiness.
- Quality control and adherence to construction standards must be rigorously monitored.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust selection process.
- The contractor, CH2M HILL CONSTRUCTORS, likely has experience with large-scale construction projects.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The federal government is a significant consumer of construction services, particularly for infrastructure repair and development at military bases and other federal facilities. The market for large-scale construction is competitive, with many firms capable of undertaking complex projects. This specific contract addresses a critical need for recovery and rebuilding following a natural disaster.
Small Business Impact
The data indicates that this contract was not set aside for small businesses and that the prime contractor is not a small business. Therefore, the direct impact on small business set-asides is nil. However, the prime contractor may engage small businesses as subcontractors to fulfill portions of the work, which could provide opportunities within the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering departments, with potential involvement from the Naval Inspector General. The firm fixed-price contract type inherently places responsibility on the contractor for cost management. Transparency would be facilitated through contract award notices and potentially through public reporting on project milestones, though specific oversight mechanisms and accountability measures would need to be detailed in the contract itself.
Related Government Programs
- Hurricane Recovery Efforts
- Military Base Infrastructure Repair
- Naval Facilities Engineering Command Contracts
- Large-Scale Construction Projects
Risk Flags
- Potential for cost escalation over the 4-year duration.
- Risk of unforeseen site conditions impacting schedule and budget.
- Ensuring contractor performance and quality over an extended period.
- Dependency on timely completion for base operational readiness.
Tags
construction, defense, department-of-defense, department-of-the-navy, florida, full-and-open-competition, firm-fixed-price, disaster-recovery, hurricane-sally, nas-pensacola, large-contract, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 million to CH2M HILL CONSTRUCTORS, INC.. HURRICANE SALLY RECOVERY - NAS PENSACOLA
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 $29.2 million.
What is the period of performance?
Start: 2020-09-19. End: 2024-09-30.
What is the track record of CH2M HILL CONSTRUCTORS, INC. with federal construction contracts, particularly those involving disaster recovery?
CH2M HILL CONSTRUCTORS, INC. (now part of Jacobs) has a substantial history of performing large-scale federal construction and engineering projects. Their portfolio includes significant work for various government agencies, including the Department of Defense, Department of the Interior, and Department of Energy. They have been involved in major infrastructure development, environmental remediation, and, relevant to this contract, disaster recovery and resilience projects. Their experience often encompasses complex engineering challenges, program management, and construction execution across diverse geographic locations. Specific to disaster recovery, their past performance would likely include projects related to rebuilding infrastructure after hurricanes, earthquakes, or other natural events, demonstrating their capability to manage such critical undertakings.
How does the $29.2 million award compare to other Hurricane Sally recovery contracts or similar base recovery projects?
Comparing the $29.2 million award for Hurricane Sally recovery at NAS Pensacola requires context from other recovery efforts. Following major hurricanes, federal agencies often award numerous contracts for debris removal, temporary housing, infrastructure repair, and permanent reconstruction. The value of individual contracts can vary significantly based on the scope of damage and the specific services required. For instance, contracts for widespread debris removal might be smaller and more numerous, while major reconstruction of critical facilities, like those at NAS Pensacola, would naturally command higher values. To benchmark effectively, one would need to analyze contracts awarded by FEMA, the Army Corps of Engineers, and other military branches for similar hurricane recovery operations, looking at the average cost per square foot for repairs or the total cost for comparable facility restoration.
What are the primary risks associated with a four-year fixed-price construction contract for disaster recovery?
A four-year firm fixed-price contract for disaster recovery construction carries several inherent risks. Firstly, the extended duration increases the likelihood of encountering unforeseen site conditions (e.g., hidden structural damage, environmental hazards) that were not fully apparent during the initial assessment, potentially leading to change orders or disputes if not managed contractually. Secondly, material and labor costs can fluctuate significantly over a four-year period, and under a fixed-price contract, the contractor assumes this risk. If costs escalate beyond projections, the contractor may face reduced profit margins or seek to cut corners, impacting quality. Thirdly, managing a project of this magnitude over such a long period requires robust oversight to ensure progress, quality control, and adherence to the original scope, especially given potential personnel turnover within the contractor's team.
What is the expected effectiveness of this contract in restoring NAS Pensacola's operational capabilities?
The effectiveness of this contract in restoring NAS Pensacola's operational capabilities hinges on several factors. The primary goal is to repair and rebuild facilities damaged by Hurricane Sally, which directly impacts the base's ability to support its mission. A successful execution, meaning completion on time and within budget (as defined by the fixed price), will lead to the restoration of essential services and infrastructure. This includes potentially repairing hangars, administrative buildings, housing, and utilities. The effectiveness will be measured by the extent to which the repaired facilities meet or exceed their pre-disaster functionality and resilience standards. Delays or significant deviations from the scope could diminish the effectiveness, prolonging the impact on the base's operations.
How has federal spending on construction and disaster recovery evolved in recent years, and how does this contract fit that trend?
Federal spending on construction and disaster recovery has seen significant fluctuations, often driven by the frequency and severity of natural disasters and national security priorities. In recent years, there has been an increasing emphasis on infrastructure resilience and modernization, alongside consistent spending on military base construction and maintenance. Disaster recovery spending, in particular, can spike dramatically following major events like hurricanes, floods, and wildfires. This contract for NAS Pensacola fits within the trend of federal agencies responding to and rebuilding after significant natural disasters. It also aligns with ongoing investments in maintaining and upgrading military installations, ensuring they are fully functional and secure. The scale of this award reflects the substantial damage caused by Hurricane Sally and the government's commitment to restoring critical defense infrastructure.
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
Offers Received: 1
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: $29,201,031
Exercised Options: $29,201,031
Current Obligation: $29,201,031
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $24,371,706
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6247019D8024
IDV Type: IDC
Timeline
Start Date: 2020-09-19
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2023-12-14
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