Navy Awards $31.6M Hurricane Sally Recovery Contract to CH2M HILL Constructors for Pensacola Base
Contract Overview
Contract Amount: $31,602,204 ($31.6M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-06-29
End Date: 2025-02-28
Contract Duration: 1,340 days
Daily Burn Rate: $23.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HURRICANE SALLY RECOVERY, NAS PENSACOLA, FL - PACKAGE 2
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.6 million to CH2M HILL CONSTRUCTORS, INC. for work described as: HURRICANE SALLY RECOVERY, NAS PENSACOLA, FL - PACKAGE 2 Key points: 1. Contract awarded for critical hurricane recovery efforts at NAS Pensacola. 2. CH2M HILL Constructors, Inc. is the prime contractor. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract is a firm fixed price delivery order, providing cost certainty.
Value Assessment
Rating: good
The contract value of $31.6M appears reasonable for a large-scale construction project involving hurricane recovery. Benchmarking against similar recovery contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives competitive pricing. The award to CH2M HILL CONSTRUCTORS, INC. suggests they offered the best value.
Taxpayer Impact: Taxpayer funds are being used for essential base recovery, ensuring operational readiness. Competitive bidding aims to maximize the value of these funds.
Public Impact
Ensures critical infrastructure repair and recovery at a major naval installation. Supports economic activity through construction services and potential subcontracts. Demonstrates government's commitment to restoring facilities after natural disasters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen damage is greater than anticipated.
- Contract duration extends into 2025, requiring ongoing monitoring.
Positive Signals
- Firm fixed price contract provides budget predictability.
- Full and open competition promotes fair pricing.
- Awarded for essential recovery and rebuilding efforts.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, specifically for disaster recovery. Spending in this sector can fluctuate significantly based on natural disaster frequency and severity.
Small Business Impact
The data indicates the prime contractor is CH2M HILL CONSTRUCTORS, INC., and it is noted that small business participation (sb) is false. Further investigation would be needed to determine if any subcontracts were awarded to small businesses.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The use of a delivery order under a larger contract structure implies existing oversight mechanisms are in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep or unforeseen conditions impacting cost.
- Contract duration extends to 2025, requiring long-term monitoring.
- No explicit mention of small business subcontracting in the provided data.
- Reliance on a single prime contractor for a large recovery effort.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.6 million to CH2M HILL CONSTRUCTORS, INC.. HURRICANE SALLY RECOVERY, NAS PENSACOLA, FL - PACKAGE 2
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 $31.6 million.
What is the period of performance?
Start: 2021-06-29. End: 2025-02-28.
What was the specific scope of work covered by this $31.6M contract, and how does it align with the estimated damages from Hurricane Sally?
The contract is for Hurricane Sally recovery at NAS Pensacola, Package 2. While the exact scope isn't detailed here, it likely encompasses repairs to buildings and infrastructure damaged by the storm. The value suggests a significant portion of the recovery effort. A detailed breakdown of damages and the contract's specific deliverables would be needed to fully assess alignment.
What are the potential risks associated with a firm fixed price contract for disaster recovery, given the inherent uncertainties?
The primary risk with a firm fixed price contract in disaster recovery is that unforeseen conditions or the extent of damage may exceed initial assessments, potentially leading to change orders or disputes if not managed carefully. However, it also provides cost certainty for the government if the scope is well-defined and risks are adequately mitigated upfront.
How effectively did the full and open competition process ensure the best value was achieved for this critical recovery effort?
Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should lead to the best value. The success of this process hinges on the clarity of the solicitation, the evaluation criteria, and the responsiveness of the market. The award to CH2M HILL CONSTRUCTORS, INC. suggests they met these criteria effectively.
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: 3
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: $31,602,204
Exercised Options: $31,602,204
Current Obligation: $31,602,204
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $23,502,077
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: 2021-06-29
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2024-10-18
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