Pacific Tech Construction Awarded $108.7M for Michoud Facility Roof Replacement

Contract Overview

Contract Amount: $108,652,915 ($108.7M)

Contractor: Pacific Tech Construction Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-15

End Date: 2028-03-09

Contract Duration: 1,576 days

Daily Burn Rate: $68.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE ROOF AT BLD 103 MICHOUD ASSEMBLY FACILITY NEW ORLEANS, LA

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $108.7 million to PACIFIC TECH CONSTRUCTION INC for work described as: REPLACE ROOF AT BLD 103 MICHOUD ASSEMBLY FACILITY NEW ORLEANS, LA Key points: 1. Contract value appears reasonable for a large-scale facility roof replacement project. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of nearly four years indicates a substantial scope of work. 5. Contract awarded to a single entity, Pacific Tech Construction Inc. 6. Geographic location in New Orleans may present unique environmental challenges for roofing.

Value Assessment

Rating: good

The contract value of $108.7 million for a roof replacement at a large facility like Michoud Assembly Facility is within a reasonable range for such extensive work. Benchmarking against similar large-scale roofing projects for industrial facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing costs for defined scopes of work. However, without specific details on the scope and materials, a definitive value assessment is challenging.

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 a bid. This suggests a robust bidding process aimed at achieving competitive pricing. The number of bidders is not specified, but the use of full and open competition generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this procurement, which is designed to ensure the government receives the best possible price for the roofing services. Open competition helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of Defense and NASA, as the Michoud Assembly Facility is a critical site for space exploration and defense manufacturing. The project will ensure the structural integrity and operational continuity of Building 103 at the Michoud Assembly Facility. The geographic impact is localized to New Orleans, Louisiana, where the facility is located. The contract is expected to support jobs within the construction sector, particularly in roofing and related trades, potentially benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen structural issues discovered during demolition that could increase costs, despite fixed-price contract.
Weather-related delays in New Orleans could impact project timeline and potentially lead to claims if not managed effectively.
Availability of specialized roofing materials and skilled labor for a project of this magnitude could pose logistical challenges.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market was engaged.
Long-term contract duration allows for phased execution and potentially better resource planning.
Award to a single, presumably experienced, contractor can streamline project management.

Sector Analysis

The roofing industry is a significant segment of the construction sector, characterized by numerous specialized contractors. Large-scale projects like this, involving critical government facilities, often involve substantial contract values. This contract fits within the broader category of facility maintenance and infrastructure upgrades, a consistent area of government spending. Comparable spending benchmarks for industrial roofing projects can vary widely based on facility size, complexity, and geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract, it is unlikely that small businesses would be the primary awardees unless through subcontracting. The prime contractor, Pacific Tech Construction Inc., will be responsible for managing the project, and there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the nature of the work required.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of the Army, within the Department of Defense) and potentially the NASA facility management at Michoud. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided.

Related Government Programs

Federal Building and Facilities Maintenance
Military Construction
NASA Facility Operations
Infrastructure Modernization Programs

Risk Flags

Potential for cost growth due to unforeseen site conditions.
Risk of schedule delays due to weather or logistical issues.
Contractor performance risk on a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $108.7 million to PACIFIC TECH CONSTRUCTION INC. REPLACE ROOF AT BLD 103 MICHOUD ASSEMBLY FACILITY NEW ORLEANS, LA

Who is the contractor on this award?

The obligated recipient is PACIFIC TECH CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $108.7 million.

What is the period of performance?

Start: 2023-11-15. End: 2028-03-09.

What is the track record of Pacific Tech Construction Inc. with large federal roofing contracts?

Pacific Tech Construction Inc. has been awarded this $108.7 million contract for roof replacement at Michoud Assembly Facility. Further analysis would require examining their contract history with federal agencies, specifically for similar large-scale roofing projects. Key indicators to assess their track record would include past performance reviews, any history of contract disputes or terminations, and their experience with projects of comparable size and complexity. Understanding their past performance on fixed-price contracts is also crucial to gauge their reliability in delivering projects on time and within budget. Without access to a detailed contract performance database, a comprehensive assessment of their track record is limited to the information available through public contract award announcements.

How does the $108.7 million contract value compare to similar federal roofing projects?

The $108.7 million contract value for the roof replacement at Michoud Assembly Facility is substantial, reflecting the scale and potential complexity of the work. To benchmark this value, one would need to compare it against other federal roofing contracts awarded for large industrial or assembly facilities, particularly those in coastal or hurricane-prone regions like New Orleans. Factors such as square footage, type of roofing system specified, structural requirements, and the age and condition of the existing roof significantly influence cost. A preliminary assessment suggests the value is within a plausible range for such a project, but a detailed comparison with similar projects, considering these variables, is necessary for a definitive value-for-money conclusion. The firm-fixed-price nature of the contract also implies a well-defined scope, which aids in comparison.

What are the primary risks associated with this large roofing contract?

The primary risks associated with this contract include potential unforeseen structural issues discovered during the demolition of the existing roof, which could lead to scope changes and cost increases, even under a fixed-price contract. Weather-related delays are a significant risk, given the project's location in New Orleans, potentially impacting the schedule and leading to contractor claims. Logistical challenges related to sourcing specialized roofing materials and ensuring the availability of a skilled workforce for a project of this magnitude also pose risks. Furthermore, the long duration of the contract (nearly four years) increases the exposure to market fluctuations in material costs and potential changes in government requirements or priorities. Effective risk mitigation strategies by the contractor and diligent oversight by the agency are crucial.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for projects with a well-defined scope, such as a roof replacement. Under an FFP contract, the contractor assumes the majority of the risk for cost overruns, agreeing to perform the work for a predetermined price. This provides the government with significant cost certainty. However, the effectiveness hinges on the accuracy and completeness of the initial scope definition. If unforeseen conditions arise that necessitate significant changes to the scope, the FFP structure can become more complex, potentially leading to change orders. For this project, the FFP structure is beneficial in controlling the base cost, but the agency must maintain robust oversight to manage any necessary modifications and ensure they are justified and priced appropriately.

What is the historical spending pattern for roofing services at the Michoud Assembly Facility?

Analyzing historical spending patterns for roofing services at the Michoud Assembly Facility would provide valuable context for the current $108.7 million award. This would involve reviewing past contracts for roof maintenance, repair, and replacement at the facility over several years. Key questions would include the frequency of major roofing projects, the average cost per project or per square foot, and the types of contract vehicles used. Understanding historical spending can help identify trends, assess whether the current contract represents a significant increase or decrease in investment, and evaluate the effectiveness of previous roofing solutions. Without access to historical contract data specific to Michoud Assembly Facility's roofing needs, it is difficult to establish a precise spending pattern.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

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: W9127823R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1302 WALNUT ST, KELSO, WA, 98626

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,652,915

Exercised Options: $108,652,915

Current Obligation: $108,652,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline