Over $65 million awarded for pump station construction, with 9 bidders vying for the contract

Contract Overview

Contract Amount: $65,392,221 ($65.4M)

Contractor: Harry Pepper & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2009-10-30

End Date: 2015-11-20

Contract Duration: 2,212 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PICAYUNE MERRIT PUMP STATION

Place of Performance

Location: LAKELAND, POLK County, FLORIDA, 33807

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $65.4 million to HARRY PEPPER & ASSOCIATES INC for work described as: PICAYUNE MERRIT PUMP STATION Key points: 1. The contract achieved a competitive outcome with 9 bidders, suggesting a healthy market for this type of construction. 2. The firm-fixed-price structure likely transferred risk to the contractor, potentially stabilizing costs. 3. The long duration of the contract (over 6 years) may indicate a complex or phased project. 4. The project's focus on heavy civil engineering construction points to critical infrastructure development. 5. The absence of small business set-asides suggests the primary contractor is a larger entity. 6. The contract was awarded by the Department of the Army, indicating a defense-related infrastructure need.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific cost breakdowns or comparable projects. However, the competitive bidding process with 9 participants suggests that the pricing achieved was likely within a reasonable market range. The firm-fixed-price award type generally indicates that the government secured a predictable cost, assuming the contractor managed their expenses effectively. Further analysis would require detailed cost data and comparison to similar pump station projects in Florida.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 9 bids received. This indicates a robust bidding environment and suggests that the solicitation was widely disseminated, attracting a significant number of interested parties. The high number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars were likely used efficiently, as contractors were incentivized to offer their most competitive terms to win the award.

Public Impact

The primary beneficiaries are likely military personnel and operations at the facility served by the pump station, ensuring essential water management. The service delivered is the construction of a critical pump station, vital for infrastructure maintenance and operational support. The geographic impact is localized to Florida, specifically the area where the pump station is located. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Contractor performance risks associated with managing a large-scale, long-duration construction project.
Dependency on the primary contractor, Harry Pepper & Associates Inc., for successful project completion.

Positive Signals

Awarded under full and open competition, indicating a competitive market and likely fair pricing.
Firm-fixed-price contract type, which typically provides cost certainty for the government.
The contractor, Harry Pepper & Associates Inc., has experience in heavy construction projects.
The project addresses a critical infrastructure need for the Department of the Army.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure development. The North American Industry Classification System (NAICS) code 237990 covers 'Other Heavy and Civil Engineering Construction,' which includes projects like pump stations, water treatment facilities, and similar non-building structures. Spending in this sector is often driven by government investment in public works and military base infrastructure. Comparable spending benchmarks would involve analyzing other large-scale civil engineering projects awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contract was awarded to a large business capable of undertaking the full scope of work. While direct small business participation may be limited, the prime contractor might engage small businesses for specialized services or materials, though this is not guaranteed without specific subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract structure, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, which provide basic contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Army Corps of Engineers Projects
Water Infrastructure Projects
Heavy Civil Engineering Contracts
Department of Defense Facilities Maintenance

Risk Flags

Potential for cost overruns if scope is not fully defined.
Contractor performance risk over long duration.
Dependency on prime contractor's financial stability and management.
Unforeseen site conditions impacting schedule and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.4 million to HARRY PEPPER & ASSOCIATES INC. PICAYUNE MERRIT PUMP STATION

Who is the contractor on this award?

The obligated recipient is HARRY PEPPER & ASSOCIATES 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 $65.4 million.

What is the period of performance?

Start: 2009-10-30. End: 2015-11-20.

What is the track record of Harry Pepper & Associates Inc. on similar federal contracts?

Harry Pepper & Associates Inc. has a history of performing heavy and civil engineering construction projects. While specific details on past performance for pump station construction require deeper database dives, their award on this $65 million contract suggests they possess the capability and experience necessary for such undertakings. Analyzing their past federal contract awards, including any performance reviews or disputes, would provide a more comprehensive understanding of their reliability and expertise in delivering complex infrastructure projects on time and within budget. Their presence in the federal contracting space indicates a level of established operational capacity and compliance with federal procurement regulations.

How does the awarded price compare to similar pump station construction projects?

Directly comparing the $65.39 million award for the PICAYUNE MERRIT PUMP STATION to similar projects is difficult without detailed project specifications, scope of work, and geographic cost variations. However, the fact that 9 companies bid on this contract suggests a competitive environment, which generally leads to pricing that is aligned with market rates. To perform a robust comparison, one would need to identify other federal or state contracts for pump stations of comparable size, complexity, and location, and then analyze their awarded values, adjusting for inflation and regional economic differences. The firm-fixed-price nature of this award also implies a defined scope, making direct comparisons more meaningful if the scope is indeed similar.

What are the primary risks associated with this type of long-duration construction contract?

Long-duration construction contracts, like this one spanning over 6 years (2212 days), carry several inherent risks. For the government, risks include potential cost escalation if the fixed-price contract has poorly defined contingencies or if significant scope changes are required. Contractor performance risk is also a major concern; maintaining quality, schedule, and safety over an extended period requires robust project management. For the contractor, risks involve managing fluctuating material costs, labor availability, unforeseen site conditions (e.g., geological issues), and potential delays due to weather or regulatory hurdles. The firm-fixed-price structure shifts much of the cost risk to the contractor, but performance failures can still lead to disputes, delays, and potential termination.

How effective is the firm-fixed-price contract type in managing costs for infrastructure projects?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks can be reasonably anticipated. For infrastructure projects like pump stations, FFP provides the government with cost certainty, as the contractor assumes the responsibility for cost overruns. This incentivizes the contractor to be efficient and control their expenses. However, if the project scope is not fully understood at the outset, or if unforeseen conditions arise, FFP can lead to contractor claims for changes or potentially result in a lower quality product if the contractor seeks to cut corners to maintain profitability. The success of FFP hinges on thorough pre-contract planning and a clear definition of requirements.

What is the historical spending trend for similar heavy and civil engineering construction contracts by the Department of the Army?

Historical spending by the Department of the Army on heavy and civil engineering construction contracts (NAICS 237990) is substantial, reflecting ongoing needs for base infrastructure, operational facilities, and resilience projects. Analyzing past spending patterns would reveal trends in project types (e.g., flood control, utility systems, transportation infrastructure), average contract values, and the prevalence of different contract types. This specific contract, valued at over $65 million, falls within the larger end of typical projects but is not unusual for significant infrastructure development. Understanding these historical trends helps in budgeting, forecasting future needs, and assessing whether current spending levels are consistent with past investment strategies or indicate a shift in priorities.

What are the implications of awarding a large contract without small business set-asides?

Awarding a large contract like this ($65.39 million) without specific small business set-asides typically means the contract was open to all responsible sources, and the prime contractor is likely a large business. This approach can ensure that the primary contractor has the capacity, resources, and expertise to manage complex, large-scale projects. However, it may limit direct opportunities for small businesses to secure prime contracts. While large prime contractors are often encouraged or required to subcontract portions of the work to small businesses, this is not always mandated or effectively implemented. The absence of set-asides means that the primary mechanism for small business participation relies on the prime contractor's subcontracting plan and execution, which can vary significantly.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EP07R0019

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roberts Immigration LAW Group, LLC (UEI: 017106386)

Address: 9000 REGENCY SQUARE BLVD STE 100, JACKSONVILLE, FL, 32211

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

Financial Breakdown

Contract Ceiling: $66,636,910

Exercised Options: $65,392,221

Current Obligation: $65,392,221

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline