Army awards $84.7M for pump station construction, with 14 bids received

Contract Overview

Contract Amount: $84,720,657 ($84.7M)

Contractor: Harry Pepper & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2010-11-22

End Date: 2017-05-31

Contract Duration: 2,382 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PUMP STATION

Place of Performance

Location: LAKELAND, POLK County, FLORIDA, 33807

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $84.7 million to HARRY PEPPER & ASSOCIATES INC for work described as: PUMP STATION Key points: 1. Contract value appears reasonable given the scope of heavy civil engineering construction. 2. Strong competition with 14 bidders suggests a healthy market for this type of work. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 7 years indicates a long-term infrastructure project. 5. Geographic focus on Florida suggests regional infrastructure development. 6. No small business set-aside indicates the primary contractor is likely a larger firm.

Value Assessment

Rating: good

The contract value of $84.7 million for a pump station project falls within a typical range for large-scale civil engineering endeavors. Benchmarking against similar Department of Defense or Army Corps of Engineers projects for water infrastructure would provide a more precise value-for-money assessment. The firm fixed-price structure generally indicates that the contractor assumed the majority of the cost risk, which can be favorable for the government if managed effectively. However, without specific details on the project's complexity and duration, 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, with 14 bids received. This high level of competition is a positive indicator, suggesting that multiple qualified contractors were interested and capable of performing the work. A robust bidding process typically leads to more competitive pricing and better value for the government, as contractors strive to offer their best terms to win the award. The presence of numerous bidders also implies a mature market for this type of construction service.

Taxpayer Impact: The extensive competition for this contract likely resulted in taxpayer savings by driving down the final price. It also ensures that the Army selected the most cost-effective and technically sound solution available.

Public Impact

The primary beneficiaries are the Department of the Army and potentially surrounding communities that rely on the functionality of the pump station for water management or infrastructure. The contract delivers essential heavy and civil engineering construction services for a critical piece of infrastructure. The project's geographic impact is concentrated in Florida (ST, SN). The workforce implications include employment opportunities for construction laborers, engineers, project managers, and support staff in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Long contract duration could lead to contractor performance degradation or obsolescence of initial designs.
Dependence on a single prime contractor for a large, multi-year project carries inherent risk.
Potential for supply chain disruptions affecting material availability and project timelines.
Environmental compliance challenges specific to large-scale civil engineering projects.

Positive Signals

Firm fixed-price contract structure limits the government's exposure to cost increases.
Extensive competition (14 bidders) suggests a strong pool of qualified contractors and competitive pricing.
Contract awarded to a single entity (HARRY PEPPER & ASSOCIATES INC) implies a clear point of accountability.
Long-term contract duration allows for sustained focus and development of specialized expertise.
Clear performance period (2010-2017) provides a defined timeframe for project completion and evaluation.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure development. The NAICS code 237990 covers dredging and surface water moving, as well as other heavy construction projects. The market for such services is substantial, driven by government investments in military installations, public works, and environmental projects. Comparable spending benchmarks would involve analyzing other large-scale pump station or water management facility constructions by federal agencies like the Army Corps of Engineers or the Environmental Protection Agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB=false, SS=false). This suggests that the primary contract was awarded to a large business. While there is no direct indication of subcontracting plans for small businesses within the provided data, large federal construction contracts often include provisions for small business subcontracting to meet federal goals. The absence of a set-aside means that opportunities for small businesses would likely be through subcontracting rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. The firm fixed-price nature of the contract implies a focus on ensuring adherence to the scope of work and delivery schedule. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would involve performance reviews, milestone tracking, and potential penalties for non-compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Defense Military Construction
Federal Water Infrastructure Projects
Heavy and Civil Engineering Construction Contracts
Pump Station and Water Management Facilities

Risk Flags

Long contract duration may increase risk of scope creep or performance issues.
Potential for unforeseen site conditions in civil engineering projects.
Dependence on a single prime contractor for a large project.
Firm fixed-price contracts can sometimes lead to quality compromises if not closely monitored.
Geographic concentration may limit broader market testing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.7 million to HARRY PEPPER & ASSOCIATES INC. 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 $84.7 million.

What is the period of performance?

Start: 2010-11-22. End: 2017-05-31.

What is the track record of HARRY PEPPER & ASSOCIATES INC with federal contracts, particularly within the Department of Defense?

HARRY PEPPER & ASSOCIATES INC has a history of federal contracting, with this specific contract representing a significant award from the Department of the Army. Analyzing their full contract portfolio would reveal their experience with similar projects, their performance history across various agencies, and their success rate in winning competitive bids. A review of past performance evaluations, if available, would provide insights into their reliability, quality of work, and adherence to schedules and budgets on previous federal engagements. Understanding their broader federal footprint is crucial for assessing their capacity and suitability for large-scale infrastructure projects.

How does the $84.7 million contract value compare to similar pump station construction projects awarded by the federal government?

The $84.7 million contract value for this pump station project needs to be benchmarked against comparable federal construction contracts to assess its value for money. Factors such as project scale, complexity, location, and specific technical requirements significantly influence cost. Similar projects undertaken by the Army Corps of Engineers, Bureau of Reclamation, or other agencies involved in water infrastructure could serve as benchmarks. A higher or lower value compared to similar projects might indicate exceptional performance, unique project challenges, or potential pricing anomalies. Detailed analysis of contract scope and specifications is necessary for a robust comparison.

What are the primary risks associated with a firm fixed-price contract for a long-duration construction project like this?

While firm fixed-price contracts are generally favorable for the government by capping costs, they carry specific risks for long-duration construction projects. The primary risk is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. For the government, the risk shifts from cost overruns to potential performance deficiencies or delays if the contractor struggles. Additionally, if the initial scope is poorly defined, the contractor may exploit ambiguities, leading to disputes. Effective government oversight is critical to mitigate these risks by ensuring adherence to specifications and quality standards throughout the project lifecycle.

What is the historical spending pattern for pump station construction by the Department of the Army over the last decade?

Analyzing the Department of the Army's historical spending on pump station construction over the last decade would provide context for the $84.7 million award. This involves examining contract databases to identify trends in contract values, number of awards, and average contract durations. Understanding whether this award represents a typical investment, an increase, or a decrease in spending for such infrastructure is important. It would also reveal which specific Army commands or installations are most frequently involved in these types of projects and the prevailing competition levels over time. Such analysis helps in forecasting future needs and budget allocations.

How effective are the competition dynamics (14 bidders) in ensuring optimal pricing and contractor selection for large civil engineering projects?

The presence of 14 bidders for this pump station construction contract is a strong indicator of robust competition, which is generally highly effective in ensuring optimal pricing and contractor selection for large civil engineering projects. A larger pool of bidders increases the likelihood that the government will receive competitive proposals that reflect fair market value. It also provides a wider range of technical approaches and capabilities to choose from, allowing the agency to select the best overall value, not just the lowest price. This level of competition reduces the risk of contractor collusion and minimizes the potential for price gouging, ultimately benefiting taxpayers.

What are the potential long-term implications of this contract on regional infrastructure development in Florida?

This contract for a pump station in Florida has significant potential long-term implications for regional infrastructure development. Pump stations are critical components of water management systems, essential for flood control, drainage, and potentially water supply or wastewater treatment. The successful completion of this project could enhance the resilience of the area against weather events, support urban development by managing water resources effectively, and contribute to environmental protection. Furthermore, the investment in such infrastructure can stimulate local economies through job creation during construction and ongoing operational needs, and potentially improve public health and safety by ensuring reliable water management.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912EP10R0038

Offers Received: 14

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: $84,798,886

Exercised Options: $84,720,657

Current Obligation: $84,720,657

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline