Army awards $45.2M Herbert Hoover Dike rehab contract to Harry Pepper & Associates

Contract Overview

Contract Amount: $45,239,170 ($45.2M)

Contractor: Harry Pepper & Associates Inc

Awarding Agency: Department of Defense

Start Date: 2014-09-05

End Date: 2020-12-22

Contract Duration: 2,300 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HERBERT HOOVER DIKE REHABILITATION, STRUCTURE REPLACEMENTS, S-274 (C-12A) AND S-278 (C-2) RECONSTRUCTION, PALM BEACH AND HENDRY COUNTY, FLORIDA

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33401

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to HARRY PEPPER & ASSOCIATES INC for work described as: HERBERT HOOVER DIKE REHABILITATION, STRUCTURE REPLACEMENTS, S-274 (C-12A) AND S-278 (C-2) RECONSTRUCTION, PALM BEACH AND HENDRY COUNTY, FLORIDA Key points: 1. Contract awarded for critical dike rehabilitation in Florida. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Project duration is substantial, indicating complex scope and potential for cost overruns. 4. Construction sector is prone to cost fluctuations and material availability risks.

Value Assessment

Rating: good

The contract value of $45.2M for dike rehabilitation appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The number of bids received would further clarify the price discovery effectiveness.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.

Public Impact

Ensures public safety by rehabilitating a critical flood control structure. Supports regional infrastructure and economic stability in Florida. Creates jobs in the construction sector. Addresses long-term environmental and safety concerns related to the dike.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration exceeds typical construction timelines, increasing risk of delays and cost escalation.
Lack of small business participation noted.
Firm Fixed Price contract may not fully account for unforeseen material cost increases.

Positive Signals

Awarded under full and open competition.
Addresses critical infrastructure needs.
Contract is for a vital public safety project.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is characterized by large-scale projects, significant capital investment, and susceptibility to economic cycles and material costs. Spending benchmarks for similar federal dike rehabilitation projects would be relevant.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. Further investigation into subcontracting opportunities would be needed to assess the impact on small business utilization.

Oversight & Accountability

The award was made by the Department of the Army, part of the Department of Defense. Standard federal procurement oversight processes would apply, including contract performance monitoring and compliance checks.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Extended project duration increases risk of cost escalation and delays.
No small business participation identified.
Firm Fixed Price contract may not fully insulate against unforeseen material cost hikes.
Potential for scope creep over a long project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to HARRY PEPPER & ASSOCIATES INC. HERBERT HOOVER DIKE REHABILITATION, STRUCTURE REPLACEMENTS, S-274 (C-12A) AND S-278 (C-2) RECONSTRUCTION, PALM BEACH AND HENDRY COUNTY, FLORIDA

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 $45.2 million.

What is the period of performance?

Start: 2014-09-05. End: 2020-12-22.

What is the projected impact of the 2300-day duration on the overall cost-effectiveness of the project?

A 2300-day duration, approximately 6.3 years, for a $45.2M project raises concerns about potential cost escalation due to inflation, material price volatility, and extended labor costs. While long durations can be necessary for complex infrastructure, it necessitates robust project management and contingency planning to ensure cost-effectiveness and prevent budget overruns.

Given the firm fixed price, what mechanisms are in place to mitigate risks associated with potential material cost increases over the project's long duration?

A firm fixed price contract generally places the risk of cost increases on the contractor. However, for long-duration projects, contract clauses may exist to address significant, unforeseen economic price adjustments (EPAs) for specific materials, or the contractor may have built substantial contingency into their initial bid. Without specific contract details, it's difficult to assess the mitigation effectiveness.

How does the $45.2M award compare to industry benchmarks for similar large-scale dike rehabilitation projects in terms of cost per linear foot or per acre protected?

Without specific details on the scope of work (e.g., linear feet of dike, acreage protected, specific structural components replaced), direct cost comparison is challenging. However, $45.2M for a multi-year rehabilitation of a significant structure like the Herbert Hoover Dike suggests a substantial undertaking. Benchmarking against similar Army Corps of Engineers projects or large civil works contracts would be necessary for a precise assessment.

Industry Classification

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

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: W912EP14R0017

Offers Received: 2

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 FL 1, 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: $45,312,360

Exercised Options: $45,312,360

Current Obligation: $45,239,170

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline