Army awards $20.8M for Hurricane Milton disaster recovery roofing, with 35 bids received

Contract Overview

Contract Amount: $20,808,012 ($20.8M)

Contractor: Yerkes South Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2024-12-13

Contract Duration: 59 days

Daily Burn Rate: $352.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HURRICANE MILTON ATLANTIC COAST TEMPORARY ROOFING DISASTER RECOVERY INSTALL GOVERNMENT FURNISHED PLASTIC SHEETING AND SMALL ROOF REPAIRS. HURRICANE MILTON

Place of Performance

Location: CLARKSVILLE, CALHOUN County, FLORIDA, 32430

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to YERKES SOUTH INC. for work described as: HURRICANE MILTON ATLANTIC COAST TEMPORARY ROOFING DISASTER RECOVERY INSTALL GOVERNMENT FURNISHED PLASTIC SHEETING AND SMALL ROOF REPAIRS. HURRICANE MILTON Key points: 1. Value for money appears reasonable given the urgency and scope of disaster recovery. 2. Strong competition with 35 bids suggests a healthy market response to the solicitation. 3. Risk indicators are moderate, primarily related to the unpredictable nature of disaster response. 4. Performance context is critical due to the immediate need for temporary repairs post-disaster. 5. Sector positioning is within the construction and emergency response services domain.

Value Assessment

Rating: good

The contract value of $20.8 million for temporary roofing and minor repairs following Hurricane Milton appears to be within a reasonable range for disaster recovery efforts. Benchmarking against similar large-scale disaster response contracts is challenging due to unique event-driven pricing and logistical complexities. However, the number of bids received (35) suggests that the pricing was competitive and attractive to a broad range of contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources may have been excluded prior to the solicitation. With 35 bids received, the competition level was robust, which typically leads to better price discovery and potentially lower costs for the government. This level of competition suggests that the market had sufficient capacity and interest to respond to the requirement.

Taxpayer Impact: A high number of bidders generally benefits taxpayers by driving down prices through competitive pressure. This ensures that government funds are used efficiently for essential disaster recovery services.

Public Impact

Residents and businesses in Florida impacted by Hurricane Milton will benefit from temporary roof repairs and protection. Essential services will be restored more quickly, mitigating further damage and enabling recovery. The geographic impact is focused on the state of Florida, specifically areas affected by the hurricane. The contract will likely support local and regional workforces within the construction and roofing trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in disaster recovery scenarios.
Logistical challenges in delivering materials and personnel to affected areas.
Weather-related delays impacting project timelines.

Positive Signals

Clear requirement for essential services post-disaster.
Robust competition indicates market readiness and capacity.
Firm fixed-price contract type provides cost certainty.

Sector Analysis

This contract falls within the construction and emergency response services sector, specifically focusing on roofing and repair work. The market for disaster recovery services is highly event-driven and can see significant surges in demand following natural disasters. Comparable spending benchmarks are difficult to establish precisely due to the variable nature of disaster scale and location, but large-scale recovery efforts often involve multi-million dollar contracts for essential infrastructure and building repairs.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. However, the robust competition suggests that small businesses may have participated either as prime contractors or as subcontractors. Further analysis would be needed to determine the extent of small business involvement and subcontracting opportunities created by this award.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and project management offices responsible for disaster relief. Accountability measures will include adherence to the firm fixed-price contract terms, performance standards for roofing and repair quality, and timely completion. Transparency is generally maintained through contract award databases, though specific project-level details might be limited due to security or ongoing operational needs.

Related Government Programs

FEMA Disaster Relief Funds
Army Corps of Engineers Construction Contracts
State and Local Emergency Management Contracts

Risk Flags

Potential for unforeseen scope expansion in disaster recovery.
Logistical challenges in affected areas.
Availability of skilled labor and materials post-disaster.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to YERKES SOUTH INC.. HURRICANE MILTON ATLANTIC COAST TEMPORARY ROOFING DISASTER RECOVERY INSTALL GOVERNMENT FURNISHED PLASTIC SHEETING AND SMALL ROOF REPAIRS. HURRICANE MILTON

Who is the contractor on this award?

The obligated recipient is YERKES SOUTH 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 $20.8 million.

What is the period of performance?

Start: 2024-10-15. End: 2024-12-13.

What is the track record of YERKES SOUTH INC. with government contracts, particularly in disaster recovery?

A review of YERKES SOUTH INC.'s contract history would be necessary to assess their track record. Specifically, examining past performance on similar disaster recovery or emergency repair contracts with federal, state, or local agencies would provide insight into their capabilities, reliability, and past performance ratings. Understanding their experience with large-scale, time-sensitive projects is crucial for evaluating their suitability for this Hurricane Milton recovery effort. Without specific data on their past performance, it is difficult to definitively assess their suitability beyond the competitive nature of this award.

How does the awarded price compare to typical market rates for emergency roofing and repair services in Florida?

Determining precise market rates for emergency roofing and repair services post-disaster is complex due to surge pricing and unique logistical challenges. However, the fact that 35 bids were received suggests that YERKES SOUTH INC.'s price was competitive within the range offered by the market. A more detailed analysis would involve comparing the unit costs for specific services (e.g., per square foot of roofing, per hour of labor) against publicly available data or industry benchmarks for non-emergency repairs, adjusted for the urgency and scale of the disaster. The firm fixed-price nature of the contract provides a degree of cost certainty for the government.

What are the primary risks associated with this contract, beyond general disaster response challenges?

Beyond the inherent risks of disaster response such as weather delays and logistical hurdles, specific risks for this contract could include the potential for unforeseen structural damage requiring more extensive repairs than initially scoped, leading to potential change orders or cost overruns if not managed carefully. Another risk is the availability of skilled labor and materials in a disaster-stricken area, which could impact timelines and quality. Ensuring consistent quality control across numerous repair sites in potentially difficult-to-access locations also presents a significant risk that requires robust oversight.

How effective are the current oversight mechanisms for ensuring quality and timely completion of these disaster recovery repairs?

The effectiveness of oversight mechanisms will depend on the specific protocols established by the Department of the Army for this contract. Typically, such contracts involve on-site inspections, progress reporting, and quality assurance checks by government representatives. For disaster recovery, rapid deployment of inspection teams and clear communication channels are vital. The firm fixed-price structure incentivizes the contractor to complete work efficiently, but diligent oversight is still required to ensure that repairs meet required standards and that taxpayer funds are used appropriately, especially given the urgency.

What is the historical spending pattern for similar disaster recovery roofing contracts by the Department of the Army?

Historical spending patterns for similar disaster recovery roofing contracts by the Department of the Army can vary significantly based on the frequency and severity of natural disasters in specific regions. Major hurricanes or other catastrophic events often trigger substantial, multi-million dollar contracts for temporary and permanent repairs. Analyzing past awards following significant weather events in the Gulf Coast or Atlantic regions would provide context. This contract's value of $20.8 million appears substantial, consistent with the scale of recovery efforts needed after a major hurricane like Milton.

What is the potential impact of this contract on the local Florida construction market and workforce?

This contract is likely to provide a significant boost to the local Florida construction market and workforce, particularly in the affected regions. The demand for roofing and repair services will create immediate employment opportunities for skilled tradespeople, including roofers, carpenters, and general laborers. It may also stimulate demand for related services and materials suppliers. The influx of federal funding can help stabilize and accelerate the local economy's recovery by putting people back to work and facilitating the rebuilding process.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4799 HINOTE RD, CRESTVIEW, FL, 32539

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,808,012

Exercised Options: $20,808,012

Current Obligation: $20,808,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F21D0046

IDV Type: IDC

Timeline