DoD's $21.7M Purnell Construction Contract for Heavy Engineering Shows Full & Open Competition

Contract Overview

Contract Amount: $21,712,474 ($21.7M)

Contractor: Purnell Construction CO., LLC .

Awarding Agency: Department of Defense

Start Date: 2009-09-16

End Date: 2014-01-16

Contract Duration: 1,583 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HUBZONE MATOC W912P8-09-D-0042, TASK ORDER 0002

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to PURNELL CONSTRUCTION CO., LLC . for work described as: HUBZONE MATOC W912P8-09-D-0042, TASK ORDER 0002 Key points: 1. The contract awarded to Purnell Construction Co., LLC, for heavy and civil engineering construction, represents a significant investment by the Department of the Army. 2. Utilizing full and open competition after exclusion of sources suggests a deliberate process to ensure fair pricing and access to qualified contractors. 3. The contract duration of 1583 days indicates a long-term project, potentially involving complex infrastructure development. 4. The North American Industry Classification System (NAICS) code 237990 points to specialized construction services within the heavy and civil engineering sector.

Value Assessment

Rating: good

The contract's value of $21.7 million over approximately 4.3 years appears reasonable for heavy and civil engineering construction projects of this nature. Benchmarking against similar large-scale infrastructure contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method indicates that while the competition was broad, specific sources were initially excluded, which could impact the breadth of price discovery. However, the 'full and open' aspect suggests a competitive process was ultimately employed.

Taxpayer Impact: The competitive bidding process, even with initial source exclusions, aims to secure the best value for taxpayers by encouraging multiple bids and efficient pricing.

Public Impact

This contract supports critical infrastructure development, potentially impacting public services and economic activity in Louisiana. The duration of the contract suggests sustained employment opportunities within the construction sector. The use of a firm-fixed-price contract provides cost certainty for the government, protecting taxpayers from cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to initial source exclusion.
Long contract duration may introduce risks related to material cost fluctuations and project scope creep.

Positive Signals

Firm-fixed-price contract offers cost predictability.
Full and open competition aims for best value.
Award to a single contractor for a specific task order under a MATOC structure can streamline execution.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, which is characterized by large-scale projects such as infrastructure, utilities, and transportation. Spending in this sector can be cyclical and influenced by government funding initiatives and economic conditions.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The use of a MATOC (Multiple Award Task Order Contract) structure implies a pre-competed framework, with individual task orders then being awarded. Oversight would focus on the execution of this specific task order against its defined scope and budget.

Related Government Programs

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

Risk Flags

Potential for limited competition.
Long-term contract risks (inflation, scope creep).
Lack of explicit small business participation data.
Unclear rationale for initial source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to PURNELL CONSTRUCTION CO., LLC .. HUBZONE MATOC W912P8-09-D-0042, TASK ORDER 0002

Who is the contractor on this award?

The obligated recipient is PURNELL CONSTRUCTION CO., LLC ..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2009-09-16. End: 2014-01-16.

What was the rationale for excluding specific sources initially in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion limit the potential for cost savings?

The rationale for excluding specific sources could stem from various factors, such as prior performance issues, specialized capabilities not met by all, or specific set-aside requirements that were later broadened. While 'full and open' competition aims for broad participation, initial exclusions might have inadvertently limited the pool of bidders, potentially impacting the final price discovery and overall cost savings achievable for the government.

Given the 5-year contract duration, what mechanisms are in place to manage potential cost increases due to inflation or material price volatility?

As a firm-fixed-price contract, the primary responsibility for managing cost increases due to inflation or material price volatility typically lies with the contractor. However, contract clauses may exist to address extraordinary circumstances or allow for equitable adjustments under specific conditions. The government's oversight would ensure adherence to these clauses and monitor market trends.

How does the performance of Purnell Construction Co., LLC on this task order compare to industry benchmarks for similar heavy and civil engineering projects in terms of cost, schedule, and quality?

Assessing performance against industry benchmarks requires access to detailed project metrics, including cost performance indices, schedule variance, and quality assurance reports. Without this specific data, a direct comparison is not possible. However, the successful completion within the defined period (if it was completed on time) and without significant disputes would be positive indicators.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912P808R0100

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 724 S 15TH ST, BATON ROUGE, LA, 70802

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,712,474

Exercised Options: $21,712,474

Current Obligation: $21,712,474

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P809D0042

IDV Type: IDC

Timeline