Department of Defense contract for construction services awarded to HAMP'S CONSTRUCTION, L.L.C. for $14.86 million

Contract Overview

Contract Amount: $14,864,462 ($14.9M)

Contractor: Hamp's Construction, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2008-11-21

End Date: 2010-06-11

Contract Duration: 567 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FFP - - LPV 108.01

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to HAMP'S CONSTRUCTION, L.L.C. for work described as: FFP - - LPV 108.01 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 567 days indicates a medium-term project. 4. The award amount of $14.86 million falls within a typical range for heavy civil engineering projects. 5. The contract was awarded by the Department of the Army, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code 237990 points to Other Heavy and Civil Engineering Construction. 7. The contract was awarded in Louisiana, indicating a specific geographic focus for the project.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable project data. The fixed-price nature suggests the government sought to control costs, but the final price reflects the outcome of the competitive process. The award amount of $14.86 million for 567 days of work in heavy civil engineering construction appears within a reasonable range, but a deeper dive into the scope of work and specific deliverables would be needed for a more precise assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates a competitive process, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded based on specific criteria, which warrants further investigation. The presence of multiple bidders (indicated by 'no': 4) is a positive sign for price discovery and potentially achieving a competitive price.

Taxpayer Impact: The full and open competition, despite potential exclusions, likely resulted in a more competitive price for taxpayers compared to a sole-source award. The number of bidders suggests that the market was sufficiently engaged.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel, who will receive the completed construction services. The services delivered fall under heavy and civil engineering construction, potentially involving infrastructure development or maintenance. The geographic impact is localized to Louisiana, where the construction work will be performed. The contract will likely have implications for the local workforce in Louisiana, creating jobs for construction laborers and skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires clarification to ensure no viable contractors were unfairly excluded.
Lack of detailed cost breakdown makes it difficult to assess the reasonableness of the price beyond the competitive outcome.

Positive Signals

Awarded through full and open competition, indicating a broad market solicitation.
Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
The contract duration is clearly defined, allowing for project planning and resource allocation.

Sector Analysis

The construction sector, particularly heavy and civil engineering, is a significant area of federal spending, supporting national infrastructure and defense readiness. This contract fits within the broader category of government procurement for construction services, which can range from small renovation projects to large-scale infrastructure development. Comparable spending benchmarks would depend heavily on the specific type of civil engineering work performed, such as road construction, bridge building, or facility development.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem for this specific award, though larger prime contractors often have subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers 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 facilitated by the public nature of contract awards, though detailed project specifics and performance reviews may not always be publicly accessible.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Infrastructure Improvement Projects
Department of Defense Facilities Maintenance

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Risk of quality compromise in FFP contracts if contractor faces cost overruns.
Unforeseen site conditions or material cost increases could impact project delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to HAMP'S CONSTRUCTION, L.L.C.. FFP - - LPV 108.01

Who is the contractor on this award?

The obligated recipient is HAMP'S CONSTRUCTION, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2008-11-21. End: 2010-06-11.

What specific type of heavy and civil engineering construction was performed under this contract?

The NAICS code 237990 indicates 'Other Heavy and Civil Engineering Construction.' This broad category can encompass a wide range of projects, including but not limited to the construction of highways, streets, bridges, tunnels, water and sewer systems, power lines, and pipelines. Without further details on the contract's statement of work, it is impossible to specify the exact nature of the construction. However, given it's a Department of the Army contract, it could relate to base infrastructure, training facilities, or support structures essential for military operations.

How does the award amount of $14.86 million compare to similar construction contracts awarded by the Department of the Army?

Comparing the $14.86 million award requires access to a database of similar Department of the Army construction contracts with comparable scope and duration. Generally, for heavy and civil engineering projects, this amount falls into the mid-to-large contract size category. For instance, if this contract was for a significant infrastructure upgrade at a military base, the price might be considered standard. However, if it was for a relatively smaller project, it could be on the higher side. A precise comparison would necessitate analyzing contracts with identical or very similar NAICS codes, project scopes, and geographic locations.

What are the potential risks associated with a Firm Fixed Price (FFP) contract of this magnitude and duration?

The primary risk with an FFP contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed initial estimates. For a project of this size ($14.86 million) and duration (567 days), risks include unforeseen site conditions, material price fluctuations, labor availability issues, or design changes. While the FFP shifts cost risk to the contractor, significant issues could lead to disputes, delays, or contractor default, ultimately impacting the government's objectives. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What does the 'after exclusion of sources' clause in the competition type imply for taxpayer value?

The 'after exclusion of sources' clause suggests that while the competition was intended to be open, certain potential sources were deliberately excluded. This exclusion could be based on specific technical capabilities, past performance, security requirements, or other pre-defined criteria. If the exclusions were justified and based on legitimate requirements, it could lead to a more focused competition among highly qualified bidders, potentially resulting in a better-suited outcome. However, if the exclusions were overly restrictive or not well-justified, it could limit competition, potentially leading to higher prices or a less optimal solution for taxpayers.

What is the historical spending pattern for HAMP'S CONSTRUCTION, L.L.C. with the Department of Defense?

To assess the historical spending pattern of HAMP'S CONSTRUCTION, L.L.C. with the Department of Defense, one would need to query federal procurement databases for all contracts awarded to this entity by the DoD. This analysis would reveal the frequency, value, and types of contracts previously awarded. A history of successful, timely, and cost-effective contract performance with the DoD would indicate a lower risk profile for this current award. Conversely, a history of disputes, delays, or cost overruns could raise concerns about the contractor's reliability and the value proposition of this contract.

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: W912P808R0015

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1319 NEWTON ST, NEW ORLEANS, LA, 70114

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,864,462

Exercised Options: $14,864,462

Current Obligation: $14,864,462

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P808D0042

IDV Type: IDC

Timeline