Hightower Construction Co. Inc. awarded $13.17M contract for building construction by the Department of the Navy

Contract Overview

Contract Amount: $13,174,574 ($13.2M)

Contractor: Hightower Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2008-10-22

Contract Duration: 174 days

Daily Burn Rate: $75.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE YEAR

Place of Performance

Location: PARRIS ISLAND, BEAUFORT County, SOUTH CAROLINA, 29905

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to HIGHTOWER CONSTRUCTION CO INC for work described as: BASE YEAR Key points: 1. Contract awarded on a firm fixed-price basis, indicating clear cost expectations. 2. The contract was fully and openly competed, suggesting a competitive bidding process. 3. Base year value of $13.17M for construction services. 4. Contract duration of 174 days. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. Awarded by the Department of the Navy, indicating a defense-related infrastructure need. 7. The contract was not set aside for small businesses. 8. The contract was not awarded to a small business.

Value Assessment

Rating: fair

The base year value of $13.17M for commercial and institutional building construction appears to be within a reasonable range for a project of this nature, though specific benchmarks are unavailable without more detailed project scope. The firm fixed-price contract type suggests that the government has locked in costs, which can be advantageous if the contractor accurately estimated expenses. However, it also shifts cost overrun risk to the contractor. Without data on the specific scope of work, comparing value for money is challenging, but the competitive award process may have helped ensure a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 'AW: DO' (Awarded to 'Other') suggests that multiple bids were likely received and evaluated. A fully competed contract generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of bids, driving down prices and encouraging efficiency among contractors.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who will receive improved or new facilities. Services delivered include commercial and institutional building construction. The geographic impact is likely concentrated in the area where the construction project is located, serving Navy operations. Workforce implications include employment opportunities for construction workers, project managers, and related trades during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk associated with the contractor's past performance, which is not detailed here.
The short duration of the base year might indicate a phased approach or a specific component of a larger project, raising questions about overall project continuity.
Lack of small business participation could limit opportunities for smaller firms in the construction sector.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
The contractor, Hightower Construction Co. Inc., has experience in this sector (implied by award).
The contract is for essential building construction supporting defense operations.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of building and infrastructure projects. NAICS code 236220 specifically covers the construction of commercial and institutional buildings. Federal spending in this area supports military readiness, government operations, and public facilities. Benchmarking this contract's value would require comparing it to similar-sized construction projects for government entities, considering factors like location, complexity, and materials.

Small Business Impact

This contract was not set aside for small businesses, nor was it awarded to a small business. This indicates that the competition was open to all eligible firms, including large businesses. While this maximizes competition, it means that specific opportunities for small business participation, either as prime contractors or subcontractors, were not mandated by this particular award. Future contracts or subcontracting plans by Hightower Construction Co. Inc. would determine small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Federal Building Construction
Department of Defense Facilities Management

Risk Flags

Potential for cost overruns due to fixed-price nature.
Limited insight into contractor's past performance.
Short contract duration may indicate project phasing or urgency.
No small business set-aside limits opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to HIGHTOWER CONSTRUCTION CO INC. BASE YEAR

Who is the contractor on this award?

The obligated recipient is HIGHTOWER CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2008-05-01. End: 2008-10-22.

What is the specific scope of work for this $13.17M construction contract?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' under NAICS code 236220. However, the specific scope of work, such as the type of building (e.g., barracks, office, training facility), its size, location, and required specifications, is not detailed in the provided data. This level of detail is crucial for a comprehensive value assessment and for understanding the precise nature of the services delivered. Without this information, it's difficult to benchmark the cost against similar projects or assess the full impact of the construction.

How does the $13.17M base year cost compare to similar Navy construction projects?

Benchmarking the $13.17M base year cost against similar Navy construction projects requires access to a database of comparable contracts, including their scope, location, and duration. The provided data does not include such comparative information. However, for a firm fixed-price contract awarded under full and open competition, this amount suggests a substantial project. Factors like geographic location, specific building requirements (e.g., security, specialized equipment), and prevailing labor and material costs in the region would significantly influence the price. A detailed comparison would necessitate analyzing projects with similar NAICS codes, agencies, and project scales.

What are the potential risks associated with a firm fixed-price contract for building construction?

The primary risk associated with a firm fixed-price (FFP) contract for building construction is that the contractor bears the brunt of any cost overruns. If Hightower Construction Co. Inc. underestimated labor, material, or unforeseen site conditions, they could incur losses. Conversely, if their estimate was overly conservative, the government might have overpaid. For the government, risks include potential compromises in quality if the contractor seeks to cut costs to maintain profit margins, or delays if the contractor faces financial difficulties. Effective oversight is crucial to mitigate these risks and ensure the project meets specifications.

What is Hightower Construction Co. Inc.'s track record with federal contracts, particularly with the Department of the Navy?

The provided data indicates that Hightower Construction Co. Inc. was awarded this specific contract. However, it does not offer details on their broader track record, such as the number of previous federal contracts, their value, performance history, or past issues. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review their history with the Department of the Navy and other agencies. This would include examining past performance evaluations, any disputes or claims, and their success rate in winning and completing contracts.

How does the 'AW: DO' designation impact the understanding of competition for this contract?

The 'AW: DO' designation typically means the contract was awarded to 'Other' than a specific small business category (e.g., not a small disadvantaged business, woman-owned, etc.) or potentially 'Other than Small Business'. Since the contract was awarded under 'Full and Open Competition', 'DO' likely signifies that the award went to a business that did not qualify for or was not seeking a specific set-aside. It reinforces that the award was made through a broad competitive process, not a restricted one, and the winning entity was not a specifically designated small business type.

What is the significance of the contract duration (174 days) in relation to the contract value?

A duration of 174 days (approximately 5.8 months) for a $13.17 million construction contract suggests a relatively fast-paced project or a specific phase of a larger undertaking. The implied daily expenditure rate is high, around $75,716 per day ($13,174,574 / 174 days). This intensity requires efficient project management from both the contractor and the government oversight team. It could indicate a project with a critical deadline or a focus on a particular segment of construction, such as foundation work, structural assembly, or finishing, rather than a complete ground-up build over a longer period.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6246706R0088

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 E BAY, CHARLESTON, SC, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,174,574

Exercised Options: $13,174,574

Current Obligation: $13,174,574

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945007D1772

IDV Type: IDC

Timeline