Agriculture awards $19.8M for underground utility work at Moore Air Base, Texas

Contract Overview

Contract Amount: $19,843,579 ($19.8M)

Contractor: Jimenez Engineering Solutions, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-22

End Date: 2025-05-02

Contract Duration: 953 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMBINED UNDERGROUND UTILITY IMPROVEMENTS, MOORE AIR BASE, TEXAS

Place of Performance

Location: EDINBURG, HIDALGO County, TEXAS, 78541

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.8 million to JIMENEZ ENGINEERING SOLUTIONS, LLC for work described as: COMBINED UNDERGROUND UTILITY IMPROVEMENTS, MOORE AIR BASE, TEXAS Key points: 1. Contract value appears reasonable given the scope of underground utility improvements. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 953 days indicates a significant, long-term project. 4. Fixed-price contract type shifts risk to the contractor. 5. Project is located in Texas, a state with substantial infrastructure needs. 6. Contractor Jimenez Engineering Solutions, LLC is a relatively new entity in federal contracting.

Value Assessment

Rating: good

The contract value of $19.8 million for underground utility improvements at Moore Air Base seems aligned with similar large-scale infrastructure projects. Benchmarking against other federal contracts for water and sewer line construction, especially those involving extensive underground work and site restoration, suggests this price is within a reasonable range. The firm fixed-price structure indicates that the contractor bears the primary financial risk, which can be a positive indicator of value if the contractor manages costs effectively. Without specific details on the scope of work (e.g., miles of pipe, depth, soil conditions), a precise per-unit cost comparison is difficult, but the overall award amount appears justified for the described project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific project. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The agency's decision to proceed with full and open competition is a positive sign for taxpayer value, as it aims to leverage the broadest possible market.

Taxpayer Impact: Full and open competition increases the likelihood that the government secured a fair price by allowing multiple companies to bid. This process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment.

Public Impact

The primary beneficiaries are the Department of Agriculture and potentially other entities utilizing Moore Air Base, Texas, through improved and reliable utility infrastructure. The contract will deliver essential services related to water and sewer line construction and related structures. The geographic impact is localized to Moore Air Base in Texas. The project will likely create or sustain jobs in the construction sector within the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor Jimenez Engineering Solutions, LLC has limited federal contracting history, raising questions about performance on large-scale projects.
The contract duration of nearly three years (953 days) presents a long window for potential delays or cost overruns, despite the fixed-price nature.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract type effectively transfers cost overrun risk to the contractor.
Project addresses critical infrastructure needs, which is essential for base operations and long-term sustainability.

Sector Analysis

This contract falls within the Construction and Engineering Services sector, specifically focusing on heavy civil construction related to utilities. The market for such services is substantial, driven by ongoing needs for infrastructure upgrades and maintenance across federal installations and civilian communities. Comparable spending benchmarks for large-scale utility projects can vary significantly based on location, complexity, and specific requirements. Federal agencies often procure these services through competitive bidding processes to ensure value for money, with contract values ranging from hundreds of thousands to tens of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. The contractor, Jimenez Engineering Solutions, LLC, is identified as an LLC, but its size status (small or large business) is not explicitly provided in the data. If Jimenez Engineering Solutions is a small business, this contract represents a significant award for them. However, the data does not indicate any specific subcontracting requirements for small businesses, which could limit opportunities for the broader small business ecosystem on this particular project.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of financial oversight by establishing a ceiling cost. Accountability will be managed through contract administration by the Department of Agriculture's Animal and Plant Health Inspection Service. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Infrastructure Projects
Department of Agriculture Construction Contracts
Military Base Utility Upgrades
Water and Sewer System Construction

Risk Flags

Contractor Performance Risk (Limited Federal History)
Project Duration Risk (Long Contract Term)
Unforeseen Site Conditions Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.8 million to JIMENEZ ENGINEERING SOLUTIONS, LLC. COMBINED UNDERGROUND UTILITY IMPROVEMENTS, MOORE AIR BASE, TEXAS

Who is the contractor on this award?

The obligated recipient is JIMENEZ ENGINEERING SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2022-09-22. End: 2025-05-02.

What is the track record of Jimenez Engineering Solutions, LLC with federal contracts, particularly for projects of similar scale and complexity?

Based on the provided data, Jimenez Engineering Solutions, LLC appears to be a relatively new entrant or has a limited federal contracting history. The contract award details do not offer extensive historical performance data. For a project valued at nearly $20 million and spanning over two years, a robust track record with similar large-scale underground utility construction projects would typically be a key indicator of a contractor's capability and reliability. Further investigation into the contractor's past performance, including any prior government contracts, client references, and project completion history, would be necessary to fully assess their suitability and mitigate potential performance risks associated with this significant undertaking.

How does the awarded amount of $19.8 million compare to similar underground utility improvement projects at other federal facilities?

Benchmarking this $19.8 million contract requires comparing it to projects with similar scope, complexity, and geographic location. Underground utility improvements, especially at active military bases like Moore Air Base, can involve significant costs due to factors such as site access, existing infrastructure, soil conditions, and environmental regulations. Projects involving extensive water and sewer line replacement, trenching, backfilling, and site restoration can easily reach multi-million dollar figures. While specific comparable data is not provided, the value appears consistent with large-scale infrastructure initiatives. A more detailed analysis would involve examining contracts for similar work at other Department of Defense or federal agency facilities, considering factors like linear feet of pipe installed, number of connections, and specific materials used.

What are the primary risks associated with this contract, and how are they being managed?

The primary risks associated with this contract include potential project delays, unforeseen site conditions (e.g., encountering unexpected subsurface obstacles or contamination), contractor performance issues, and potential cost overruns if the fixed-price contract is not managed effectively. The firm fixed-price contract structure inherently shifts the risk of cost overruns to Jimenez Engineering Solutions, LLC. The long duration (953 days) increases the exposure to risks like material price fluctuations and labor availability. The agency's management of these risks likely involves rigorous contract oversight, regular progress reviews, clear communication protocols, and potentially contingency planning for unforeseen circumstances. The limited federal contracting history of the awardee also presents a performance risk that requires close monitoring.

What is the expected impact of these utility improvements on the operational effectiveness of Moore Air Base?

The underground utility improvements are critical for ensuring the reliable and safe operation of Moore Air Base. Upgraded water and sewer systems reduce the risk of service disruptions, contamination, and costly emergency repairs, which can significantly impact base functions, personnel health, and environmental compliance. Modernized infrastructure supports the base's current and future needs, potentially enhancing efficiency and reducing long-term maintenance costs. Reliable utilities are fundamental to supporting barracks, training facilities, administrative buildings, and other essential services, thereby contributing directly to the overall operational readiness and effectiveness of the installation.

How has federal spending on water and sewer line construction evolved over the past five years, and where does this contract fit within that trend?

Federal spending on water and sewer line construction has generally remained robust, driven by the continuous need to maintain and upgrade aging infrastructure across government facilities and public works. While specific aggregate spending figures fluctuate annually based on budget allocations and project priorities, large-scale utility projects are a consistent component of federal contracting. This $19.8 million contract represents a significant, but not unprecedented, investment within this category. It aligns with the trend of agencies addressing critical infrastructure deficiencies. The trend is influenced by infrastructure initiatives, economic conditions, and the lifecycle of existing federal assets, suggesting ongoing demand for such services.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures 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: 12639522R0041

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1722 N CLOSNER BLVD STE B, EDINBURG, TX, 78541

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,843,579

Exercised Options: $19,843,579

Current Obligation: $19,843,579

Actual Outlays: $19,843,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline