Apex FSE JV LLC awarded $2.1M contract for USDA building renovation in Florida

Contract Overview

Contract Amount: $2,125,744 ($2.1M)

Contractor: Apex FSE JV LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-07-01

End Date: 2026-04-30

Contract Duration: 668 days

Daily Burn Rate: $3.2K/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: BUILDING 62 LABORATORY AND OFFICE SPACE RENOVATION

Place of Performance

Location: CORAL GABLES, MIAMI-DADE County, FLORIDA, 33158

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.1 million to APEX FSE JV LLC for work described as: BUILDING 62 LABORATORY AND OFFICE SPACE RENOVATION Key points: 1. The contract value appears reasonable for the scope of renovation and office space build-out. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 668 days indicates a significant project timeline. 4. The fixed-price contract type shifts performance risk to the contractor. 5. This project falls within the commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for laboratory and office space renovation is within a typical range for commercial building construction projects of this scale. Benchmarking against similar federal or private sector projects for interior build-outs and renovations of this size would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely received. The presence of four bidders, as suggested by the 'no' field, points to a healthy level of competition for this project. This competitive environment is expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: The robust competition for this renovation project is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the employees of the Animal and Plant Health Inspection Service (APHIS) who will gain improved laboratory and office facilities. The project will deliver updated and functional workspaces, enhancing operational efficiency for APHIS. The geographic impact is localized to Florida, where the renovation will take place. The contract will likely involve local construction labor and potentially support local material suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not clearly defined and managed.
Risk of unforeseen site conditions impacting schedule and cost, despite fixed-price contract.
Ensuring timely completion within the 668-day duration is critical for agency operations.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Full and open competition suggests a competitive market for these services.
The project aims to improve critical infrastructure for a key USDA agency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the U.S. economy. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks for similar renovation projects can vary widely based on location, complexity, and specific requirements, but this $2.1 million award is a moderate-sized project within this sector.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, APEX FSE JV LLC, is a joint venture. Analysis of subcontracting plans would be necessary to determine the extent of small business participation. Without specific set-aside provisions, the direct impact on the small business ecosystem is limited unless the joint venture actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight will be provided by the Department of Agriculture, likely through contracting officers and project managers responsible for monitoring progress, quality, and adherence to contract terms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building and Facilities Construction
Government Office Space Renovation
USDA Infrastructure Projects
Animal and Plant Health Inspection Service Facilities

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during renovation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.1 million to APEX FSE JV LLC. BUILDING 62 LABORATORY AND OFFICE SPACE RENOVATION

Who is the contractor on this award?

The obligated recipient is APEX FSE JV 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 $2.1 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-04-30.

What is the track record of APEX FSE JV LLC in completing similar federal construction projects on time and within budget?

A review of federal contract databases would be necessary to assess APEX FSE JV LLC's past performance. Specifically, looking for prior awards for laboratory and office space renovations, their contract values, completion dates, and any reported performance issues or successes would provide insight. Understanding the performance history of the joint venture partners individually might also be relevant if the JV is a newer entity. Without specific historical data on this JV, it's difficult to definitively assess their track record for this specific type of project.

How does the awarded price of $2.1 million compare to market rates for similar commercial building renovations in Florida?

Benchmarking the $2.1 million contract against market rates for similar commercial building renovations in Florida requires detailed analysis of project scope, square footage, specific renovation types (e.g., lab fit-out vs. general office), and prevailing labor and material costs in the project's specific geographic area within Florida. General industry data suggests that costs for commercial renovations can range significantly, from $50 to $200+ per square foot depending on complexity. A detailed cost breakdown from the contractor and comparison with independent cost estimating services or recent comparable bids would be needed for a precise comparison.

What are the primary risks associated with this firm fixed-price contract for building renovation?

The primary risks for the government in a firm fixed-price contract are minimal regarding cost overruns, as the contractor assumes that risk. However, risks can include potential impacts on quality if the contractor seeks to reduce costs, or delays if the contractor faces unforeseen challenges and is unwilling to absorb additional expenses beyond the fixed price. For the contractor, the risk lies in accurately estimating all costs, including potential unknowns in renovation projects, and managing the project efficiently to maintain profitability. Unforeseen site conditions or changes in scope requested by the government could also lead to change orders, potentially increasing the contract price.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects?

This method is generally considered highly effective for ensuring competitive pricing. It allows all responsible sources to submit a bid after an initial screening or exclusion of sources that do not meet minimum requirements. The 'after exclusion of sources' part implies that perhaps some initial vetting occurred, but the core principle is broad competition. When multiple qualified bidders participate, as indicated by the four bidders in this case, the government benefits from a price discovery process driven by market forces. This typically leads to lower prices and better terms than sole-source or limited competition scenarios.

What is the historical spending pattern for building renovations by the Animal and Plant Health Inspection Service (APHIS)?

Analyzing historical spending patterns for APHIS building renovations would require accessing federal procurement data over several fiscal years. This would involve identifying previous contracts for similar renovation projects, their values, durations, and the contractors involved. Understanding APHIS's typical investment in facility upgrades can provide context for the current $2.1 million award. It would help determine if this contract represents a significant increase or decrease in spending for such activities and identify any recurring needs or trends in their facility maintenance and improvement.

What are the potential implications of the 668-day contract duration on agency operations and the local economy?

A contract duration of 668 days (approximately 22 months) for a renovation project suggests a substantial scope of work, potentially involving complex systems, phased construction, or significant build-out. For agency operations, this extended timeline means that the affected laboratory and office spaces will be unavailable for an extended period, potentially requiring temporary relocations or impacting workflow. Locally, the long duration implies sustained employment for construction workers and a consistent demand for materials and services from local suppliers over nearly two years, contributing positively to the local economy.

Industry Classification

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

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

Solicitation ID: 12639524R0020

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 36 MACON ST STE 6, MCDONOUGH, GA, 30253

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,125,744

Exercised Options: $2,125,744

Current Obligation: $2,125,744

Actual Outlays: $1,103,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline