Interior Department awards $90M contract for Tuscaloosa facility construction, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $89,997,933 ($90.0M)

Contractor: Jccbg

Awarding Agency: Department of the Interior

Start Date: 2021-12-30

End Date: 2026-01-31

Contract Duration: 1,493 days

Daily Burn Rate: $60.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT HYDROLOGIC INSTRUMENTATION FACILITY IN TUSCALOOSA, AL

Place of Performance

Location: TUSCALOOSA, TUSCALOOSA County, ALABAMA, 35401

State: Alabama Government Spending

Plain-Language Summary

Department of the Interior obligated $90.0 million to JCCBG for work described as: CONSTRUCT HYDROLOGIC INSTRUMENTATION FACILITY IN TUSCALOOSA, AL Key points: 1. The contract's firm fixed-price structure aims to control costs and provide predictability. 2. Competition was robust, with multiple bids received, suggesting a competitive market for this type of construction. 3. The project duration of nearly five years indicates a significant undertaking with long-term implications. 4. Geographic concentration in Alabama may offer localized economic benefits. 5. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $89.99 million for constructing a hydrologic instrumentation facility appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for federal agencies suggests that the pricing is within expected ranges. The firm fixed-price (FFP) award type indicates that the contractor assumes the risk for cost overruns, which is generally favorable for the government in terms of cost certainty. However, a detailed cost breakdown and comparison to industry standards for similar facilities would provide a more precise value assessment.

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 solicitation received four bids, suggesting a healthy level of interest and competition for this project. A competitive bidding process typically leads to better price discovery and ensures that the government receives offers from a range of qualified contractors, potentially driving down costs and improving the quality of proposals.

Taxpayer Impact: The full and open competition for this significant construction project is beneficial for taxpayers, as it likely resulted in a more competitive price and a wider selection of qualified contractors, maximizing the value for public funds.

Public Impact

The primary beneficiaries are the U.S. Geological Survey, which will gain a new facility for hydrologic instrumentation. The contract will deliver a constructed facility, enabling advanced research and monitoring of water resources. The geographic impact is concentrated in Tuscaloosa, Alabama, potentially creating local jobs and stimulating the regional economy. The project is expected to have implications for the construction workforce in the Tuscaloosa area, requiring skilled labor for its duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the FFP contract.
Dependence on a single contractor for a multi-year, critical infrastructure project.
Limited visibility into the specific construction methods and materials without detailed oversight.
Potential for schedule delays impacting the USGS's operational readiness.
Lack of explicit small business participation may limit broader economic impact.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market and potentially competitive pricing.
Long-term project duration allows for focused execution and development.
Award to a single entity streamlines management and accountability.
Project addresses a critical need for the U.S. Geological Survey's operations.

Sector Analysis

The construction of specialized facilities like the hydrologic instrumentation center falls within the broader commercial and institutional building construction sector. This sector is characterized by a wide range of project sizes and complexities, from small renovations to large-scale infrastructure. Federal construction contracts represent a significant portion of this market. The value of this contract, approximately $90 million, places it in the mid-to-large size category for federal building projects. Comparable spending benchmarks would involve analyzing other federal contracts for research facilities, laboratories, or specialized operational centers awarded over the past few years.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting goals mandated in the provided data. The absence of set-asides means that large businesses were eligible to compete and potentially win the prime contract. This could limit direct opportunities for small businesses to participate as prime contractors. However, the large contract value may create subcontracting opportunities for small businesses in various trades and material supply, depending on the prime contractor's subcontracting plan and adherence to federal regulations regarding small business utilization.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Geological Survey, the agency that will utilize the facility. The firm fixed-price nature of the contract places the primary responsibility for cost control on the contractor, JCCBG. Accountability measures will be tied to the contract's performance milestones, quality standards, and delivery schedule. Transparency is facilitated through the federal procurement data system, which publishes contract awards. The Inspector General for the Department of the Interior would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Buildings and Facilities Construction
U.S. Geological Survey Research Infrastructure
Department of the Interior Capital Investments
Hydrologic Monitoring and Research Programs

Risk Flags

Long project duration increases exposure to market volatility and potential delays.
Firm Fixed Price contract shifts cost overrun risk to contractor, potentially impacting bid price.
Lack of explicit small business participation noted.
Geographic concentration may limit broader economic distribution of benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $90.0 million to JCCBG. CONSTRUCT HYDROLOGIC INSTRUMENTATION FACILITY IN TUSCALOOSA, AL

Who is the contractor on this award?

The obligated recipient is JCCBG.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $90.0 million.

What is the period of performance?

Start: 2021-12-30. End: 2026-01-31.

What is the track record of the contractor, JCCBG, on similar federal construction projects?

Information on the contractor JCCBG's specific track record on similar federal construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract completion history, and any reported disputes or claims associated with their previous federal awards. Analyzing their experience with constructing specialized facilities, adherence to schedules and budgets on prior projects, and overall client satisfaction would be crucial. Without this specific data, it's difficult to definitively assess their suitability and reliability for this significant undertaking. Federal procurement databases and past performance information systems would typically hold this type of detail.

How does the awarded price compare to the estimated cost or budget for this facility?

The provided data does not include the government's estimated cost or budget for the construction of the hydrologic instrumentation facility. The awarded contract price is $89,997,933. To assess value for money, this figure would need to be compared against the initial cost estimates developed during the planning and design phases. If the awarded price is significantly below the estimate, it could indicate effective competition or potentially an underestimated scope. Conversely, if it's at or above the estimate, further scrutiny of the estimate's accuracy and the competitive landscape would be warranted. Understanding the relationship between the awarded price and the government's budget is key to evaluating fiscal responsibility.

What are the primary risks associated with a nearly five-year construction project of this magnitude?

A construction project spanning nearly five years carries several inherent risks. These include potential cost escalation due to inflation or unforeseen material price increases, even with a firm fixed-price contract, if scope changes occur or if the initial pricing did not adequately account for long-term market fluctuations. Schedule delays are also a significant risk, stemming from factors like weather, labor shortages, supply chain disruptions, or permitting issues. Technical risks related to the specialized nature of a hydrologic instrumentation facility could emerge during construction. Furthermore, changes in agency priorities or funding availability over such a long period could impact the project. Contractor performance and management effectiveness are also critical risk factors.

What is the expected impact of this facility on the U.S. Geological Survey's operational capabilities?

The construction of a new hydrologic instrumentation facility is expected to significantly enhance the U.S. Geological Survey's (USGS) operational capabilities. Such a facility would likely house advanced equipment for monitoring, analyzing, and calibrating instruments used in hydrological research and data collection. This could lead to more accurate and reliable water resource data, improved forecasting of water-related events (like floods and droughts), and enhanced scientific understanding of water systems. The new facility may also provide space for expanded research activities, collaboration, and training, ultimately strengthening the USGS's mission to provide data and information to protect lives and property and enhance the nation's health, safety, and welfare.

How does the contract type (Firm Fixed Price) influence contractor behavior and government risk?

The Firm Fixed Price (FFP) contract type places the primary financial risk on the contractor, JCCBG. Under an FFP agreement, the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage costs efficiently, control waste, and adhere strictly to the project scope and schedule to maximize their profit margin. For the government, the main benefit is cost certainty; the total price is known upfront, protecting against unexpected cost overruns. However, this can also lead contractors to potentially build in higher contingency amounts into their initial bids to cover potential risks, which might result in a higher base price compared to other contract types like cost-plus. The government's risk is primarily related to ensuring the contractor meets quality standards and avoids cutting corners to save costs.

What are the historical spending patterns for similar construction projects by the Department of the Interior?

Analyzing historical spending patterns for similar construction projects by the Department of the Interior (DOI) would involve examining past awards for facilities, research centers, and infrastructure projects within the DOI and its various bureaus, such as the U.S. Geological Survey. This would include looking at the average contract values, project durations, types of construction, and the level of competition typically seen. For instance, understanding the average cost per square foot for similar federal buildings or the typical range of contract values for specialized scientific facilities would provide context. Such analysis helps in benchmarking the current $90 million contract against historical norms and identifying any significant deviations that might warrant further investigation regarding cost-effectiveness or market conditions.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140G0121R0015

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 24 VARDRY ST STE 201, GREENVILLE, SC, 29601

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,997,933

Exercised Options: $89,997,933

Current Obligation: $89,997,933

Actual Outlays: $89,967,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline