Gulfport Dorm Renovation Contract Awarded to Benecorp Inc. for $5.35M

Contract Overview

Contract Amount: $5,352,640 ($5.4M)

Contractor: Benecorp Inc

Awarding Agency: Department of Labor

Start Date: 2024-06-27

End Date: 2026-07-13

Contract Duration: 746 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GULFPORT 4178 - REMEDIATION & RENOVATION OF MAGNOLIA HALL DORM THE WORK INCLUDES, BUT IS NOT LIMITED TO, DESIGN-BUILD CONSTRUCTION SERVICES FOR MOLD REMEDIATION, INTERIOR DEMOLITION AND RENOVATIONS, HVAC SYSTEM, ELECTRICAL, PLUMBING AND, FIRE AL

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $5.4 million to BENECORP INC for work described as: GULFPORT 4178 - REMEDIATION & RENOVATION OF MAGNOLIA HALL DORM THE WORK INCLUDES, BUT IS NOT LIMITED TO, DESIGN-BUILD CONSTRUCTION SERVICES FOR MOLD REMEDIATION, INTERIOR DEMOLITION AND RENOVATIONS, HVAC SYSTEM, ELECTRICAL, PLUMBING AND, FIRE AL Key points: 1. Contract focuses on mold remediation and renovation of Magnolia Hall Dorm. 2. Benecorp Inc. is the sole contractor for this project. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. This falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The contract value of $5.35M for a dorm renovation with remediation appears within a reasonable range for such projects. However, without specific details on the scope of remediation and renovation, a precise comparison is difficult. Benchmarking against similar-sized institutional building projects would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where some sources were excluded. This method may impact price discovery, potentially leading to higher costs than a truly open competition.

Taxpayer Impact: The limited competition raises questions about whether taxpayers received the best possible price for the services rendered.

Public Impact

Students at the dormitory will benefit from improved living conditions and a healthier environment due to mold remediation. The renovation project will create construction jobs in Mississippi. The Department of Labor is investing in its facilities to ensure a safe and functional environment for its personnel or students.

Waste & Efficiency Indicators

Waste Risk Score: 71 / 10

Warning Flags

Limited competition may have inflated costs.
Contract duration is substantial (746 days).

Positive Signals

Addresses critical health concerns (mold remediation).
Firm Fixed Price contract provides cost predictability.
Project aims to improve essential infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which includes a wide range of projects from office buildings to educational facilities. Spending in this sector can vary significantly based on project complexity and location.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (sb: false). There is no indication of subcontracting opportunities for small businesses within this specific award notice.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a specific procurement process was followed, but further review would be needed to assess its adequacy.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for inflated costs due to limited competition.
Lack of transparency regarding source exclusion.
Significant contract duration may indicate complex scope or potential for delays.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.4 million to BENECORP INC. GULFPORT 4178 - REMEDIATION & RENOVATION OF MAGNOLIA HALL DORM THE WORK INCLUDES, BUT IS NOT LIMITED TO, DESIGN-BUILD CONSTRUCTION SERVICES FOR MOLD REMEDIATION, INTERIOR DEMOLITION AND RENOVATIONS, HVAC SYSTEM, ELECTRICAL, PLUMBING AND, FIRE AL

Who is the contractor on this award?

The obligated recipient is BENECORP INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-07-13.

What specific factors led to the exclusion of certain sources in the competition process?

The exclusion of sources typically occurs due to specific requirements outlined in the solicitation, such as specialized capabilities, past performance, or geographic limitations. Without access to the solicitation documents and the justification for excluding sources, it is impossible to determine the precise reasons. This information is crucial for understanding the extent of competition and potential impact on pricing.

How does the $5.35M cost compare to industry benchmarks for similar mold remediation and renovation projects of this scale?

Benchmarking this $5.35M contract against similar projects is challenging without detailed scope information. Factors like the severity of mold infestation, the extent of interior demolition and renovation, and the specific HVAC, electrical, and plumbing upgrades significantly influence costs. A comprehensive cost analysis would require comparing square footage, remediation complexity, and material costs against publicly available data for institutional building construction in Mississippi.

What are the potential long-term cost implications of the chosen remediation and renovation approach?

The long-term cost implications depend heavily on the quality of materials used, the effectiveness of the mold remediation techniques, and the durability of the new systems installed. A poorly executed remediation could lead to recurring mold issues, necessitating further costly interventions. Conversely, high-quality upgrades to HVAC and electrical systems could lead to long-term operational savings and reduced maintenance costs for the dormitory.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1605AE-24-R-00003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1822 15TH ST, GULFPORT, MS, 39501

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,352,640

Exercised Options: $5,352,640

Current Obligation: $5,352,640

Actual Outlays: $4,271,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline