Puerto Rico Hurricane Recovery Construction Contract Awarded for $25.1M to R.B. Construction Group

Contract Overview

Contract Amount: $25,120,614 ($25.1M)

Contractor: R.B. Construction Group, Inc.

Awarding Agency: General Services Administration

Start Date: 2019-07-16

End Date: 2022-04-30

Contract Duration: 1,019 days

Daily Burn Rate: $24.7K/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: CONSTRUCTION SERVICES FOR THE PUERTO RICO HURRICANE RECOVERY PROJECT AT THE FEDERICO DEGETAU FEDERAL BUILDING, RUIZ-NAZARIO U.S. COURTHOUSE, RAINFOREST KIDS CHILD DEVELOPMENT CENTER, AND FEDERAL PARKING GARAGE IN HATO REY, SAN JUAN, P.R.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

General Services Administration obligated $25.1 million to R.B. CONSTRUCTION GROUP, INC. for work described as: CONSTRUCTION SERVICES FOR THE PUERTO RICO HURRICANE RECOVERY PROJECT AT THE FEDERICO DEGETAU FEDERAL BUILDING, RUIZ-NAZARIO U.S. COURTHOUSE, RAINFOREST KIDS CHILD DEVELOPMENT CENTER, AND FEDERAL PARKING GARAGE IN HATO REY, SAN JUAN, P.R. Key points: 1. Contract addresses critical infrastructure needs in Puerto Rico post-hurricane. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 4. Performance period spans over two years, indicating a substantial project scope. 5. The awardee, R.B. Construction Group, Inc., is a key player in regional construction. 6. This project aligns with broader federal efforts for disaster recovery and resilience.

Value Assessment

Rating: good

The contract value of $25.1 million for construction services in Puerto Rico appears reasonable given the scope of hurricane recovery efforts. Benchmarking against similar large-scale federal construction projects in disaster-affected areas would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government, which is a positive indicator for this contract. However, without detailed breakdowns of the construction tasks and their associated costs, a definitive assessment of pricing efficiency is challenging.

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 considered. The presence of two bids suggests a moderate level of competition for this significant reconstruction project. While two bidders are better than one, a higher number of bids would typically lead to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it generally drives down prices through market forces. Even with two bidders, the process ensures that the government is not limited to a single provider, potentially securing a better deal than a sole-source or limited competition award.

Public Impact

Residents and businesses in Puerto Rico will benefit from the restoration of essential federal facilities. Services delivered include comprehensive construction and repair work on federal buildings and infrastructure. The geographic impact is concentrated in San Juan, Puerto Rico, specifically at the Federico Degetau Federal Building, Ruiz-Nazario U.S. Courthouse, Rainforest Kids Child Development Center, and Federal Parking Garage. The project will likely create or sustain jobs in the local construction sector in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in reconstruction efforts due to the complexity of disaster recovery.
Ensuring the quality of construction meets federal standards and long-term resilience requirements.
Managing the logistics of construction materials and workforce in an island environment.
Potential for cost escalation if unforeseen issues arise during the extensive repair work.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty for the government.
Awarding to a single contractor streamlines project management and accountability.
The project directly addresses critical post-hurricane infrastructure needs, demonstrating responsiveness.
The competition, though limited to two bidders, still involved a formal procurement process.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading its vast portfolio of buildings and infrastructure. Projects like this, especially those related to disaster recovery, are crucial for ensuring the continuity of government operations and supporting community resilience. Comparable spending benchmarks would involve analyzing other large-scale federal construction contracts awarded for post-disaster rebuilding efforts across different regions.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The awardee, R.B. Construction Group, Inc., is likely a larger entity capable of handling the scale of this project. There is no explicit information on subcontracting plans for small businesses within the provided data. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs project managers and contracting officers to monitor performance, ensure compliance with contract terms, and manage payments. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which places the risk of cost overruns on the contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities
Disaster Recovery and Resilience Programs
Hurricane Relief Efforts
Public Infrastructure Projects

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Risk of project delays due to logistical challenges in Puerto Rico.
Ensuring long-term durability and resilience of repaired structures.
Adequate oversight to ensure quality and compliance with federal standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.1 million to R.B. CONSTRUCTION GROUP, INC.. CONSTRUCTION SERVICES FOR THE PUERTO RICO HURRICANE RECOVERY PROJECT AT THE FEDERICO DEGETAU FEDERAL BUILDING, RUIZ-NAZARIO U.S. COURTHOUSE, RAINFOREST KIDS CHILD DEVELOPMENT CENTER, AND FEDERAL PARKING GARAGE IN HATO REY, SAN JUAN, P.R.

Who is the contractor on this award?

The obligated recipient is R.B. CONSTRUCTION GROUP, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2019-07-16. End: 2022-04-30.

What is the track record of R.B. Construction Group, Inc. with federal contracts, particularly with the GSA?

A review of federal contract databases would be necessary to fully assess R.B. Construction Group, Inc.'s track record. However, being awarded a $25.1 million contract for hurricane recovery by the GSA suggests a level of experience and capability deemed sufficient for such a significant undertaking. Federal agencies typically vet contractors based on past performance, financial stability, and technical expertise. Further investigation into their contract history, including past performance evaluations and any prior awards from GSA or other federal agencies, would provide a more comprehensive understanding of their reliability and success rate on similar projects.

How does the $25.1 million contract value compare to similar federal construction projects for disaster recovery?

The $25.1 million value for this construction contract in Puerto Rico is substantial, reflecting the scale of hurricane damage and the scope of work required for federal facilities. To benchmark this value, one would compare it to other large-scale federal construction contracts awarded for post-disaster recovery efforts, particularly in regions affected by major hurricanes or natural disasters. Factors such as the type of facilities being repaired (e.g., courthouses, administrative buildings, infrastructure), the extent of damage, and the prevailing construction costs in the affected region are critical for a meaningful comparison. Without specific data on comparable projects, it's challenging to definitively state if this contract represents exceptional value, but the amount is consistent with significant rebuilding initiatives.

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

Primary risks for this contract include potential delays due to the logistical challenges of working in Puerto Rico post-disaster, unforeseen structural issues discovered during repairs, and the potential for cost increases if the scope expands beyond initial assessments. Mitigation strategies likely include robust project management by the GSA, clear contract terms (firm-fixed-price), and potentially contingency planning within the contractor's bid. The firm-fixed-price nature itself is a risk mitigation tool for the government, transferring cost overrun risk to the contractor. However, the complexity of hurricane recovery and island logistics remain inherent risks that require diligent oversight.

How effective has the GSA been in managing similar large-scale construction contracts for disaster recovery?

The General Services Administration (GSA) has extensive experience managing federal building construction and renovation projects, including those related to disaster recovery. Their effectiveness can be evaluated based on project completion rates, adherence to budget, and the long-term performance of repaired facilities. Historically, GSA has faced scrutiny regarding project timelines and cost management on some large initiatives. However, for disaster recovery, their role is critical in coordinating federal response and ensuring the restoration of essential government infrastructure. Specific performance metrics for GSA's management of Puerto Rico recovery projects would be needed for a precise assessment of effectiveness in this instance.

What is the historical spending pattern for construction services in Puerto Rico by the federal government?

Analyzing historical federal spending on construction in Puerto Rico would reveal trends related to infrastructure investment, disaster relief, and the maintenance of federal facilities. Following major hurricanes like Maria, federal spending on construction in Puerto Rico typically surges to address immediate damage and long-term rebuilding needs. This includes contracts for repairing government buildings, roads, utilities, and other critical infrastructure. Understanding these patterns helps contextualize the $25.1 million award, indicating whether it represents a typical investment or an elevated level of spending driven by specific recovery needs.

What is the significance of the 'full and open competition after exclusion of sources' award type?

The 'full and open competition after exclusion of sources' award type signifies a procurement process where the solicitation was made available to all responsible sources, but certain sources were excluded based on specific criteria (e.g., geographic location, specific certifications, or prior involvement). This is a variation of full and open competition designed to ensure fairness while potentially narrowing the field to the most relevant or capable bidders for a particular project. For taxpayers, this means the government sought broad market participation but applied specific, justifiable criteria to the bidder pool, aiming for a balance between competition and project suitability. It suggests a more targeted approach than pure full and open competition but is still a competitive method.

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: 47PC03R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 846 KM 1 5 BO LAS CUEVAS, TRUJILLO ALTO, PR, 00976

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,824,914

Exercised Options: $25,120,614

Current Obligation: $25,120,614

Actual Outlays: $574,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline