Puerto Rico highway infrastructure repair contract awarded for $16.96M to address hurricane damage

Contract Overview

Contract Amount: $16,957,716 ($17.0M)

Contractor: Caribbean Sign Supplies Manufacturers, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-02-16

End Date: 2026-07-31

Contract Duration: 1,991 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT PR ST ER PRMNT RPR (6) THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON PR-1, PR-2 AND PR-3 AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED, O

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00924

Plain-Language Summary

Department of Transportation obligated $17.0 million to CARIBBEAN SIGN SUPPLIES MANUFACTURERS, INC. for work described as: PROJECT PR ST ER PRMNT RPR (6) THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON PR-1, PR-2 AND PR-3 AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED, O Key points: 1. Contract addresses critical infrastructure needs following significant hurricane events. 2. Focus on repair and replacement of essential traffic signs and guardrails. 3. Long-term contract duration suggests ongoing maintenance and support requirements. 4. Awarded to a single entity, raising questions about competitive pressure. 5. Geographic focus on Puerto Rico highlights regional recovery efforts. 6. Contract type is a definitive contract, allowing for flexibility in task orders.

Value Assessment

Rating: fair

The contract value of $16.96 million for highway repair and guardrail replacement appears substantial. Benchmarking against similar disaster recovery projects in the region would be necessary for a precise value-for-money assessment. The definitive contract structure, while flexible, can sometimes lead to less predictable overall costs compared to fixed-price contracts for the entire scope. Without detailed breakdowns of unit costs for signs and guardrails, it's difficult to definitively assess pricing fairness.

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,' which is an unusual designation. Typically, 'full and open' implies broad competition. The 'exclusion of sources' clause suggests that while the competition was open, certain potential sources may have been excluded for specific reasons, possibly related to qualifications or prior performance. The number of bidders is not explicitly stated, but the designation implies an attempt at broad solicitation.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. The specific nature of the exclusion needs further clarification to understand its full impact on price discovery and potential savings.

Public Impact

Residents and commuters in Puerto Rico benefit from improved road safety and functionality. Services delivered include the repair and replacement of traffic signs and guardrails. Geographic impact is concentrated on major roadways (PR-1, PR-2, PR-3) in Puerto Rico. Workforce implications may include local employment opportunities for construction and repair tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in an otherwise 'full and open' competition warrants further investigation to ensure fair market access.
The long duration of the definitive contract (2021-2026) could lead to cost overruns if not managed tightly.
Lack of specific unit cost data makes it challenging to benchmark pricing effectively.

Positive Signals

Addresses critical infrastructure needs following natural disasters, demonstrating responsiveness.
Focus on essential safety features like guardrails and signs is a positive outcome.
The contract is awarded to a company with 'Caribbean Sign Supplies Manufacturers' in its name, potentially indicating local or regional expertise.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a critical component of the transportation infrastructure industry. The market for such services is often driven by government funding, particularly for repairs and upgrades necessitated by weather events or general wear and tear. Comparable spending benchmarks would typically involve looking at other Federal Highway Administration (FHWA) contracts for similar repair work in disaster-affected areas or regions with similar infrastructure challenges.

Small Business Impact

The contract details indicate that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. This suggests that the primary focus was on securing the necessary expertise and capacity for the repair work, rather than specifically targeting small businesses. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for smaller firms to participate in this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Highway Administration (FHWA), a division of the Department of Transportation. Accountability measures would be tied to the terms and conditions of the definitive contract, including performance milestones and quality control. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight and Inspector General jurisdiction would depend on specific fraud, waste, or abuse indicators.

Related Government Programs

Federal Highway Administration Disaster Relief Programs
Puerto Rico Infrastructure Rebuilding Initiatives
National Highway System Maintenance Contracts
Emergency Road Repair Contracts

Risk Flags

Unusual competition designation requires clarification.
Long-term definitive contract may lack cost certainty.
Limited public data on contractor's specific disaster recovery experience.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.0 million to CARIBBEAN SIGN SUPPLIES MANUFACTURERS, INC.. PROJECT PR ST ER PRMNT RPR (6) THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON PR-1, PR-2 AND PR-3 AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED, O

Who is the contractor on this award?

The obligated recipient is CARIBBEAN SIGN SUPPLIES MANUFACTURERS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2021-02-16. End: 2026-07-31.

What is the specific justification for the 'exclusion of sources' within the 'full and open competition' designation?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is unusual and requires clarification. Typically, 'full and open' implies the widest possible competition. The 'exclusion of sources' suggests that while the competition was open, certain potential bidders were deliberately excluded. This exclusion could be based on factors such as specialized capabilities, past performance issues, security concerns, or specific regulatory requirements. Without further documentation from the contracting agency (Federal Highway Administration), the precise reasons for excluding specific sources remain unclear. Understanding this rationale is crucial for assessing whether the competition was truly as robust as intended and if it potentially limited price discovery, thereby impacting the value achieved for taxpayer funds.

How does the pricing structure of this definitive contract compare to similar hurricane recovery projects in Puerto Rico or other U.S. territories?

Benchmarking the pricing for this $16.96 million contract requires detailed cost data that is not publicly available in the provided summary. Definitive contracts allow for flexibility in task orders, meaning the total cost can fluctuate based on the specific work performed over its duration (2021-2026). To compare effectively, one would need to analyze the unit costs for specific items like traffic signs, guardrail sections, and labor rates against similar contracts awarded by the Federal Highway Administration or other federal agencies for post-hurricane repairs in Puerto Rico or comparable regions. Factors such as material availability, local labor costs, and logistical challenges in the aftermath of hurricanes Irma and Maria would significantly influence pricing, making direct comparisons complex without granular data.

What are the key performance indicators (KPIs) and quality control measures for this contract to ensure effective repair of signs and guardrails?

The provided data does not specify the Key Performance Indicators (KPIs) or detailed quality control measures for this contract. However, for infrastructure repair projects of this nature, typical KPIs would likely include adherence to specified repair standards (e.g., MUTCD for signs), durability of materials used, timely completion of repair tasks, and minimization of traffic disruptions during work. Quality control would involve regular inspections by government representatives, material testing, and verification that repairs meet or exceed original specifications. The contract's success hinges on ensuring that the repaired signs and guardrails are not only aesthetically acceptable but also structurally sound and capable of withstanding environmental stresses, especially given the context of hurricane recovery.

What is the track record of Caribbean Sign Supplies Manufacturers, Inc. with federal contracts, particularly those involving disaster recovery?

Information regarding the specific track record of 'Caribbean Sign Supplies Manufacturers, Inc.' with federal contracts, especially in disaster recovery, is not detailed in the provided summary. A thorough analysis would require accessing the Federal Procurement Data System (FPDS) or similar databases to review their past performance, contract values, types of services rendered, and any reported issues or commendations. Given the company name suggests a focus on sign supplies, their experience in large-scale infrastructure repair involving guardrails and extensive roadwork would be a key area to investigate. Understanding their history with similar projects, particularly in challenging post-disaster environments, is crucial for assessing their capability and reliability in executing this contract effectively.

How has spending on highway and bridge construction in Puerto Rico by the Department of Transportation evolved over the past five years?

To assess the historical spending patterns on highway and bridge construction in Puerto Rico by the Department of Transportation (DOT), one would need to analyze historical procurement data from sources like FPDS. This would involve filtering contracts by agency (DOT and its sub-agencies like FHWA), geographic location (Puerto Rico), and North American Industry Classification System (NAICS) codes related to highway, street, and bridge construction. Examining spending trends over the past five years would reveal whether this $16.96 million contract represents a significant increase or decrease in federal investment in Puerto Rico's transportation infrastructure, potentially influenced by factors such as hurricane recovery efforts, infrastructure bills, or shifting federal priorities.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: SEALED BID

Solicitation ID: 693C7321B000006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: LAS BRISAS SABANA LLANA INDUSTRIAL PARK LOTE 4, SAN JUAN, PR, 00924

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

Financial Breakdown

Contract Ceiling: $16,957,716

Exercised Options: $16,957,716

Current Obligation: $16,957,716

Actual Outlays: $14,381,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline