Puerto Rico Highway Repairs Awarded for $22.1M to J.M. Caribbean Builders Corp

Contract Overview

Contract Amount: $22,142,386 ($22.1M)

Contractor: J.M. Caribbean Builders Corp

Awarding Agency: Department of Transportation

Start Date: 2022-05-26

End Date: 2026-12-30

Contract Duration: 1,679 days

Daily Burn Rate: $13.2K/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 ER PRMNT RPR(7): THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON EAST & METRO REGIONS AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED,

Place of Performance

Location: ADJUNTAS, ADJUNTAS County, PUERTO RICO, 00601

Plain-Language Summary

Department of Transportation obligated $22.1 million to J.M. CARIBBEAN BUILDERS CORP for work described as: PROJECT PR ER PRMNT RPR(7): THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON EAST & METRO REGIONS AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED, Key points: 1. Contract awarded for hurricane damage repairs to signs and guardrails in Puerto Rico. 2. J.M. Caribbean Builders Corp. secured the definitive contract. 3. The project aims to restore critical infrastructure damaged by Hurricanes Irma and Maria. 4. Spending is allocated across East & Metro regions, with miscellaneous work included.

Value Assessment

Rating: fair

The contract value of $22.1M for highway repairs appears reasonable given the scope of hurricane damage. Benchmarking against similar infrastructure repair contracts in disaster-affected areas would provide a clearer picture of cost-effectiveness.

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 approach. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure repair, with the ultimate impact depending on the efficiency and cost-effectiveness of the execution.

Public Impact

Restoration of vital transportation infrastructure in Puerto Rico following severe hurricane damage. Support for local economy through construction contracts awarded to J.M. Caribbean Builders Corp. Ensuring public safety by repairing damaged signs and guardrails on major roadways.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact cost efficiency.
Contract duration extends significantly, requiring ongoing monitoring.

Positive Signals

Addresses critical post-hurricane infrastructure needs.
Supports economic activity through contract award.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector. Spending in this area is often driven by infrastructure needs, disaster recovery, and government investment in transportation networks.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were subcontracted for any portion of the work.

Oversight & Accountability

The Federal Highway Administration is the awarding agency, responsible for overseeing the project's execution and ensuring compliance with contract terms. Oversight is crucial given the project's scale and duration.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost overruns due to long contract duration.
Limited competition may not yield the best price.
Lack of small business participation noted.
Scope creep risk over the multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $22.1 million to J.M. CARIBBEAN BUILDERS CORP. PROJECT PR ER PRMNT RPR(7): THE PROJECT CONSISTS OF REPAIRING SIGNS AND GUARDRAILS DAMAGED BY HURRICANES IRMA AND MARIA ON EAST & METRO REGIONS AND OTHER MISCELLANEOUS WORK. THE WORK INCLUDES TRAFFIC SIGN ASSEMBLIES (SMALL SIGNS, GROUND MOUNTED,

Who is the contractor on this award?

The obligated recipient is J.M. CARIBBEAN BUILDERS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2022-05-26. End: 2026-12-30.

What specific criteria led to the exclusion of sources in this 'limited' competition?

The exclusion of sources in limited competition typically stems from specific requirements such as unique capabilities, urgent needs, or geographic proximity to the work site. For this project, the nature of hurricane damage and the need for rapid repair in specific regions might have justified limiting the pool of potential contractors to those best equipped to respond quickly and effectively.

How will the long contract duration (ending 2026) impact the overall cost and potential for scope creep?

A long contract duration increases the risk of cost escalation due to inflation, material price fluctuations, and potential changes in project requirements over time. It also necessitates sustained oversight to prevent scope creep, where additional work not originally planned is added, driving up costs. Regular reviews and clear change order processes are essential to manage these risks effectively.

What mechanisms are in place to ensure the quality of repairs and the long-term durability of the restored infrastructure?

Quality assurance for infrastructure repairs typically involves detailed specifications, material testing, regular site inspections by agency representatives, and performance bonds. The contract likely includes clauses for warranties on the work performed and materials used. The Federal Highway Administration's oversight will be critical in verifying that repairs meet all standards and will withstand future environmental conditions.

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: 693C7322B000008

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 2 KM 19.4, TOA BAJA, PR, 00951

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: $22,142,386

Exercised Options: $22,142,386

Current Obligation: $22,142,386

Actual Outlays: $19,536,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline