Puerto Rico landslide repairs on PR-152R and PR-152 awarded for $8.07M to OBRATEC CONTRATISTA GENERAL INC

Contract Overview

Contract Amount: $8,067,514 ($8.1M)

Contractor: Obratec Contratista General Inc

Awarding Agency: Department of Transportation

Start Date: 2024-01-22

End Date: 2028-08-29

Contract Duration: 1,681 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT PR ER DOT PRMNT RPR(15): THE PROJECT CONSISTS OF REPAIRING LANDSLIDES CAUSED BY HURRICANES IRMA AND MARIA ON PR-152R KM 1.2; AND PR-152 KM1.2, 3.05, 3.4, 3.1, AND 5.30-5.40 IN THE MUNICIPALITY OF BARRANQUITAS, PUERTO RICO. THE WORK INCLUDES,

Place of Performance

Location: BARRANQUITAS, BARRANQUITAS County, PUERTO RICO, 00794

Plain-Language Summary

Department of Transportation obligated $8.1 million to OBRATEC CONTRATISTA GENERAL INC for work described as: PROJECT PR ER DOT PRMNT RPR(15): THE PROJECT CONSISTS OF REPAIRING LANDSLIDES CAUSED BY HURRICANES IRMA AND MARIA ON PR-152R KM 1.2; AND PR-152 KM1.2, 3.05, 3.4, 3.1, AND 5.30-5.40 IN THE MUNICIPALITY OF BARRANQUITAS, PUERTO RICO. THE WORK INCLUDES, Key points: 1. Contract addresses critical infrastructure damage from Hurricanes Irma and Maria, highlighting resilience needs. 2. The project involves multiple repair sites along PR-152R and PR-152, indicating widespread impact. 3. A firm-fixed-price contract suggests defined scope and cost control, but potential for change orders exists. 4. The award was made under 'Full and Open Competition After Exclusion of Sources,' warranting further scrutiny. 5. The duration of 1681 days (approx. 4.6 years) suggests a complex and lengthy repair process. 6. The contract's value of $8.07M is significant for local infrastructure repair in Puerto Rico.

Value Assessment

Rating: fair

The contract value of $8.07M for highway repair in Puerto Rico appears reasonable given the scope of damage from two major hurricanes. However, without specific benchmarks for landslide repair costs in similar geographic and climatic conditions, a precise value-for-money assessment is challenging. The firm-fixed-price structure aims to control costs, but the extended duration could lead to unforeseen expenses. Comparing this to other federal highway repair contracts in disaster-affected areas 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.' This specific procurement method implies that while competition was sought, certain sources may have been excluded for reasons not immediately apparent from the provided data. It is crucial to understand the justification for excluding other potential bidders to ensure fair competition and optimal pricing. The presence of 9 bidders suggests some level of interest, but the exclusion clause raises questions about the breadth of the competitive landscape.

Taxpayer Impact: The 'exclusion of sources' aspect of the competition warrants careful review to ensure taxpayers are receiving the best possible value and that the bidding process was fair and transparent.

Public Impact

Residents and businesses in Barranquitas, Puerto Rico, will benefit from restored and safer transportation routes. Essential transportation links on PR-152R and PR-152 will be repaired, improving mobility and access. The project directly addresses the aftermath of significant natural disasters, enhancing community resilience. Local and potentially regional workforce will be engaged in construction and repair activities. Improved road infrastructure supports economic activity by facilitating the movement of goods and people.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition method needs clarification to ensure full and fair competition.
The long contract duration of over 4 years may increase the risk of cost overruns due to inflation or unforeseen site conditions.
Reliance on a single contractor for such a critical and extended repair project could pose risks if performance issues arise.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award to OBRATEC CONTRATISTA GENERAL INC. suggests they possess the necessary qualifications for this type of infrastructure repair.
The project directly addresses critical infrastructure damage from major hurricanes, indicating a focus on essential recovery efforts.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector, a vital part of the broader Construction industry. Federal spending in this area is often driven by infrastructure needs, disaster recovery, and national transportation initiatives. The market for such services in Puerto Rico is influenced by local economic conditions, available resources, and the frequency of natural disasters. Comparable spending benchmarks would typically involve analyzing the cost per mile or per landslide repaired for similar projects managed by the Federal Highway Administration or state/territorial transportation departments.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the primary focus was on securing the necessary expertise and capacity for a large-scale infrastructure repair project. While there's no explicit subcontracting information, large infrastructure projects often involve opportunities for smaller firms to participate as subcontractors, though this contract does not appear to have been specifically designed to promote small business engagement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Highway Administration (FHWA), a division of the Department of Transportation. The firm-fixed-price nature of the contract provides a degree of cost control. Accountability measures would typically involve regular progress reports, site inspections, and adherence to project milestones. Transparency is generally maintained through contract award databases and public reporting, although specific details of ongoing oversight might be internal.

Related Government Programs

Federal Highway Administration Disaster Relief Program
Puerto Rico Department of Transportation and Public Works Contracts
Hurricane Recovery Infrastructure Projects
Highway and Bridge Repair Contracts
US Department of Transportation - Federal-Aid Highways

Risk Flags

Competition Method: 'Exclusion of Sources' requires further justification.
Contract Duration: Extended timeline increases risk of cost escalation and performance issues.
Geographic Concentration: Project focused solely on Puerto Rico, potentially limiting broader competitive pool.
Disaster Impact: Work is a direct result of major hurricanes, implying urgency and potential for unforeseen conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.1 million to OBRATEC CONTRATISTA GENERAL INC. PROJECT PR ER DOT PRMNT RPR(15): THE PROJECT CONSISTS OF REPAIRING LANDSLIDES CAUSED BY HURRICANES IRMA AND MARIA ON PR-152R KM 1.2; AND PR-152 KM1.2, 3.05, 3.4, 3.1, AND 5.30-5.40 IN THE MUNICIPALITY OF BARRANQUITAS, PUERTO RICO. THE WORK INCLUDES,

Who is the contractor on this award?

The obligated recipient is OBRATEC CONTRATISTA GENERAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2024-01-22. End: 2028-08-29.

What is the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The justification for excluding sources under this procurement method is critical for understanding the competitive landscape and ensuring fairness. Typically, exclusion might be based on factors such as a lack of specialized capabilities, prior performance issues with certain contractors, or specific security requirements. For this contract, the Federal Highway Administration (FHWA) would have had to document why certain potential bidders were not considered. Without this documentation, it's difficult to ascertain if the exclusion limited competition unnecessarily or if it was a necessary step to ensure the project's success with a qualified contractor. This method is less common than standard full and open competition and requires a strong rationale to be defensible.

How does the $8.07 million contract value compare to similar landslide repair projects in Puerto Rico or other disaster-prone regions?

Benchmarking the $8.07 million contract value requires comparing it against similar landslide repair projects, particularly those addressing hurricane-induced damage in regions with comparable geological and climatic conditions. Data on per-mile repair costs, cost per cubic yard of landslide material moved, or cost per structure repaired would be ideal. However, such specific data is often not publicly available or easily aggregated. Given the scale of damage from two major hurricanes (Irma and Maria) and the multiple repair locations specified (PR-152R and PR-152), the total sum appears substantial but potentially justified. A detailed analysis would involve examining the complexity of each repair site, the engineering solutions required, and the duration of the work, factoring in inflation and logistical challenges unique to Puerto Rico.

What are the potential risks associated with the long contract duration of 1681 days (approximately 4.6 years)?

A contract duration of over 4.5 years for infrastructure repair presents several potential risks. Firstly, there's the risk of cost escalation due to inflation, which can erode the value of a fixed-price contract if not adequately managed through contingency planning or escalation clauses. Secondly, unforeseen geological conditions or changes in environmental regulations could necessitate scope adjustments, leading to change orders and potential cost increases. Thirdly, the prolonged timeline increases the likelihood of personnel turnover for both the contractor and the overseeing agency, potentially impacting project continuity and knowledge transfer. Finally, extended construction periods can lead to prolonged disruption for local communities and may face political or funding shifts over such a long duration.

What is the track record of OBRATEC CONTRATISTA GENERAL INC. in handling large-scale federal infrastructure repair projects, especially post-disaster?

Assessing the track record of OBRATEC CONTRATISTA GENERAL INC. is crucial for understanding their capability to execute this significant contract. Information on their past performance, particularly on projects of similar scale, complexity, and in disaster-affected areas, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Federal contract databases (like SAM.gov or FPDS) often contain performance evaluations and details of previous awards. A review of their history would help determine if they have a proven ability to manage the logistical challenges, technical requirements, and tight timelines often associated with post-hurricane infrastructure repairs in regions like Puerto Rico.

How will the performance of this contract be monitored to ensure quality and timely completion, given its extended duration?

Monitoring the performance of this contract will likely involve a multi-faceted approach by the Federal Highway Administration (FHWA). Key oversight mechanisms would include regular site inspections by FHWA engineers to verify work quality and compliance with specifications. Progress reports submitted by OBRATEC CONTRATISTA GENERAL INC. will be reviewed against established milestones. Given the 4.6-year duration, periodic performance reviews and potentially independent quality assurance testing will be essential. The contract likely includes clauses for remedies in case of non-performance or delays, and the agency will need to maintain consistent communication and oversight throughout the project lifecycle to mitigate risks associated with the long timeline.

What is the historical spending pattern for highway and bridge construction contracts managed by the FHWA in Puerto Rico?

Analyzing historical spending patterns for highway and bridge construction contracts managed by the FHWA in Puerto Rico would provide context for the $8.07 million award. This involves examining the frequency, size, and types of contracts awarded over the past several years. Key metrics to consider include the average contract value, the typical duration of such projects, and the prevalence of disaster-related repair work. Understanding these patterns can reveal trends in federal investment in Puerto Rico's infrastructure, the typical procurement methods used, and the average cost of similar repairs. This historical data is vital for assessing whether the current contract represents a typical investment or an outlier, potentially influenced by the severity of hurricane damage.

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: 693C7324B000005

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR. 842 KM 1.9 LOTE 4 CAMINO LOS BIGIOS, SAN JUAN, PR, 00926

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

Financial Breakdown

Contract Ceiling: $8,067,514

Exercised Options: $8,067,514

Current Obligation: $8,067,514

Actual Outlays: $2,483,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline