DHS Awards $63.6M Construction Contract to Tutor Perini for San Juan Customs House Repairs
Contract Overview
Contract Amount: $63,587,936 ($63.6M)
Contractor: Tutor Perini Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2021-01-15
End Date: 2024-08-31
Contract Duration: 1,324 days
Daily Burn Rate: $48.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RESTORATION / CONSTRUCTION CONTRACT TO REPAIR AND UPDATE THE SAN JUAN, PR CUSTOMS HOUSE
Place of Performance
Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901
Plain-Language Summary
Department of Homeland Security obligated $63.6 million to TUTOR PERINI CORPORATION for work described as: RESTORATION / CONSTRUCTION CONTRACT TO REPAIR AND UPDATE THE SAN JUAN, PR CUSTOMS HOUSE Key points: 1. Significant investment in critical infrastructure for U.S. Customs and Border Protection. 2. Tutor Perini Corporation, a large established contractor, secured the award. 3. Potential for cost overruns or delays given the multi-year duration and complex nature of restoration. 4. Construction sector spending is substantial, with this contract representing a notable project.
Value Assessment
Rating: good
The contract value of $63.6 million appears reasonable for a large-scale restoration and update of a customs house. Benchmarking against similar large commercial construction projects would provide further context, but the scope suggests a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple qualified bidders vie for the contract.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades, aiming to improve operational efficiency and security at a key port of entry.
Public Impact
Enhances border security and trade facilitation capabilities at San Juan. Supports local economy through construction jobs and related services in Puerto Rico. Modernizes aging federal infrastructure, ensuring long-term operational viability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the nature of restoration projects.
- Contract duration of over three years may expose it to economic fluctuations.
- Geographic location in Puerto Rico could present logistical challenges.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract type limits cost uncertainty for the government.
- Project aims to improve critical national infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by government infrastructure needs, private development, and economic conditions. The $63.6M value is substantial for a single project of this type.
Small Business Impact
While the prime contractor is a large corporation, opportunities for small businesses may exist as subcontractors for specialized services or material supply. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for oversight. The multi-year duration and fixed-price nature necessitate diligent monitoring to ensure adherence to scope, quality, and schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Contract duration
- Project complexity (restoration)
- Geographic location challenges
- Potential for unforeseen site conditions
Tags
commercial-and-institutional-building-co, department-of-homeland-security, pr, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $63.6 million to TUTOR PERINI CORPORATION. RESTORATION / CONSTRUCTION CONTRACT TO REPAIR AND UPDATE THE SAN JUAN, PR CUSTOMS HOUSE
Who is the contractor on this award?
The obligated recipient is TUTOR PERINI CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $63.6 million.
What is the period of performance?
Start: 2021-01-15. End: 2024-08-31.
What specific restoration and update requirements are included in the contract scope?
The contract details likely encompass structural repairs, modernization of building systems (HVAC, electrical, plumbing), potential upgrades to security infrastructure, and aesthetic improvements to meet current federal building standards. Specifics would be found in the detailed SOW.
What are the primary risks associated with a large construction project in Puerto Rico?
Risks include potential supply chain disruptions, availability of skilled labor, weather-related delays (hurricanes), and logistical challenges due to island location. Economic stability and local permitting processes also play a role.
How will the effectiveness of the restored customs house be measured?
Effectiveness will likely be measured by improved operational efficiency, enhanced security posture, reduced maintenance costs post-renovation, and the facility's ability to support increased trade volumes and agency functions.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15901 OLDEN ST, SYLMAR, CA, 91342
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,587,936
Exercised Options: $63,587,936
Current Obligation: $63,587,936
Actual Outlays: $24,824,284
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z04718DTUTPER00
IDV Type: IDC
Timeline
Start Date: 2021-01-15
Current End Date: 2024-08-31
Potential End Date: 2024-08-31 19:44:28
Last Modified: 2024-09-25
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