DHS awards $26.8M for permanent housing construction in Northern Mariana Islands, with RJCL Corporation as prime

Contract Overview

Contract Amount: $26,799,874 ($26.8M)

Contractor: Rjcl Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-30

End Date: 2023-07-31

Contract Duration: 731 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TITLE: NEW PERMANENT HOUSING CONSTRUCTION LOCATION: DR-4404-CNMI COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (SAIPAN AND TINIAN) BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESI

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Homeland Security obligated $26.8 million to RJCL CORPORATION for work described as: TITLE: NEW PERMANENT HOUSING CONSTRUCTION LOCATION: DR-4404-CNMI COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (SAIPAN AND TINIAN) BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESI Key points: 1. Contract value of $26.8M for permanent housing construction indicates significant investment in disaster recovery. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. RJCL Corporation, the prime contractor, will be responsible for providing all supervision, materials, labor, permits, and licenses. 4. The project duration of 731 days highlights the extensive timeline required for permanent housing development post-disaster. 5. The contract's focus on 'New Housing For-Sale Builders' suggests a model aimed at creating homeownership opportunities. 6. Geographic focus on Saipan and Tinian in the Commonwealth of the Northern Mariana Islands points to specific recovery needs in these areas.

Value Assessment

Rating: fair

The contract value of $26.8 million for permanent housing construction appears substantial, reflecting the scale of disaster recovery efforts. Benchmarking this against similar large-scale construction projects in disaster-affected regions would provide a clearer picture of value for money. The fixed-price nature of the contract aims to control costs, but the final expenditure will depend on the contractor's efficiency and any unforeseen circumstances during the 731-day performance period. Without detailed cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests specific criteria or limitations were applied, potentially narrowing the field of eligible bidders. The number of bidders is not specified, but the full and open nature generally promotes price discovery and encourages multiple firms to submit proposals, which can lead to more competitive pricing.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best possible price and quality for the services rendered.

Public Impact

Residents of Saipan and Tinian in the Commonwealth of the Northern Mariana Islands will benefit from the construction of new, permanent housing. The services delivered include the provision of all supervision, materials, labor, permits, and licenses necessary for housing construction. The geographic impact is concentrated in the Northern Mariana Islands, specifically on the islands of Saipan and Tinian, addressing post-disaster housing needs. The project will likely have workforce implications, creating employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise during the extended project timeline.
Reliance on a single prime contractor, RJCL Corporation, for all aspects of the project could pose risks if performance issues emerge.
The 'exclusion of sources' in the competition could limit the range of innovative solutions or cost-saving approaches.

Positive Signals

The contract is awarded under full and open competition, suggesting a robust selection process.
The firm fixed-price contract type provides cost certainty for the government.
The project addresses a critical need for permanent housing in a disaster-affected area, indicating a positive impact on community resilience.

Sector Analysis

This contract falls within the construction sector, specifically focusing on residential building in a post-disaster context. The market for disaster recovery construction can be specialized, often involving government contracts awarded through specific procurement processes. The total contract value of $26.8 million is significant for a single project of this nature. Comparable spending benchmarks would typically be found in other federal disaster relief housing initiatives or large-scale residential development projects in similar geographic or economic conditions.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. The contract is for a large-scale construction project, and while RJCL Corporation is the prime contractor, there is no information on subcontracting plans or whether small businesses will be involved in fulfilling parts of the contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security (FEMA), ensuring compliance with contract terms and performance standards. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified housing within the agreed budget. Transparency would be facilitated through contract reporting mechanisms and potentially public updates on project progress. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FEMA Permanent Housing Construction
Disaster Relief and Emergency Assistance
Federal Emergency Management Agency Contracts
Homeland Security Construction Projects

Risk Flags

Potential for delays due to remote island logistics
Risk of cost overruns in fixed-price contracts with long durations
Limited information on contractor's past performance in similar disaster recovery efforts

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.8 million to RJCL CORPORATION. TITLE: NEW PERMANENT HOUSING CONSTRUCTION LOCATION: DR-4404-CNMI COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (SAIPAN AND TINIAN) BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESI

Who is the contractor on this award?

The obligated recipient is RJCL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2021-07-30. End: 2023-07-31.

What is RJCL Corporation's track record with federal construction contracts, particularly those related to disaster recovery?

Information regarding RJCL Corporation's specific track record with federal construction contracts, especially those involving disaster recovery, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects awarded by federal agencies. Understanding their experience with large-scale housing projects and their ability to manage complex logistics in challenging environments would be crucial for evaluating their suitability for this significant undertaking.

How does the per-unit cost of housing constructed under this contract compare to market rates or similar federal initiatives?

The provided data does not include a breakdown of the number of housing units to be constructed or the total project cost per unit. Therefore, a direct comparison of the per-unit cost to market rates or similar federal initiatives is not possible. To perform this analysis, one would need the total number of units and the total contract value, which could then be divided to derive a per-unit cost. This figure could then be benchmarked against average construction costs for similar housing types in the Northern Mariana Islands and against per-unit costs from other FEMA housing programs.

What are the primary risks associated with constructing permanent housing in the Commonwealth of the Northern Mariana Islands, and how are they being mitigated?

Potential risks in constructing permanent housing in the CNMI could include logistical challenges due to its remote island location, potential for natural disasters (e.g., typhoons), availability of skilled labor, and material sourcing. The contract's duration of 731 days suggests an awareness of these complexities. Mitigation strategies would likely involve detailed project planning, robust supply chain management, contingency planning for weather events, and potentially incentives for local workforce development. The specific mitigation plans embedded within the contract and managed by FEMA and RJCL Corporation would need further examination.

What is the historical spending pattern for permanent housing construction by FEMA in the Northern Mariana Islands or similar territories?

The provided data focuses on a single contract and does not offer historical spending patterns for permanent housing construction by FEMA in the Northern Mariana Islands or similar territories. To analyze historical spending, one would need to access FEMA's contract databases and budget reports over several fiscal years, looking for similar projects in the region or other U.S. territories affected by major disasters. This would help establish trends, identify typical contract values, and understand the scale of FEMA's investment in housing recovery over time.

How does the 'exclusion of sources' clause in the competition affect the potential for innovation and cost savings?

The 'exclusion of sources' clause, while allowing for full and open competition among the remaining eligible sources, inherently limits the pool of potential bidders. This limitation could potentially stifle innovation if excluded firms possessed unique technologies or methodologies. It might also reduce competitive pressure, potentially leading to higher prices than if a truly unrestricted open competition were held. The specific reasons for excluding certain sources would need to be understood to fully assess the impact on innovation and cost savings for this particular contract.

Industry Classification

NAICS: Construction › Residential Building Construction › New Housing For-Sale Builders

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: 70FBR921R00000009

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BEACH ROAD, GARAPAN, SAIPAN, MP, 96950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,799,874

Exercised Options: $26,799,874

Current Obligation: $26,799,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FBR921D00000002

IDV Type: IDC

Timeline