DHS awards $200M design-build contract for Coast Guard station in Texas

Contract Overview

Contract Amount: $200,000,000 ($200.0M)

Contractor: THE Haskell Company

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-09

End Date: 2028-07-07

Contract Duration: 910 days

Daily Burn Rate: $219.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD FOR USCG STATION SOUTH PADRE ISLAND (SOUTH PADRE ISLAND, TX)

Place of Performance

Location: SOUTH PADRE ISLAND, CAMERON County, TEXAS, 78597

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $200.0 million to THE HASKELL COMPANY for work described as: DESIGN/BUILD FOR USCG STATION SOUTH PADRE ISLAND (SOUTH PADRE ISLAND, TX) Key points: 1. The contract leverages a design-build approach, potentially streamlining project delivery and reducing overall timelines. 2. Full and open competition was utilized, suggesting a robust bidding process and potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, providing cost certainty for the government. 4. The project duration of 910 days indicates a significant construction undertaking. 5. This award represents a substantial investment in critical infrastructure for the U.S. Coast Guard's operations in the Gulf Coast region.

Value Assessment

Rating: good

The contract value of $200 million for a design-build project of this scale appears reasonable, especially considering the complexities often associated with coastal construction and the inclusion of design services. Benchmarking against similar large-scale federal facility construction projects suggests that the price falls within expected ranges. The firm-fixed-price structure provides a degree of cost control, although the final cost will depend on the contractor's execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bids received, the competition level suggests a healthy market interest in this type of federal construction project. This level of competition is generally favorable for price discovery and can lead to more competitive offers.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple contractors to vie for the work, potentially driving down costs and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel who will operate from a modernized and potentially more capable facility. The project will deliver a new or significantly improved Coast Guard station, enhancing operational readiness and support capabilities. The geographic impact is concentrated in South Padre Island, Texas, supporting federal maritime security and law enforcement in the region. The construction phase will likely create numerous jobs in the local and regional construction sector, providing economic stimulus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design challenges arise, despite the fixed-price nature.
Ensuring timely completion within the 910-day duration will be critical to avoid operational disruptions.
Long-term maintenance and operational costs of the new facility are not detailed in this award.

Positive Signals

The use of a design-build approach can lead to faster project delivery and better integration of design and construction.
The firm-fixed-price contract provides cost certainty and transfers significant risk to the contractor.
Awarding to The Haskell Company, a known entity in federal construction, suggests a level of confidence in their capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction projects, particularly those for critical infrastructure like military and security installations, often command higher values due to stringent requirements and security protocols. The market for such specialized construction is competitive, with a mix of large prime contractors and specialized subcontractors.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this specific award (ss: false, sb: false). However, the prime contractor, The Haskell Company, may engage small businesses as subcontractors to fulfill specific scopes of work, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and project management offices, with potential involvement from the Department of Homeland Security's Office of Inspector General. Transparency is expected through contract award announcements and potentially through public reporting on project milestones. Accountability will be driven by the firm-fixed-price contract terms and performance requirements.

Related Government Programs

USCG Base Construction
Federal Facility Modernization
Department of Homeland Security Infrastructure
Coastal Infrastructure Projects
Design-Build Construction Contracts

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Ensuring contractor performance meets stringent federal facility standards.
Long-term operational and maintenance costs of the new facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $200.0 million to THE HASKELL COMPANY. DESIGN/BUILD FOR USCG STATION SOUTH PADRE ISLAND (SOUTH PADRE ISLAND, TX)

Who is the contractor on this award?

The obligated recipient is THE HASKELL COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $200.0 million.

What is the period of performance?

Start: 2026-01-09. End: 2028-07-07.

What is the track record of The Haskell Company in delivering similar federal design-build projects on time and within budget?

The Haskell Company has a substantial history of executing large-scale federal design-build projects, including facilities for military branches and government agencies. Their portfolio often includes complex construction challenges, similar to those expected for a coastal Coast Guard station. While specific on-time and on-budget performance metrics for all past projects are not publicly detailed in a consolidated manner, their consistent selection for significant federal contracts suggests a generally positive track record. However, a deeper dive into project-specific performance data, including any past disputes or delays, would provide a more comprehensive assessment of their reliability for this particular award.

How does the awarded amount of $200 million compare to the estimated cost or benchmark for similar Coast Guard station construction projects?

Benchmarking the $200 million award requires comparing it against similar-sized U.S. Coast Guard or other federal maritime facility construction projects, particularly those involving design-build elements and located in coastal environments. Factors such as square footage, specific functional requirements (e.g., berthing, maintenance facilities, command centers), and site conditions (e.g., soil stability, environmental considerations) significantly influence costs. While a precise per-square-foot benchmark is not readily available without detailed project specifications, the $200 million figure for a comprehensive design-build project of this nature appears to be within the expected range for major federal infrastructure investments. The number of bids received (four) also suggests the price was competitive within the market for such projects.

What are the primary risks associated with this design-build contract for the U.S. Coast Guard?

The primary risks for the U.S. Coast Guard in this design-build contract revolve around potential scope creep, unforeseen site conditions, and contractor performance. Although it's a firm-fixed-price contract, which shifts much of the financial risk to the contractor, the government still bears the risk of inadequate design if not properly reviewed, or if the contractor fails to meet performance standards. Unforeseen environmental conditions common in coastal areas (e.g., soil instability, hurricane impacts) could lead to delays and necessitate change orders, even under a fixed-price agreement. Ensuring the contractor's adherence to quality standards and timely completion within the specified duration are also key oversight risks.

What is the expected impact of this new facility on the U.S. Coast Guard's operational effectiveness in the South Texas region?

The construction of a new or significantly upgraded U.S. Coast Guard station at South Padre Island is expected to substantially enhance operational effectiveness in the region. A modern facility typically offers improved infrastructure for vessel maintenance, crew support, command and control, and training. This can lead to increased readiness, faster response times for maritime security and law enforcement missions, and better support for personnel. The strategic location on the Gulf Coast suggests the station plays a vital role in border security, drug interdiction, and search and rescue operations, all of which would benefit from state-of-the-art facilities.

How does the historical spending on similar Coast Guard infrastructure projects compare to this $200 million award?

Historical spending on U.S. Coast Guard infrastructure projects varies widely based on project scope, location, and type. Major construction projects, such as new air stations, large cutters, or significant base upgrades, can easily run into hundreds of millions of dollars. Awards for individual stations or smaller facilities typically range from tens to low hundreds of millions. This $200 million award for a design-build station aligns with the upper end of significant infrastructure investments for a single facility, reflecting the complexity and scale of modern maritime security needs. Comparing it to specific past projects would require identifying comparable facilities in terms of size, function, and geographic challenges.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 RIVERSIDE AVE, JACKSONVILLE, FL, 32202

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

Financial Breakdown

Contract Ceiling: $200,000,000

Exercised Options: $200,000,000

Current Obligation: $200,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04723DPCNI0002

IDV Type: IDC

Timeline