DHS Awards $3.68M Contract for USCG San Juan Wharf Pier Maintenance

Contract Overview

Contract Amount: $3,683,326 ($3.7M)

Contractor: Teksol Integration Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-10

End Date: 2026-06-04

Contract Duration: 451 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAJOR M & R OF THE WHARF PIER ECHO CENTER SECTION AT US COAST GUARD SECTOR SAN JUAN PNUM 13631542

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $3.7 million to TEKSOL INTEGRATION GROUP INC for work described as: MAJOR M & R OF THE WHARF PIER ECHO CENTER SECTION AT US COAST GUARD SECTOR SAN JUAN PNUM 13631542 Key points: 1. Contract awarded to TEKSOL INTEGRATION GROUP INC for essential maintenance. 2. Limited competition due to contract type, potentially impacting price discovery. 3. Risk of cost overruns or delays exists given the project's scope and duration. 4. Construction sector spending benchmark for similar heavy civil engineering projects should be reviewed.

Value Assessment

Rating: fair

The contract value of $3.68M for 451 days of work appears reasonable for heavy civil engineering construction. However, without specific details on the scope of work and comparable project costs, a precise valuation is difficult. Benchmarking against similar M&R projects for maritime infrastructure is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source approach. This limits price discovery and may result in higher costs than if full and open competition were utilized. The rationale for limited competition needs further examination.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition raises concerns about whether the best possible price was secured for the government.

Public Impact

Ensures operational readiness of a critical US Coast Guard facility in San Juan, Puerto Rico. Supports local economy through construction services, though small business participation is not indicated. Potential for disruption to port operations during maintenance activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of small business participation
Potential for cost overruns

Positive Signals

Essential infrastructure maintenance
Defined contract duration
Firm fixed price contract

Sector Analysis

This contract falls under heavy and civil engineering construction, specifically related to maritime infrastructure. Spending in this sector can vary significantly based on project complexity, location, and material costs. The $3.68M award for a 451-day project requires comparison with regional benchmarks for similar pier maintenance.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Efforts should be made to ensure future contracts, where feasible, include provisions for small business engagement to promote economic opportunity.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, U.S. Coast Guard. Oversight should focus on ensuring adherence to the contract scope, timeline, and budget, particularly given the limited competition.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Potential for schedule delays due to project duration and environmental factors.
Need for detailed justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to TEKSOL INTEGRATION GROUP INC. MAJOR M & R OF THE WHARF PIER ECHO CENTER SECTION AT US COAST GUARD SECTOR SAN JUAN PNUM 13631542

Who is the contractor on this award?

The obligated recipient is TEKSOL INTEGRATION GROUP INC.

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 $3.7 million.

What is the period of performance?

Start: 2025-03-10. End: 2026-06-04.

What was the specific justification for awarding this contract on a limited or non-competitive basis, and what steps were taken to ensure fair pricing?

The justification for limited competition needs to be thoroughly reviewed. Agencies typically require detailed documentation, such as market research or a sole-source justification, to support non-competitive awards. Without this, it's difficult to assess if fair and reasonable pricing was achieved, as the usual competitive pressures were absent.

How does the $3.68M contract value compare to industry benchmarks for similar heavy civil engineering and maritime construction projects in Puerto Rico?

Benchmarking the $3.68M contract against similar projects is crucial for assessing value. Factors like project scope, duration (451 days), and specific repair needs (M&R of wharf pier echo center section) must be considered. Comparing this to regional cost data for pier maintenance and construction will reveal if the price is competitive or potentially inflated due to the lack of competition.

What are the potential risks associated with the 451-day duration of this contract, and what mitigation strategies are in place?

A 451-day duration presents risks such as potential weather delays, unforeseen site conditions, and inflation impacting material costs, even with a firm fixed price. Mitigation strategies should include robust project management, contingency planning for weather, and clear communication protocols between the contractor and the USCG to address issues promptly and minimize schedule slippage.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: PNUM 13631542

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 64 KM 4.3 BO SABANETAS, MAYAGUEZ, PR, 00680

Business Categories: 8(a) Program Participant, 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: $3,683,326

Exercised Options: $3,683,326

Current Obligation: $3,683,326

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline