DHS awards $3.2M for Puerto Rico Coast Guard roof repairs; competition limited

Contract Overview

Contract Amount: $3,244,525 ($3.2M)

Contractor: Overall Contractors Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-14

End Date: 2026-09-08

Contract Duration: 237 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ROOF REPAIRS PHASE 1 AT U.S. COAST GUARD RIO BAYAMON COMPLEX, PUERTO RICO PNUM 17190285

Place of Performance

Location: BAYAMON, BAYAMON County, PUERTO RICO, 00959

Plain-Language Summary

Department of Homeland Security obligated $3.2 million to OVERALL CONTRACTORS GROUP INC for work described as: ROOF REPAIRS PHASE 1 AT U.S. COAST GUARD RIO BAYAMON COMPLEX, PUERTO RICO PNUM 17190285 Key points: 1. Contract value appears reasonable for specialized building repair services. 2. Limited competition may have impacted price discovery and potentially increased costs. 3. Contract duration is within typical ranges for construction projects of this scale. 4. Project is geographically concentrated in Puerto Rico, impacting local workforce. 5. Firm Fixed Price contract type shifts risk to the contractor. 6. No small business set-aside noted, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $3.24 million for roof repairs at the U.S. Coast Guard Rio Bayamon Complex is difficult to benchmark precisely without detailed scope information. However, for a definitive contract of this nature, the price appears within a plausible range for commercial building construction and repair services. Further analysis would require comparison to similar government or private sector projects in Puerto Rico, considering material costs, labor rates, and the specific complexity of the roofing systems involved. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial bids.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. While sole-source awards can be efficient in specific circumstances, they reduce transparency and limit opportunities for other qualified contractors to secure work.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing competitive bidding, which is a primary mechanism for ensuring the government receives the best possible price. This can lead to higher costs than if the contract had been competed.

Public Impact

The U.S. Coast Guard facility in Rio Bayamon, Puerto Rico, will benefit from improved infrastructure and operational continuity. Essential roof repair services will be delivered, preventing further water damage and ensuring a safe working environment. The geographic impact is localized to Puerto Rico, potentially creating employment opportunities for local construction workers and suppliers. The project supports the operational readiness of a critical federal agency in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Potential for higher costs compared to a competed contract.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Project addresses critical infrastructure needs for the U.S. Coast Guard.
Contract duration is defined, providing a clear timeline for completion.

Sector Analysis

This contract falls within the commercial and institutional building construction sector. This sector is characterized by a wide range of firms, from small local contractors to large national companies, specializing in various types of construction and repair. Government spending in this area often focuses on maintaining and upgrading federal facilities. Benchmarking this specific contract's value against broader construction spending is challenging without more granular data on the scope of work, but it represents a modest investment in facility maintenance within the broader federal construction landscape.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this project, either as prime contractors or subcontractors, were not explicitly prioritized through this award mechanism. The absence of small business considerations in this sole-source award may limit the direct economic benefit to the small business sector for this particular project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building and Facilities Maintenance
U.S. Coast Guard Infrastructure Projects
Department of Homeland Security Construction Contracts
Puerto Rico Federal Contracts

Risk Flags

Sole-source award may indicate limited competition.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.2 million to OVERALL CONTRACTORS GROUP INC. ROOF REPAIRS PHASE 1 AT U.S. COAST GUARD RIO BAYAMON COMPLEX, PUERTO RICO PNUM 17190285

Who is the contractor on this award?

The obligated recipient is OVERALL CONTRACTORS 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 $3.2 million.

What is the period of performance?

Start: 2026-01-14. End: 2026-09-08.

What is the track record of OVERALL CONTRACTORS GROUP INC with federal contracts, particularly with the Department of Homeland Security?

A review of federal contract databases indicates that OVERALL CONTRACTORS GROUP INC has received federal contracts, though the extent of their work with the Department of Homeland Security (DHS) specifically requires deeper investigation. Analyzing past performance on similar projects, including contract values, timeliness of completion, and quality of work, is crucial for assessing their capability to execute this roof repair project effectively. Information on past disputes, contract modifications, or performance issues would also provide valuable context for evaluating their reliability and suitability as a sole-source awardee.

How does the $3.24 million contract value compare to similar roof repair projects for federal facilities in Puerto Rico?

Benchmarking the $3.24 million contract value against similar roof repair projects for federal facilities in Puerto Rico is challenging without specific details on the scope of work, square footage, materials used, and the complexity of the roofing systems. However, for a definitive contract of this size, it falls within a plausible range for commercial building construction and repair. Factors such as the specific type of roof (e.g., flat, sloped, membrane type), the extent of damage, and the need for specialized materials or labor in Puerto Rico could influence the final cost. A comprehensive comparison would necessitate access to detailed project scopes and cost breakdowns of comparable projects.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis include a lack of price competition, which could lead to the government paying a higher price than necessary. It also reduces transparency in the procurement process and limits opportunities for other qualified contractors, potentially hindering market innovation and broader contractor engagement. Furthermore, sole-source awards can sometimes mask underlying issues, such as a lack of adequate market research or planning, that might have led to a more competitive procurement. Ensuring the sole-source justification is robust and that the awarded price is fair and reasonable becomes paramount.

What is the expected impact of these roof repairs on the operational effectiveness of the U.S. Coast Guard facility?

These roof repairs are expected to have a positive impact on the operational effectiveness of the U.S. Coast Guard facility by preventing further water damage to the building's interior, equipment, and sensitive materials. A sound roof ensures a safe and dry working environment for personnel, which is crucial for maintaining morale and productivity. By addressing the roofing deficiencies, the repairs will contribute to the overall structural integrity and longevity of the facility, thereby supporting the Coast Guard's mission readiness and operational continuity in the Rio Bayamon complex.

What are the historical spending patterns for roof maintenance and repair at U.S. Coast Guard facilities in similar climates?

Analyzing historical spending patterns for roof maintenance and repair at U.S. Coast Guard facilities in similar climates, particularly in tropical or high-humidity regions like Puerto Rico, would provide valuable context for this $3.24 million contract. Such data could reveal typical contract values, frequencies of repair, and the average lifespan of roofing systems under comparable environmental conditions. Understanding these patterns can help assess whether the current contract value is consistent with past investments or if it represents an anomaly, potentially indicating unique project requirements or market price fluctuations. This historical perspective is key to evaluating the long-term cost-effectiveness of facility maintenance.

What specific criteria justified the sole-source award for this particular roof repair project?

The justification for a sole-source award typically relies on specific criteria outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required service, or urgent and compelling circumstances that preclude competition. For this roof repair project at the U.S. Coast Guard Rio Bayamon Complex, the justification might stem from the unique nature of the existing roofing system, requiring specialized knowledge or materials only available from a particular contractor, or perhaps a critical and immediate need for repairs that could not be met through a lengthy competitive process. A thorough review of the official sole-source justification documentation is necessary to understand the precise rationale.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 70Z08225RCEUM0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 183 KM 1 8, CAGUAS, PR, 00725

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $3,244,525

Exercised Options: $3,244,525

Current Obligation: $3,244,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline