Agriculture Department awards $1.8M construction contract for SRRC New Orleans, Louisiana

Contract Overview

Contract Amount: $18,314,775 ($18.3M)

Contractor: Billy W. Jarrett Construction Company, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2009-04-30

End Date: 2011-01-25

Contract Duration: 635 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION - LONG TERM RECOVERY OF THE SRRCNEW ORLEANS, LA

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70179

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.3 million to BILLY W. JARRETT CONSTRUCTION COMPANY, INC. for work described as: CONSTRUCTION - LONG TERM RECOVERY OF THE SRRCNEW ORLEANS, LA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 635 days indicates a significant, long-term project. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The award was made by the Agricultural Research Service, indicating a specific agency need. 5. The project is located in New Orleans, Louisiana, potentially contributing to local economic recovery efforts.

Value Assessment

Rating: fair

The contract value of $1.83 million for commercial and institutional building construction appears to be within a reasonable range for a project of this scope and duration. Without specific details on the scope of work for the 'LONG TERM RECOVERY of the SRRC', direct comparison to similar contracts is challenging. However, the firm-fixed-price nature of the contract suggests that the initial bid aimed to capture all anticipated costs, providing a benchmark for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 7 bidders indicates a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Agricultural Research Service, which will receive the completed recovery and construction services for the SRRC facility. The services delivered include commercial and institutional building construction, specifically for the long-term recovery of the SRRC. The geographic impact is focused on New Orleans, Louisiana, potentially supporting local employment and economic activity during the construction phase. The workforce implications include employment opportunities for construction workers and related trades in the New Orleans area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long-term recovery construction.
Risk of delays impacting the operational readiness of the SRRC facility.
Ensuring the quality of construction meets the specific needs of the Agricultural Research Service.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract shifts cost risk to the contractor.
Project located in an area potentially benefiting from recovery and reconstruction efforts.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for such services in areas undergoing recovery or development can be robust. Benchmarking this specific contract's value against broader construction spending requires detailed scope of work, but the $1.83 million award for a 635-day project suggests a significant undertaking. The Agricultural Research Service's need for facility recovery places it within the broader context of government investment in research infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agricultural Research Service, a division of the Department of Agriculture. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project progress and detailed spending reports may not be publicly available.

Related Government Programs

Federal Construction Contracts
Department of Agriculture Procurement
Disaster Recovery Projects
Agricultural Research Service Facilities

Risk Flags

Potential for scope creep if recovery needs are not fully defined.
Risk of contractor default or performance issues on a long-term project.
Geographic location in New Orleans may present unique logistical or environmental challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.3 million to BILLY W. JARRETT CONSTRUCTION COMPANY, INC.. CONSTRUCTION - LONG TERM RECOVERY OF THE SRRCNEW ORLEANS, LA

Who is the contractor on this award?

The obligated recipient is BILLY W. JARRETT CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2009-04-30. End: 2011-01-25.

What specific recovery activities does the 'SRRC' in New Orleans entail, and how does this construction contract address those needs?

The provided data abbreviates the project as 'LONG TERM RECOVERY of the SRRC NEW ORLEANS, LA'. SRRC likely refers to a specific facility or center managed by the Agricultural Research Service (ARS). The 'long-term recovery' aspect suggests the project addresses damage or degradation from past events, potentially natural disasters like Hurricane Katrina, or general facility aging. The construction contract, valued at $1.83 million with a firm-fixed-price structure, would cover the physical rebuilding, renovation, or modernization necessary to restore or enhance the SRRC's operational capabilities. Without further details on the SRRC's function and the extent of damage, the precise scope of construction (e.g., structural repairs, system upgrades, new construction) remains unspecified but is geared towards ensuring the facility's long-term viability and functionality for ARS research activities.

How does the $1.83 million contract value compare to similar commercial and institutional building construction projects awarded by the federal government?

Comparing the $1.83 million contract value requires context regarding the specific scope of work, location, and duration. For a 635-day (approximately 21-month) commercial and institutional building construction project, this value is moderate. Federal construction contracts can range from tens of thousands for minor repairs to billions for major infrastructure. Projects involving long-term recovery or specialized facilities, like those for research (implied by ARS), can command higher prices due to complexity and specific requirements. While not exceptionally large, $1.83 million suggests a substantial project, likely involving significant structural work, system installations, or renovations. Benchmarking against similar ARS facility projects or construction contracts in the New Orleans area post-disaster would provide a more precise value assessment.

What are the potential risks associated with a firm-fixed-price contract for a long-term recovery construction project?

A firm-fixed-price (FFP) contract, while beneficial for budget certainty, carries specific risks for long-term recovery construction. The primary risk is that the contractor may encounter unforeseen conditions (e.g., hidden structural damage, hazardous materials, unexpected site complexities) during the recovery and construction process. If these issues are not adequately accounted for in the initial bid, the contractor might incur significant losses or attempt to cut corners to maintain profitability, potentially impacting quality. Conversely, if the contractor has overestimated potential risks, the price could be inflated, leading to a less than optimal value for the government. Effective oversight and clear contract specifications are crucial to mitigate these risks and ensure the project's success within the fixed price.

Given the 'full and open competition' and 7 bidders, what does this imply about the contractor selection and potential for cost savings?

The award under 'full and open competition' with seven bidders strongly suggests a competitive marketplace for the required construction services. This high level of competition typically drives down prices as contractors vie to win the contract by offering the most attractive bid. It implies that the Agricultural Research Service likely received multiple proposals, allowing them to compare technical capabilities and pricing effectively. The selection process would have involved evaluating these proposals against established criteria, aiming for the best value. The presence of numerous bidders increases the likelihood that the selected contractor, BILLY W. JARRETT CONSTRUCTION COMPANY, INC., offered a competitive price, potentially leading to cost savings for the government compared to a scenario with fewer bidders or a sole-source award.

How does this $1.83 million construction contract fit into the broader spending patterns of the Department of Agriculture for facility maintenance and development?

This $1.83 million contract represents a specific investment by the Department of Agriculture (USDA), through its Agricultural Research Service (ARS), in facility recovery and development. USDA's overall spending encompasses a wide range of activities, including agricultural research, conservation programs, food assistance, and rural development. Within this, facility management and infrastructure are critical for ARS to conduct its scientific mission. Contracts for construction, renovation, and maintenance of research centers, laboratories, and field stations are a necessary component of ARS's operational budget. This particular award signifies a commitment to ensuring the long-term functionality of a key facility in New Orleans, likely contributing to the agency's ongoing research capabilities in the region. Its size is moderate relative to major infrastructure projects but significant for a single facility recovery effort.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 1103 S PERRY ST, MONTGOMERY, AL, 02

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

Financial Breakdown

Contract Ceiling: $18,314,775

Exercised Options: $18,314,775

Current Obligation: $18,314,775

Contract Characteristics

Cost or Pricing Data: NO

Timeline