DoD Awards $13.6M for Ammunition Storage Buildings, Construction Sector Sees Mixed Signals

Contract Overview

Contract Amount: $24,909,031 ($24.9M)

Contractor: Hirani-M.e.s. JV

Awarding Agency: Department of Defense

Start Date: 2003-09-19

End Date: 2016-01-13

Contract Duration: 4,499 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200312!000272!2100!CA51 !USA ENGINEER DISTRICT, NEW YORK !DACA5103C0024 !A!N! !N! !20030919!20060930!136665549!136665549!136665549!N!HIRANI-M E S JV !231 46TH ST !BROOKLYN !NY!11220!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000016549000!N!N!000000001654!Y171!AMMUNITION STORAGE BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!K! !D!N!Z! ! !N!A!N!N!A! ! ! !D!A!000!A!B!Y!T!N! ! ! ! !0001! !

Place of Performance

Location: RANDOLPH, MORRIS County, NEW JERSEY, 07869

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to HIRANI-M.E.S. JV for work described as: 200312!000272!2100!CA51 !USA ENGINEER DISTRICT, NEW YORK !DACA5103C0024 !A!N! !N! !20030919!20060930!136665549!136665549!136665549!N!HIRANI-M E S JV !231 46TH ST !BROOKLYN !NY!11220!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000016549000!N!N!000000001654!Y171!AMMUNITION … Key points: 1. Contract awarded for construction of ammunition storage buildings. 2. Competition was full and open after exclusion of sources. 3. Firm fixed price contract type suggests predictable costs. 4. Small business participation is not indicated. 5. Sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $13.6M for ammunition storage buildings appears within a reasonable range for specialized construction projects of this nature. However, without specific details on the scope of work and location, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the funds expended on this construction project.

Public Impact

Enhances military readiness by providing secure storage for ammunition. Supports infrastructure development within military installations. Potential for job creation in the construction sector. Ensures compliance with safety and storage regulations for munitions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation.
Contract duration extended significantly beyond initial award.
Unclear if specific performance metrics were met given the extension.

Positive Signals

Competitive award process.
Firm fixed price contract.
Addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on government infrastructure needs and broader economic conditions. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may have been limited to subcontracting roles, if any.

Oversight & Accountability

The contract was awarded by the Department of the Army, USA Engineer District, New York. Oversight would typically involve project management and quality assurance to ensure the construction meets specifications and timelines.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Significant contract duration extension beyond initial award.
Lack of clear small business participation.
Potential for cost increases due to extended performance period.
Ambiguity in the competition method ('after exclusion of sources').

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to HIRANI-M.E.S. JV. 200312!000272!2100!CA51 !USA ENGINEER DISTRICT, NEW YORK !DACA5103C0024 !A!N! !N! !20030919!20060930!136665549!136665549!136665549!N!HIRANI-M E S JV !231 46TH ST !BROOKLYN !NY!11220!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000016549000!N!N!000000001654!Y171!AMMUNITION STORAGE BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!K! !D!N!Z! ! !N!A!N!N!A! ! ! !D!A!000!A!B!Y!T!N! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is HIRANI-M.E.S. JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2003-09-19. End: 2016-01-13.

What specific factors led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or unique qualifications are required that only a limited number of vendors possess. While this can sometimes reduce the pool of bidders, the 'full and open' aspect implies that among those qualified, competition was still encouraged. The impact on price depends on the number of remaining eligible bidders and the competitiveness of their proposals.

Given the contract's original end date of September 2006 and the provided 'ed' date of January 2016, what were the primary drivers for the significant extension, and were there any cost implications?

Significant contract extensions often stem from scope changes, unforeseen site conditions, delays in approvals, or contractor performance issues. Without further documentation, it's impossible to pinpoint the exact drivers. Such extensions can lead to cost increases due to inflation, extended labor, and potential change orders, impacting the overall value for taxpayers.

How does the 'AMMUNITION STORAGE BUILDINGS' requirement align with current DoD infrastructure needs and modernization efforts, and what is the expected lifespan of these facilities?

Ammunition storage buildings are fundamental to military logistics and safety. Their construction aligns with the ongoing need for secure and compliant storage of munitions. The expected lifespan would depend on construction materials and maintenance, but typically such facilities are built for long-term use, often decades, assuming proper upkeep and adherence to safety standards.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 231 46TH ST, BROOKLYN, NY, 11220

Business Categories: Category Business, Emerging Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline