Army Awards $10.3M Contract for Puerto Rico Highway Construction to Precon Marine Inc

Contract Overview

Contract Amount: $10,342,837 ($10.3M)

Contractor: Precon Marine Inc

Awarding Agency: Department of Defense

Start Date: 2002-04-02

End Date: 2006-04-01

Contract Duration: 1,460 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200212!000813!96CE!CW17 !USA ENGINEER DIST JACKSONVILLE !DACW1702C0016 !A!N! !N! !20020402!20030325!879902666!879902666!879902666!N!PRECON MARINE, INC !1401 !CHESAPEAKE !VA!23320!76770!127!72!SAN JUAN !SAN JUAN !PUERTO RIC!+000000010000!N!N!000000000000!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234120!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!003!A! !Z!N!C! ! !N!B!N!N! ! !D! !A!A!000!A!B!Y!S!Y! ! ! ! !0001!

Place of Performance

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

Plain-Language Summary

Department of Defense obligated $10.3 million to PRECON MARINE INC for work described as: 200212!000813!96CE!CW17 !USA ENGINEER DIST JACKSONVILLE !DACW1702C0016 !A!N! !N! !20020402!20030325!879902666!879902666!879902666!N!PRECON MARINE, INC !1401 !CHESAPEAKE !VA!23320!76770!127!72!SAN JUAN !SAN J… Key points: 1. The contract value of $10.3 million is for highway, road, street, bridge, and railway construction. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract was awarded to Precon Marine Inc., a single entity. 4. The sector is Construction, specifically focused on infrastructure development.

Value Assessment

Rating: fair

The contract value of $10.3 million for highway construction in Puerto Rico appears to be within a reasonable range for such projects, though specific benchmarks are not readily available without more detailed project scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Improved transportation infrastructure in Puerto Rico, potentially boosting local economy and connectivity. Job creation in the construction sector during the contract performance period. Potential for enhanced public safety and efficiency through upgraded roadways and bridges.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Contract duration is 4 years, which is substantial and may introduce risks related to cost escalation or changing requirements.
Geographic location in Puerto Rico could present logistical challenges and potential weather-related delays.

Positive Signals

Full and open competition suggests a robust bidding process.
Firm fixed price contract type provides cost certainty for the government.
Award to a single contractor simplifies management and execution.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy and civil engineering construction related to transportation infrastructure. Spending in this sector is often driven by government investment in public works and maintenance.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Army, indicating federal oversight. The use of full and open competition suggests a structured procurement process aimed at accountability.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (4 years) increases risk of cost escalation and scope creep.
Geographic location in Puerto Rico may present logistical and environmental challenges.
No indication of small business participation in the prime contract.
Specific project details are limited, making a full assessment of value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to PRECON MARINE INC. 200212!000813!96CE!CW17 !USA ENGINEER DIST JACKSONVILLE !DACW1702C0016 !A!N! !N! !20020402!20030325!879902666!879902666!879902666!N!PRECON MARINE, INC !1401 !CHESAPEAKE !VA!23320!76770!127!72!SAN JUAN !SAN JUAN !PUERTO RIC!+000000010000!N!N!000000000000!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234120!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is PRECON MARINE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2002-04-02. End: 2006-04-01.

What specific types of highway, road, street, bridge, or railway improvements are included in this contract, and how do they align with Puerto Rico's infrastructure needs?

The contract specifies "HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS" construction. Without further details on the project scope, it's difficult to precisely align it with specific infrastructure needs. However, such contracts typically address repair, maintenance, or new construction to improve transportation networks, enhance safety, and support economic activity in the region.

Given the 4-year duration and the location in Puerto Rico, what are the primary risks associated with cost overruns or project delays?

The primary risks include potential material cost inflation over the four-year period, unforeseen site conditions, and weather-related disruptions common in tropical environments like Puerto Rico. Labor availability and logistical challenges in delivering materials to the island can also contribute to delays and increased costs.

How effectively does the firm fixed price contract type protect taxpayer interests given the long duration and potential for unforeseen circumstances?

The firm fixed price contract provides significant cost certainty for the government, as the contractor assumes most of the risk for cost overruns. However, for a long-duration contract in a potentially volatile environment, it could incentivize the contractor to build in higher contingency costs, or it might lead to change orders if unforeseen issues arise, potentially impacting the initial fixed price.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 PRECON DR STE 102, CHESAPEAKE, VA, 23320

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline