DOJ's $14.76M Mechanical Loop Contract Awarded to Bayou Mechanical, Inc. for Power Line Construction

Contract Overview

Contract Amount: $14,761,927 ($14.8M)

Contractor: Bayou Mechanical, Inc.

Awarding Agency: Department of Justice

Start Date: 2005-06-20

End Date: 2009-05-26

Contract Duration: 1,436 days

Daily Burn Rate: $10.3K/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: MECHANICAL LOOP

Place of Performance

Location: TALLAHASSEE, LEON County, FLORIDA, 32301

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $14.8 million to BAYOU MECHANICAL, INC. for work described as: MECHANICAL LOOP Key points: 1. The contract value of $14.76 million represents a significant investment in critical infrastructure. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement process. 3. The contract duration of 1436 days indicates a long-term project with substantial resource commitment. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The award to Bayou Mechanical, Inc. warrants examination of their past performance and capacity for such a large-scale project. 6. The specific nature of 'Power and Communication Line and Related Structures Construction' highlights the project's technical complexity.

Value Assessment

Rating: fair

Benchmarking the value of this $14.76 million contract is challenging without specific details on the scope of work and the exact structures built. However, the duration of 1436 days (nearly 4 years) suggests a substantial project. The fixed-price nature of the contract is a positive indicator for cost control. Further analysis would require comparing the per-unit costs of similar power and communication line construction projects within the federal government or the private sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, potentially related to specialized capabilities or security requirements. The fact that there were 2 bidders suggests a moderate level of competition, which is generally favorable for price discovery but may not represent the most robust market engagement.

Taxpayer Impact: A moderate level of competition, while better than a sole-source award, means taxpayers may not have benefited from the lowest possible price that a wider, unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are likely the facilities managed by the Federal Prison System / Bureau of Prisons, which will receive upgraded or new power and communication infrastructure. The services delivered include the construction of power and communication lines and related structures, crucial for operational continuity and security. The geographic impact is concentrated in Florida (ST, SN), where the project was executed. The project likely involved a skilled workforce in electrical engineering, construction, and project management, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises questions about the justification for excluding other potential bidders and whether this limited the competitive landscape.
The significant contract value and duration could pose performance risks if the contractor, Bayou Mechanical, Inc., lacks sufficient experience with projects of this scale or complexity.
Without detailed breakdowns of the scope of work and materials, it's difficult to assess if the $14.76 million represents optimal value for the services rendered.

Positive Signals

The use of a Firm Fixed Price (FFP) contract type is a positive signal, as it shifts cost overrun risks to the contractor and provides budget certainty for the government.
The contract was awarded to a single entity, Bayou Mechanical, Inc., implying they met the specific requirements and were deemed capable of executing the project.
The project's focus on power and communication infrastructure is essential for the reliable operation of federal facilities.

Sector Analysis

The construction of power and communication lines falls within the broader construction and utilities sector. This contract specifically addresses infrastructure development, which is a critical component of maintaining and upgrading government facilities. The North American Industry Classification System (NAICS) code 237130 (Power and Communication Line and Related Structures Construction) indicates a specialized segment of the construction industry. Comparable spending benchmarks would involve analyzing other federal contracts for similar infrastructure projects, particularly those related to correctional facilities or other secure government installations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses, and there is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, unless Bayou Mechanical, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal contracting and program management offices. The Bureau of Prisons, as the agency served, would also have oversight responsibilities. Given the fixed-price nature, oversight would focus on ensuring adherence to the contract scope, quality of work, and timely completion. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Infrastructure Upgrades
Bureau of Prisons Construction Projects
Department of Justice Facilities Management
Power Grid Modernization Contracts
Communication Network Infrastructure

Risk Flags

Potential for cost overruns despite fixed-price contract due to long duration.
Risk of contractor performance degradation over the 4-year project timeline.
Uncertainty regarding the specific justification for excluding sources in the competition.
Need for robust oversight to ensure quality and adherence to scope over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14.8 million to BAYOU MECHANICAL, INC.. MECHANICAL LOOP

Who is the contractor on this award?

The obligated recipient is BAYOU MECHANICAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2005-06-20. End: 2009-05-26.

What specific types of power and communication lines and related structures were constructed under this contract?

The contract specifies 'Power and Communication Line and Related Structures Construction' under NAICS code 237130. While the exact details are not provided in the summary data, this typically includes the installation, repair, and maintenance of overhead and underground electrical power lines, distribution and transmission lines, and communication cables (such as fiber optic or coaxial). Related structures could encompass substations, poles, conduits, trenches, and support towers necessary for these systems. The context of the Federal Prison System suggests these lines would be critical for facility power, security systems, and internal/external communications.

How does the contract value of $14.76 million compare to similar federal projects for power and communication line construction?

Comparing the $14.76 million value requires context on the scope and duration. This contract spanned 1436 days (nearly 4 years), indicating a substantial, long-term project. Without specific details on the mileage of lines installed, the complexity of the terrain, or the type of facilities served, a direct comparison is difficult. However, large-scale infrastructure projects for government facilities can easily run into millions of dollars. For instance, similar projects involving upgrades to critical infrastructure at military bases or other federal agencies often exceed this amount, especially if they involve extensive underground work or integration with existing complex systems. The fixed-price nature suggests a defined scope was agreed upon.

What is the track record of Bayou Mechanical, Inc. with federal contracts, particularly in power and communication line construction?

The provided data indicates Bayou Mechanical, Inc. was awarded this $14.76 million contract by the Department of Justice. To assess their track record, one would need to examine their contract history with federal agencies. Key factors to investigate include the number and value of previous contracts, the types of services performed (specifically related to power and communication infrastructure), past performance reviews (e.g., CPARS reports), any history of contract disputes or terminations, and their experience with projects of similar scale and complexity. A positive track record with successful project completion would increase confidence in their ability to deliver on this contract.

What are the potential risks associated with a nearly four-year contract for power and communication line construction?

A contract duration of 1436 days (nearly 4 years) for power and communication line construction presents several potential risks. These include the risk of cost escalation due to inflation or unforeseen material price increases, although the fixed-price nature aims to mitigate this. There's also the risk of technological obsolescence if new standards or technologies emerge during the project lifecycle. Project management risks are significant, including potential delays due to weather, permitting issues, or site conditions. Furthermore, contractor performance can degrade over long periods, and maintaining consistent quality and oversight requires sustained effort. Finally, changes in agency needs or budget priorities could lead to scope adjustments or potential contract modifications.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact cost-effectiveness for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The justification for exclusion typically relates to specific technical requirements, security clearances, or unique capabilities that only a limited number of firms possess. If the exclusions were well-founded and necessary to ensure the project's success with a highly specialized requirement, then the resulting competition among the remaining qualified bidders might still yield a reasonable price. However, if the exclusions were overly broad or not adequately justified, it could limit the number of bidders, potentially leading to less aggressive pricing and higher costs for taxpayers compared to a truly unrestricted competition.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: SEALED BID

Solicitation ID: IFB314020034

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 120 JOHN KING RD, CRESTVIEW, FL, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,761,927

Exercised Options: $14,761,927

Current Obligation: $14,761,927

Timeline