DoD awards $40.4M for AFLCMC HQ building repair, with a 2051-day duration

Contract Overview

Contract Amount: $40,354,535 ($40.4M)

Contractor: Herman/Jcg CO JV

Awarding Agency: Department of Defense

Start Date: 2022-08-31

End Date: 2028-04-12

Contract Duration: 2,051 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR (SUSTAIN) AFLCMC HEADQUARTERS BLDG 1606, HANSCOM AFB, MASSACHUSETTS

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $40.4 million to HERMAN/JCG CO JV for work described as: REPAIR (SUSTAIN) AFLCMC HEADQUARTERS BLDG 1606, HANSCOM AFB, MASSACHUSETTS Key points: 1. The contract focuses on sustaining a critical headquarters building, indicating a need for ongoing facility maintenance. 2. A long duration of 2051 days suggests a comprehensive, multi-year approach to repairs and upgrades. 3. The award was made under full and open competition, implying a robust bidding process. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The project is situated at Hanscom Air Force Base, a key installation for the Air Force Life Cycle Management Center. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of repairs. However, the total award amount of $40.4 million over approximately 5.6 years (2051 days) suggests a significant investment in facility maintenance. The firm fixed-price nature of the contract implies that the contractor is responsible for cost overruns, which can be a positive for the government if managed effectively. Further analysis would require comparing the cost per square foot or per repair type to similar projects at other federal facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which is a specific type of full and open competition. This indicates that the solicitation was made available to all responsible prospective contractors, and any restrictions were justified and documented. The presence of multiple bidders (indicated by 'no': 3) suggests a competitive environment, which typically leads to better pricing and value for the government. The level of competition is generally positive for price discovery.

Taxpayer Impact: The full and open competition likely resulted in a more competitive bid landscape, potentially leading to cost savings for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the personnel working within the AFLCMC Headquarters building at Hanscom AFB, who will experience improved facilities. The services delivered include the repair and sustainment of a major federal building, ensuring operational continuity. The geographic impact is localized to Hanscom Air Force Base in Massachusetts. The contract supports the construction industry workforce through employment opportunities for skilled tradespeople and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if repair needs are not precisely defined.
Risk of contractor performance issues impacting the timeline or quality of repairs.
Dependency on the contractor for timely and effective execution of complex building repairs.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive pricing environment.
Long contract duration allows for thorough execution of repairs and sustainment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for government facilities. The construction industry is a significant part of the US economy, with federal contracts representing a portion of overall spending. This particular award contributes to the sustainment of critical infrastructure for the Department of Defense, aligning with broader government efforts to maintain its physical assets. Comparable spending benchmarks would involve analyzing other large-scale federal building repair and construction contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the work required. The absence of a set-aside means the opportunity was open to all responsible contractors, including large businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and project management offices at Hanscom AFB. The firm fixed-price nature of the contract provides a degree of accountability by placing cost responsibility on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

AFLCMC Operations and Maintenance
Federal Building Construction and Repair
Department of Defense Facilities Management
Hanscom Air Force Base Infrastructure Projects

Risk Flags

Long contract duration may increase risk of unforeseen conditions and price escalation.
Firm Fixed Price contract places cost risk on contractor, but requires careful scope definition.
Performance history of contractor HERMAN/JCG CO JV needs verification for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.4 million to HERMAN/JCG CO JV. REPAIR (SUSTAIN) AFLCMC HEADQUARTERS BLDG 1606, HANSCOM AFB, MASSACHUSETTS

Who is the contractor on this award?

The obligated recipient is HERMAN/JCG CO JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

Start: 2022-08-31. End: 2028-04-12.

What is the track record of the contractor, HERMAN/JCG CO JV, on similar federal contracts?

Assessing the track record of HERMAN/JCG CO JV requires a detailed review of their past performance on federal contracts, particularly those involving building repair and sustainment for the Department of Defense or other agencies. Information on past performance, including on-time delivery, quality of work, and adherence to budget, is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A positive performance history on similar projects would indicate a lower risk for this current contract. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements of this significant award.

How does the estimated cost per day for this contract compare to industry benchmarks for similar building repairs?

The total award of $40,354,535.28 over 2051 days equates to approximately $19,675 per day. To benchmark this against industry standards, one would need to compare it to the average daily costs for similar large-scale commercial and institutional building repairs. Factors influencing this cost include the complexity of the repairs, the materials used, labor rates in the Massachusetts area, and the specific requirements of a military installation. Without detailed scope information, a precise comparison is difficult, but this daily rate can be used as a starting point for further value analysis against projects of comparable scale and type.

What are the primary risks associated with a 2051-day duration for a building repair contract?

A contract duration of 2051 days (over 5.6 years) for building repairs introduces several potential risks. Firstly, there's an increased risk of material price escalation over such a long period, even with a fixed-price contract, if the contractor's cost estimates were not sufficiently robust. Secondly, the longer the duration, the higher the chance of unforeseen site conditions or changes in building codes or environmental regulations that may necessitate contract modifications. Thirdly, maintaining consistent contractor performance and quality control over an extended period can be challenging. Finally, the government's needs or priorities might shift over this timeframe, potentially leading to a need for adjustments to the scope of work.

What is the historical spending pattern for building repair and sustainment at Hanscom Air Force Base?

Analyzing historical spending patterns for building repair and sustainment at Hanscom Air Force Base would involve examining past contract awards for similar services over several fiscal years. This would help determine if the current $40.4 million award is an outlier, a continuation of a trend, or an increase in investment. Understanding historical spending can reveal the typical scale of such projects, the frequency of major repair initiatives, and the average duration and cost of contracts. This context is crucial for assessing whether the current award represents a reasonable and necessary expenditure for maintaining the base's infrastructure.

How does the 'full and open competition after exclusion of sources' procurement method impact price discovery?

The 'full and open competition after exclusion of sources' method aims to maximize competition while allowing for specific exclusions if justified. This means the solicitation was broadly advertised, but certain sources might have been excluded based on pre-defined criteria (e.g., specific certifications, past performance issues with certain entities). While it's a form of full and open competition, the exclusion of sources could potentially limit the number of bidders compared to a completely unrestricted solicitation. However, if the exclusions are well-justified and the remaining pool of bidders is still robust, effective price discovery can still occur, leading to competitive pricing. The key is that the exclusions must be documented and serve a legitimate government purpose.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10366 ROSELLE ST STE A, SAN DIEGO, CA, 92121

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $43,421,813

Exercised Options: $40,354,535

Current Obligation: $40,354,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890317D0029

IDV Type: IDC

Timeline