Homeland Security's $18.1M Coast Guard construction contract awarded to Veteran Constructors, Inc

Contract Overview

Contract Amount: $18,145,659 ($18.1M)

Contractor: Veteran Constructors, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-08-30

End Date: 2012-11-23

Contract Duration: 816 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARRA PROJECT REPLACE THRUN HALL PH I BSU ELIZABETH CITY NC

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.1 million to VETERAN CONSTRUCTORS, INC. for work described as: ARRA PROJECT REPLACE THRUN HALL PH I BSU ELIZABETH CITY NC Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development. 2. The contract value of $18.1 million suggests a significant investment in facility upgrades. 3. Awarded to Veteran Constructors, Inc., highlighting potential focus on veteran-owned businesses. 4. The project duration of 816 days points to a substantial construction timeline. 5. Fixed-price contract type suggests cost certainty for the government. 6. Geographic location in Elizabeth City, North Carolina, indicates regional economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed project scope and comparable construction costs in Elizabeth City, NC, during 2010-2012. The fixed-price nature provides some cost control, but the final value depends on the execution and any potential change orders. The award amount of $18.1 million is substantial for a single construction project of this type.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were initially excluded. This could be due to specific requirements or pre-qualification processes. The number of bidders is not explicitly stated, but the 'limited' competition level might suggest fewer than a full and open competition, potentially impacting price negotiation.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a fully open process with numerous bidders vying for the contract.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel who will utilize the improved facilities. The project delivers essential construction and renovation services for a federal facility. The geographic impact is concentrated in Elizabeth City, North Carolina, providing local employment and economic activity. The construction workforce, including potentially skilled trades and laborers, will be directly impacted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for the government.
The specific reasons for excluding certain sources in the competition process are not detailed, raising questions about fairness.
Construction projects are inherently subject to cost overruns and delays, even with fixed-price contracts.

Positive Signals

Awarding to Veteran Constructors, Inc. aligns with potential government initiatives to support veteran-owned businesses.
The fixed-price contract offers a degree of budget predictability.
The project addresses a clear need for facility improvement within the U.S. Coast Guard.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures like government facilities, schools, and hospitals. Federal spending in construction is often driven by infrastructure needs, facility modernization, and national security requirements. Comparable spending benchmarks would involve analyzing other large-scale federal construction projects awarded around the same period.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Veteran Constructors, Inc., is not explicitly identified as a small business in the provided data. This suggests that subcontracting opportunities for small businesses may exist, but there is no specific mandate or analysis provided regarding their inclusion or impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, which incentivizes the contractor to complete the work within budget. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones, though specific oversight details are not provided.

Related Government Programs

U.S. Coast Guard Facility Modernization Projects
Federal Building Construction Contracts
Department of Homeland Security Infrastructure Investments

Risk Flags

Limited competition may impact price.
Construction projects carry inherent cost and schedule risks.
Lack of detailed scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to VETERAN CONSTRUCTORS, INC.. ARRA PROJECT REPLACE THRUN HALL PH I BSU ELIZABETH CITY NC

Who is the contractor on this award?

The obligated recipient is VETERAN CONSTRUCTORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2010-08-30. End: 2012-11-23.

What was the specific nature of the construction work performed under this contract?

The contract, identified by NAICS code 236220, pertains to Commercial and Institutional Building Construction. While the specific project name is 'ARRA PROJECT REPLACE THRUN HALL PH I BSU ELIZABETH CITY NC,' the exact scope of work is not detailed in the provided data. It likely involved the demolition or renovation of an existing structure (Thrun Hall) and the construction of a new facility or phase of a facility for the Base Support Unit (BSU) in Elizabeth City, North Carolina, potentially as part of the American Recovery and Reinvestment Act (ARRA) initiatives.

How does the $18.1 million award compare to similar Coast Guard construction projects?

Direct comparison of the $18.1 million award to similar U.S. Coast Guard construction projects is difficult without more specific project details and a defined timeframe. However, for large-scale construction and renovation of institutional buildings, this amount is substantial and indicative of a significant infrastructure undertaking. Factors like project complexity, location-specific labor and material costs, and the inclusion of specialized systems would influence the final cost. Benchmarking would require analyzing contracts for similar facility types (e.g., barracks, training centers, administrative buildings) awarded by the Coast Guard or other federal agencies during the same period.

What are the potential risks associated with a fixed-price contract for a large construction project?

While fixed-price contracts aim to control costs, they carry risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise, potentially leading to long-term maintenance problems. Conversely, if the contractor underestimated costs or encounters significant unexpected challenges (e.g., subsurface conditions, design flaws), they may incur substantial losses, potentially leading to project delays or contractor default. Effective oversight and clear contract specifications are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process?

This designation suggests a multi-stage procurement process. Initially, the solicitation was intended for full and open competition, meaning all responsible sources could submit an offer. However, at some point, certain sources were excluded. This exclusion could be due to various reasons, such as failure to meet minimum qualifications, specific set-aside requirements that were later modified, or a decision to restrict the pool based on prior performance or specialized capabilities. The exact rationale for the exclusion is not provided, but it implies a narrower field of competition than a purely 'full and open' process.

What is the significance of the contract being awarded to 'Veteran Constructors, Inc.'?

The award to 'Veteran Constructors, Inc.' suggests a potential alignment with government initiatives aimed at supporting veteran-owned small businesses (VOSBs) or service-disabled veteran-owned small businesses (SDVOSBs). While the provided data does not specify if Veteran Constructors, Inc. is a small business or meets specific socio-economic criteria, awarding contracts to such entities is often a policy objective to provide economic opportunities to veterans. This award could reflect the Coast Guard's efforts to meet such goals, although further information would be needed to confirm the specific set-aside status or policy driver.

How might the duration of 816 days impact the project's overall cost and effectiveness?

A project duration of 816 days (approximately 2.2 years) for a construction project of this magnitude is significant. Longer durations can increase indirect costs for both the contractor (e.g., site overhead, equipment rental) and potentially the government (e.g., temporary facilities, extended disruption). However, a longer timeline might also be necessary to ensure quality, accommodate complex phases, or mitigate risks associated with challenging construction environments. The effectiveness hinges on whether this duration was appropriately planned to achieve the project's objectives without unnecessary delays or cost escalations.

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: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8433 ENTERPRISE CIR STE 140, LAKEWOOD RANCH, FL, 34202

Business Categories: Category Business, Emerging Small Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,145,659

Exercised Options: $18,145,659

Current Obligation: $18,145,659

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline