DHS awards $10.3M contract for building renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $10,330,710 ($10.3M)

Contractor: Carmon Construction Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-01-20

End Date: 2006-09-30

Contract Duration: 618 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE BUILDING 681

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.3 million to CARMON CONSTRUCTION INC for work described as: RENOVATE BUILDING 681 Key points: 1. Contract value represents a significant investment in facility upgrades. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs and manage risk. 4. Project duration indicates a substantial renovation scope. 5. Geographic location in Georgia points to regional economic impact. 6. Contractor's performance history warrants further investigation for value. 7. Sector analysis shows alignment with commercial construction trends.

Value Assessment

Rating: fair

The contract value of $10.3 million for renovating Building 681 appears within a reasonable range for a project of this scope, though specific benchmarks for similar federal building renovations are needed for a definitive assessment. The firm fixed-price structure suggests an effort to contain costs. Without detailed cost breakdowns or comparisons to private sector projects of equivalent scale and complexity, a precise value-for-money determination is challenging. The number of bids received (10) could indicate a competitive market, potentially driving better pricing.

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 the competition was intended to be broad, certain sources were excluded. This could be due to specific technical requirements or past performance issues with certain contractors. With 10 bids received, the competition level appears healthy, suggesting that multiple firms were interested and capable of performing the work. This level of competition is generally positive for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple bidders to offer their best pricing. The presence of 10 bids suggests that the exclusion criteria did not unduly limit the pool of qualified and competitive contractors.

Public Impact

The primary beneficiaries are likely the Federal Law Enforcement Training Center (FLETC) personnel who will utilize the renovated facilities. The contract delivers essential building renovation services, improving infrastructure and operational capacity. The geographic impact is concentrated in Georgia, supporting local construction jobs and related industries. Workforce implications include employment opportunities for construction workers, project managers, and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation.
Dependence on contractor's ability to meet quality and timeline specifications.
Risk associated with the 'exclusion of sources' aspect of the competition.
Limited transparency on specific renovation details and expected long-term benefits.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
A substantial number of bids (10) indicates market interest and potential for competitive pricing.
Project addresses critical infrastructure needs for a federal facility.
Contract duration suggests a comprehensive approach to renovation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often focuses on maintaining and upgrading government facilities. Benchmarks for similar renovations can vary widely based on building age, complexity, and specific upgrade requirements. The $10.3 million award suggests a mid-to-large scale renovation project within this sector.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests the contract was not specifically targeted to small businesses. While there's no explicit requirement for small business subcontracting mentioned, it's possible the prime contractor may engage small businesses for specialized tasks. The overall impact on the small business ecosystem would depend on whether CARMON CONSTRUCTION INC has a robust subcontracting program that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified renovations within the agreed budget and timeline. Transparency is generally provided through contract award databases, but detailed project progress and specific oversight activities may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building and Facilities Renovation Programs
Department of Homeland Security Infrastructure Modernization
General Services Administration (GSA) Construction Contracts
Law Enforcement Training Facility Construction and Maintenance

Risk Flags

Potential for scope creep in fixed-price contracts.
Adequacy of competition due to source exclusion.
Contractor's past performance on similar projects.
Unforeseen conditions during renovation.
Long project duration increasing risk exposure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.3 million to CARMON CONSTRUCTION INC. RENOVATE BUILDING 681

Who is the contractor on this award?

The obligated recipient is CARMON CONSTRUCTION INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2005-01-20. End: 2006-09-30.

What is the track record of CARMON CONSTRUCTION INC on similar federal contracts?

A review of CARMON CONSTRUCTION INC's past performance on federal contracts, particularly those involving building renovations of similar scale and complexity, is crucial. Data from contract databases like FPDS or SAM.gov would reveal their history of on-time completion, adherence to budget, and quality of work. Analyzing past awards and performance evaluations would provide insight into their reliability and capability. For instance, were there any contract disputes, performance issues, or awards for exceptional performance? Understanding their prior success or challenges in executing government projects similar to the FLETC building renovation is key to assessing the risk associated with this award.

How does the $10.3 million cost compare to similar federal building renovations?

Benchmarking the $10.3 million contract value against similar federal building renovations requires access to detailed project scope and cost data. Factors such as square footage, age of the building, type of renovations (e.g., structural, MEP, finishes), and geographic location significantly influence costs. A comparison might involve looking at contracts awarded by agencies like the GSA or other departments for projects of comparable size and complexity. Without specific details on the scope of work for Building 681, a precise comparison is difficult. However, the number of bids (10) suggests the market perceived the pricing opportunity as fair, potentially indicating the cost is aligned with market rates for such services.

What are the primary risks associated with this firm fixed-price contract?

The primary risks with a firm fixed-price (FFP) contract, while generally favorable for cost control, often lie in the potential for scope creep or unforeseen conditions. If the renovation uncovers issues not identified during the initial assessment (e.g., structural problems, hazardous materials), the contractor may seek change orders, potentially increasing the cost. Another risk is that the contractor might cut corners on quality to maintain profitability if unforeseen difficulties arise. The 'exclusion of sources' in the competition also introduces a risk if it inadvertently limited the pool of highly qualified contractors, potentially impacting the quality or efficiency of the execution. Robust oversight is needed to manage these risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value?

This type of competition aims to balance broad market access with specific requirements. By excluding certain sources, the agency might be targeting contractors with particular expertise or a proven track record relevant to the project's unique needs, potentially leading to better technical solutions. However, if the exclusion criteria are too narrow or subjective, it could limit competition and potentially lead to higher prices or less innovation. The fact that 10 bids were received suggests that the exclusion did not excessively restrict the field, indicating a reasonable level of competition. The ultimate effectiveness in ensuring value depends on whether the excluded sources possessed capabilities that could have offered superior value or lower costs.

What is the historical spending trend for building renovations at FLETC?

Analyzing historical spending on building renovations at the Federal Law Enforcement Training Center (FLETC) would provide context for the $10.3 million award. This involves examining past contracts for similar projects, noting their values, durations, and the types of renovations undertaken. A trend of increasing or consistently high spending might indicate aging infrastructure or a continuous need for upgrades. Conversely, a sudden spike could signal a specific modernization initiative. Understanding this historical pattern helps assess whether this contract represents a typical investment or an anomaly, and whether spending has been efficient over time.

What are the implications of the contract duration (618 days) for project management and oversight?

A contract duration of 618 days (approximately 20 months) for renovating Building 681 signifies a substantial and complex undertaking. This extended timeline necessitates diligent project management from both the contractor and the government oversight team. It allows for phased construction, detailed work, and potentially complex logistical planning. However, longer durations also increase the risk of cost escalation due to inflation, changes in requirements, or contractor performance issues over time. Effective oversight will be critical to monitor progress, manage risks, ensure quality control, and maintain accountability throughout the project lifecycle.

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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 136 E MAIN ST, ALBERTVILLE, AL, 04

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,330,710

Exercised Options: $10,330,710

Current Obligation: $10,330,710

Timeline