Navy Awards $22.7M Construction Contract to Hightower Construction for Hospitals & Infirmaries

Contract Overview

Contract Amount: $22,763,038 ($22.8M)

Contractor: Hightower Construction CO Inc

Awarding Agency: Department of Defense

Start Date: 2005-02-28

End Date: 2008-11-04

Contract Duration: 1,345 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200505!002787!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246702C0314 !A!N! !N! ! !20050228!20071016!009787102!009787102!009787102!N!HIGHTOWER CONSTRUCTION CO INC !525 E BAY !CHARLESTON !SC!29403!04690!013!45!BEAUFORT !BEAUFORT !S CAROLINA!+000021640000!N!N!000021640000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !000 !* !236220!E! !3!C!S! ! ! !20200930!B! ! !A! !A!U!J!2!002!B! !D!N!Z! ! !N!B!N!Y! ! !C! !A!A!000!A!B!Y!U!N! ! !1725!N62467!0001! !

Place of Performance

Location: BEAUFORT, BEAUFORT County, SOUTH CAROLINA, 29904

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to HIGHTOWER CONSTRUCTION CO INC for work described as: 200505!002787!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246702C0314 !A!N! !N! ! !20050228!20071016!009787102!009787102!009787102!N!HIGHTOWER CONSTRUCTION CO INC !525 E BAY !CHARLESTON !SC!29403!04690!013!45!BEAUFORT !BEAU… Key points: 1. The contract value of $22.7 million is substantial for this type of construction. 2. Hightower Construction Co. Inc. secured this award, indicating competitive capabilities. 3. The fixed-price contract type suggests a moderate risk for the government regarding cost overruns. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.

Value Assessment

Rating: good

The contract value of $22.7 million appears reasonable for a large-scale construction project of hospitals and infirmaries. Benchmarking against similar federal contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition generally ensures taxpayer money is used efficiently by fostering a competitive environment that drives down costs.

Public Impact

This project will likely improve or expand healthcare facilities, directly impacting military personnel and their families. The construction will create jobs in the Beaufort, South Carolina area, providing an economic boost. The successful completion of this contract could lead to future opportunities for Hightower Construction Co. Inc. with the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Ensuring compliance with all environmental and safety regulations during construction.

Positive Signals

Awarded through full and open competition.
Fixed-price contract can limit cost escalation.
Project addresses critical healthcare infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar projects would indicate if the $22.7 million award is within the expected range for the scope of work.

Small Business Impact

While this specific award went to Hightower Construction Co. Inc., it's important to analyze if subcontracting opportunities were made available to small businesses as part of this large project.

Oversight & Accountability

The Department of the Navy, through the Navy Facilities Engineering Command, is responsible for overseeing this contract. Robust oversight is crucial to ensure timely completion, quality, and adherence to specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns despite fixed-price contract if scope changes.
Risk of construction delays impacting operational readiness of facilities.
Ensuring long-term durability and maintenance cost-effectiveness of the constructed facilities.
Dependency on a single prime contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to HIGHTOWER CONSTRUCTION CO INC. 200505!002787!1700!N62467!NAVY FACILITIES ENGINEERING COMM!N6246702C0314 !A!N! !N! ! !20050228!20071016!009787102!009787102!009787102!N!HIGHTOWER CONSTRUCTION CO INC !525 E BAY !CHARLESTON !SC!29403!04690!013!45!BEAUFORT !BEAUFORT !S CAROLINA!+000021640000!N!N!000021640000!Y141!HOSPITALS & INFIRMARIES !C2 !CONSTRUCTION !000 !* !236220!E! !3!C!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is HIGHTOWER CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2005-02-28. End: 2008-11-04.

What is the specific scope of work for the hospitals and infirmaries construction, and how does the $22.7 million value align with industry standards for similar projects?

The provided data indicates the contract is for 'HOSPITALS & INFIRMARIES' construction under NAICS code 236220. The $22.7 million value is substantial and likely covers significant upgrades or new construction. A detailed scope of work would be needed to compare against industry benchmarks for similar federal or commercial healthcare construction projects to assess value for money.

What are the potential risks associated with a fixed-price construction contract of this magnitude, and what mitigation strategies are in place?

Fixed-price contracts carry the risk of contractor underestimation leading to quality compromises or contractor default if costs exceed expectations. Mitigation strategies typically include thorough pre-award contractor vetting, clear contract specifications, performance bonds, and active government oversight throughout the project lifecycle to ensure adherence to quality and schedule.

How effectively does the full and open competition process ensure optimal use of taxpayer funds for this healthcare infrastructure project?

Full and open competition is designed to maximize the number of eligible bidders, thereby fostering a competitive environment that drives down prices and encourages innovation. This process is generally considered highly effective in ensuring taxpayer funds are used efficiently by selecting the best value proposal, balancing cost, technical merit, and other factors.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 E BAY, CHARLESTON, SC, 29403

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline