Naval Base San Diego construction contract awarded to Helix Electric, Inc. for $47.38M

Contract Overview

Contract Amount: $47,384,133 ($47.4M)

Contractor: Helix Electric, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-28

End Date: 2023-01-29

Contract Duration: 1,403 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION CONTRACT FOR P-0888 HARBOR DRIVE SWITCHING STATION AT NAVAL BASE SAN DIEGO

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $47.4 million to HELIX ELECTRIC, INC. for work described as: CONSTRUCTION CONTRACT FOR P-0888 HARBOR DRIVE SWITCHING STATION AT NAVAL BASE SAN DIEGO Key points: 1. Contract value of $47.38M for power and communication line construction. 2. Awarded under a firm-fixed-price definitive contract. 3. Duration of 1403 days indicates a substantial, long-term project. 4. Competition was full and open, suggesting a potentially competitive bidding process. 5. Project is located at Naval Base San Diego, California. 6. Contractor is Helix Electric, Inc., with a significant contract value. 7. NAICS code 237130 points to power and communication line construction.

Value Assessment

Rating: good

The contract value of $47.38M for power and communication line construction appears to be within a reasonable range for a project of this scale and duration at a major naval installation. Benchmarking against similar large-scale infrastructure projects at military bases would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has a clear understanding of the project scope and associated costs, which can help control expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust bidding process with multiple potential bidders vying for the contract. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovative solutions, leading to better value for public funds.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive upgraded power and communication infrastructure at Naval Base San Diego. The project delivers essential construction services for power and communication lines, crucial for base operations and security. The geographic impact is localized to Naval Base San Diego, California, enhancing its operational capabilities. Workforce implications include employment opportunities for construction workers, electricians, and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extended 1403-day duration.
Dependence on a single contractor, Helix Electric, Inc., for the entirety of the project scope.
Risk of schedule delays due to the complexity of infrastructure projects on active military bases.

Positive Signals

Firm-fixed-price contract structure helps to mitigate cost uncertainty for the government.
Full and open competition suggests a potentially competitive pricing environment.
The project addresses critical infrastructure needs for a key naval installation.

Sector Analysis

This contract falls within the construction sector, specifically focusing on power and communication line construction, classified under NAICS code 237130. This is a critical segment of infrastructure development, essential for maintaining and upgrading facilities at government installations. Comparable spending benchmarks for similar large-scale utility construction projects at military bases would be necessary for a precise comparison, but the $47.38M value suggests a significant undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific contract appears limited, with the primary award going to Helix Electric, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Base San Diego Infrastructure Modernization Projects
Department of Defense Utility System Upgrades
Federal Construction Contracts for Military Installations
Power and Communication Line Construction Services

Risk Flags

Extended contract duration increases risk of cost escalation and schedule delays.
Potential for unforeseen site conditions impacting project scope and budget.
Dependence on a single contractor for a critical infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.4 million to HELIX ELECTRIC, INC.. CONSTRUCTION CONTRACT FOR P-0888 HARBOR DRIVE SWITCHING STATION AT NAVAL BASE SAN DIEGO

Who is the contractor on this award?

The obligated recipient is HELIX ELECTRIC, 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 $47.4 million.

What is the period of performance?

Start: 2019-03-28. End: 2023-01-29.

What is the track record of Helix Electric, Inc. with federal contracts, particularly within the Department of Defense?

A comprehensive review of Helix Electric, Inc.'s federal contract history would involve analyzing data from sources like the Federal Procurement Data System (FPDS) or USAspending.gov. This would reveal the number of contracts awarded, their values, agencies involved, and performance ratings. For this specific contract (P-0888), understanding Helix Electric's past performance on similar large-scale construction projects, especially those involving critical infrastructure at military bases, would be crucial for assessing their capability and reliability. A history of successful, on-time, and within-budget project completion would be a positive indicator, while a pattern of delays, cost overruns, or performance issues would raise concerns.

How does the awarded price of $47.38M compare to similar power and communication line construction projects at other naval bases?

To benchmark the value-for-money of this $47.38M contract, a comparative analysis with similar projects is essential. This would involve identifying other Department of the Navy or Department of Defense contracts for power and communication line construction at comparable naval bases, considering factors such as project scope, complexity, duration, and geographic location. Data on the total contract values, per-square-foot costs, or costs per mile of installed infrastructure would be valuable. If this contract's cost per unit or overall value is significantly higher than comparable projects without a clear justification (e.g., unique site challenges, advanced technology requirements), it could indicate potential overpricing or less efficient resource allocation.

What are the primary risks associated with a 1403-day construction contract for critical infrastructure at a naval base?

A 1403-day (nearly four-year) construction contract for critical infrastructure at a naval base presents several inherent risks. Firstly, the extended duration increases the likelihood of encountering unforeseen site conditions (e.g., geological issues, unexploded ordnance) that could lead to scope changes and cost increases, despite the firm-fixed-price structure. Secondly, there's a risk of schedule slippage due to the complexities of working on an active military installation, which may have stringent security protocols, operational constraints, and limited access windows. Thirdly, material and labor costs can fluctuate significantly over such a long period, potentially impacting the contractor's profitability and, indirectly, the project's timely completion. Finally, changes in military requirements or base priorities during the project's lifecycle could necessitate modifications, adding complexity and potential delays.

What is the expected impact of this contract on the operational effectiveness of Naval Base San Diego?

This contract is expected to significantly enhance the operational effectiveness of Naval Base San Diego by modernizing and upgrading its critical power and communication infrastructure. Reliable and robust power and communication systems are fundamental to the base's ability to support naval operations, including command and control, logistics, training, and personnel support. Improved infrastructure can lead to greater system resilience against disruptions (e.g., weather events, cyber threats), reduced maintenance downtime, and the capacity to support new technologies and evolving mission requirements. Ultimately, this investment in foundational infrastructure directly contributes to the base's overall readiness and mission accomplishment.

How has federal spending on power and communication line construction at military installations trended over the past five years?

Analyzing federal spending trends on power and communication line construction at military installations over the past five years would require aggregating data from relevant contract databases, focusing on agencies like the Department of Defense and specific branches like the Navy and Army. This analysis would likely reveal fluctuations influenced by military readiness priorities, infrastructure modernization initiatives, and budget allocations. An upward trend might indicate a concerted effort to address aging infrastructure, while a downward trend could suggest shifting priorities or budget constraints. Understanding these broader trends provides context for the significance and scale of individual contracts like the one awarded to Helix Electric.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247319R1209

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6795 FLANDERS DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,384,133

Exercised Options: $47,384,133

Current Obligation: $47,384,133

Actual Outlays: $2,739,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline