Department of the Navy awards $10.2M contract for Murray School rehabilitation, highlighting construction sector activity

Contract Overview

Contract Amount: $10,209,198 ($10.2M)

Contractor: Herman/Jcg CO JV

Awarding Agency: Department of Defense

Start Date: 2020-03-30

End Date: 2025-06-30

Contract Duration: 1,918 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: X013 EQ19 - D7J00469 REHAB MURRAY SCHOOL. MJH10, BLOCK 1

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to HERMAN/JCG CO JV for work described as: X013 EQ19 - D7J00469 REHAB MURRAY SCHOOL. MJH10, BLOCK 1 Key points: 1. Contract value of $10.2 million for rehabilitation services. 2. Awarded to HERMAN/JCG CO JV, a joint venture. 3. Full and open competition indicates a competitive bidding process. 4. Project located in California, impacting local construction workforce. 5. Firm Fixed Price contract type suggests predictable costs for the government. 6. Contract duration spans over 5 years, from March 2020 to June 2025.

Value Assessment

Rating: good

The contract value of $10.2 million for the rehabilitation of Murray School appears reasonable for a project of this scope and duration. Benchmarking against similar institutional building construction projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed price structure helps mitigate cost overrun risks for the government, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. With 6 bidders identified, this suggests a healthy level of competition for this construction project. A competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive bids for the rehabilitation work.

Public Impact

The primary beneficiaries are students and staff of Murray School, who will receive improved facilities. The contract delivers essential building rehabilitation and construction services. The project's geographic impact is localized to the area where Murray School is situated in California. The contract supports jobs within the construction industry, including skilled trades and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large-scale construction projects.
Ensuring quality of rehabilitation work meets long-term durability standards.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Multiple bidders suggest a competitive market for these services.
Long contract duration allows for phased rehabilitation and potential for follow-on work.

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 supports infrastructure improvements, educational facilities, and government buildings. The market size for federal construction is substantial, with numerous firms competing for government contracts. This specific award represents a typical investment in maintaining and upgrading educational facilities.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the presence of a joint venture (HERMAN/JCG CO JV) could imply collaboration between different entities, potentially including smaller firms, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are inherent in the firm fixed price contract, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Department of Defense Construction Contracts
Educational Facility Maintenance and Repair
Naval Facilities Engineering Command Projects
Commercial and Institutional Building Construction

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance risk, especially for joint ventures.
Ensuring compliance with all environmental and safety regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to HERMAN/JCG CO JV. X013 EQ19 - D7J00469 REHAB MURRAY SCHOOL. MJH10, BLOCK 1

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 Navy).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2020-03-30. End: 2025-06-30.

What is the track record of HERMAN/JCG CO JV with federal contracts, particularly within the Department of Defense?

A detailed review of the contractor's past performance is crucial for assessing reliability and capability. While the data identifies HERMAN/JCG CO JV as the awardee, it does not provide specific details on their prior federal contract history, including performance ratings, past project types, or any history of disputes or contract terminations. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their track record, especially concerning similar construction and rehabilitation projects for the Department of Defense. Understanding their experience with firm fixed-price contracts and projects of comparable scale would offer insights into their suitability for this award.

How does the awarded amount compare to similar rehabilitation projects for educational facilities within the Department of the Navy?

To benchmark the value for money, this $10.2 million contract for Murray School rehabilitation should be compared against similar projects undertaken by the Department of the Navy or other federal agencies. Factors such as the square footage being renovated, the scope of work (e.g., structural, electrical, plumbing, HVAC), and the geographic location (which influences labor and material costs) are critical for a fair comparison. Without access to a database of comparable projects with detailed cost breakdowns, it's challenging to definitively state if this award represents excellent, good, or fair value. However, the firm fixed-price nature and the presence of multiple bidders suggest a competitive process that likely yielded a reasonable price.

What are the primary risks associated with this firm fixed-price construction contract, and how are they mitigated?

The primary risks in a firm fixed-price (FFP) construction contract often revolve around potential cost overruns for the contractor if unforeseen issues arise, which could lead to quality compromises or contractor default, and scope creep if the government requests significant changes. For the government, the risk lies in potentially overpaying if the initial price was too high due to limited competition or if the contractor is inefficient. Mitigation strategies include thorough pre-bid site assessments, detailed scope definition, robust contract clauses for change orders, and diligent project oversight by the Navy to ensure work quality and adherence to specifications. The contractor's risk is managed through their own detailed estimating and contingency planning.

What is the expected impact of this contract on the local construction workforce in California?

This $10.2 million contract is expected to have a positive impact on the local construction workforce in California. Rehabilitation projects of this scale typically require a variety of skilled trades, including electricians, plumbers, carpenters, masons, and HVAC technicians, as well as project managers, supervisors, and laborers. The duration of the contract, spanning over five years, suggests sustained employment opportunities. The specific number of jobs created would depend on the project's phasing and the contractor's hiring practices, but it is likely to provide significant employment and stimulate economic activity within the regional construction sector.

How does the 'Full and Open Competition After Exclusion of Sources' method influence the final contract price and quality?

The 'Full and Open Competition After Exclusion of Sources' method is designed to maximize competition while potentially streamlining the process by excluding certain sources deemed unsuitable or unnecessary for a specific requirement. In this case, with 6 bidders, it indicates a robust competitive environment. This level of competition generally pressures bidders to offer their most competitive pricing and best technical solutions to win the contract. For taxpayers, this typically translates to better value for money, as the government is likely to secure services at a price closer to the market rate. It also encourages higher quality standards as contractors vie for the award.

What are the potential long-term benefits of rehabilitating Murray School for the Department of the Navy and the community?

The long-term benefits of rehabilitating Murray School extend beyond immediate facility improvements. For the Department of the Navy, it ensures the continued functionality and safety of an educational asset, potentially reducing future maintenance costs associated with aging infrastructure. It also demonstrates a commitment to supporting military families and communities. For the community, an updated and well-maintained school enhances the learning environment, potentially improving educational outcomes for students and contributing to the overall quality of life in the area. Such investments can also positively impact local property values and community morale.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247314R0069

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2060 WINERIDGE PL STE A, ESCONDIDO, CA, 92029

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: $10,384,305

Exercised Options: $10,384,305

Current Obligation: $10,209,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247318D5822

IDV Type: IDC

Timeline