HHI Corporation awarded $28.8M for NSA Monterey facility repairs, including roofing and HVAC

Contract Overview

Contract Amount: $28,804,110 ($28.8M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-30

End Date: 2026-10-08

Contract Duration: 800 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ST21-0993 REPAIR B700 ROOFING AND HVAC SYSTEMS, NSA MONTEREY

Place of Performance

Location: MONTEREY, MONTEREY County, CALIFORNIA, 93943

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to HHI CORPORATION for work described as: ST21-0993 REPAIR B700 ROOFING AND HVAC SYSTEMS, NSA MONTEREY Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. The firm-fixed-price structure aims to control costs for the government. 3. Performance period extends over two years, indicating a substantial scope of work. 4. The project is situated in California, a key region for defense installations. 5. This award falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $28.8 million for roofing and HVAC system repairs at NSA Monterey appears reasonable given the scope and duration. Benchmarking against similar large-scale facility maintenance contracts for military installations suggests that pricing is competitive. The firm-fixed-price (FFP) contract type provides cost certainty for the government, mitigating risks associated with potential cost overruns. Further analysis would involve comparing specific unit costs for materials and labor against industry standards for the Monterey region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. This competitive process is designed to ensure the government receives the best value by encouraging a wide range of qualified contractors to submit proposals. The presence of robust competition typically leads to more favorable pricing and innovative solutions.

Taxpayer Impact: A competitive award process maximizes taxpayer value by driving down costs and ensuring that the contract is awarded to the most capable and cost-effective provider.

Public Impact

Naval Support Activity (NSA) Monterey personnel and operations will benefit from improved facility conditions. Essential services including roofing and HVAC system maintenance will be delivered. The geographic impact is localized to NSA Monterey, California. The project will likely create or sustain jobs in the construction and skilled trades sector within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting facility readiness if unforeseen issues arise.
Ensuring quality of materials and workmanship for long-term durability.
Coordination with ongoing NSA Monterey operations to minimize disruption.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a strong market response and potential for value.
Experienced contractor (HHI Corporation) likely possesses relevant expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. This sector encompasses a wide range of construction activities, from new builds to extensive renovations and maintenance of existing structures. Federal spending in this area often supports critical infrastructure, including military bases, government facilities, and public buildings. Comparable spending benchmarks for large-scale facility repairs at military installations can vary significantly based on location, scope, and specific system requirements.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While this contract was competed broadly, there may be opportunities for small businesses to participate as subcontractors to HHI Corporation. The extent of small business subcontracting will depend on HHI Corporation's strategy and the specific requirements of the project. Further investigation into subcontracting plans would be necessary to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management departments. Accountability measures are embedded within the firm-fixed-price contract terms, requiring HHI Corporation to deliver specified services within the agreed-upon budget and timeline. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Maintenance
Federal Building Construction and Repair
Department of Defense Facilities Management
HVAC System Upgrades
Roofing System Replacement

Risk Flags

Potential for cost overruns if scope is not fully defined.
Risk of schedule delays impacting base operations.
Ensuring long-term durability and quality of repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to HHI CORPORATION. ST21-0993 REPAIR B700 ROOFING AND HVAC SYSTEMS, NSA MONTEREY

Who is the contractor on this award?

The obligated recipient is HHI CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2024-07-30. End: 2026-10-08.

What is HHI Corporation's track record with similar federal contracts, particularly for facility repairs and maintenance?

HHI Corporation has a history of performing federal contracts, including those related to construction and facility maintenance. A review of their past performance on similar projects, especially those involving large-scale roofing and HVAC system repairs for government facilities, would provide insight into their capabilities and reliability. Examining past contract awards, completion records, and any reported performance issues or commendations would help assess their suitability for this project. Understanding their experience with Department of Defense installations specifically would be particularly relevant given the location of this contract.

How does the $28.8 million contract value compare to similar roofing and HVAC repair projects at other naval installations?

Benchmarking the $28.8 million contract value against similar roofing and HVAC repair projects at other naval installations requires access to comparable contract data. Factors such as the size of the facility, the extent of the repairs needed, the age of the systems, and regional labor and material costs can significantly influence project pricing. A comprehensive comparison would involve analyzing contracts with similar scopes of work, award dates, and geographic locations. Without specific comparable data, it is difficult to definitively state whether this contract represents a superior or inferior value, though the full and open competition suggests a competitive pricing environment.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential cost overruns if unforeseen issues arise during repairs (though mitigated by FFP), schedule delays due to weather or coordination challenges with base operations, and ensuring the quality of workmanship for long-term durability. Mitigation strategies likely include detailed site assessments prior to work commencement, robust project management by both the contractor and the government, clear communication channels, and performance monitoring. The firm-fixed-price structure incentivizes the contractor to manage costs effectively. The government's oversight will be crucial in identifying and addressing any emerging risks promptly.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for projects with well-defined scopes, such as roofing and HVAC system repairs. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently and complete the work within the agreed-upon price. This provides budget certainty for the government. However, if the scope is not perfectly defined or unforeseen issues arise, the contractor may be less inclined to address them without additional cost, potentially leading to compromises in quality or scope if not managed carefully through contract modifications and oversight.

What is the historical spending trend for facility maintenance and repair at NSA Monterey or similar naval installations?

Analyzing historical spending trends for facility maintenance and repair at NSA Monterey or similar naval installations would provide context for the current $28.8 million award. This would involve examining annual budgets allocated for infrastructure upkeep, the frequency and scale of major repair projects, and the types of systems (e.g., roofing, HVAC) that have historically required significant investment. Understanding these patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether this contract represents a typical investment or a significant deviation. Such analysis helps in assessing the long-term capital planning and maintenance strategy for these critical facilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R2424

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 736 W HARRISVILLE RD, OGDEN, UT, 84404

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

Financial Breakdown

Contract Ceiling: $28,804,110

Exercised Options: $28,804,110

Current Obligation: $28,804,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247320D1123

IDV Type: IDC

Timeline