Navy awards $18.1M for sewage and waste facilities, with a significant portion for San Juan Construction

Contract Overview

Contract Amount: $18,084,583 ($18.1M)

Contractor: SAN Juan Construction, Inc./John Laing International, Limited

Awarding Agency: Department of Defense

Start Date: 2005-05-13

End Date: 2007-09-30

Contract Duration: 870 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200508!600334!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C1303 !A!N! !N! ! !20050513!20070513!011071060!161219696!161219696!N!SAN JUAN CONSTRUCTION, INC /JO!688 SPRING CREEK RD !MONTROSE !CO!81401!00000! !IO!* !* !BR INDIAN !+000018221296!N!N!000018221296!Y244!SEWAGE & WASTE FACILITIES !A4B!NON-COMBAT VEHICLES !CAA !MDA SUPPORT !237110!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!Y!J!1!001!N!1G!Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1700!N00025!0001! !

Plain-Language Summary

Department of Defense obligated $18.1 million to SAN JUAN CONSTRUCTION, INC./JOHN LAING INTERNATIONAL, LIMITED for work described as: 200508!600334!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C1303 !A!N! !N! ! !20050513!20070513!011071060!161219696!161219696!N!SAN JUAN CONSTRUCTION, INC /JO!688 SPRING CREEK RD !MONTROSE !CO!81401!00000! !IO!* !* … Key points: 1. Contract awarded to San Juan Construction, Inc./John Laing International, Limited for sewage and waste facilities. 2. The contract duration is 870 days, indicating a medium-term project. 3. The contract type is Fixed Price, suggesting a defined scope and cost. 4. The award was not competed, raising questions about potential cost savings through competition. 5. The North American Industry Classification System (NAICS) code 237110 points to heavy civil construction, specifically water and sewer infrastructure. 6. The contract falls under the Department of Defense, specifically the Department of the Navy. 7. The base value of the contract is approximately $18.1 million.

Value Assessment

Rating: fair

The contract value of $18.1 million for sewage and waste facilities construction appears to be within a reasonable range for a project of this nature and duration. However, without specific benchmarks for comparable projects in the San Juan area or for similar scope and complexity, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits the ability to benchmark against market rates derived from a competitive bidding process. Further analysis would require detailed cost breakdowns and comparisons to similar government or private sector projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning it was awarded directly to San Juan Construction, Inc./John Laing International, Limited without a formal bidding process. The data indicates a 'NOT COMPETED' status. This approach is typically used when only one source is capable of fulfilling the requirement, or in specific emergency situations. The lack of competition means there was no opportunity to solicit multiple bids, which could potentially lead to higher prices than if the contract had been openly competed.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This could result in a higher overall cost for the government and, consequently, for taxpayers.

Public Impact

The primary beneficiaries are the Department of the Navy and military personnel stationed in the San Juan area, who will receive improved sewage and waste management infrastructure. The services delivered include the construction and maintenance of sewage and waste facilities, crucial for environmental protection and public health. The geographic impact is localized to the San Juan, Puerto Rico area, where the Navy facilities are located. The contract supports the construction and potentially related trades workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than a competed contract.
Limited transparency into the justification for sole-source award.
Potential for cost overruns if not closely managed, despite fixed-price nature.

Positive Signals

Contract awarded to a specific entity for essential infrastructure.
Fixed-price contract provides some cost predictability.
Project addresses critical environmental and health needs for Navy facilities.

Sector Analysis

The construction sector, particularly heavy civil construction related to water and sewer infrastructure, is a significant area of government spending. This contract fits within the broader category of public works and infrastructure development. Comparable spending benchmarks would typically involve analyzing other contracts for similar facilities construction by the Department of Defense or other federal agencies in similar geographic regions. The market for such specialized construction services can be competitive, making the non-competed nature of this award noteworthy.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting goals for this contract. As it was awarded to a joint venture (San Juan Construction, Inc./John Laing International, Limited), the focus appears to be on the capabilities of the prime contractors. Further investigation would be needed to determine if small businesses were involved in any capacity, either as subcontractors or through the prime contractors' own small business utilization efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and facilities management divisions. Accountability measures would be established through the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; the justification for not competing the contract would be a key document for assessing transparency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Construction
Navy Public Works Projects
Water and Sewer Infrastructure Development
Environmental Compliance Projects

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on the justification for non-competition.
Potential for higher costs due to lack of bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to SAN JUAN CONSTRUCTION, INC./JOHN LAING INTERNATIONAL, LIMITED. 200508!600334!1700!N62742!NAV FACILITIES ENGINEERING COMMA!N6274205C1303 !A!N! !N! ! !20050513!20070513!011071060!161219696!161219696!N!SAN JUAN CONSTRUCTION, INC /JO!688 SPRING CREEK RD !MONTROSE !CO!81401!00000! !IO!* !* !BR INDIAN !+000018221296!N!N!000018221296!Y244!SEWAGE & WASTE FACILITIES !A4B!NON-COMBAT VEHICLES !CAA !MDA SUPPORT !237110!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is SAN JUAN CONSTRUCTION, INC./JOHN LAING INTERNATIONAL, LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2005-05-13. End: 2007-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without access to the specific justification documentation (e.g., a Justification and Approval document), the precise reasons remain unknown. This could involve unique technical requirements, specialized expertise held by San Juan Construction, Inc./John Laing International, Limited, or a critical timeline that precluded a competitive solicitation. Understanding this justification is key to assessing the necessity of the sole-source award.

How does the awarded amount of $18.1 million compare to similar sewage and waste facility construction projects?

Comparing the $18.1 million award for sewage and waste facilities requires context regarding the project's scope, location, and specific requirements. Projects of this nature can vary significantly in cost based on factors like size, complexity, environmental regulations, and local labor costs. For instance, a similar project in a high-cost urban area might naturally be more expensive than one in a less developed region. Benchmarking against other Department of the Navy or Department of Defense projects for similar infrastructure, especially in the Caribbean or similar climates, would provide a more relevant comparison. Without such specific comparative data, it's difficult to definitively state whether $18.1 million represents a high, low, or average cost.

What are the potential risks associated with a non-competed contract of this magnitude?

The primary risk associated with a non-competed contract of this magnitude is the potential for a higher price compared to what might have been achieved through a competitive bidding process. Without multiple bids, there is less market pressure to drive down costs. Other risks include a lack of innovation that might have been brought by different bidders, and potentially reduced transparency in the award process. Furthermore, if the justification for the sole-source award was not robust, it could raise concerns about fairness and efficiency. Effective contract management and oversight become even more critical to mitigate these risks and ensure the government receives good value.

What is the track record of San Juan Construction, Inc./John Laing International, Limited on federal contracts?

The provided data identifies San Juan Construction, Inc./John Laing International, Limited as the contractor for this $18.1 million Department of the Navy contract. To assess their track record, one would need to examine their past performance on federal contracts, particularly those with the Department of Defense or other agencies involved in construction. This would involve looking at factors such as on-time delivery, adherence to budget, quality of work, and any history of disputes or contract terminations. A review of contract databases and performance penilaian reports (if publicly available) would provide insights into their reliability and capability as a federal contractor.

What is the historical spending pattern for sewage and waste facilities by the Department of the Navy?

Analyzing historical spending patterns for sewage and waste facilities by the Department of the Navy would involve examining contract awards over several fiscal years. This would help identify trends in contract values, types of services procured (construction, maintenance, upgrades), and the prevalence of competed versus sole-source awards. Understanding this historical context can reveal whether spending on such infrastructure is increasing or decreasing, and whether the Navy typically uses competitive processes for these types of projects. It could also highlight major investments or recurring needs related to environmental compliance and facility modernization.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 688 SPRING CREEK RD, MONTROSE, CO, 81401

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline