DoD's $16.6M Migrant Operations Complex Construction Awarded to Islands Mechanical Contractor, Inc

Contract Overview

Contract Amount: $16,577,967 ($16.6M)

Contractor: Islands Mechanical Contractor, Inc

Awarding Agency: Department of Defense

Start Date: 2007-05-07

End Date: 2009-05-07

Contract Duration: 731 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CONSTRUCTION OF MIGRANT OPERATIONS COMPLEX

Plain-Language Summary

Department of Defense obligated $16.6 million to ISLANDS MECHANICAL CONTRACTOR, INC for work described as: DESIGN BUILD CONSTRUCTION OF MIGRANT OPERATIONS COMPLEX Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type aims to control costs for the government. 3. The project duration of 731 days indicates a significant construction undertaking. 4. The award was made by the Department of the Navy, part of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract value of approximately $16.6 million falls within a moderate spending range for construction projects of this nature.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparable project data. However, the firm fixed-price structure suggests an attempt to lock in costs. The award amount of $16.6 million for a migrant operations complex of this size and duration appears within a reasonable range for large-scale construction, but a detailed cost analysis would be needed for a definitive value assessment. Further comparison to similar DoD construction projects would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders (implied by 'no': 2, though this typically refers to the number of bids received, not necessarily unique bidders) suggests some level of competition. However, the exact number of proposals received and the nature of the competition (e.g., bid protest history, specific evaluation criteria) are not detailed here. A robust competition is generally expected to yield better pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring facilities for migrant operations. The service delivered is the design and construction of a specialized complex. The geographic impact is localized to the area where the complex is built, though the specific location is not provided. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the building process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it difficult to assess value for money.
Limited information on the number of bidders and the intensity of competition.
The specific purpose and operational requirements of the 'migrant operations complex' are not detailed, making it hard to assess the necessity and scope.
The duration of the contract (731 days) is substantial, increasing the potential for unforeseen cost escalations or delays.

Positive Signals

Awarded through full and open competition, which generally promotes competitive pricing.
Firm fixed-price contract type helps to mitigate cost overrun risks for the government.
The contractor, Islands Mechanical Contractor, Inc., has experience in construction, as indicated by the NAICS code.
The contract is managed by the Department of the Navy, a major component of the DoD with established procurement processes.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant area of federal spending. This contract fits within the broader category of infrastructure development and facility construction for government operations. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by the Department of Defense or other federal agencies for similar types of facilities. The market for large construction contracts is often competitive, with established players bidding on significant projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, Islands Mechanical Contractor, Inc., would be responsible for its own subcontracting decisions, which may or may not involve small businesses depending on their procurement strategy and the availability of qualified subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the specified complex within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Projects
Federal Facility Construction
Migrant Support Infrastructure
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of contractor default or performance issues on a large-scale project.
Market volatility in material and labor costs over the 731-day duration.
Uncertainty regarding the specific operational requirements and potential for scope changes.
Limited competition indicated by the number of bidders could impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to ISLANDS MECHANICAL CONTRACTOR, INC. DESIGN BUILD CONSTRUCTION OF MIGRANT OPERATIONS COMPLEX

Who is the contractor on this award?

The obligated recipient is ISLANDS MECHANICAL CONTRACTOR, 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 $16.6 million.

What is the period of performance?

Start: 2007-05-07. End: 2009-05-07.

What is the track record of Islands Mechanical Contractor, Inc. with federal contracts, particularly with the Department of Defense?

Information regarding the specific track record of Islands Mechanical Contractor, Inc. with federal contracts, especially with the Department of Defense, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review their past performance, contract history, any past performance evaluations, and any history of contract disputes or terminations. Without this data, it's difficult to assess their reliability and experience for large-scale projects like the Migrant Operations Complex.

How does the $16.6 million award compare to similar migrant operations complex construction projects?

Direct comparisons for 'migrant operations complex' construction are difficult due to the specialized nature of the facility and the limited public data on such projects. However, $16.6 million for a design-build construction project of 731 days duration is a substantial investment. To benchmark effectively, one would need to identify other federal or state government projects involving the construction of large-scale operational facilities, considering factors like square footage, complexity of required systems (e.g., HVAC, security, utilities), and geographic location, which influences labor and material costs. The Department of Defense and Department of Homeland Security would be agencies to examine for comparable projects.

What are the key risk indicators associated with this firm fixed-price construction contract?

Key risk indicators for this firm fixed-price construction contract include potential for scope creep if the 'design' phase is not tightly managed, contractor default or bankruptcy (especially if the contractor is not financially robust), unforeseen site conditions (e.g., environmental hazards, difficult soil), labor shortages or disputes, material price volatility, and delays caused by external factors (e.g., permitting issues, weather). While the fixed-price nature shifts cost overrun risk to the contractor, significant issues could still lead to claims, disputes, or project failure, impacting the government's ability to obtain the needed facility.

How effective is the 'full and open competition' process in ensuring value for money for this type of construction project?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, as it maximizes the pool of potential bidders and fosters price competition. For a large construction project like this, it allows multiple firms to propose solutions and pricing, theoretically driving the award to the best value offer. However, the effectiveness is contingent on the clarity of the solicitation requirements, the fairness of the evaluation process, and the actual number and capability of the bidders. If only a few capable bidders participate, or if the evaluation criteria are not well-defined, the competitive advantage may be diminished.

What is the historical spending pattern for similar construction projects by the Department of the Navy?

Historical spending patterns for similar construction projects by the Department of the Navy would typically show a wide range of values depending on the project's scale, complexity, and location. The Navy, through entities like the Naval Facilities Engineering Command (NAVFAC), awards numerous construction contracts annually, covering everything from barracks and training facilities to specialized operational complexes and infrastructure upgrades. Analyzing past awards for projects with similar NAICS codes (e.g., 236220) and contract values would reveal average costs, typical contract durations, and common contract types used. This $16.6 million award appears to be a significant, but not unprecedented, investment for a specialized facility.

What are the implications of the contract duration (731 days) on project management and potential cost impacts?

A contract duration of 731 days (approximately two years) for a design-build construction project is substantial and introduces several implications. It increases the exposure to market fluctuations in material costs and labor availability. Project management becomes more critical, requiring robust scheduling, resource allocation, and risk mitigation strategies to prevent delays. For the government, a longer duration means the funds are committed for an extended period, and the need for the facility is pressing. Delays can lead to increased indirect costs for both the contractor and the government (e.g., extended oversight, potential need for interim solutions), and can impact the operational readiness or mission objectives the facility is intended to support.

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

Solicitation ID: N6945007R3313

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 526 STOCKTON ST, JACKSONVILLE, FL, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $16,577,967

Exercised Options: $16,577,967

Current Obligation: $16,577,967

Contract Characteristics

Cost or Pricing Data: NO

Timeline