DoD Awards $18.3M for Missile Haul Route Paving, Raising Competition Concerns
Contract Overview
Contract Amount: $18,338,976 ($18.3M)
Contractor: Gulf Building, Hernandez Consulting a Joint Venture LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-20
End Date: 2020-03-19
Contract Duration: 820 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF X007 CON: REPAVE MISSILE HAUL ROUTE LA&CA (NSB KI
Place of Performance
Location: KINGS BAY, CAMDEN County, GEORGIA, 31547
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to GULF BUILDING, HERNANDEZ CONSULTING A JOINT VENTURE LLC for work described as: IGF::OT::IGF X007 CON: REPAVE MISSILE HAUL ROUTE LA&CA (NSB KI Key points: 1. Contract awarded for paving a missile haul route at Naval Support Activity Base Kingsville. 2. The contract value is $18,338,976.41. 3. Competition method raises questions about price discovery and potential taxpayer impact. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: questionable
The contract value of $18.3M for paving services appears high compared to typical construction projects of this nature. Benchmarking against similar paving contracts for military bases or infrastructure projects is recommended to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of eligible bidders and potentially lead to higher prices than a truly open competition.
Taxpayer Impact: The limited competition may result in a suboptimal price, meaning taxpayers could be paying more than necessary for the paving services.
Public Impact
Military base infrastructure upgrades are essential for operational readiness. Paving projects can have environmental impacts, including runoff and material sourcing. The use of joint ventures in federal contracting can offer opportunities for small businesses, though not explicitly stated here.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price reasonableness.
- Lack of clear justification for excluding sources.
- Potential for cost overruns due to restricted bidding.
Positive Signals
- Project addresses critical infrastructure needs.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The Commercial and Institutional Building Construction sector encompasses a wide range of projects. Federal spending in this sector often involves infrastructure improvements on government facilities, with costs varying significantly based on project scope and location.
Small Business Impact
While the contract was awarded to a joint venture, it is not specified if this venture includes small business participation. Further analysis would be needed to determine the extent of small business involvement and its impact.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further review by oversight bodies to ensure the exclusion was justified and that fair pricing was achieved.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition method
- Potential for price inflation
- Lack of transparency in source exclusion
- Need for value assessment against benchmarks
Tags
commercial-and-institutional-building-co, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to GULF BUILDING, HERNANDEZ CONSULTING A JOINT VENTURE LLC. IGF::OT::IGF X007 CON: REPAVE MISSILE HAUL ROUTE LA&CA (NSB KI
Who is the contractor on this award?
The obligated recipient is GULF BUILDING, HERNANDEZ CONSULTING A JOINT VENTURE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2017-12-20. End: 2020-03-19.
What was the specific justification for excluding sources in this full and open competition?
The provided data does not specify the exact reasons for excluding certain sources. Typically, such exclusions might be based on technical capabilities, past performance, or specific security requirements. A thorough review by the contracting officer would be necessary to validate the legitimacy of these exclusions and ensure they did not unduly limit competition.
How does the $18.3M cost compare to similar missile haul route paving projects at other naval bases?
Benchmarking this $18.3M contract against similar paving projects for missile haul routes at other naval bases is crucial for assessing value. Without comparative data, it's difficult to definitively state if the price is reasonable. Factors like route length, complexity, material costs, and local economic conditions can influence pricing significantly.
What is the potential risk to taxpayer funds given the limited competition method used?
Limited competition inherently carries a risk of inflated prices, as fewer bidders may lead to reduced price pressure. If the exclusion of sources was not strictly necessary or well-justified, taxpayers could be overpaying for the services rendered. Oversight is needed to confirm that the final price reflects fair market value.
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: N6945013R1255
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 633 S FEDERAL HWY STE 300B, FORT LAUDERDALE, FL, 33301
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, 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: $18,338,976
Exercised Options: $18,338,976
Current Obligation: $18,338,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945014D1274
IDV Type: IDC
Timeline
Start Date: 2017-12-20
Current End Date: 2020-03-19
Potential End Date: 2020-03-19 00:00:00
Last Modified: 2026-03-02
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