DoD Awards $19.4M for Hurricane Sally Recovery Construction in Florida

Contract Overview

Contract Amount: $19,423,506 ($19.4M)

Contractor: P & S Construction Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-16

End Date: 2026-02-18

Contract Duration: 1,251 days

Daily Burn Rate: $15.5K/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: CONSTRUCTION REPAIR/RENO BLDG.1350&1351 HURRICANE SALLY RECOVERY PACKAGE 13

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to P & S CONSTRUCTION INC. for work described as: CONSTRUCTION REPAIR/RENO BLDG.1350&1351 HURRICANE SALLY RECOVERY PACKAGE 13 Key points: 1. Significant investment for critical infrastructure repair post-hurricane. 2. Competition method suggests potential for price discovery, but source exclusion warrants scrutiny. 3. Risk of cost overruns due to the extended duration and recovery nature of the project. 4. Sector: Construction, specifically building repair and renovation.

Value Assessment

Rating: fair

The award amount of $19.4M for a 1251-day duration appears reasonable for a large-scale construction recovery project. Benchmarking against similar post-disaster recovery contracts would provide a clearer picture of 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 have restricted the pool of potential bidders, potentially impacting price discovery and overall value.

Taxpayer Impact: Taxpayer funds are being used for essential recovery efforts. The limited competition raises questions about whether the most cost-effective solution was secured.

Public Impact

Restoration of vital government facilities damaged by Hurricane Sally. Supports local economy through construction jobs and material procurement. Ensures operational readiness of naval facilities in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Extended project duration increases risk of unforeseen issues.
Potential for scope creep in recovery projects.

Positive Signals

Addresses urgent post-disaster infrastructure needs.
Supports critical naval operations.
Utilizes a firm fixed-price contract to manage cost certainty.

Sector Analysis

This contract falls within the construction sector, specifically focusing on building repair and renovation. Spending benchmarks for similar post-disaster recovery projects are highly variable, depending on the scale of damage and location.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had adequate opportunity to participate in this procurement.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the project's duration and recovery nature, robust oversight will be crucial to manage costs and ensure quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Extended contract duration increases exposure to cost escalation.
Post-disaster environments present inherent logistical and site condition risks.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to P & S CONSTRUCTION INC.. CONSTRUCTION REPAIR/RENO BLDG.1350&1351 HURRICANE SALLY RECOVERY PACKAGE 13

Who is the contractor on this award?

The obligated recipient is P & S CONSTRUCTION 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 $19.4 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-02-18.

What specific factors led to the exclusion of sources in this 'full and open competition' scenario, and how did this impact the final price?

The exclusion of sources typically occurs when only a limited number of contractors possess the specialized capabilities, security clearances, or geographic proximity required for a specific project. In this case, for Hurricane Sally recovery, it might relate to specific expertise in disaster zone reconstruction or pre-existing relationships with the Navy. This limitation could reduce competitive pressure, potentially leading to a higher price than if a broader range of bidders were involved.

What are the primary risks associated with the 1251-day duration of this construction repair contract, and what mitigation strategies are in place?

The extended duration presents risks such as material cost inflation, potential for unforeseen site conditions in a disaster recovery zone, and contractor performance degradation over time. Mitigation strategies likely include detailed contract clauses for change orders, regular progress reviews, contingency planning for material price fluctuations, and performance incentives or penalties.

How effectively does this contract address the long-term resilience and future preparedness of the affected naval facilities beyond immediate repairs?

The immediate focus is likely on restoring functionality damaged by Hurricane Sally. The effectiveness in addressing long-term resilience depends on whether the repairs incorporate updated building codes, enhanced flood protection, or other measures to improve future storm resistance. Without explicit details on 'build back better' initiatives, it's difficult to assess the long-term preparedness impact.

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: N6945022RDC17

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 SCHOOL ST STE 1, NORTH CHELMSFORD, MA, 01863

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,680,192

Exercised Options: $19,423,506

Current Obligation: $19,423,506

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945022D0005

IDV Type: IDC

Timeline