DoD Awards $14.76M Contract for Hurricane Sally Recovery Construction in Florida
Contract Overview
Contract Amount: $14,763,000 ($14.8M)
Contractor: VHB, LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2026-01-26
Contract Duration: 1,223 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPLACE TANK 2227 AND WTP HURRICANE SALLY RECOVERY PACKAGE 14A
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $14.8 million to VHB, LLC for work described as: REPLACE TANK 2227 AND WTP HURRICANE SALLY RECOVERY PACKAGE 14A Key points: 1. Contract awarded to VHB, LLC for critical hurricane recovery efforts. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration is substantial at 1223 days, indicating a complex undertaking. 4. Fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $14.76 million for a large-scale construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale recovery construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific sources were initially excluded. This method can impact price discovery if the exclusion was not fully justified.
Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering competitive pricing. However, the exclusion of sources warrants scrutiny to ensure maximum value was achieved.
Public Impact
Supports critical infrastructure repair and resilience in Florida following Hurricane Sally. Ensures timely restoration of essential facilities, minimizing long-term economic impact. Provides employment opportunities within the construction sector in the affected region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the long duration and complexity of recovery work.
- Risk of delays impacting the timeline for essential facility restoration.
- Need to ensure quality of work meets long-term resilience standards.
Positive Signals
- Firm fixed-price contract helps mitigate cost escalation risks.
- Full and open competition promotes competitive pricing.
- Focus on hurricane recovery addresses urgent community needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate significantly based on disaster recovery needs and infrastructure investment cycles. The benchmark for similar large-scale recovery projects would be highly variable.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). Opportunities for subcontracting to small businesses should be explored to ensure broader economic impact.
Oversight & Accountability
The Department of the Navy is the contracting agency, with the Department of Defense overseeing. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure contract compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep given the long project duration.
- Dependency on contractor performance for timely and quality restoration.
- Risk of unforeseen site conditions impacting cost and schedule.
- Need for robust quality assurance to ensure long-term resilience.
Tags
commercial-and-institutional-building-co, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to VHB, LLC. REPLACE TANK 2227 AND WTP HURRICANE SALLY RECOVERY PACKAGE 14A
Who is the contractor on this award?
The obligated recipient is VHB, 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 $14.8 million.
What is the period of performance?
Start: 2022-09-21. End: 2026-01-26.
What specific facilities or infrastructure are included in this recovery package, and what is their criticality?
The specific facilities are not detailed in the provided data. However, the context of 'Hurricane Sally Recovery' implies critical infrastructure such as housing, operational facilities, or support buildings essential for military or community functions in the affected Florida region. Understanding their criticality is key to assessing the value and urgency of the contract.
What was the rationale for excluding certain sources during the 'Full and Open Competition After Exclusion of Sources' process?
The rationale for excluding specific sources is not provided. Typically, such exclusions are based on factors like specialized capabilities, past performance, or specific security requirements. A thorough review of the justification for exclusion is necessary to ensure it did not unduly limit competition and potentially inflate costs for taxpayers.
How will the effectiveness of the construction in enhancing long-term resilience against future weather events be measured?
Effectiveness will likely be measured through post-construction inspections, adherence to updated building codes and resilience standards, and potentially through performance metrics related to the facility's ability to withstand subsequent environmental stresses. Independent verification and validation of resilience features incorporated into the construction are crucial.
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: N6945020R0871
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 18612 HARVEST SCENE CT, BOYDS, MD, 20841
Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,763,000
Exercised Options: $14,763,000
Current Obligation: $14,763,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945022D0007
IDV Type: IDC
Timeline
Start Date: 2022-09-21
Current End Date: 2026-01-26
Potential End Date: 2026-01-26 00:00:00
Last Modified: 2025-10-17
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)