HHI Corporation awarded $12M for Army chemical lab remodel, completed in 2008

Contract Overview

Contract Amount: $12,004,416 ($12.0M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-28

End Date: 2008-05-15

Contract Duration: 504 days

Daily Burn Rate: $23.8K/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: CHEM LAB REMODEL

Place of Performance

Location: DUGWAY, TOOELE County, UTAH, 84022

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to HHI CORPORATION for work described as: CHEM LAB REMODEL Key points: 1. Contract value appears reasonable for a specialized lab renovation. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Project duration was within typical construction timelines. 5. Contract awarded by DCA, indicating a specific contracting activity. 6. No small business set-aside was utilized.

Value Assessment

Rating: good

The contract value of approximately $12 million for a chemical laboratory remodel is within a reasonable range for specialized construction projects of this nature. Benchmarking against similar federal laboratory renovations would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the initial pricing was considered adequate to cover the contractor's costs and profit, with risk largely borne by HHI Corporation.

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 sources were initially excluded, the competition was ultimately broad. The number of bidders is not specified, but the 'full and open' nature suggests multiple interested parties were allowed to submit proposals. This level of competition is generally favorable for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel who will utilize the modernized chemical laboratory facilities. The services delivered include the renovation and construction of a specialized industrial building. The geographic impact is localized to the facility in Utah (ST: UT, SN: UTAH). The project likely involved a construction workforce, contributing to employment in the relevant trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements were not fully defined.
Risk of unforeseen site conditions in a laboratory environment.
Dependence on contractor's ability to meet specialized construction standards.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Completion within the specified duration suggests effective project management.
Full and open competition generally leads to better pricing.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically for specialized facilities like chemical laboratories. The market for such renovations involves construction firms with expertise in handling hazardous materials, specific ventilation requirements, and robust safety protocols. Federal spending in this area is driven by the need to maintain and upgrade research and testing infrastructure across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false). There is no information provided regarding subcontracting plans or actual performance related to small business participation. Without this data, the direct impact on the small business ecosystem from this specific contract cannot be determined.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army's contracting and project management officials. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver the specified work within budget. Transparency is typically facilitated through contract award databases, though detailed performance reviews may not be publicly available.

Related Government Programs

Federal Building Construction
Military Infrastructure Projects
Laboratory Modernization Programs
Department of Defense Facilities

Risk Flags

Potential for scope creep in specialized construction.
Need for detailed oversight due to laboratory environment.
Contract completion data not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to HHI CORPORATION. CHEM LAB REMODEL

Who is the contractor on this award?

The obligated recipient is HHI CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2006-12-28. End: 2008-05-15.

What was the specific nature of the 'exclusion of sources' in the competition process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (CT) suggests that initially, certain potential sources may have been excluded from bidding, perhaps due to specific qualifications, prior relationships, or other pre-determined criteria. However, the competition was subsequently opened broadly to all eligible responsible sources. Without further details from the contracting agency (AG: Department of Defense, SA: Department of the Army), the precise reasons for the initial exclusion remain unclear. This could range from requirements for highly specialized capabilities to a previous contract award that was protested or terminated, leading to a re-competition.

How does the contract duration of 504 days compare to similar federal lab remodel projects?

A contract duration of 504 days (approximately 16.5 months) for a $12 million chemical laboratory remodel is generally within the expected range for projects of this complexity. Federal laboratory renovations often involve intricate systems (HVAC, safety, specialized plumbing), adherence to strict regulatory standards, and potential disruptions to ongoing operations. Factors influencing duration include the size and scope of the remodel, the specific technical requirements of the lab, site accessibility, and the contractor's project management efficiency. While specific benchmarks vary widely, this timeline appears reasonable, assuming it aligns with the project's defined scope and complexity.

What are the potential risks associated with a firm fixed-price contract for a specialized construction project?

While firm fixed-price (FFP) contracts are generally favored for shifting risk to the contractor, specialized projects like chemical lab remodels can present unique challenges. The primary risk for the government is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise that significantly increase their costs. For the contractor, the risk lies in underestimating the complexity, encountering unexpected site conditions, or facing material price escalations, potentially leading to financial losses if these are not adequately accounted for in the initial bid. Robust government oversight and clear performance specifications are crucial to mitigate these risks.

What specific capabilities does HHI CORPORATION possess that made them suitable for this project?

The provided data does not detail HHI CORPORATION's specific capabilities beyond being the awarded contractor. However, their selection for a chemical laboratory remodel under full and open competition implies they demonstrated the necessary technical expertise, experience with similar projects, financial stability, and understanding of relevant safety and regulatory standards. Federal agencies typically vet contractors through pre-qualification processes or evaluate proposals based on past performance, technical approach, and management plans. HHI CORPORATION likely met these stringent requirements to secure this contract.

Were there any significant cost underruns or overruns reported for this contract?

The provided data summarizes the initial award details and does not include information on the final cost or any reported cost underruns or overruns. For a firm fixed-price contract, the expectation is that the final cost will match the awarded amount unless contract modifications (e.g., change orders) were issued. Without access to contract modification logs or final payment records, it is impossible to determine if the final cost deviated from the initial $12,004,415.51 award value.

How does the $12 million expenditure compare to the Department of the Army's overall spending on facility construction and renovation in FY2006-2008?

The $12 million awarded to HHI CORPORATION represents a specific investment in a specialized facility upgrade. To contextualize this within the Department of the Army's (DA) overall spending, one would need to examine the DA's budget appropriations for military construction (MILCON) and facilities sustainment, restoration, and modernization (FSRM) during the fiscal years surrounding the contract award (FY2006-2008). The DA's total budget is in the tens of billions annually, with significant portions allocated to infrastructure. This $12 million project, while substantial for a single lab, would likely constitute a small fraction of the DA's total facilities expenditure during that period.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 49 N MAIN ST, FARMINGTON, UT, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,004,416

Exercised Options: $12,004,416

Current Obligation: $12,004,416

Contract Characteristics

Cost or Pricing Data: YES

Timeline