DoD's $29.5M Presidio of Monterey Dining Facility Contract Awarded to Halbert Construction
Contract Overview
Contract Amount: $29,480,143 ($29.5M)
Contractor: Halbert Construction Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-30
End Date: 2020-07-31
Contract Duration: 2,496 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT A DINING FACILITY AND GENERAL ADMINISTRATION BUILDING AT PRESIDIO OF MONTEREY, CALIFORNIA
Place of Performance
Location: MONTEREY, MONTEREY County, CALIFORNIA, 93944
Plain-Language Summary
Department of Defense obligated $29.5 million to HALBERT CONSTRUCTION COMPANY, INC. for work described as: CONSTRUCT A DINING FACILITY AND GENERAL ADMINISTRATION BUILDING AT PRESIDIO OF MONTEREY, CALIFORNIA Key points: 1. The contract awarded to Halbert Construction Company, Inc. for a dining facility and administration building at Presidio of Monterey represents a significant investment in infrastructure. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggests a competitive process but with specific limitations. 3. The project duration of 2496 days (approximately 6.8 years) is notably long for a construction project of this nature, raising questions about efficiency and potential cost overruns. 4. The absence of small business participation is a key observation, indicating a lack of specific outreach or opportunity for smaller firms in this contract.
Value Assessment
Rating: fair
The contract value of $29.5 million for a dining facility and general administration building needs to be benchmarked against similar projects in similar geographic locations. Without specific cost breakdowns or unit costs, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain sources were excluded. This could limit the pool of bidders and potentially impact price discovery.
Taxpayer Impact: The final price paid by taxpayers will depend on the efficiency of the construction process and whether the limited competition led to a suboptimal price compared to a truly open bid.
Public Impact
Military personnel at Presidio of Monterey will benefit from improved dining and administrative facilities. Local economy may see some benefit from construction jobs, though the duration suggests a phased approach. Taxpayers are funding a significant infrastructure project with a long timeline, requiring careful oversight to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration
- Lack of small business participation
- Limited competition method
Positive Signals
- Construction of essential facilities
- Firm Fixed Price contract type
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Benchmarking construction project costs is complex due to variations in materials, labor, location, and project scope. The $29.5M value for a combined dining and administration facility requires comparison with similar government or private sector projects.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests that the contract was either not set aside for small businesses, or that no small businesses were awarded a subcontract. Further investigation into subcontracting opportunities would be needed.
Oversight & Accountability
The long duration of the contract (2496 days) necessitates robust oversight to ensure the project stays on schedule and within budget. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' also warrants scrutiny to ensure fairness and prevent potential collusion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended project duration
- Lack of small business participation
- Limited competition method
- Potential for cost escalation over long contract term
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to HALBERT CONSTRUCTION COMPANY, INC.. CONSTRUCT A DINING FACILITY AND GENERAL ADMINISTRATION BUILDING AT PRESIDIO OF MONTEREY, CALIFORNIA
Who is the contractor on this award?
The obligated recipient is HALBERT CONSTRUCTION COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2013-09-30. End: 2020-07-31.
What specific factors led to the exclusion of certain sources in the competition, and how did this impact the final price?
The exclusion of sources suggests potential pre-qualification requirements, specific technical capabilities needed, or perhaps a phased approach to contracting. Understanding these exclusions is crucial to assessing if the competition truly yielded the best possible price for the government. Without this information, it's difficult to determine if taxpayer money was optimally spent.
Given the 6.8-year duration, what are the primary risks associated with project delays and cost overruns?
The extended timeline presents significant risks, including potential escalation of material and labor costs, unforeseen site conditions, changes in regulatory requirements, and contractor performance issues. Managing these risks requires diligent project management, contingency planning, and proactive communication between the DoD and Halbert Construction.
How effective was the firm fixed price contract in controlling costs over such a long project duration?
A firm fixed price contract aims to transfer risk to the contractor, providing cost certainty. However, over a nearly 7-year period, the contractor bears the risk of cost increases. The effectiveness hinges on the initial pricing accuracy and the contractor's ability to manage escalating costs. It's crucial to monitor if the contractor is absorbing unexpected cost increases or if the initial price was inflated to account for this long duration.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9123813R0019
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 330 S MAGNOLIA AVE STE 203, EL CAJON, CA, 92020
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $29,480,143
Exercised Options: $29,480,143
Current Obligation: $29,480,143
Actual Outlays: $754,322
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-30
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2020-09-15
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