DoD's $23.8M Consolidated Mission Control Center contract awarded to HHI Corporation for construction services

Contract Overview

Contract Amount: $23,782,985 ($23.8M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-05

End Date: 2023-03-31

Contract Duration: 756 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSOLIDATED MISSION CONTROL CENTER

Place of Performance

Location: OREM, UTAH County, UTAH, 84057

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to HHI CORPORATION for work described as: CONSOLIDATED MISSION CONTROL CENTER Key points: 1. Value for money appears fair given the firm-fixed-price structure, though detailed cost breakdowns are not public. 2. Competition dynamics indicate a full and open process, suggesting a competitive bidding environment. 3. Risk indicators are moderate, with a firm-fixed-price contract mitigating some cost overrun risks. 4. Performance context is limited to the contract duration and award date. 5. Sector positioning places this within commercial and institutional building construction for defense purposes.

Value Assessment

Rating: fair

The contract's total value of $23.8 million for construction services is difficult to benchmark without specific project details or comparable projects. The firm-fixed-price (FFP) award type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was set competitively. However, without access to the bid proposals or a detailed cost breakdown, a precise assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This indicates a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition with multiple bidders suggests that taxpayer dollars were likely used efficiently, as the government received proposals from various qualified contractors vying for the work.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, which will utilize the consolidated mission control center. The service delivered is the construction of a critical facility to support military operations. The geographic impact is localized to Utah, where the facility is being built. Workforce implications include employment opportunities for construction workers and related trades in the Utah region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it hard to assess true value.
Limited public information on specific performance metrics or quality control.
Firm-fixed-price contracts can sometimes lead to scope limitations if not carefully managed.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract shifts cost risk to the contractor.
Multiple bidders (3) suggest a competitive market for this type of construction.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. The defense sector often requires specialized facilities, and spending in this area is influenced by geopolitical factors and modernization efforts. Benchmarking this specific contract's value is challenging without more granular data on construction costs for similar secure or mission-critical facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless HHI Corporation voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Transparency is limited by the public availability of detailed contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Construction Contracts
Army Facilities Modernization Programs
Mission Critical Infrastructure Projects
Commercial Building Construction Services

Risk Flags

Limited public data on contractor past performance.
Lack of detailed cost breakdown for value assessment.
Need for further information on specific quality standards and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to HHI CORPORATION. CONSOLIDATED MISSION CONTROL CENTER

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 $23.8 million.

What is the period of performance?

Start: 2021-03-05. End: 2023-03-31.

What is the specific function and importance of the Consolidated Mission Control Center being built?

The Consolidated Mission Control Center (CONSOLIDATED MISSION CONTROL CENTER) is being constructed for the Department of Defense, specifically by the Department of the Army. While the exact operational details are likely classified or sensitive, mission control centers are typically vital hubs for monitoring, managing, and directing complex operations, often related to defense, space, or critical infrastructure. Its consolidation suggests an effort to streamline operations, improve efficiency, and enhance command and control capabilities by bringing disparate functions under one roof. The construction of such a facility underscores the DoD's commitment to maintaining and modernizing its operational infrastructure to support national security objectives.

How does the $23.8 million cost compare to similar DoD construction projects of this nature?

Directly comparing the $23.8 million cost to similar DoD construction projects is challenging without more specific details about the facility's size, complexity, security requirements, and location. However, construction costs for government facilities, especially those with specialized requirements like mission control centers, can vary significantly. Factors such as labor costs in Utah, material prices, and the specific technological integration required would influence the final price. The firm-fixed-price nature of the contract suggests that the awarded price was deemed acceptable by the government based on the bids received. Further analysis would require access to cost breakdowns or data on comparable projects with similar specifications.

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

Firm-fixed-price (FFP) contracts place the primary cost risk on the contractor. For a construction project of this scale ($23.8 million), potential risks include the contractor underestimating costs, leading to financial strain or potential quality compromises to maintain profitability. Conversely, if the contractor significantly overestimates costs due to uncertainty, the government might pay a premium. Scope creep is another risk; if the government requests changes or additions beyond the original scope without a formal modification and price adjustment, it can strain the contractor's resources and potentially lead to disputes. Effective project management and clear contract definition are crucial to mitigate these risks.

What does the fact that only three bids were received imply about the market for this type of construction service?

Receiving three bids under a full and open competition suggests a moderately competitive market for this specific type of construction service. While more bidders could indicate broader competition, three is often considered a reasonable number, especially for specialized or geographically specific projects. It implies that there are at least a few qualified contractors capable of undertaking a $23.8 million DoD construction project. However, it also raises questions about whether the market could support even greater competition, potentially leading to even lower prices. Further investigation into the number of solicitations versus actual bids could provide more insight into market depth.

What is HHI Corporation's track record with similar DoD construction contracts?

Information regarding HHI Corporation's specific track record with similar Department of Defense construction contracts is not readily available in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on previous government projects. Without this data, it's difficult to gauge their experience level and reliability for a project of this magnitude and type. Federal procurement databases and past performance reviews would be the primary sources for such an analysis.

Are there any specific performance metrics or quality standards associated with this contract that are publicly available?

The provided data does not include specific performance metrics or quality standards associated with this contract. Typically, such details are outlined in the contract's statement of work (SOW) and performance work statement (PWS). These documents, often considered sensitive or proprietary, define the expected quality of work, delivery schedules, and other performance benchmarks. While the firm-fixed-price nature implies adherence to agreed-upon specifications, the exact metrics and standards are not publicly detailed in the summary data.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9123819R0026

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 736 W HARRISVILLE RD, OGDEN, UT, 84404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,782,985

Exercised Options: $23,782,985

Current Obligation: $23,782,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline