DoD's $20.8M pump station contract awarded to Broadmoor Pittman JV for Michoud Assembly Facility

Contract Overview

Contract Amount: $20,848,686 ($20.8M)

Contractor: Broadmoor Pittman JV

Awarding Agency: Department of Defense

Start Date: 2010-12-10

End Date: 2012-12-19

Contract Duration: 740 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::96 3122::TAS BUILDING 449 REDUNDANT PUMP STATION MICHOUD ASSEMBLY FACILITY NEW, ORLEANS, LAS

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to BROADMOOR PITTMAN JV for work described as: TAS::96 3122::TAS BUILDING 449 REDUNDANT PUMP STATION MICHOUD ASSEMBLY FACILITY NEW, ORLEANS, LAS Key points: 1. Contract value appears reasonable for a specialized construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The definitive contract type indicates a clear scope and fixed price. 4. Project duration of approximately two years is typical for such infrastructure work. 5. Location in Louisiana may influence local labor and material costs. 6. The award was made by the Department of the Army, a major DoD component.

Value Assessment

Rating: good

The contract value of $20.8 million for a redundant pump station at the Michoud Assembly Facility seems within a reasonable range for specialized industrial construction. Benchmarking against similar projects for critical infrastructure upgrades in large federal facilities would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the contractor assumed significant cost risk, which can be a positive indicator for the government if managed effectively. The absence of extensive modifications or change orders, if applicable, would further support a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of six bidders (no) suggests a healthy level of competition for this project. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and technical solutions.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiary is the Department of Defense, specifically the U.S. Army, ensuring the operational continuity of the Michoud Assembly Facility. The project delivers essential infrastructure upgrades by constructing a redundant pump station, enhancing the reliability of critical systems. The geographic impact is localized to New Orleans, Louisiana, where the Michoud Assembly Facility is located. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the local Louisiana area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Dependence on the contractor's ability to manage complex construction schedules effectively.
Risk of delays if permitting or regulatory approvals are not secured promptly.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
Full and open competition with multiple bidders suggests a competitive market.
Award to a joint venture may indicate specialized expertise brought to the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the maintenance and upgrade of critical government facilities. The market for such specialized construction services is often characterized by a mix of large, established firms and smaller, specialized contractors. The value of this contract is moderate within the context of large federal infrastructure projects.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Broadmoor Pittman JV, chooses to engage them. Without specific subcontracting plans or goals, the direct benefit to the small business ecosystem from this particular prime contract is uncertain.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting mechanisms, although detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Michoud Assembly Facility Operations and Maintenance
Department of Defense Infrastructure Modernization Programs
Army Corps of Engineers Construction Contracts
Federal Building and Facility Construction

Risk Flags

Potential for schedule delays due to complexity of integrating new infrastructure.
Risk of unforeseen site conditions impacting cost and timeline.
Need for robust quality assurance to ensure system reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to BROADMOOR PITTMAN JV. TAS::96 3122::TAS BUILDING 449 REDUNDANT PUMP STATION MICHOUD ASSEMBLY FACILITY NEW, ORLEANS, LAS

Who is the contractor on this award?

The obligated recipient is BROADMOOR PITTMAN JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2010-12-10. End: 2012-12-19.

What is the track record of Broadmoor Pittman JV in executing similar federal construction projects?

Assessing the track record of Broadmoor Pittman JV requires examining their past performance on federal contracts, particularly those involving infrastructure and specialized construction like pump stations. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key indicators to look for include timely completion, adherence to budget, quality of work, and any history of disputes or contract terminations. A joint venture structure might suggest a combination of established capabilities, but understanding the individual entities' histories within the JV is also important for a comprehensive assessment of their reliability and expertise for this specific project.

How does the awarded price of $20.8 million compare to similar redundant pump station projects for federal facilities?

To benchmark the $20.8 million award, one would need to identify comparable federal construction projects for redundant pump stations at large assembly or industrial facilities. Factors such as project scope, size (e.g., pumping capacity, square footage), complexity, geographic location (influencing labor and material costs), and the year of award are critical for a fair comparison. Data from publicly available contract databases (like FPDS) can be queried for similar projects. If this contract's price per unit of capacity or per square foot falls within or below the range of comparable projects, it suggests good value. Conversely, a significantly higher price would warrant further investigation into potential justifications like unique site challenges or advanced technological requirements.

What are the primary risks associated with the construction of a redundant pump station at a facility like Michoud?

Key risks in constructing a redundant pump station at a facility like the Michoud Assembly Facility include unforeseen subsurface conditions (e.g., soil stability, groundwater issues), potential environmental concerns during excavation or dewatering, and the integration of new systems with existing infrastructure. Schedule risks are also significant, stemming from potential delays in material procurement, labor availability, weather impacts, and the need for specialized equipment. Furthermore, ensuring compliance with stringent safety regulations and environmental standards adds complexity. The firm fixed-price nature of the contract shifts financial risk to the contractor, but risks related to project delays, quality, and integration remain critical considerations for the government's oversight.

What is the historical spending pattern for construction and infrastructure upgrades at the Michoud Assembly Facility?

Analyzing historical spending at the Michoud Assembly Facility for construction and infrastructure upgrades would involve reviewing federal procurement data over several fiscal years. This would reveal the frequency, scale, and types of projects undertaken, as well as the primary contracting vehicles and awardees. Understanding past spending trends can help contextualize the $20.8 million pump station contract, indicating whether it represents a typical investment or a significant deviation. It can also highlight recurring needs or systemic issues at the facility that necessitate such upgrades, providing insights into the long-term capital investment strategy for the site.

How does the firm fixed-price (FFP) contract type influence cost control and contractor performance for this project?

The Firm Fixed-Price (FFP) contract type is generally favored by the government for projects where the scope of work is well-defined, as it places the primary risk of cost overruns on the contractor. For this pump station project, the FFP structure incentivizes the contractor, Broadmoor Pittman JV, to manage costs efficiently and complete the work within the agreed-upon $20.8 million. This can lead to better cost certainty for the government. However, it also means that the contractor may be less inclined to incorporate changes or improvements that were not explicitly defined in the original scope, potentially requiring formal change order negotiations if modifications become necessary. Effective government oversight is still crucial to ensure quality and adherence to specifications despite the FFP structure.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127810R0003

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2740 N ARNOLD, METAIRIE, LA, 70002

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,848,686

Exercised Options: $20,848,686

Current Obligation: $20,848,686

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline