DoD's $30M temporary roofing contract for Puerto Rico awarded to Power & Instrumentation Services Inc

Contract Overview

Contract Amount: $30,125,009 ($30.1M)

Contractor: Power & Instrumentation Services Inc

Awarding Agency: Department of Defense

Start Date: 2017-11-21

End Date: 2018-03-31

Contract Duration: 130 days

Daily Burn Rate: $231.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF TEMPORARY ROOFING PUERTO RICO

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Defense obligated $30.1 million to POWER & INSTRUMENTATION SERVICES INC for work described as: IGF::OT::IGF TEMPORARY ROOFING PUERTO RICO Key points: 1. Contract awarded for emergency roofing services following Hurricane Maria. 2. The contract duration was relatively short, aligning with immediate post-disaster needs. 3. The firm fixed-price structure aimed to control costs for temporary repairs. 4. The award was made under full and open competition after exclusion of sources, suggesting a specific justification for the competition method. 5. The contract was a delivery order, indicating it was part of a larger indefinite delivery contract or a pre-existing agreement. 6. The geographic focus was Puerto Rico, a region heavily impacted by the hurricane.

Value Assessment

Rating: fair

The contract value of approximately $30.1 million for temporary roofing services in Puerto Rico appears to be within a reasonable range for emergency disaster response. However, without specific details on the scope of work, the number of structures repaired, or the extent of damage addressed, a precise value-for-money assessment is challenging. Benchmarking against similar post-disaster roofing contracts would provide a clearer picture of whether the pricing was competitive for the services rendered. The firm fixed-price nature suggests an attempt to cap costs, but the overall efficiency depends on the execution and the actual needs met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded, likely due to specific requirements or circumstances related to the emergency response. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower field than a standard full and open competition. This could impact price discovery and potentially lead to higher prices if the excluded sources represented significant competition.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may limit the competitive pressure on pricing, potentially resulting in less favorable terms for taxpayers compared to a truly unrestricted competition.

Public Impact

The primary beneficiaries were residents and entities in Puerto Rico requiring urgent roof repairs after Hurricane Maria. Services delivered included temporary roofing solutions to mitigate further damage from the elements. The geographic impact was concentrated in Puerto Rico, specifically areas most affected by the hurricane. The contract supported the immediate recovery and stabilization efforts in the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to assess the true value and efficiency of the spending.
The 'exclusion of sources' clause in the competition method warrants further investigation into the rationale and potential impact on pricing.
Limited information on the number of bidders and the specific criteria for exclusion hinders a comprehensive competition analysis.

Positive Signals

Awarded under a competitive process, indicating some level of market engagement.
Firm fixed-price contract type helps to establish a ceiling on costs.
Focus on temporary roofing addresses immediate post-disaster needs, crucial for recovery.

Sector Analysis

This contract falls within the construction and emergency services sector, specifically focusing on roofing repairs. The market for disaster recovery services can be highly specialized and demand-driven, often seeing increased activity and potentially higher pricing in the immediate aftermath of major natural disasters. The size of this contract, approximately $30 million, is significant for a temporary roofing effort, reflecting the scale of devastation in Puerto Rico post-Hurricane Maria. Comparable spending benchmarks would typically be assessed against other large-scale disaster relief roofing contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of emergency disaster response and the potential scale of work, it is possible that larger, more established contractors were prioritized or that subcontracting opportunities were not specifically mandated for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors and their role in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is assessed through the availability of contract data on public platforms like FPDS. The firm fixed-price nature provides some cost control, but oversight would focus on ensuring the services were delivered as specified and that the pricing was fair for the work performed.

Related Government Programs

Hurricane Maria Disaster Relief Efforts
Department of Defense Emergency Procurement
Puerto Rico Reconstruction Projects
Temporary Infrastructure Repair Contracts

Risk Flags

Potential for cost overruns due to emergency conditions.
Logistical challenges in remote or disaster-stricken areas.
Quality control for temporary repairs.
Fairness of pricing in a high-demand, post-disaster market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to POWER & INSTRUMENTATION SERVICES INC. IGF::OT::IGF TEMPORARY ROOFING PUERTO RICO

Who is the contractor on this award?

The obligated recipient is POWER & INSTRUMENTATION SERVICES 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 $30.1 million.

What is the period of performance?

Start: 2017-11-21. End: 2018-03-31.

What was the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award?

The justification for excluding certain sources under a 'full and open competition after exclusion of sources' award typically stems from specific, documented requirements that only a subset of potential contractors can meet. For a disaster response scenario like temporary roofing in Puerto Rico post-Hurricane Maria, these exclusions could be based on factors such as the contractor's demonstrated ability to mobilize rapidly in a disaster zone, possession of specialized materials or equipment needed for immediate deployment, prior experience with similar emergency conditions, or specific security clearances required for access to affected areas. The contracting officer must document the rationale, ensuring it is in the government's best interest and that the exclusion does not unduly restrict competition. Without the specific contract file documentation, the precise reasons remain speculative, but they are intended to ensure the most capable and responsive vendors are considered for urgent needs.

How does the $30.1 million cost compare to other federal disaster roofing contracts of similar scale?

Comparing the $30.1 million cost of this temporary roofing contract to other federal disaster roofing contracts requires access to detailed data on scope, duration, location, and the specific disaster context. However, in the immediate aftermath of a catastrophic event like Hurricane Maria, costs for essential services like temporary roofing can be significantly higher due to urgency, logistical challenges, and limited available resources. Contracts awarded under emergency procurement authorities often have different pricing structures than routine procurements. To benchmark effectively, one would need to identify contracts with similar square footage of roofing, number of units repaired, and the severity of the disaster. Anecdotal evidence from other major hurricane responses suggests that multi-million dollar contracts for temporary repairs are common, but the 'value for money' is highly dependent on the specific circumstances and the efficiency of the contractor's execution.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks associated with this temporary roofing contract likely included logistical challenges in delivering materials and personnel to Puerto Rico post-hurricane, potential for cost overruns due to unforeseen site conditions or material price fluctuations, contractor performance issues (delays, quality of work), and ensuring fair pricing in an emergency market. Mitigation strategies would have included the firm fixed-price contract type to cap costs, clear performance standards and delivery schedules, pre-qualification of contractors for rapid response capabilities, and government oversight to monitor progress and quality. The 'exclusion of sources' might also have been a risk mitigation strategy to ensure only capable vendors were considered. However, the effectiveness of these mitigations depends heavily on the specific contract clauses and the diligence of government oversight.

What was the track record of Power & Instrumentation Services Inc. with federal contracts prior to this award?

Information regarding the specific track record of Power & Instrumentation Services Inc. with federal contracts prior to this $30.1 million award is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, types of services rendered, contract values, and any instances of disputes or contract terminations. Federal procurement databases often contain this information, allowing analysts to gauge a contractor's reliability, experience, and compliance with federal regulations. Without this historical data, it's difficult to definitively assess their suitability and past performance beyond the context of this specific contract.

How did the contract duration of 130 days align with the post-hurricane recovery timeline in Puerto Rico?

The contract duration of 130 days (approximately 4.3 months) for temporary roofing services was relatively short, reflecting the immediate and urgent need for repairs following Hurricane Maria's landfall in September 2017. The contract start date of November 21, 2017, and end date of March 31, 2018, indicate that it covered a critical period in the initial phase of recovery. While temporary solutions are not permanent fixes, this timeframe suggests an effort to provide essential protection against further weather damage while longer-term reconstruction planning and execution were underway. The duration appears appropriate for addressing immediate, widespread needs for temporary shelter stabilization.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

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: W9127818R0015

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE BETANCES 49 BO PUEBLO, VEGA BAJA, PR, 00693

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,125,009

Exercised Options: $30,125,009

Current Obligation: $30,125,009

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0027

IDV Type: IDC

Timeline