Tip Top Construction Corp awarded $21.4M contract for JFHQ-Project 520034 by Department of the Army

Contract Overview

Contract Amount: $21,374,178 ($21.4M)

Contractor: TIP TOP Construction Corp

Awarding Agency: Department of Defense

Start Date: 2011-09-08

End Date: 2014-04-18

Contract Duration: 953 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID FOR JFHQ-PROJECT 520034

Place of Performance

Location: KINGSHILL, SAINT CROIX County, VIRGIN ISLANDS OF THE U.S., 00850

Plain-Language Summary

Department of Defense obligated $21.4 million to TIP TOP CONSTRUCTION CORP for work described as: BASE BID FOR JFHQ-PROJECT 520034 Key points: 1. Contract awarded at a firm fixed price, indicating clear cost expectations. 2. The contract was competed under 'Full and Open Competition after Exclusion of Sources', suggesting a potentially limited but deliberate competitive process. 3. The duration of 953 days (approximately 2.6 years) suggests a substantial project scope. 4. The base bid amount of $21.4M provides a clear initial financial benchmark. 5. The contract falls under Commercial and Institutional Building Construction, a common sector for federal projects. 6. The award was made by the Department of the Army, a major federal contracting entity.

Value Assessment

Rating: fair

The base bid of $21.4M for JFHQ-Project 520034 sets the initial value. Without comparable contract data for similar JFHQ projects or specific construction types in the Virgin Islands, a precise value-for-money assessment is challenging. The firm fixed price structure aims to control costs, but the final expenditure could vary if modifications are issued. Benchmarking against typical commercial building construction costs in the region would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This solicitation method implies that while the competition was intended to be open, certain sources were excluded, potentially narrowing the field of bidders. The presence of 5 bidders suggests some level of competition, but the exclusion of sources raises questions about the breadth of market engagement and its potential impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to a truly open and unrestricted competition, as fewer potential offerors were considered.

Public Impact

The primary beneficiaries are likely the Joint Force Headquarters (JFHQ) and its personnel, who will utilize the facilities constructed or improved under this project. The project involves commercial and institutional building construction, likely delivering improved or new infrastructure. The geographic impact is concentrated in the Virgin Islands of the U.S., potentially stimulating local economic activity and employment. The contract could have implications for the local construction workforce in the Virgin Islands, providing employment opportunities during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition after Exclusion of Sources' method warrants scrutiny to understand the rationale behind excluding potential bidders.
Lack of detailed performance metrics or awardee past performance data makes it difficult to assess the contractor's likelihood of successful delivery.
The contract duration of 953 days presents a significant timeline, increasing the potential for unforeseen challenges or cost overruns if not managed effectively.

Positive Signals

The firm fixed price contract type provides cost certainty for the government, assuming no significant contract modifications.
The award to a single contractor (Tip Top Construction Corp) can streamline project management and communication.
The existence of 5 bidders indicates that there was some level of interest and capability within the market for this project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting landscape. Federal agencies frequently procure construction services for facilities, infrastructure, and upgrades. The market for such services is generally competitive, with numerous firms capable of undertaking large-scale projects. Benchmarking this contract's value against similar construction projects for government facilities, particularly in similar geographic regions, would provide further context on its cost-effectiveness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Tip Top Construction Corp, may choose to subcontract portions of the work to small businesses as part of their project execution strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. The firm fixed price nature of the contract provides a degree of accountability for the contractor to deliver the specified scope within the agreed-upon price. Transparency regarding contract modifications, performance reports, and any incurred costs would be subject to federal procurement regulations and agency policies. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

JFHQ Facilities Modernization
Department of Defense Construction Projects
Commercial Building Construction Contracts
Federal Infrastructure Development

Risk Flags

Limited Competition Potential
Extended Project Duration Risk
Unclear Rationale for Source Exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to TIP TOP CONSTRUCTION CORP. BASE BID FOR JFHQ-PROJECT 520034

Who is the contractor on this award?

The obligated recipient is TIP TOP CONSTRUCTION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2011-09-08. End: 2014-04-18.

What is the typical cost range for similar JFHQ construction projects in the Virgin Islands?

Determining the typical cost range for similar JFHQ construction projects specifically in the Virgin Islands is challenging without access to a comprehensive database of historical JFHQ projects and their associated costs, especially those located in the U.S. territories. Federal procurement data often aggregates construction projects by type and agency rather than by specific headquarters designation and location. However, general benchmarks for commercial and institutional building construction in island territories can be significantly higher than in mainland U.S. due to logistical challenges, material import costs, and potentially limited local labor pools. The $21.4 million award for JFHQ-Project 520034 would need to be compared against the scale, complexity, and specific requirements of other JFHQ facilities or comparable government buildings in similar economic and geographic contexts to ascertain its relative cost-effectiveness.

What was the rationale for excluding certain sources in the 'Full and Open Competition after Exclusion of Sources' process?

The 'Full and Open Competition after Exclusion of Sources' (FOUCES) is a less common solicitation method. The rationale for excluding specific sources typically stems from a determination by the agency that only certain responsible sources possess the particular capabilities, specialized experience, or proprietary information necessary to meet the government's requirements. This exclusion must be justified and documented, often relating to unique technical requirements, security clearances, or prior performance on related systems. Without specific documentation from the Department of the Army regarding JFHQ-Project 520034, the exact reasons for excluding sources remain unknown. However, such exclusions can limit competition and potentially increase costs if the pool of eligible bidders is significantly reduced.

How does the firm fixed price (FFP) contract type impact risk for the government and the contractor?

A Firm Fixed Price (FFP) contract places the majority of the risk on the contractor. For the government, the primary benefit is cost certainty; the price is set and generally not subject to upward adjustment unless the contract scope is formally changed through modifications. This protects the government from cost overruns due to contractor inefficiencies or unforeseen market fluctuations in labor or material costs. For the contractor, the risk is higher. They must accurately estimate all costs associated with performing the contract, including labor, materials, overhead, and profit. If their costs exceed their estimate, their profit margin shrinks, or they could incur a loss. Conversely, if they manage the project efficiently and keep costs below their estimate, their profit margin increases. This contract type incentivizes the contractor to control costs and perform efficiently.

What is the historical spending pattern for JFHQ-related construction projects by the Department of the Army?

Analyzing the historical spending patterns for JFHQ-related construction projects by the Department of the Army requires access to detailed federal procurement databases that can filter by agency, project type (specifically JFHQ construction), and contract vehicle. Without such specific data, it's difficult to provide precise historical spending figures. However, the Department of the Army, as a major component of the DoD, consistently invests significant funds in facilities and infrastructure to support its global operations. JFHQ facilities are critical for command and control, requiring substantial investment in construction, renovation, and maintenance. Historical trends likely show a continuous need for such construction, influenced by evolving military requirements, modernization efforts, and infrastructure upkeep. Spending levels can fluctuate based on budget allocations, strategic priorities, and the lifecycle of existing facilities.

What are the potential implications of the 953-day contract duration on project management and cost?

A contract duration of 953 days, approximately 2.6 years, indicates a substantial and complex construction project. For project management, this extended timeline necessitates robust planning, scheduling, and oversight to ensure milestones are met and the project stays on track. It increases the potential for scope creep if not managed tightly, and requires sustained coordination between the government and the contractor. From a cost perspective, a longer duration can expose the project to greater risks. Inflationary pressures on labor and materials can impact costs if not adequately accounted for in the initial pricing, although the FFP structure aims to mitigate this for the government. Furthermore, extended project timelines can lead to increased overhead costs for both parties and may require adjustments to funding schedules. Effective risk management and proactive communication are crucial to mitigate potential cost escalations and delays over such a long period.

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: SEALED BID

Solicitation ID: W9127P11B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5064 MOUNT WELCOME, CHRISTIANSTED, VI, 00820

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,374,178

Exercised Options: $21,374,178

Current Obligation: $21,374,178

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline