Army awards $17M Rolling Pin Barracks renovation to HHI Corporation under full and open competition

Contract Overview

Contract Amount: $17,019,577 ($17.0M)

Contractor: HHI Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2026-07-19

Contract Duration: 662 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ROLLING PIN BARRACKS RENOVATION

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to HHI CORPORATION for work described as: ROLLING PIN BARRACKS RENOVATION Key points: 1. Contract awarded for construction services, indicating a need for facility upgrades. 2. The firm-fixed-price contract type suggests a defined scope and cost control. 3. A duration of 662 days points to a substantial renovation project. 4. The contract was awarded after exclusion of sources, warranting further scrutiny of competition. 5. The project is located in Colorado, potentially impacting the local construction economy. 6. HHI Corporation is the selected contractor, their past performance will be key.

Value Assessment

Rating: fair

The contract value of $17.02 million for a barracks renovation appears within a reasonable range for a project of this scale, though specific benchmarks for barracks renovations are not readily available. The firm-fixed-price structure aims to control costs, but the final value will depend on the execution and any potential change orders. Without detailed cost breakdowns or comparisons to similar recent projects, a precise value-for-money assessment is challenging. The award to HHI Corporation suggests they met the government's price and technical requirements.

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 implies that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The exact reasons for this exclusion are critical to understanding the true level of competition. If the exclusion was based on legitimate technical requirements or security concerns, the competition might still be meaningful. However, if the exclusion was arbitrary, it could limit price discovery and potentially lead to higher costs.

Taxpayer Impact: The exclusion of sources, even within a framework of full and open competition, raises concerns about whether taxpayers received the most competitive pricing possible. It is essential to ensure that such exclusions are well-justified to prevent artificial limitations on the bidding pool.

Public Impact

Service members stationed at Rolling Pin Barracks will benefit from improved living and working conditions. The project will deliver essential construction and renovation services to a Department of the Army facility. The geographic impact is concentrated in Colorado, supporting local construction jobs and businesses. The renovation will likely involve a significant number of construction workers, boosting employment in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires careful examination to ensure it did not unduly restrict competition.
Lack of detailed cost breakdowns makes a thorough value-for-money assessment difficult.
The long project duration (662 days) increases the risk of cost overruns due to inflation or unforeseen issues.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to HHI Corporation indicates they met the government's technical and performance requirements.
The project addresses necessary facility upgrades for military personnel.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract falls under Commercial and Institutional Building Construction, a segment that includes the renovation and construction of non-residential buildings. Federal spending in this area is often driven by the need to maintain and modernize aging infrastructure, ensure operational readiness, and provide adequate facilities for government personnel. Benchmarks for similar projects would typically involve comparing cost per square foot, cost per unit of work (e.g., per room renovated), and overall project duration against industry standards and historical government contracts.

Small Business Impact

The 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 stemming from a set-aside requirement. However, the prime contractor, HHI Corporation, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy. The impact on the small business ecosystem would depend on HHI Corporation's subcontracting practices and the availability of qualified small businesses in the Colorado region capable of performing specialized construction tasks.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, which hold the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Maintenance
Barracks Modernization Programs

Risk Flags

Potential for limited competition due to source exclusion.
Risk of cost overruns due to extended project duration.
Unforeseen site conditions impacting schedule and budget.
Dependency on contractor's past performance for successful execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to HHI CORPORATION. ROLLING PIN BARRACKS RENOVATION

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 $17.0 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-07-19.

What is HHI Corporation's track record with the Department of the Army and similar construction projects?

Assessing HHI Corporation's track record requires a review of their past performance on federal contracts, particularly those with the Department of the Army. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. For a project of this magnitude, the Army would have likely conducted a thorough review of HHI's past performance, including their ability to manage complex construction projects, adhere to schedules, and maintain quality standards. Information on their experience with barracks renovations specifically would be a key factor in their selection. Without direct access to CPARS data or detailed project histories, it's difficult to provide a definitive assessment, but the award itself suggests a satisfactory performance history.

How does the $17.02 million cost compare to similar barracks renovation projects awarded by the Department of Defense?

Benchmarking the $17.02 million cost requires comparing it against similar barracks renovation projects. Key metrics for comparison would include cost per square foot, cost per occupant, or cost per room renovated. Factors such as the age and condition of the existing facility, the scope of work (e.g., structural repairs, MEP upgrades, interior finishes), and geographic location (which affects labor and material costs) significantly influence project costs. A preliminary assessment suggests the cost is within a plausible range for a large-scale renovation, but a detailed comparison would necessitate access to a database of comparable projects with similar scopes and timelines. The 'exclusion of sources' aspect also complicates direct price comparisons, as it might have influenced the bidding environment.

What are the specific risks associated with a 662-day construction timeline for a barracks renovation?

A 662-day (approximately 22-month) construction timeline for a barracks renovation presents several inherent risks. Firstly, there is an increased risk of cost escalation due to inflation affecting labor and material prices over an extended period. Secondly, unforeseen site conditions or structural issues discovered during demolition could lead to significant delays and change orders, impacting both schedule and budget. Thirdly, extended timelines can strain project management resources and potentially lead to a decline in contractor focus or quality over time. Finally, the prolonged absence of fully functional barracks could impact troop readiness and housing availability, requiring alternative arrangements that may incur additional costs for the government.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a nuanced approach. It signifies that the solicitation was intended to be open to all responsible sources, but specific entities were excluded from consideration prior to the solicitation being issued. The justification for such exclusions is critical. Common reasons include specific technical capabilities, security clearances, or past performance issues that disqualify certain contractors. If the exclusions were well-founded and documented, the competition among the remaining eligible bidders could still yield fair pricing. However, if the exclusions were arbitrary or overly restrictive, it could limit the competitive pool, potentially leading to less favorable pricing for the government and taxpayers. Understanding the rationale behind the exclusions is paramount to assessing the true level of competition and its impact on value.

How might the geographic location in Colorado influence the cost and execution of this renovation project?

The geographic location in Colorado can influence the cost and execution of this renovation project in several ways. Labor costs in Colorado, particularly in areas with strong economic activity or skilled labor shortages, might be higher compared to other regions. Material costs can also be affected by transportation expenses and local availability. Furthermore, Colorado's climate, with potential for harsh winters, could impose seasonal construction limitations, impacting the project schedule and potentially increasing costs if work needs to be phased or protected from weather. Local building codes, environmental regulations, and permitting processes specific to Colorado must also be adhered to, adding another layer of complexity and potential cost to the project.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128F18R0015

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

Financial Breakdown

Contract Ceiling: $17,019,577

Exercised Options: $17,019,577

Current Obligation: $17,019,577

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128F20D0014

IDV Type: IDC

Timeline