DoD's $23.9M Picatinny Arsenal construction contract awarded to Helle, Austin Co. Inc. under full and open competition

Contract Overview

Contract Amount: $23,901,530 ($23.9M)

Contractor: Helle, Austin CO Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2013-08-15

Contract Duration: 1,420 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF PHS&T COMPLEX PICATINNY ARSENAL, NJ

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to HELLE, AUSTIN CO INC for work described as: CONSTRUCTION OF PHS&T COMPLEX PICATINNY ARSENAL, NJ Key points: 1. The contract value of $23.9 million for construction services at Picatinny Arsenal represents a significant investment in military infrastructure. 2. Awarded under full and open competition, the contract suggests a competitive bidding process aimed at achieving fair market value. 3. The duration of 1420 days indicates a substantial and complex construction project. 4. The firm-fixed-price contract type shifts performance risk to the contractor, Helle, Austin Co. Inc. 5. The project's location in New Jersey places it within a region with established construction industry capacity. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by the award type.

Value Assessment

Rating: fair

Benchmarking the value of this $23.9 million construction contract is challenging without detailed project specifications and comparable market data for similar PHS&T complex constructions. However, the firm-fixed-price award suggests that the contractor assumed the risk for cost overruns, which can sometimes lead to higher initial bids. The number of bids received (15) provides some indication of market interest, but without knowing the quality and scope of those bids, it's difficult to definitively assess value for money. Further analysis would require comparing the final cost against industry standards for similar military construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, indicating that all responsible sources were permitted to submit bids. Fifteen bids were received, suggesting a healthy level of interest from the construction market for this project. A competitive environment with multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The 15 bids received suggest that the government had a good selection of offers to choose from, increasing the likelihood of securing a cost-effective solution.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, gaining enhanced physical security, storage, and transportation capabilities at Picatinny Arsenal. The project delivers essential infrastructure improvements, likely enhancing operational readiness and logistical support for military operations. The geographic impact is concentrated in New Jersey, specifically at Picatinny Arsenal, supporting regional economic activity through construction jobs and material procurement. The construction workforce in New Jersey and surrounding areas would have benefited from employment opportunities during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for unforeseen construction challenges.
Risk associated with the contractor's past performance and ability to deliver complex construction projects on time and within budget.
The duration of the project (1420 days) increases the exposure to market fluctuations in material costs and labor availability.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type transfers cost risk to the contractor.
Multiple bids (15) suggest strong market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for federal construction projects is substantial, driven by the need to maintain and upgrade military bases, government facilities, and critical infrastructure. Spending in this sector is influenced by government appropriations, national security priorities, and infrastructure investment initiatives. Comparable spending benchmarks would involve analyzing other large-scale military construction projects awarded by the Department of Defense.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best overall offer through full and open competition, rather than prioritizing small business participation at the prime contract level. The impact on the small business ecosystem would depend on whether the prime contractor, Helle, Austin Co. Inc., voluntarily engages small businesses for subcontracting opportunities.

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. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price and schedule. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not be publicly disclosed.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for schedule slippage due to project complexity and duration.
Risk of cost increases if unforeseen site conditions or material price volatility occurred, despite the fixed-price nature.
Contractor performance risk: ensuring quality and timely completion by Helle, Austin Co. Inc.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to HELLE, AUSTIN CO INC. CONSTRUCTION OF PHS&T COMPLEX PICATINNY ARSENAL, NJ

Who is the contractor on this award?

The obligated recipient is HELLE, AUSTIN CO 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 $23.9 million.

What is the period of performance?

Start: 2009-09-25. End: 2013-08-15.

What was the specific scope of work for the PHS&T Complex construction at Picatinny Arsenal?

The provided data does not detail the specific scope of work for the PHS&T (Physical Security, Housing, Storage, and Transportation) Complex construction at Picatinny Arsenal. However, PHS&T complexes typically involve the construction or renovation of facilities designed for secure storage of sensitive materials, housing for personnel, and transportation hubs for logistical operations. This could include administrative buildings, warehouses, specialized storage units, vehicle maintenance areas, and associated infrastructure like roads, utilities, and security fencing. The firm-fixed-price nature of the contract suggests a well-defined scope was established prior to bidding.

How did the final contract price compare to the initial estimated cost or baseline budget?

The available data only provides the awarded contract amount of $23,901,530. It does not include information on the initial estimated cost or baseline budget for the project. Therefore, a comparison to assess potential cost savings or overruns relative to the initial budget cannot be made. For a firm-fixed-price contract, the awarded amount represents the government's commitment, assuming the contractor successfully meets all contract requirements. Further analysis would require access to pre-award cost estimates or internal government budget documents.

What is the track record of Helle, Austin Co. Inc. in completing similar federal construction projects?

The provided data identifies Helle, Austin Co. Inc. as the contractor but does not offer details on their track record with federal construction projects. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS, which often contain records of past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A review of their past performance on similar-sized and complex construction projects would be crucial for understanding their reliability and capability.

Were there any significant delays or cost changes during the contract performance period?

The data indicates a contract award date of September 25, 2009, and an estimated completion date of August 15, 2013, resulting in a duration of 1420 days. However, it does not specify whether the project was completed on time or if there were any modifications, change orders, or delays that impacted the cost or schedule. For firm-fixed-price contracts, significant changes often require contract modifications, which would typically be documented in contract modification databases. Without access to these records, it's impossible to determine if there were delays or cost changes.

How does the awarded amount of $23.9 million compare to other construction contracts for similar military facilities?

Comparing the $23.9 million award for the PHS&T Complex construction requires identifying comparable projects in terms of size, scope, and facility type. Military construction projects vary widely in cost based on location, security requirements, and specific functionalities. Without detailed project specifications for this contract and data on other PHS&T or similar secure facility constructions, a direct comparison is difficult. However, $23.9 million is a substantial sum, suggesting a significant construction undertaking. Benchmarking would involve analyzing the cost per square foot or cost per functional unit for similar DoD facilities.

What were the key performance indicators (KPIs) used to evaluate the success of this construction project?

The provided data does not specify the key performance indicators (KPIs) used for this contract. Typically, for construction projects, KPIs would include adherence to schedule, compliance with quality standards and specifications, safety performance (e.g., incident rates), and final cost management. For a firm-fixed-price contract, the primary KPI for the government is the successful delivery of the completed facility according to the contract's technical requirements within the agreed-upon price. The contractor's performance would be formally assessed, often through systems like CPARS.

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: W912DS09R0008

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 886 POMPTON AVE STE B2, CEDAR GROVE, NJ, 11

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

Financial Breakdown

Contract Ceiling: $23,901,530

Exercised Options: $23,901,530

Current Obligation: $23,901,530

Contract Characteristics

Cost or Pricing Data: NO

Timeline