DoD awards $47M for Alternate Care Facility in NY, bypassing competition
Contract Overview
Contract Amount: $46,971,895 ($47.0M)
Contractor: Haugland Energy Group LLC
Awarding Agency: Department of Defense
Start Date: 2020-03-26
End Date: 2020-04-16
Contract Duration: 21 days
Daily Burn Rate: $2.2M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ALTERNATE CARE FACILITY (ACF): WESTCHESTER COMMUNITY CENTER - WHITE PLAINS, NY
Place of Performance
Location: WEST HARRISON, WESTCHESTER County, NEW YORK, 10604
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $47.0 million to HAUGLAND ENERGY GROUP LLC for work described as: ALTERNATE CARE FACILITY (ACF): WESTCHESTER COMMUNITY CENTER - WHITE PLAINS, NY Key points: 1. Significant spending on a short-term facility highlights emergency response needs. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The firm fixed-price contract type offers some cost certainty. 4. Construction sector spending for emergency facilities can be volatile.
Value Assessment
Rating: questionable
The $46.97M award for a 21-day facility is substantial. Benchmarking against typical construction costs for similar temporary structures is difficult due to the emergency nature, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the urgent need for an Alternate Care Facility during the COVID-19 pandemic. This limited competition prevented a broader price discovery process, potentially leading to a higher price than if multiple bids were solicited.
Taxpayer Impact: Taxpayers may have paid a premium due to the sole-source award during a critical public health crisis.
Public Impact
Ensured surge capacity for healthcare during a pandemic. Rapid deployment of essential medical infrastructure. Supported local economic activity through construction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-day cost
- Short duration, high value
Positive Signals
- Met critical need
- Rapid deployment
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector can fluctuate significantly based on economic conditions and government needs, particularly during emergencies. The benchmark for emergency facility construction is often higher due to urgency.
Small Business Impact
The contract was awarded to HAUGLAND ENERGY GROUP LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. The focus was on rapid deployment by a prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price was fair and reasonable given the circumstances. Post-award audits or reviews could assess the justification for bypassing competition.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potentially inflated price
- Limited transparency in price justification
- High cost for a short-duration asset
Tags
commercial-and-institutional-building-co, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.0 million to HAUGLAND ENERGY GROUP LLC. ALTERNATE CARE FACILITY (ACF): WESTCHESTER COMMUNITY CENTER - WHITE PLAINS, NY
Who is the contractor on this award?
The obligated recipient is HAUGLAND ENERGY GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $47.0 million.
What is the period of performance?
Start: 2020-03-26. End: 2020-04-16.
Was the firm fixed price sufficient to cover costs and profit given the emergency, or did it allow for excessive profit due to lack of competition?
The firm fixed-price contract aimed to cap costs, but without competition, it's difficult to ascertain if the price was truly fair. The urgency of the situation may have necessitated accepting a higher price to ensure rapid deployment. Further analysis of the contractor's cost structure and profit margins would be needed to determine if the price was excessive.
What were the specific risks associated with awarding this contract without competition, and how were they mitigated?
The primary risk was paying an inflated price due to the absence of competitive bidding. Other risks included potential delays if the chosen contractor couldn't perform, or quality issues. Mitigation likely involved pre-award due diligence on the contractor's capabilities and negotiating terms carefully, though the limited time frame constrained these efforts.
How effective was the Alternate Care Facility in meeting the projected healthcare surge needs during the pandemic?
The effectiveness of the ACF is measured by its operational success in alleviating pressure on existing hospitals. While the facility was established, its actual utilization and impact on patient care outcomes would require further data. Its mere existence provided crucial surge capacity, a key objective during the crisis.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912DS20R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11 COMMERCIAL STREET, PLAINVIEW, NY, 11803
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,971,895
Exercised Options: $46,971,895
Current Obligation: $46,971,895
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-26
Current End Date: 2020-04-16
Potential End Date: 2020-04-16 00:00:00
Last Modified: 2021-02-25
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