DoD's $19.3M storm water project awarded to Garner Services, LLC, with a 688-day duration

Contract Overview

Contract Amount: $19,282,913 ($19.3M)

Contractor: Garner Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2010-08-19

Contract Duration: 688 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FURNISH AND INSTALL NEW STORM WATER

Place of Performance

Location: HAMMOND, LAKE County, INDIANA, 46320

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to GARNER SERVICES, LLC for work described as: FURNISH AND INSTALL NEW STORM WATER Key points: 1. The contract's value of $19.3 million for storm water services appears substantial, warranting a close look at the scope and deliverables. 2. Competition dynamics for this contract are unclear due to the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation, suggesting potential limitations. 3. The 'IN' status for Indiana indicates a specific geographic focus for this construction project. 4. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control. 5. The project's duration of 688 days indicates a significant, long-term undertaking in civil engineering construction. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted towards smaller enterprises.

Value Assessment

Rating: fair

The $19.3 million contract value for furnishing and installing new storm water systems is a significant investment. Benchmarking this against similar large-scale civil engineering projects would be crucial to assess value for money. The firm-fixed-price nature of the contract provides some cost certainty, but the lack of detailed performance metrics or comparison data makes a definitive value assessment challenging. Without more granular data on the scope of work and the specific systems installed, it's difficult to determine if the price is competitive or if it represents a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The exact reasons for this exclusion are not provided, which raises questions about the extent of true open competition. The number of bidders is not specified, making it difficult to assess the level of market interest and its impact on price discovery.

Taxpayer Impact: The limited competition, due to the exclusion of certain sources, may have resulted in a less competitive pricing environment, potentially leading to higher costs for taxpayers than if a broader competition had been pursued.

Public Impact

The primary beneficiaries are likely military installations or facilities managed by the Department of the Army, which require updated storm water management systems. The services delivered include the furnishing and installation of new storm water infrastructure, crucial for environmental compliance and facility maintenance. The geographic impact is concentrated in Indiana, where the project is located. Workforce implications may include employment opportunities for construction workers, engineers, and project managers involved in the civil engineering and installation aspects of the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition after source exclusion.
Lack of transparency regarding the reasons for excluding specific sources.
The significant contract value necessitates robust oversight to ensure proper execution and prevent cost overruns.

Positive Signals

Firm-fixed-price contract type can help control costs if managed effectively.
The project addresses critical infrastructure needs for storm water management.
Awarded to a single contractor, potentially streamlining project management and execution.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector involves the construction of infrastructure projects such as highways, streets, bridges, tunnels, and water and sewer systems. The market for such services is often characterized by large, complex projects requiring specialized equipment and expertise. Spending in this sector can fluctuate based on government infrastructure initiatives and defense spending priorities. Comparable benchmarks would involve analyzing other large-scale storm water management or civil engineering projects awarded by federal agencies.

Small Business Impact

The contract data indicates that this was not a small business set-aside, as 'sb' is false. Furthermore, the 'ss' (small business) flag is also false, suggesting no specific provisions were made for small business participation. This implies that the prime contractor, Garner Services, LLC, is likely a larger entity, and there is no explicit requirement for subcontracting to small businesses within the provided data. The impact on the small business ecosystem is therefore neutral to potentially negative if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. Transparency could be enhanced by making the contract's detailed scope of work and performance reports publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Army Corps of Engineers Civil Works Projects
Department of Defense Facilities Engineering
Storm Water Management Infrastructure Grants
Environmental Protection Agency Water Infrastructure Projects

Risk Flags

Limited competition due to source exclusion.
Lack of detailed performance metrics in public data.
Significant contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to GARNER SERVICES, LLC. FURNISH AND INSTALL NEW STORM WATER

Who is the contractor on this award?

The obligated recipient is GARNER SERVICES, 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 $19.3 million.

What is the period of performance?

Start: 2008-09-30. End: 2010-08-19.

What was the specific scope of work for furnishing and installing the new storm water system, and what factors contributed to the $19.3 million cost?

The provided data does not detail the specific scope of work beyond 'FURNISH AND INSTALL NEW STORM WATER.' The $19.3 million cost would typically encompass materials, labor, equipment, project management, design, and potentially site preparation and environmental compliance measures. Factors influencing the cost could include the complexity of the terrain, the volume of water to be managed, the type of materials used (e.g., concrete, piping, filtration systems), the duration of the installation period (688 days), and prevailing labor and material costs in Indiana. Without a detailed statement of work, a precise cost breakdown is not possible.

How does the $19.3 million contract value compare to similar storm water infrastructure projects undertaken by the Department of Defense or other federal agencies?

Direct comparison is challenging without specific project details. However, large-scale storm water management systems for military bases or federal facilities can range from several million to tens of millions of dollars, depending on the size of the installation, the environmental regulations, and the complexity of the required infrastructure. A $19.3 million project for furnishing and installing new systems suggests a significant undertaking, potentially involving extensive piping, retention ponds, or advanced treatment technologies. Benchmarking against projects with similar geographic scope, environmental challenges, and system complexity would be necessary for a meaningful comparison.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and how did this impact the bidding process?

The provided data does not specify the reasons for excluding certain sources. This designation typically occurs when a contracting officer determines that only a limited number of sources can meet the specific requirements, or when certain sources are deemed not responsible or capable. The impact on the bidding process could be a reduced number of potential bidders, potentially leading to less competitive pricing. If the exclusion was based on highly specialized capabilities or proprietary technology, it might be justifiable, but without further information, it raises concerns about the extent of market engagement.

What are the key performance indicators (KPIs) for this contract, and how was Garner Services, LLC's performance evaluated?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how Garner Services, LLC's performance was evaluated. For a construction contract of this nature, KPIs might typically include adherence to project schedule, quality of workmanship, compliance with safety regulations, and successful integration of the storm water system with existing infrastructure. Performance evaluation would likely involve regular site inspections, progress reports, and final acceptance testing by the government's technical representative.

What is the historical spending pattern for storm water infrastructure projects within the Department of the Army, and does this contract represent a significant deviation?

Historical spending on storm water infrastructure within the Department of the Army can vary significantly year to year, influenced by budget allocations, infrastructure modernization needs, and environmental compliance mandates. Without access to detailed historical spending data for this specific category, it's difficult to ascertain if this $19.3 million contract represents a significant deviation. However, large-scale civil engineering projects are a consistent component of military infrastructure investment, and this contract appears to be within the expected range for substantial infrastructure upgrades.

What are the potential risks associated with a firm-fixed-price contract for a long-duration construction project like this, and what mitigation strategies were likely employed?

The primary risk with a firm-fixed-price contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to financial distress or a decline in quality if corners are cut. For a long-duration project (688 days), risks include unforeseen site conditions, material price escalation, labor availability issues, and changes in regulatory requirements. Mitigation strategies likely employed by the government include thorough pre-award assessments of the contractor's financial stability and technical capability, detailed contract clauses addressing unforeseen conditions, and robust project oversight. The contractor would mitigate risks through detailed planning, contingency budgeting, and effective supply chain management.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P608R0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 348 S DIAMOND ST, NEW ORLEANS, LA, 70130

Business Categories: Category Business, Emerging Small Business, HUBZone Firm, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,567,933

Exercised Options: $19,282,913

Current Obligation: $19,282,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline