DoD Awards $9.78M Building Annex Construction to Herman Construction Group

Contract Overview

Contract Amount: $9,778,848 ($9.8M)

Contractor: Herman Construction Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-02

End Date: 2019-09-09

Contract Duration: 768 days

Daily Burn Rate: $12.7K/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: CONSTRUCTION OF BUILDING 3000 ANNEX IGF::OT::IGF

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to HERMAN CONSTRUCTION GROUP, INC. for work described as: CONSTRUCTION OF BUILDING 3000 ANNEX IGF::OT::IGF Key points: 1. Contract awarded for building annex construction. 2. Herman Construction Group, Inc. is the contractor. 3. Department of Defense is the agency. 4. Project located in California. 5. Firm Fixed Price contract type.

Value Assessment

Rating: fair

The contract value of $9.78 million for building construction appears within a reasonable range for similar projects. However, without specific details on the annex size, complexity, and location, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method might lead to less competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are used for this construction project. The limited competition may have resulted in a higher price than if broader competition was allowed.

Public Impact

Construction of a new building annex will provide expanded facilities. The project supports the Department of Defense's infrastructure needs. Local economy may benefit from construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may impact price efficiency.
  • Contract duration is substantial (768 days).

Positive Signals

  • Clear project objective: building annex construction.
  • Awarded to a specific construction group.

Sector Analysis

The construction sector is vital for infrastructure development. This project falls under commercial and institutional building construction, a segment that can see significant variation in costs based on project scope and location.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

Oversight would typically involve project management, quality control, and financial monitoring by the Department of the Army to ensure the annex is built to specifications and within budget.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for higher costs due to limited competition.
  • Lack of transparency regarding source exclusion.
  • Long contract duration could introduce risks.
  • No explicit mention of small business utilization.

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to HERMAN CONSTRUCTION GROUP, INC.. CONSTRUCTION OF BUILDING 3000 ANNEX IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is HERMAN CONSTRUCTION GROUP, 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 $9.8 million.

What is the period of performance?

Start: 2017-08-02. End: 2019-09-09.

What specific factors contributed to the exclusion of other sources in the competition?

The exclusion of sources suggests potential reasons such as specific technical requirements, unique capabilities needed, or a previous relationship with the awarded contractor. Understanding these reasons is crucial to assess if the limited competition was justified and if it truly served the government's best interest in terms of cost and performance.

How does the final cost compare to the initial estimated cost or benchmark for similar annexes?

Without access to the initial estimates or a detailed benchmark for comparable annexes of similar size and complexity in California, it's challenging to definitively assess cost-effectiveness. A comparison against industry standards and government cost databases would be necessary to evaluate if the $9.78 million represents good value.

What are the key performance indicators (KPIs) for this construction contract, and how is adherence monitored?

Key performance indicators likely include adherence to the construction schedule, quality of materials and workmanship, safety compliance, and final delivery by the specified end date. Monitoring would involve regular site inspections, progress reports, and potentially third-party quality assurance reviews by the Department of the Army.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912PL17R0012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2060 WINERIDGE PL SUITE A, ESCONDIDO, CA, 92029

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,778,848

Exercised Options: $9,778,848

Current Obligation: $9,778,848

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912PL17D0026

IDV Type: IDC

Timeline

Start Date: 2017-08-02

Current End Date: 2019-09-09

Potential End Date: 2019-09-09 00:00:00

Last Modified: 2026-01-13

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