Army Awards $18.5M for Fresno ARC Construction via Full and Open Competition

Contract Overview

Contract Amount: $26,508,790 ($26.5M)

Contractor: HAL Hays Construction, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-01-21

End Date: 2018-11-20

Contract Duration: 1,034 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF AWARDING BASE ITEMS PLUS OPTIONS 11, 13 AND 14 FOR THE CONSTRUCTION OF AN ARC AT FRESNO, CA IN THE AMOUNT OF $18,508,130.25.

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91355

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to HAL HAYS CONSTRUCTION, INC. for work described as: IGF::OT::IGF AWARDING BASE ITEMS PLUS OPTIONS 11, 13 AND 14 FOR THE CONSTRUCTION OF AN ARC AT FRESNO, CA IN THE AMOUNT OF $18,508,130.25. Key points: 1. The contract awarded to Hal Hays Construction, Inc. for $18,508,130.25 covers the construction of an ARC in Fresno, CA. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. The contract duration was 1034 days, ending in November 2018.

Value Assessment

Rating: good

The awarded amount of $18,508,130.25 appears reasonable for a large-scale construction project of this nature. Benchmarking against similar government construction contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Local economic impact through construction jobs and material sourcing in Fresno, CA. Development of a new facility for the Department of the Army, potentially enhancing operational capabilities. Potential for follow-on contracts or maintenance related to the new ARC facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'ARC' functionality and its necessity.
Potential for cost overruns in large construction projects, though not evident in the award amount.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Clear contract type (Firm Fixed Price) which helps control costs.
Defined project scope and location.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of government spending. Benchmarks for similar projects would typically consider factors like square footage, complexity, and location.

Small Business Impact

The data indicates that Hal Hays Construction, Inc. was awarded the contract, and it is noted that the company is not a small business (ss: false). Therefore, this contract did not directly benefit small businesses through prime award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal construction projects would apply, including site inspections and progress reporting.

Related Government Programs

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

Risk Flags

Significant increase in total obligation ($26.5M) compared to initial award ($18.5M).
Lack of clarity on the specific function and necessity of the 'ARC' facility.
No information provided on the number of bids received or the competitive landscape beyond 'full and open'.
The contractor is not a small business, indicating no direct small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to HAL HAYS CONSTRUCTION, INC.. IGF::OT::IGF AWARDING BASE ITEMS PLUS OPTIONS 11, 13 AND 14 FOR THE CONSTRUCTION OF AN ARC AT FRESNO, CA IN THE AMOUNT OF $18,508,130.25.

Who is the contractor on this award?

The obligated recipient is HAL HAYS CONSTRUCTION, 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 $26.5 million.

What is the period of performance?

Start: 2016-01-21. End: 2018-11-20.

What is the specific purpose and operational benefit of the 'ARC' facility being constructed?

The provided data does not specify the exact function or purpose of the 'ARC' (presumably an Administrative Resource Center or similar facility). Understanding its role within the Department of the Army's operations is crucial for assessing the true value and necessity of this $18.5 million investment. Further details would be needed to evaluate its strategic importance and long-term utility.

Were there any significant cost deviations or change orders during the contract period?

The data shows the initial award amount was $18,508,130.25, with a total obligation of $26,508,790.35. This indicates an increase of over $8 million from the initial award. While some increase is common in large construction projects due to unforeseen issues or scope adjustments, the magnitude warrants further investigation into the reasons for these changes and their justification.

How did the final cost compare to the initial bids received under the full and open competition?

The data indicates the contract was awarded via full and open competition, but it does not provide the number of bids received or the details of those bids. To assess the effectiveness of the competition in achieving the best value, it would be beneficial to know the range of bids submitted and the government's evaluation criteria used to select Hal Hays Construction, Inc. as the winning contractor.

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: SEALED BID

Solicitation ID: W912QR15B0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4181 LATHAM ST, RIVERSIDE, CA, 92501

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,363,805

Exercised Options: $26,508,790

Current Obligation: $26,508,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline