Last week, city council awarded the San Jacinto Park project to a company named Basic IDIQ. From the commentary and the news media reports, it seems that there is some controversy involving Basic IDIQ’s significant price difference in bidding on the project. Tomorrow I’ll delve more into the possible significance of the award and the price difference. However, I believe it is important to understand whom Basic IDIQ is before commenting on the significance of their bid and the significant price difference they quoted on the project.
According to their website, Basic IDIQ was created in 2002. Initially the company was part of Xserv Company and, according to its website; it successfully spun-off in 2007 as a stand-alone IDIQ type contracting company.
IDIQ is a federal government construction acronym that stands for “indefinite delivery/indefinite quantity”.
As best as I understand the scheme to be; it is a process whereby the government issues a contract for an unlimited amount of products or work for a fixed-period of time. Apparently, the process was setup to streamline the federal government purchasing processes. Basic IDIQ states that it is an “employee-owned” company with six offices in Texas cities and two in New Mexico.
According to a Form 5500 dated June 30, 2012 detailing the company’s Employee Stock Ownership Plan it reported having 15 “eligible” participants with one “retired or separated” participant receiving benefits. Ten other “retired or separated participants” are entitled to future benefits. It seems that 26 current or former employees participate in the company’s stock ownership plan.
The award of the San Jacinto Park project is not the company’s first contract in El Paso. Basic IDIQ worked on the build-out of the second floor of the El Paso Times building in anticipation of city government moving into the building. They also worked on the first floor of the building once the news staff completed their move out.
In late 2013, Basic IDIQ appears to have been awarded the “Construction Supervisor/Contractor for the 22 Self-Help Homes Project” by the County for $274,000 according to a draft contract that I reviewed. There are other local government contracts going as far back as 2007, namely the city, which Basic IDIQ has been awarded and presumably substantially completed or has completed.
In my research, I could not find any reference to complaints about the quality of their work or failure to complete a project.
Although David Karlsruher has labelled this bid as “irresponsible” and makes the allegation that federal apprenticeship laws are somehow being circumvented the fact remains that Basic IDIQ has a significance presence in the city and it appears that it has landed several local government contracts.
The other complaints about the bid seem to come from general contractors, who coincidently were significantly underbid by Basic IDIQ. Both Karlsruher and the bidders that were out bid on the contract seem to have a financial connection to government contracts therefore it makes sense that they would be instigating innuendo about an interloper taking business from them.
There is the issue of the significant price difference between the bid and that of the other “more local” bidders on the San Jacinto Park project. Lilly Limon voted against the award of the contract stating that she was troubled by the apparent low bid.
Tomorrow I’ll delve into what my thoughts on that issue. I just thought it is important to understand the company better before insinuating that they are “irresponsible” or an “out-of-town” interloper in the lucrative government construction work in El Paso.