Interior Department awards $2.75M contract for Fort Wood and Battery Park facility upgrades

Contract Overview

Contract Amount: $2,753,103 ($2.8M)

Contractor: JAY Shapiro & Associates Inc

Awarding Agency: Department of the Interior

Start Date: 2023-03-02

End Date: 2026-06-25

Contract Duration: 1,211 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STLI CMR SERVICES (3) - REHABILITATE TERREPLEIN AT FORT WOOD / REHABILITATE MAIN IMMIGRATION BUILDING EXTERIOR COMPONENTS / RELOCATE FERRY EMBARKATION & SECURITY SCREENING OPERATIONS IN BATTERY PARK

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of the Interior obligated $2.8 million to JAY SHAPIRO & ASSOCIATES INC for work described as: STLI CMR SERVICES (3) - REHABILITATE TERREPLEIN AT FORT WOOD / REHABILITATE MAIN IMMIGRATION BUILDING EXTERIOR COMPONENTS / RELOCATE FERRY EMBARKATION & SECURITY SCREENING OPERATIONS IN BATTERY PARK Key points: 1. Contract focuses on rehabilitation and relocation of critical infrastructure. 2. Competition was robust, suggesting potential for competitive pricing. 3. Project duration is substantial, indicating complex scope. 4. Firm-fixed-price contract type shifts risk to the contractor. 5. No small business set-aside, but subcontracting opportunities may exist. 6. Geographic focus on New York City infrastructure.

Value Assessment

Rating: good

The contract value of $2.75 million for rehabilitation and relocation services appears reasonable given the scope, which includes multiple facilities and a significant duration of over three years. Benchmarking against similar large-scale construction and renovation projects for federal facilities in high-cost areas like New York City suggests this is within a typical range. The firm-fixed-price structure indicates that the contractor is responsible for cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive, indicating that multiple contractors were interested and capable of performing the work. A higher number of bidders typically leads to better price discovery and can result in more competitive pricing for the government, as contractors vie for the award.

Taxpayer Impact: The robust competition suggests that taxpayer dollars are likely being used efficiently, as the government received multiple proposals and could select the best value offer. This process helps ensure a fair market price is achieved.

Public Impact

Benefits federal agencies operating at Fort Wood and Battery Park by improving essential facilities. Services include rehabilitation of existing structures and relocation of operational functions. Geographic impact is concentrated in New York City, specifically at Fort Wood and Battery Park. Workforce implications include potential employment for construction trades and related professionals in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of infrastructure projects.
Ensuring quality of rehabilitation work to meet long-term durability standards.
Managing potential cost fluctuations in materials and labor over the contract period.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive award process.
Contractor's successful completion of similar projects would be a positive signal.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often involves large-scale projects for government facilities, including renovations, new construction, and infrastructure upgrades. Comparable spending benchmarks for similar rehabilitation projects can vary widely based on location, scope, and specific building types, but projects of this magnitude in urban centers typically represent substantial investments.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific small business participation requirements were mandated. While this means direct set-aside benefits are absent, the prime contractor, JAY SHAPIRO & ASSOCIATES INC, may still engage small businesses for subcontracting opportunities to fulfill project needs. The overall impact on the small business ecosystem will depend on the prime contractor's subcontracting strategy and the availability of qualified small businesses for specialized construction services.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service, a division of the Department of the Interior. Accountability measures will be embedded in the contract's performance standards, delivery schedules, and payment terms. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building and Facilities Construction
National Park Service Infrastructure Projects
Department of the Interior Capital Improvements
New York City Public Works
Military Base Rehabilitation Projects

Risk Flags

Potential for cost overruns if contractor mismanages risks under FFP.
Risk of schedule delays impacting operational continuity.
Ensuring long-term durability and quality of rehabilitation work.
Coordination challenges across multiple project sites (Fort Wood and Battery Park).

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.8 million to JAY SHAPIRO & ASSOCIATES INC. STLI CMR SERVICES (3) - REHABILITATE TERREPLEIN AT FORT WOOD / REHABILITATE MAIN IMMIGRATION BUILDING EXTERIOR COMPONENTS / RELOCATE FERRY EMBARKATION & SECURITY SCREENING OPERATIONS IN BATTERY PARK

Who is the contractor on this award?

The obligated recipient is JAY SHAPIRO & ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2023-03-02. End: 2026-06-25.

What is the track record of JAY SHAPIRO & ASSOCIATES INC with federal contracts, particularly in construction and rehabilitation?

A thorough review of JAY SHAPIRO & ASSOCIATES INC's federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including their size, scope, and complexity. Key indicators to look for include on-time and on-budget delivery, quality of work, and any history of disputes or contract terminations. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be crucial for this analysis. Without specific data on their past performance, it's difficult to definitively assess their capability for this particular project, though the award itself suggests they met initial qualification criteria.

How does the $2.75 million contract value compare to similar rehabilitation projects for federal facilities in New York City?

Benchmarking the $2.75 million contract value requires comparing it to similar projects in terms of scope (rehabilitation, relocation), facility type (institutional, commercial), and location (New York City). Projects involving historic building restoration or complex infrastructure upgrades in high-cost urban areas typically command higher prices. For instance, a similar-sized rehabilitation of a federal office building or a critical infrastructure component in Manhattan could range from $1 million to over $5 million, depending on the specific challenges. The duration of over three years also suggests a significant scope that justifies the investment. A detailed comparison would involve analyzing the square footage, specific systems being upgraded (HVAC, electrical, structural), and the level of historical preservation required.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential schedule delays due to unforeseen site conditions, complex construction in occupied or sensitive areas, and fluctuations in material costs over the 1211-day duration. The firm-fixed-price (FFP) contract type mitigates cost overrun risk for the government by placing responsibility on the contractor. However, this can increase contractor risk, potentially leading to quality compromises if not managed well. Mitigation strategies typically involve robust project management by the National Park Service, clear performance specifications, regular site inspections, and potentially contingency planning for material price escalation if not fully accounted for in the FFP. The contractor's own risk management plan will also be critical.

How effective is the full and open competition process in ensuring value for taxpayer money in this specific instance?

The full and open competition, with seven bids received, is a strong indicator of potential value for taxpayer money. This process allows the government to solicit proposals from a wide range of qualified contractors, fostering competition that typically drives down prices and encourages innovation. The agency can then evaluate bids based on both price and non-price factors (e.g., technical approach, past performance) to select the best value. The presence of multiple bidders suggests that the government had a good selection pool, increasing the likelihood that the awarded contract represents a fair market price and meets the required technical specifications efficiently.

What is the historical spending pattern for similar construction and rehabilitation services by the National Park Service or Department of the Interior?

Historical spending patterns for the National Park Service (NPS) and the Department of the Interior (DOI) on construction and rehabilitation services would likely show significant investment in maintaining and upgrading federal properties, especially historic sites and national parks. Annual spending can fluctuate based on budget appropriations, major infrastructure initiatives, and emergency repairs. For example, the NPS might allocate hundreds of millions annually to capital improvements, with individual projects ranging from minor repairs to multi-million dollar overhauls of visitor centers, historic buildings, or park infrastructure like roads and utilities. This $2.75 million contract appears to be a mid-to-large size project within that broader spending context.

Are there any specific performance metrics or deliverables outlined in the contract that will be used to measure success?

While the provided data does not detail specific performance metrics, federal contracts of this nature typically include detailed statements of work (SOW) and performance standards. These would outline required deliverables, quality standards, timelines for milestones (e.g., design completion, specific construction phases), and reporting requirements. Success would likely be measured against adherence to these specifications, timely completion of phases, quality of workmanship (e.g., through inspections and testing), and final acceptance of the rehabilitated facilities. The firm-fixed-price nature implies that meeting these defined requirements within the agreed price is paramount for contractor success.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1589354

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44A PEAPACK RD, FAR HILLS, NJ, 07931

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,753,103

Exercised Options: $2,753,103

Current Obligation: $2,753,103

Actual Outlays: $1,935,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F0091V

IDV Type: FSS

Timeline