Treasury's Mint awards $1.36M renovation task order to The Riff Group, LLC for Philadelphia facility

Contract Overview

Contract Amount: $1,364,806 ($1.4M)

Contractor: THE Riff Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-09-22

End Date: 2028-09-14

Contract Duration: 1,819 days

Daily Burn Rate: $750/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PH 3RD FLOOR OFFICE RENOVATIONS SERVICES 2031JG23D00020 TASK ORDER ON PAR MNTP03B47300

Place of Performance

Location: PHOENIXVILLE, MONTGOMERY County, PENNSYLVANIA, 19460

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $1.4 million to THE RIFF GROUP, LLC for work described as: PH 3RD FLOOR OFFICE RENOVATIONS SERVICES 2031JG23D00020 TASK ORDER ON PAR MNTP03B47300 Key points: 1. The contract value of $1.36 million for office renovations appears reasonable for a project of this scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The project duration of approximately 5 years (including options) is substantial for renovation work, warranting close performance monitoring. 5. The contract falls within the Industrial Building Construction sector, a common area for federal real property maintenance and upgrades. 6. The award to The Riff Group, LLC, a relatively new entity based on available data, introduces some performance risk. 7. The contract is a task order under a larger IDIQ contract, indicating it's part of a broader procurement strategy.

Value Assessment

Rating: good

The $1.36 million award for office renovations is within a typical range for such projects, especially considering the 5-year performance period. Benchmarking against similar renovation contracts for federal office spaces of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price structure is advantageous, shifting cost risk to the contractor. However, without detailed scope of work and specific renovation requirements, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to lead to more competitive pricing and better value for the government. The use of a task order under an IDIQ contract suggests that the initial competition for the IDIQ vehicle was also broad.

Taxpayer Impact: Full and open competition maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and ultimately saving taxpayer dollars through price discovery.

Public Impact

The primary beneficiaries are the employees of the U.S. Mint who will work in modernized office spaces. The services delivered include the renovation of approximately 750 square feet of office space on the 3rd floor of a Philadelphia facility. The geographic impact is localized to the U.S. Mint's Philadelphia operations. The contract supports the construction and renovation workforce, potentially creating or sustaining jobs in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contractor, The Riff Group, LLC, appears to be a relatively new entity, which could present performance risks if they lack extensive experience with federal contracts of this scale.
The long performance period (up to 5 years) for a renovation task order warrants careful monitoring to ensure timely completion and quality of work.
The specific details of the renovation scope are not fully elaborated, which could lead to scope creep or change orders if not managed meticulously.

Positive Signals

The award was made under full and open competition, suggesting a robust vetting process and a competitive pricing environment.
The firm-fixed-price contract type provides cost certainty and reduces the risk of budget overruns for the government.
The contract is a task order against an existing IDIQ contract, implying the contractor has already met certain qualifications and performance standards for the parent contract.

Sector Analysis

This contract falls under the Industrial Building Construction sector, which encompasses a wide range of activities from new construction to renovation and repair of industrial and commercial facilities. Federal spending in this sector is significant, driven by the need to maintain and modernize government infrastructure. The U.S. Mint's spending on facility upgrades is typical for agencies managing physical assets. Comparable spending benchmarks would involve analyzing other federal renovation projects for office spaces, considering factors like square footage, complexity, and location.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The prime contractor, The Riff Group, LLC, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this task order will likely be managed by the U.S. Mint contracting office and potentially the contracting officer's representative (COR) assigned to the project. The firm-fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency is facilitated through federal contract databases where award information is published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Public Buildings Service contracts
Department of Defense facility renovation projects
Other agency office space modernization efforts

Risk Flags

Contractor performance risk due to potential lack of extensive federal renovation experience.
Risk of scope creep or change orders due to potentially undefined renovation details.
Potential for performance degradation over a long, 5-year task order period.
Risk associated with unforeseen site conditions or material cost fluctuations over the extended duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $1.4 million to THE RIFF GROUP, LLC. PH 3RD FLOOR OFFICE RENOVATIONS SERVICES 2031JG23D00020 TASK ORDER ON PAR MNTP03B47300

Who is the contractor on this award?

The obligated recipient is THE RIFF GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $1.4 million.

What is the period of performance?

Start: 2023-09-22. End: 2028-09-14.

What is the track record of The Riff Group, LLC with federal contracts, particularly in renovation projects?

Based on the provided data, The Riff Group, LLC is the prime contractor for this task order. Further investigation into federal contract databases (like SAM.gov or FPDS) would be necessary to ascertain their full track record. This includes examining past performance on similar renovation projects, contract values, and any reported performance issues or awards. As a relatively new entity, their experience might be limited, which could be a factor in assessing overall project risk. Understanding their history with federal agencies, including on-time delivery, budget adherence, and quality of work, is crucial for a comprehensive risk assessment.

How does the cost per square foot for this renovation compare to similar federal projects?

The total award is $1,364,806.46 for approximately 750 square feet of renovation. This equates to roughly $1,819.74 per square foot. This figure appears high for standard office renovations and would require detailed comparison against similar federal projects. Factors influencing cost per square foot include the complexity of the renovation (e.g., structural changes, MEP upgrades), the quality of finishes specified, and the geographic location's labor and material costs. Benchmarking against GSA renovation projects or similar agency-specific facility upgrades of comparable scope and quality is essential to determine if this represents good value for money.

What are the specific risks associated with the 5-year performance period for this renovation task order?

A 5-year performance period for a renovation task order is unusually long and presents several risks. Firstly, it increases the potential for contractor performance degradation over time, especially if the initial team disbands or motivation wanes. Secondly, it extends the window for unforeseen site conditions or material price fluctuations, which could impact the contractor's ability to maintain the firm-fixed price without compromising quality, or lead to change order requests. Thirdly, prolonged project duration can lead to obsolescence of design elements or technologies incorporated early in the project. Finally, extended oversight is required, increasing administrative burden and cost for the government. Close monitoring and proactive management by the COR are critical.

What is the significance of this task order being issued under a larger IDIQ contract?

This task order is issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This implies that the initial competition for the IDIQ vehicle itself was likely broad and competitive, establishing a pool of pre-qualified contractors. Issuing task orders under an IDIQ streamlines the procurement process for specific projects, allowing agencies to quickly obtain services without conducting a full, separate competition each time. It suggests that The Riff Group, LLC has already met certain baseline requirements and qualifications to be included in the IDIQ pool. However, the specific competition for this task order (full and open) indicates that even within the IDIQ framework, this particular project was widely competed.

Are there any indications of potential cost overruns given the firm-fixed-price contract type?

The firm-fixed-price (FFP) contract type is designed specifically to mitigate cost overrun risks for the government. Under an FFP contract, the contractor assumes the responsibility for all costs incurred in performing the work and agrees to a set price. Therefore, unless there are significant scope changes initiated by the government (which would lead to contract modifications and potentially equitable adjustments), the government's financial liability is fixed. The primary risk shifts to the contractor; if their costs exceed the agreed-upon price, their profit margin decreases or they may incur a loss. This contract structure suggests a proactive approach to cost control by the U.S. Mint.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 SCHELL LN, PHOENIXVILLE, PA, 19460

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,364,806

Exercised Options: $1,364,806

Current Obligation: $1,364,806

Actual Outlays: $828,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031JG23D00020

IDV Type: IDC

Timeline