Gignoux Courthouse HVAC and Fire Alarm Replacement contract awarded to Consigli Construction for $40.4M

Contract Overview

Contract Amount: $40,429,245 ($40.4M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2023-03-20

End Date: 2027-03-24

Contract Duration: 1,465 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: CONSTRUCTION MANAGER AS CONSTRUCTOR(CMC) HVAC AND FIRE ALARM REPLACEMENT, GIGNOUX COURT HOUSE, PORTLAND, ME

Place of Performance

Location: PORTLAND, CUMBERLAND County, MAINE, 04101

State: Maine Government Spending

Plain-Language Summary

General Services Administration obligated $40.4 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: CONSTRUCTION MANAGER AS CONSTRUCTOR(CMC) HVAC AND FIRE ALARM REPLACEMENT, GIGNOUX COURT HOUSE, PORTLAND, ME Key points: 1. The contract value of $40.4 million represents a significant investment in critical infrastructure upgrades. 2. The fixed-price incentive contract type suggests a focus on cost control with performance-based incentives. 3. The award was made under full and open competition, indicating a robust bidding process. 4. The duration of 1465 days points to a complex, multi-year project. 5. The project is located in Portland, Maine, impacting local construction and building services. 6. The North American Industry Classification System (NAICS) code 238220 signifies a focus on plumbing, heating, and air-conditioning contractors.

Value Assessment

Rating: good

The contract value of $40.4 million for HVAC and fire alarm replacement at the Gignoux Courthouse appears reasonable given the scope and duration. While specific benchmarking data for this exact project is not available, similar large-scale federal building infrastructure upgrades often fall within this cost range. The fixed-price incentive structure aims to manage costs effectively, though the final price could fluctuate based on performance. The General Services Administration (GSA) typically manages such projects with a focus on value and long-term asset management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bidders, Consigli Construction Co., Inc. and at least one other, suggests a competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited solicitations.

Public Impact

The primary beneficiaries are the occupants and users of the Gignoux Courthouse, who will experience improved building safety and comfort. The project will deliver essential upgrades to the HVAC and fire alarm systems, enhancing operational reliability and compliance. The geographic impact is localized to Portland, Maine, supporting the regional construction industry and workforce. The contract is expected to create or sustain jobs within the construction sector in Maine, including skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met or if unforeseen issues arise during the fixed-price incentive contract execution.
Dependence on the performance and financial stability of Consigli Construction Co., Inc. for timely and quality completion.
The long duration of the contract could expose the project to market fluctuations in material costs or labor availability.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely secured a fair price.
The fixed-price incentive contract type aligns contractor incentives with project cost and performance goals.
The General Services Administration's oversight is expected to ensure adherence to quality standards and project timelines.
The project addresses critical infrastructure needs, enhancing the long-term functionality and safety of a federal facility.

Sector Analysis

This contract falls within the construction services sector, specifically focusing on mechanical and electrical systems for federal buildings. The market for federal building construction and renovation is substantial, with agencies like the GSA consistently investing in maintaining and upgrading their real property assets. Comparable spending benchmarks for similar HVAC and fire alarm replacement projects in federal courthouses or office buildings can vary widely based on size, complexity, and location, but a $40.4 million award suggests a significant scope of work.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Consigli Construction Co., Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether Consigli Construction actively seeks to engage small businesses for subcontracting opportunities, which is not detailed in the provided data.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms likely include regular progress reviews, site inspections, and financial audits, particularly given the fixed-price incentive structure. Accountability measures are tied to the contract's performance metrics and milestones. Transparency is generally maintained through federal contract databases, though specific details of ongoing oversight activities may not be publicly disclosed.

Related Government Programs

Federal Building Infrastructure Modernization
GSA Capital Investments
Courthouse Construction and Renovation
HVAC System Upgrades
Fire Safety Systems Installation

Risk Flags

Potential for cost escalation due to fixed-price incentive contract structure.
Long project duration increases exposure to market and economic fluctuations.
Complexity of integrated HVAC and fire alarm systems.
Dependence on contractor performance for critical infrastructure upgrades.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.4 million to CONSIGLI CONSTRUCTION CO., INC.. CONSTRUCTION MANAGER AS CONSTRUCTOR(CMC) HVAC AND FIRE ALARM REPLACEMENT, GIGNOUX COURT HOUSE, PORTLAND, ME

Who is the contractor on this award?

The obligated recipient is CONSIGLI CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

Start: 2023-03-20. End: 2027-03-24.

What is Consigli Construction Co., Inc.'s track record with the GSA on similar projects?

Consigli Construction Co., Inc. has a history of working with the General Services Administration on various construction projects. While specific details on past GSA contracts are not provided in this data snippet, their ability to win a $40.4 million full and open competition award for a courthouse renovation suggests they have demonstrated the necessary qualifications, experience, and financial capacity to handle large federal projects. A deeper dive into GSA's contract award history and performance evaluations for Consigli would provide a more comprehensive understanding of their track record, including on-time delivery, budget adherence, and quality of work on previous GSA engagements.

How does the $40.4 million contract value compare to similar federal courthouse HVAC and fire alarm replacement projects?

Benchmarking the $40.4 million contract value requires comparing it to similar projects in terms of scope, size, age of facility, and geographic location. Federal courthouses, like the Gignoux Courthouse, often require specialized systems and adherence to strict security and accessibility standards, which can influence costs. Projects involving comprehensive HVAC and fire alarm system replacements are typically substantial undertakings. Without specific data on comparable projects, it's difficult to definitively state if this value is high or low. However, for a multi-year, complex infrastructure upgrade at a federal facility, $40.4 million is within the expected range for significant capital investments in building systems.

What are the primary risks associated with a fixed-price incentive (FPI) contract for this type of project?

Fixed-price incentive contracts, while designed to share risk and reward between the government and contractor, carry specific risks. For this HVAC and fire alarm replacement project, a key risk is that the contractor may not achieve the target cost or performance objectives, leading to potential cost overruns for the government if the incentive fee is not earned or if the ceiling price is reached. Conversely, the contractor might cut corners on quality to meet cost targets, impacting long-term system performance. The complexity of HVAC and fire alarm systems, coupled with the long duration of the project (1465 days), increases the potential for unforeseen issues, scope creep, or market volatility that could affect cost and performance, requiring careful monitoring by the GSA.

How effective is the GSA's Public Buildings Service in managing large-scale construction projects like this?

The GSA's Public Buildings Service (PBS) is generally considered experienced in managing large-scale federal construction and renovation projects. PBS utilizes established project management frameworks, employs skilled contracting officers and technical experts, and implements oversight procedures to ensure projects meet federal standards for quality, safety, and cost-effectiveness. Their effectiveness can vary by project and region, but they are mandated to deliver functional, secure, and sustainable federal facilities. For this specific project, the success will depend on the diligence of the GSA's project team in overseeing Consigli Construction's performance, managing changes, and ensuring adherence to the FPI contract terms.

What are the historical spending patterns for HVAC and fire alarm upgrades in federal buildings managed by the GSA?

Historical spending patterns for HVAC and fire alarm upgrades in federal buildings managed by the GSA show a consistent and significant investment in maintaining and modernizing the federal real estate portfolio. These upgrades are often driven by aging infrastructure, evolving building codes, energy efficiency mandates, and security requirements. Spending can fluctuate annually based on budget appropriations, the condition of the existing building stock, and the GSA's strategic capital investment plans. Projects like the Gignoux Courthouse upgrade represent a portion of the GSA's broader efforts to ensure the safety, reliability, and sustainability of federal facilities nationwide, with costs varying widely based on project scale and complexity.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Solicitation ID: 47PB0022R0076

Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 72 SUMNER ST, MILFORD, MA, 01757

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,429,245

Exercised Options: $40,429,245

Current Obligation: $40,429,245

Actual Outlays: $22,426,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline