GSA awards $54.9M contract for Alexander Hamilton U.S. Custom House water infiltration remediation

Contract Overview

Contract Amount: $54,947,101 ($54.9M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2021-10-30

End Date: 2027-05-12

Contract Duration: 2,020 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE ALEXANDER HAMILTON U.S. CUSTOM HOUSE WATER INFILTRATION REMEDIATION PROJECT.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $54.9 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE ALEXANDER HAMILTON U.S. CUSTOM HOUSE WATER INFILTRATION REMEDIATION PROJECT. Key points: 1. The contract aims to address critical water infiltration issues at a historic federal building. 2. The chosen contract type, Fixed Price Incentive, suggests a focus on cost control with performance incentives. 3. The project duration of 2020 days (approximately 5.5 years) indicates a significant, long-term undertaking. 4. The General Services Administration (GSA) is the awarding agency, overseeing federal building management. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $54.9 million for a comprehensive building remediation project appears reasonable given the scope and duration. Benchmarking against similar large-scale historic building restoration projects would provide a more precise value-for-money assessment. The Fixed Price Incentive (FPI) contract type suggests an effort to manage costs while incentivizing contractor performance, which can be a good approach for complex projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With 3 bidders, the competition level suggests a healthy market interest for this type of specialized construction service. This level of competition generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing the best value and competitive pricing for the remediation services.

Public Impact

The primary beneficiaries are the occupants and users of the Alexander Hamilton U.S. Custom House, ensuring a more stable and protected environment. The project will deliver essential remediation services to prevent further structural damage and preserve a historic federal asset. The geographic impact is concentrated in New York, NY, where the Custom House is located. The project will likely involve a skilled construction workforce, including project managers, tradespeople, and specialized remediation technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration could introduce risks related to material cost escalation or unforeseen site conditions.
Reliance on a single contractor for an extended period requires robust oversight to ensure consistent quality and adherence to schedule.
The complexity of water infiltration remediation in historic structures can present unique challenges not fully captured in initial assessments.

Positive Signals

Awarding under full and open competition suggests a thorough vetting of potential contractors.
The use of an FPI contract type indicates a structured approach to managing performance and costs.
The GSA's involvement implies established project management and oversight protocols are likely in place.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction and remediation. The market for specialized building envelope and water infiltration repair services for historic federal properties is niche, often requiring contractors with specific expertise and experience. Comparable spending benchmarks would typically be found within GSA's portfolio of historic building renovations and major repair projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Consigli Construction Co., Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, but large federal construction contracts often include requirements for small business subcontracting, which would need to be verified in the full contract details.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress meetings, site inspections, payment reviews, and performance evaluations. Accountability is managed through the contract terms, including the incentive structure of the FPI contract. Transparency is generally maintained through public contract databases, though specific project details and internal GSA reviews may not be fully public.

Related Government Programs

Federal Building Renovations
Historic Preservation Projects
Infrastructure Repair and Maintenance
Public Buildings Service Contracts

Risk Flags

Potential for unforeseen conditions in historic building
Risk of cost escalation over long contract duration
Need for specialized expertise in water infiltration remediation
Ensuring preservation of historic architectural elements

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $54.9 million to CONSIGLI CONSTRUCTION CO., INC.. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE ALEXANDER HAMILTON U.S. CUSTOM HOUSE WATER INFILTRATION REMEDIATION PROJECT.

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 $54.9 million.

What is the period of performance?

Start: 2021-10-30. End: 2027-05-12.

What is the track record of Consigli Construction Co., Inc. on similar federal projects?

Consigli Construction Co., Inc. has a significant track record in large-scale construction and renovation projects, including those for federal agencies. While specific details on past water infiltration remediation projects for historic federal buildings are not provided in this summary, their general experience in complex projects suggests a capacity to handle this contract. A deeper dive into their past performance ratings, any past performance issues, and the scale of their previous GSA contracts would offer a more comprehensive assessment of their suitability and reliability for this specific project.

How does the $54.9 million cost compare to similar building remediation projects?

Benchmarking the $54.9 million cost requires comparing it to similar large-scale remediation projects, particularly those involving historic buildings and significant water infiltration issues. Factors such as building size, complexity of the infiltration, materials used, and duration of the project heavily influence cost. Without specific data on comparable projects, it's challenging to definitively state if this is high or low. However, for a project spanning over five years on a major federal building, the allocated amount suggests a comprehensive scope of work that warrants such a significant investment to preserve the asset.

What are the primary risks associated with this specific remediation project?

The primary risks associated with this project likely stem from the age and historic nature of the Alexander Hamilton U.S. Custom House. Unforeseen structural issues, hazardous materials (like asbestos or lead paint) that may be encountered during remediation, and the potential for damage to historic architectural elements are significant concerns. Furthermore, the long duration of the contract (over 5 years) introduces risks related to material cost fluctuations, labor availability, and potential changes in regulatory requirements. The effectiveness of the chosen remediation techniques in permanently solving complex water infiltration issues also presents a performance risk.

How effective is the Fixed Price Incentive (FPI) contract type for this type of project?

The Fixed Price Incentive (FPI) contract type is often chosen for projects where cost targets can be established but there's a need to incentivize the contractor to achieve or exceed certain performance goals, potentially at a lower cost than initially projected. For water infiltration remediation, this can be effective if clear performance metrics (e.g., reduction in water ingress, specific repair standards) are defined. It encourages the contractor to manage costs efficiently to earn higher profits, while the government benefits from potential cost savings if targets are met or exceeded. However, it requires careful negotiation of the target cost, incentive sharing, and ceiling price to ensure fairness and adequate government protection.

What is the historical spending pattern for building maintenance and repair at the Alexander Hamilton U.S. Custom House?

Historical spending data for building maintenance and repair at the Alexander Hamilton U.S. Custom House is not provided in the summary. However, the initiation of a $54.9 million remediation project suggests that previous maintenance efforts may have been insufficient to address the escalating issue of water infiltration, or that a significant, long-term capital investment was required. Understanding past spending could reveal trends in deferred maintenance or the recurring nature of specific problems, providing context for the scale and necessity of this current, large-scale intervention.

What are the implications of the 3 bidders on price discovery and value for taxpayers?

Having 3 bidders in a full and open competition generally indicates a competitive market for this type of specialized construction service. This level of competition allows for a robust price discovery process, where the government can compare multiple proposals to identify the most cost-effective solution. For taxpayers, this means a higher likelihood of receiving fair market value for the services rendered, as contractors are incentivized to offer competitive pricing to win the contract. It reduces the risk of overpayment that can occur in sole-source or limited competition scenarios.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional 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

Solicitation ID: 47PC0320R0002

Offers Received: 3

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: $54,947,101

Exercised Options: $54,947,101

Current Obligation: $54,947,101

Actual Outlays: $16,053,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline