DOT Awards $52.1M Samuels Hall Renovation to Kallidus Technologies Under Full and Open Competition

Contract Overview

Contract Amount: $52,132,951 ($52.1M)

Contractor: Kallidus Technologies, Inc

Awarding Agency: Department of Transportation

Start Date: 2020-07-01

End Date: 2027-03-25

Contract Duration: 2,458 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SAMUELS HALL RENOVATION PROJECT CONTRACT AWARD

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $52.1 million to KALLIDUS TECHNOLOGIES, INC for work described as: SAMUELS HALL RENOVATION PROJECT CONTRACT AWARD Key points: 1. The contract value of $52.1M for building construction is significant, indicating a large-scale project. 2. Kallidus Technologies, Inc. secured this award through full and open competition, suggesting a competitive bidding process. 3. The project falls under Commercial and Institutional Building Construction, a sector with established benchmarks. 4. The firm-fixed-price contract type aims to control costs, but potential risks exist in scope changes over the long duration.

Value Assessment

Rating: fair

The contract value of $52.1M for a 2458-day duration project requires careful benchmarking against similar large-scale institutional building renovations. Without specific comparable data, assessing the pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies a competitive process but with specific initial exclusions. This method can impact price discovery if the exclusions were too broad.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages competitive pricing. However, the specific exclusion of sources warrants scrutiny to ensure maximum value.

Public Impact

This renovation project will likely impact the local economy in New York through job creation and material sourcing. The Maritime Administration's investment in facility upgrades suggests a commitment to improving operational infrastructure. Taxpayers can expect to see improvements in the facilities managed by the Maritime Administration, potentially enhancing their services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2458 days) increases risk of cost overruns and scope creep.
The 'exclusion of sources' in the competition method needs further investigation to ensure fairness and optimal pricing.
Lack of detailed cost breakdown makes it difficult to assess value for money.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type helps mitigate cost escalation risks.
Project addresses facility needs for the Maritime Administration.

Sector Analysis

The Commercial and Institutional Building Construction sector involves significant capital investment. Benchmarks for similar large-scale renovations are crucial for evaluating the $52.1M award's cost-effectiveness over its multi-year duration.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses for this contract. Further analysis would be needed to determine if small business participation was encouraged or achieved.

Oversight & Accountability

The Maritime Administration is responsible for overseeing this contract. Robust oversight mechanisms are essential given the project's scale and long duration to ensure compliance and prevent cost overruns.

Related Government Programs

Commercial and Institutional Building Construction
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Long contract duration increases risk.
Potential for limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
Firm-fixed-price contract with extended duration may still face change order risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $52.1 million to KALLIDUS TECHNOLOGIES, INC. SAMUELS HALL RENOVATION PROJECT CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is KALLIDUS TECHNOLOGIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $52.1 million.

What is the period of performance?

Start: 2020-07-01. End: 2027-03-25.

What specific criteria were used to exclude certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final award price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are required that only a limited number of vendors possess. Understanding these criteria is vital to determine if the exclusions were justified and if they potentially limited competition, thereby impacting the final price. Without this information, it's difficult to ascertain if the government secured the best possible value.

Given the 2458-day duration, what are the primary risks associated with cost escalation and scope creep for this firm-fixed-price contract, and what mitigation strategies are in place?

The extended duration significantly elevates risks of inflation, material cost fluctuations, and unforeseen site conditions, which can lead to scope creep even in fixed-price contracts. Mitigation strategies likely include detailed contract clauses for change orders, contingency planning, and rigorous project management by the Maritime Administration. However, the effectiveness of these measures over nearly seven years remains a key concern for cost control.

How does the $52.1M award for the Samuels Hall Renovation compare to industry benchmarks for similar large-scale institutional building construction projects in terms of cost per square foot or other

Direct comparison to industry benchmarks is challenging without knowing the project's scope, square footage, and specific renovation requirements. However, a $52.1M price tag for a multi-year renovation suggests a substantial undertaking. A detailed cost-benefit analysis, comparing the expected improvements and operational efficiencies against the investment, is necessary to gauge the overall value for taxpayers.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 693JF719B000006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 175 CABOT ST STE 300, LOWELL, MA, 01854

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,132,951

Exercised Options: $52,132,951

Current Obligation: $52,132,951

Actual Outlays: $34,422,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline