DOT Awards $17.2M Fulton-Gibbs Complex Refurbishment to Kallidus Technologies, Inc

Contract Overview

Contract Amount: $17,247,597 ($17.2M)

Contractor: Kallidus Technologies, Inc

Awarding Agency: Department of Transportation

Start Date: 2023-06-30

End Date: 2026-07-18

Contract Duration: 1,114 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REFURBISH THE EXISTING STRUCTURE OF THE FULTON-GIBBS COMPLEX TO MEET ANTICIPATED MINIMUM OPERATING CAPABILITY FOR THE NEXT SEVEN TO TEN YEARS

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $17.2 million to KALLIDUS TECHNOLOGIES, INC for work described as: REFURBISH THE EXISTING STRUCTURE OF THE FULTON-GIBBS COMPLEX TO MEET ANTICIPATED MINIMUM OPERATING CAPABILITY FOR THE NEXT SEVEN TO TEN YEARS Key points: 1. The contract focuses on refurbishing an existing structure, suggesting a cost-effective approach to extending operational life. 2. Kallidus Technologies, Inc. secured the award under full and open competition. 3. The project aims to meet minimum operating capability for 7-10 years, indicating a strategic, medium-term investment. 4. The sector is Commercial and Institutional Building Construction, a broad category with varying cost benchmarks.

Value Assessment

Rating: fair

The award amount of $17.2M for a 7-10 year operational capability extension appears reasonable for a complex refurbishment. Benchmarking against similar large-scale building renovation projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a Purchase Order indicates a streamlined procurement method.

Taxpayer Impact: Taxpayer funds are being used to extend the life of an existing asset, which is generally more cost-effective than new construction.

Public Impact

Ensures continued operational capacity for a key government facility. Supports the Department of Transportation's infrastructure maintenance and upgrade goals. Provides a stable contract for Kallidus Technologies, Inc. over the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in refurbishment projects.
Scope creep could extend the project timeline and budget.
Long-term effectiveness depends on the quality of refurbishment.

Positive Signals

Leverages existing infrastructure, potentially saving on new construction costs.
Full and open competition promotes competitive pricing.
Clear objective to extend operational capability for a defined period.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope, location, and specific building needs. Refurbishment projects often aim for cost savings compared to new builds.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business subcontracting requirements or participation in this award notice.

Oversight & Accountability

The Department of Transportation's Maritime Administration is overseeing this project. Standard procurement processes and contract management should ensure accountability, but specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

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

Risk Flags

Potential for unforeseen structural issues.
Risk of scope creep impacting budget and timeline.
Long-term operational effectiveness uncertainty.
Dependency on contractor's expertise for complex refurbishment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.2 million to KALLIDUS TECHNOLOGIES, INC. REFURBISH THE EXISTING STRUCTURE OF THE FULTON-GIBBS COMPLEX TO MEET ANTICIPATED MINIMUM OPERATING CAPABILITY FOR THE NEXT SEVEN TO TEN YEARS

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 $17.2 million.

What is the period of performance?

Start: 2023-06-30. End: 2026-07-18.

What is the expected return on investment for refurbishing the Fulton-Gibbs Complex versus the cost of a new facility?

The refurbishment aims to extend the operational life of the existing Fulton-Gibbs Complex for seven to ten years at a cost of $17.2 million. This approach is generally considered more cost-effective than constructing a new facility, which would likely incur significantly higher upfront capital expenses and potentially longer lead times. A detailed cost-benefit analysis comparing refurbishment to new construction, factoring in lifecycle costs and operational disruptions, would be needed for a precise ROI calculation.

What are the primary risks associated with extending the operational capability of an existing structure?

Key risks include unforeseen structural issues discovered during refurbishment, leading to cost overruns and schedule delays. Environmental hazards (e.g., asbestos, lead paint) may require costly remediation. The effectiveness of the refurbishment in meeting future operational needs is also a risk if requirements evolve beyond the initial scope. Furthermore, the aging infrastructure may present ongoing maintenance challenges even after refurbishment.

How will the effectiveness of the refurbishment be measured to ensure it meets the anticipated minimum operating capability?

Effectiveness will likely be measured against predefined performance standards and operational requirements outlined in the contract specifications. This could include post-refurbishment testing, inspections, and certifications to verify structural integrity, system functionality (HVAC, electrical, plumbing), and compliance with safety regulations. The Maritime Administration will likely conduct a final acceptance review based on these criteria to confirm the facility meets the intended operational capability for the specified duration.

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: 693JF723R000005

Offers Received: 2

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: $17,247,597

Exercised Options: $17,247,597

Current Obligation: $17,247,597

Actual Outlays: $15,424,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline