Consigli Construction awarded $41.3M for M.C. Smith Federal Building renovation in Bangor, ME

Contract Overview

Contract Amount: $41,259,814 ($41.3M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2010-03-25

End Date: 2015-09-30

Contract Duration: 2,015 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: RECOVERY - ARRA MODERNIZATION PROJECT - RENOVATION OF THE M.C. SMITH FEDERAL BUILDING IN BANGOR, ME.

Place of Performance

Location: BANGOR, PENOBSCOT County, MAINE, 04401

State: Maine Government Spending

Plain-Language Summary

General Services Administration obligated $41.3 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: RECOVERY - ARRA MODERNIZATION PROJECT - RENOVATION OF THE M.C. SMITH FEDERAL BUILDING IN BANGOR, ME. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The fixed-price incentive contract type aims to control costs while incentivizing contractor performance. 3. The project duration of over five years indicates a significant renovation scope. 4. The award falls within the Commercial and Institutional Building Construction sector. 5. The General Services Administration (GSA) managed this procurement for public building services.

Value Assessment

Rating: fair

The contract value of $41.3 million for a federal building renovation appears substantial. Benchmarking against similar GSA renovation projects would be necessary to definitively assess value for money. The fixed-price incentive structure suggests an attempt to manage costs, but the final expenditure relative to initial estimates and market rates for comparable construction services is key to a full value assessment. Without specific cost breakdowns or comparisons to similar projects, a precise value judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of six bidders suggests a healthy level of competition for this project. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this renovation project likely resulted in a more favorable price for taxpayers by driving down bids from multiple construction firms.

Public Impact

The primary beneficiaries are federal agencies and employees who will utilize the modernized M.C. Smith Federal Building. The project delivers renovation and modernization services for a federal facility. The geographic impact is concentrated in Bangor, Maine, supporting local economic activity through construction jobs. The renovation will likely improve the functionality and safety of the federal building.

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 renovation.
Long project duration increases exposure to market fluctuations in material and labor costs.
Complexity of renovating an existing federal building can lead to unexpected challenges.

Positive Signals

Fixed-price incentive contract structure provides some cost control and performance incentives.
Award through full and open competition with multiple bidders suggests competitive pricing.
Project aims to modernize a federal facility, likely improving long-term operational efficiency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal building renovations are a common type of procurement for agencies like GSA. Comparable spending benchmarks would involve analyzing the cost per square foot for similar federal building modernization projects across different regions and over time. The $41.3 million award reflects the scale and complexity typical of such federal infrastructure upgrades.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Consigli Construction Co., Inc. is a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses as part of this project.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and financial oversight. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Renovations
GSA Public Buildings Service Contracts
Commercial and Institutional Building Construction
ARRA Modernization Projects

Risk Flags

Long project duration
Complexity of renovation
Potential for cost overruns with FPI contracts

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $41.3 million to CONSIGLI CONSTRUCTION CO., INC.. RECOVERY - ARRA MODERNIZATION PROJECT - RENOVATION OF THE M.C. SMITH FEDERAL BUILDING IN BANGOR, 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 $41.3 million.

What is the period of performance?

Start: 2010-03-25. End: 2015-09-30.

What was the specific scope of the "RECOVERY - ARRA MODERNIZATION PROJECT" for the M.C. Smith Federal Building?

The "RECOVERY - ARRA MODERNIZATION PROJECT" focused on the renovation of the M.C. Smith Federal Building in Bangor, Maine. While the provided data doesn't detail every aspect, ARRA (American Recovery and Reinvestment Act) projects typically involved significant upgrades to infrastructure, energy efficiency, and modernization of facilities. This likely included structural repairs, HVAC system upgrades, electrical and plumbing improvements, interior renovations, and potentially enhancements to accessibility and security, aiming to modernize the building and improve its operational efficiency and sustainability.

How does the $41.3 million contract value compare to similar federal building renovations managed by GSA?

Comparing the $41.3 million contract value requires context regarding the size, scope, and age of the M.C. Smith Federal Building, as well as the specific renovations undertaken. GSA manages a vast portfolio of buildings, and renovation costs can vary significantly. For large-scale modernizations of federal buildings of similar size and complexity, this figure might be within a typical range. However, without specific data on cost per square foot or detailed project scope comparisons, it's difficult to definitively state if it represents excellent, fair, or questionable value. Factors like historical significance, structural challenges, and energy efficiency mandates can influence project costs.

What are the key risks associated with a fixed-price incentive (FPI) contract for a multi-year renovation project?

Fixed-price incentive (FPI) contracts aim to share cost risks and rewards between the government and the contractor. Key risks include the potential for the final cost to exceed the target price if the contractor incurs higher-than-expected costs, even with incentives. The government bears the risk of cost overruns beyond the ceiling price. For a multi-year renovation, risks are amplified by the extended timeline, increasing the likelihood of unforeseen site conditions, material price volatility, and labor cost fluctuations. The contractor is incentivized to control costs to achieve a better profit, but the complexity of renovation can make accurate cost estimation challenging, potentially leading to disputes or cost increases if targets are difficult to meet.

What was the historical spending pattern for the M.C. Smith Federal Building prior to this ARRA modernization contract?

The provided data does not include historical spending patterns for the M.C. Smith Federal Building prior to this ARRA modernization contract. Such information would typically be found in GSA's asset management records or historical procurement databases. Understanding past maintenance, repair, and minor renovation expenditures could provide context for the necessity and scale of the $41.3 million modernization effort. Without this data, it's challenging to assess if this project represents a significant departure from previous investment levels or if it addresses long-standing deferred maintenance.

How did the number of bidders (6) influence the final contract price and terms?

Having six bidders for this contract, awarded under full and open competition, generally suggests a competitive market for the services required. A higher number of bidders typically exerts downward pressure on prices as companies vie for the contract. It also increases the likelihood that the government will receive a range of innovative solutions and competitive pricing structures. The final price and terms are a result of the bidding process, where the government evaluates proposals based on technical merit and cost. The presence of multiple competitors likely contributed to achieving a more favorable outcome for the government compared to a situation with fewer bidders.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-01P-09-BZ-C-0028

Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Consigli Building Group Inc

Address: 72 SUMNER ST, MILFORD, MA, 01757

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

Financial Breakdown

Contract Ceiling: $41,259,814

Exercised Options: $41,259,814

Current Obligation: $41,259,814

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline