Coast Guard awards $15.6M contract for new barracks construction at USCG Academy

Contract Overview

Contract Amount: $15,602,399 ($15.6M)

Contractor: THE Nutmeg Companies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-05-02

End Date: 2007-12-04

Contract Duration: 581 days

Daily Burn Rate: $26.9K/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: DESIGN & CONSTRUCT NEW ANNEX-E OF THE CHASE HALL BARRACKS AT THE USCG ACADEMY, NEW LONDON, CT

Place of Performance

Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320

State: Connecticut Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.6 million to THE NUTMEG COMPANIES, INC. for work described as: DESIGN & CONSTRUCT NEW ANNEX-E OF THE CHASE HALL BARRACKS AT THE USCG ACADEMY, NEW LONDON, CT Key points: 1. The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. 2. The fixed-price contract type suggests that the contractor assumes most of the risk for cost overruns. 3. The project involves the design and construction of new barracks, a critical infrastructure need for the USCG Academy. 4. The award value of $15.6 million falls within a typical range for significant construction projects of this nature. 5. The contractor, The Nutmeg Companies, Inc., will be responsible for delivering a key facility for the Coast Guard. 6. The duration of the contract is approximately 581 days, suggesting a focused and time-bound construction effort.

Value Assessment

Rating: good

The contract value of $15.6 million for designing and constructing new barracks appears reasonable for a project of this scope. Benchmarking against similar military or institutional construction projects would provide a more precise assessment, but the fixed-price nature suggests a defined cost expectation. The award to The Nutmeg Companies, Inc. indicates they were selected as the best value provider through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates competition, the 'exclusion of sources' clause suggests that certain potential bidders may have been excluded based on specific criteria prior to the main competition. The presence of 5 bidders indicates a moderate level of competition, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: The competitive nature of this award, despite some source exclusions, is beneficial for taxpayers as it likely resulted in a more competitive bid and a better price than a sole-source procurement.

Public Impact

Cadets and personnel at the USCG Academy in New London, CT, will benefit from improved housing facilities. The project delivers essential infrastructure development for the U.S. Coast Guard's training and operational capabilities. The geographic impact is localized to New London, Connecticut, supporting the local economy through construction activities. The construction work will likely involve a workforce of skilled tradespeople and construction professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction, despite the firm fixed-price contract.
Dependence on the timely delivery of materials and labor, which can be subject to market fluctuations and availability.
Ensuring the final construction meets all specified quality standards and building codes for long-term durability.

Positive Signals

The firm fixed-price contract shifts cost risk to the contractor, providing budget certainty for the government.
The award followed a competitive bidding process, suggesting a selection based on best value and price.
The project addresses a clear need for updated barracks, enhancing the living and training environment for cadets.

Sector Analysis

This contract falls within the construction sector, specifically new multifamily housing construction. The federal government is a significant consumer of construction services for infrastructure projects like military bases, academies, and government facilities. The market for such projects is often characterized by a mix of large prime contractors and specialized subcontractors, with competition driven by project size, complexity, and location. The $15.6 million award is a substantial but not exceptionally large contract within this domain.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor, The Nutmeg Companies, Inc., may engage small businesses as subcontractors, there is no explicit requirement for small business set-asides in this award. This means opportunities for small businesses are dependent on the prime contractor's subcontracting strategy rather than a direct government mandate for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting office and potentially the Department of Homeland Security's Office of Inspector General, especially concerning the use of federal funds and adherence to contract terms. The firm fixed-price nature of the contract implies that oversight will focus on ensuring the contractor meets the design specifications, quality standards, and delivery schedule, rather than detailed cost monitoring.

Related Government Programs

Military Barracks Construction
Federal Building Construction
USCG Infrastructure Projects
New Multifamily Housing Construction

Risk Flags

Potential for cost increases if unforeseen site conditions are encountered.
Risk of project delays due to supply chain disruptions or labor availability.
Ensuring compliance with all environmental and building regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.6 million to THE NUTMEG COMPANIES, INC.. DESIGN & CONSTRUCT NEW ANNEX-E OF THE CHASE HALL BARRACKS AT THE USCG ACADEMY, NEW LONDON, CT

Who is the contractor on this award?

The obligated recipient is THE NUTMEG COMPANIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2006-05-02. End: 2007-12-04.

What is the track record of The Nutmeg Companies, Inc. with federal contracts, particularly with the U.S. Coast Guard or Department of Homeland Security?

A review of federal contract databases would be necessary to fully assess The Nutmeg Companies, Inc.'s track record. Information such as past performance ratings, previous contract values, types of services rendered, and any history of disputes or contract terminations would be crucial. Understanding their experience with similar construction projects, especially those for government entities or involving complex requirements like military barracks, would provide insight into their capability to successfully execute this $15.6 million contract. Without specific data on their past federal awards and performance, it is difficult to definitively assess their reliability for this project.

How does the awarded amount of $15.6 million compare to similar barracks construction projects for military academies or bases?

To benchmark the $15.6 million award, one would compare it to the costs of similar barracks construction projects undertaken by other military branches or federal agencies. Factors such as square footage, number of occupants, complexity of design, site conditions, and geographic location significantly influence construction costs. For instance, a barracks project at a different climate zone or with more advanced technological integration might have a higher per-square-foot cost. Conversely, a simpler design or a location with lower labor costs could result in a lower overall price. A detailed comparison would require access to data on comparable projects, including their scope, duration, and final cost, to determine if this award represents a fair market value.

What are the primary risks associated with this specific construction contract, and how are they being mitigated?

The primary risks for this 'Design & Construct New Annex-E of the Chase Hall Barracks' contract include potential construction delays due to weather, labor shortages, or material supply chain issues. There's also the risk of unforeseen site conditions requiring design modifications or additional work. Given it's a firm fixed-price contract, the contractor, The Nutmeg Companies, Inc., bears the financial risk of cost overruns. Mitigation strategies likely involve detailed project planning, robust scheduling, contingency planning for material procurement, and thorough site investigations during the design phase. The U.S. Coast Guard's oversight will focus on ensuring adherence to the contract specifications and schedule to manage these risks.

What is the expected impact of this new barracks construction on the operational effectiveness and training capacity of the USCG Academy?

The construction of new barracks is expected to significantly enhance the operational effectiveness and training capacity of the U.S. Coast Guard Academy by providing modern, adequate, and potentially expanded living quarters for cadets. Improved living conditions can contribute to higher morale, better retention rates, and a more conducive environment for academic and military training. Adequate housing is a fundamental requirement for any residential training institution, and upgrading or expanding these facilities directly supports the Academy's mission to train future Coast Guard officers. This project addresses a critical infrastructure need that underpins the Academy's ability to fulfill its mandate.

How has federal spending on military construction and housing projects evolved over the past five years, and where does this contract fit in?

Federal spending on military construction and housing projects has generally seen fluctuations based on defense budgets, modernization priorities, and infrastructure needs. Over the past five years, there has been a consistent focus on upgrading aging facilities and ensuring adequate housing for service members. This $15.6 million contract for new barracks at the USCG Academy fits within this broader trend of investing in essential infrastructure. While not a massive expenditure in the context of overall defense spending, it represents a targeted investment in a specific, critical facility for a vital training institution, reflecting the ongoing commitment to maintaining and improving military installations.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31 NEW LONDON TPKE, NORWICH, CT, 06360

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $15,602,399

Exercised Options: $15,602,399

Current Obligation: $15,602,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline