DoD's $44.8M C4I Building Repair Contract Awarded to Conti Federal Services

Contract Overview

Contract Amount: $44,842,780 ($44.8M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-31

End Date: 2026-08-08

Contract Duration: 1,956 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CRITICAL REPAIRS TO C4I BUILDING

Plain-Language Summary

Department of Defense obligated $44.8 million to CONTI FEDERAL SERVICES, LLC for work described as: CRITICAL REPAIRS TO C4I BUILDING Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long duration indicates a complex and extensive scope of work. 4. Firm-fixed-price structure shifts cost risk to the contractor. 5. Contractor's performance will be key to successful project completion. 6. Focus on building repairs highlights infrastructure maintenance needs.

Value Assessment

Rating: fair

The contract value of $44.8 million for critical repairs to a C4I building appears substantial. Benchmarking against similar large-scale construction and repair projects for federal facilities is necessary to fully assess value. Without specific details on the scope of repairs, it's difficult to definitively compare pricing or assess value for money. The firm-fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator if the price is competitive.

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 bids. The data shows 3 bids were received. A higher number of bidders generally suggests more robust competition, which can lead to better pricing and terms for the government. The fact that three bids were submitted in response to a full and open solicitation provides a baseline for price discovery in this market segment.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through market forces. The presence of multiple bidders suggests that the government received competitive offers, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The Department of Defense benefits from the modernization and repair of critical C4I infrastructure, ensuring operational readiness. Services delivered include essential repairs to a command, control, communications, and intelligence building. The geographic impact is localized to the facility where the repairs are being conducted. Workforce implications include employment opportunities for construction trades and related professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of repairs is underestimated, despite the firm-fixed-price structure.
Risk of delays impacting operational readiness if project timelines are not met.
Ensuring the quality of repairs meets stringent C4I facility standards.
Contractor's capacity to manage a project of this scale and complexity over its duration.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding environment.
Long contract duration allows for thorough execution of complex repairs.
Awarded by the Department of the Navy, indicating a specific military need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the erection, alteration, repair, and renovation of non-residential buildings. The federal government is a significant consumer of construction services, with spending often driven by infrastructure needs, modernization efforts, and facility maintenance. Comparable spending benchmarks would involve analyzing other large-scale federal building repair and construction contracts, particularly those for specialized facilities like C4I centers, to gauge cost-effectiveness and market rates.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements specifically mandated for small businesses through a set-aside program. However, the prime contractor, Conti Federal Services, LLC, may voluntarily subcontract portions of the work to small businesses as part of its overall business strategy or supply chain management. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks out and engages small business subcontractors for specialized construction services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific contracting officers and project managers responsible for monitoring performance, adherence to schedule, and quality of work. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency can be assessed through contract award data available on public platforms like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Facilities Maintenance
Naval Facilities Engineering Command Contracts
C4I Infrastructure Modernization
Federal Building Construction and Repair

Risk Flags

Potential for scope creep
Risk of cost escalation (for contractor)
Dependency on contractor performance
Long project duration introduces uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to CONTI FEDERAL SERVICES, LLC. CRITICAL REPAIRS TO C4I BUILDING

Who is the contractor on this award?

The obligated recipient is CONTI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2021-03-31. End: 2026-08-08.

What is the track record of Conti Federal Services, LLC with the Department of Defense and similar large-scale construction projects?

Conti Federal Services, LLC has a history of performing various construction and engineering services for federal agencies, including the Department of Defense. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving critical infrastructure or specialized facilities, would provide insight into their reliability, project management capabilities, and ability to deliver within budget and schedule. Specific data on their past performance ratings, any contract disputes, or successful completion of complex projects would be valuable. Their experience with C4I facilities, if any, would be particularly relevant to assessing their suitability for this specific contract. A review of their award history with the Navy and other branches would reveal the scale and type of projects they have undertaken.

How does the awarded price compare to industry benchmarks for similar C4I building repair projects?

Benchmarking the $44.8 million contract value against industry standards for C4I building repairs requires detailed information on the scope of work, specific repair types (e.g., structural, electrical, HVAC, IT infrastructure), and the condition of the facility. Without this granular data, a direct comparison is challenging. However, general benchmarks for large-scale commercial and institutional building construction and renovation projects can provide a rough estimate. Factors such as geographic location, labor costs, material prices, and the complexity of integrating repairs with ongoing C4I operations significantly influence pricing. A firm-fixed-price contract suggests the government sought a defined cost, but the competitiveness of that price depends on the bids received and prevailing market rates for specialized construction services.

What are the primary risks associated with a long-duration (1956 days) firm-fixed-price contract for critical building repairs?

A long-duration firm-fixed-price contract for critical building repairs presents several risks. For the government, the primary risk is that the fixed price, agreed upon at the outset, may become uncompetitive if market conditions (labor, materials) change significantly over the nearly five-year period. While the contractor bears cost overrun risk, unforeseen site conditions or scope creep not properly managed could lead to disputes or demands for contract modifications. For the contractor, the risk lies in accurately estimating all costs over such an extended period, including potential inflation, and managing the project efficiently to maintain profitability. Delays, material shortages, or labor availability issues can exacerbate these risks. Ensuring robust change order management processes is crucial to mitigate scope-related risks for both parties.

How effective are full and open competitions with three bidders in ensuring optimal value for taxpayer dollars on large construction projects?

Full and open competition is designed to maximize value by encouraging multiple companies to bid, thereby driving down prices and improving quality. With three bidders, there is a reasonable level of competition, suggesting that the government likely received more than one viable offer, allowing for price comparison. However, the optimal value is achieved when the competition is robust enough to elicit the lowest possible price while still attracting qualified contractors capable of performing the work to the required standards. If the three bidders were all large, established firms with limited incentive to aggressively underbid, or if the market for such specialized repairs is inherently limited, the value achieved might be less than in a scenario with numerous bidders. The quality of the bids and the government's evaluation process are also critical factors.

What is the historical spending pattern for C4I building repairs by the Department of the Navy?

Analyzing historical spending patterns for C4I building repairs by the Department of the Navy would involve examining contract data over several fiscal years. This would reveal the frequency of such repair contracts, the average contract values, the typical duration, and the contractors most frequently awarded these types of projects. Understanding historical spending can help identify trends in infrastructure investment, potential budget fluctuations, and whether spending on C4I facilities has been consistent or episodic. It can also highlight if specific bases or regions have required more frequent or extensive repairs, potentially indicating underlying issues with facility age or design. This context is crucial for assessing the current $44.8 million award as part of a larger, ongoing maintenance and upgrade strategy.

What are the potential implications of this contract on the small business construction ecosystem, given it's not a small business set-aside?

Since this contract is not a small business set-aside, its direct impact on small business participation is limited unless the prime contractor, Conti Federal Services, LLC, actively engages small businesses as subcontractors. The implications depend on the prime's subcontracting plan and their willingness to utilize small business capabilities for specialized construction tasks. If Conti Federal Services has a strong history of subcontracting with small businesses, this project could provide significant opportunities. Conversely, if they primarily rely on their own resources or larger subcontractors, the direct benefit to the small business ecosystem might be minimal. The overall health of the small business construction sector is influenced by the availability of such large prime contracts, as even indirect participation can foster growth and experience for smaller firms.

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: TWO STEP

Solicitation ID: N3319120R4020

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11486 CORPORATE BLVD STE 190, ORLANDO, FL, 32817

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,842,780

Exercised Options: $44,842,780

Current Obligation: $44,842,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline