Consigli Construction awarded $56.8M for USNA Macdonough Hall repair, a large project in the Mid-Atlantic

Contract Overview

Contract Amount: $56,841,029 ($56.8M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2021-11-12

End Date: 2026-08-05

Contract Duration: 1,727 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR MACDONOUGH HALL BUILDING 102, USNA, ANNAPOLIS, MD

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $56.8 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: REPAIR MACDONOUGH HALL BUILDING 102, USNA, ANNAPOLIS, MD Key points: 1. The contract value is substantial, indicating a significant investment in facility infrastructure. 2. Competition was robust with 9 bidders, suggesting a healthy market for this type of construction. 3. The project duration of nearly 5 years points to a complex and lengthy undertaking. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 5. The award to a single contractor, Consigli Construction, highlights their capacity for large-scale projects. 6. Geographic concentration in Maryland suggests a focus on regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $56.8 million for the repair of Macdonough Hall at the US Naval Academy is a significant investment. Benchmarking against similar large-scale institutional building construction projects, this value appears within a reasonable range for the scope and complexity involved. The firm-fixed-price contract type suggests an effort to control costs, though it shifts risk to the contractor. Without specific details on the scope of repairs, a precise value-for-money assessment is challenging, but the competitive nature of the bidding process implies a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with nine distinct bids received. This level of competition is a positive indicator for price discovery and suggests that the government received a range of proposals from qualified contractors. The presence of multiple bidders typically drives down prices and encourages innovation. The fact that nine firms submitted bids indicates a robust market for this type of large-scale construction project within the specified region.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited-competition award. It ensures that taxpayer funds are being used efficiently by leveraging market forces to secure the best possible value.

Public Impact

The primary beneficiaries are the United States Naval Academy, which will receive upgraded and repaired facilities. The project will deliver essential repairs and modernization to Macdonough Hall, improving its functionality and safety. The geographic impact is concentrated in Annapolis, Maryland, supporting the local economy through construction activities. The contract will likely involve a significant number of construction workers, providing employment opportunities in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (1727 days) increases the risk of cost overruns due to inflation or unforeseen site conditions.
Firm-fixed-price contracts can sometimes lead to contractor pressure to cut corners if unexpected issues arise.
Reliance on a single contractor for such a large project concentrates risk if performance issues emerge.

Positive Signals

Full and open competition with 9 bidders suggests a competitive environment that should drive value.
The definitive contract award indicates a clear scope and established terms.
The project is for essential facility repair, addressing critical infrastructure needs at a major federal institution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The federal government is a major client for construction services, particularly for infrastructure, defense facilities, and public buildings. The market for large-scale institutional construction is often characterized by a few large, established firms capable of handling complex projects, alongside a broader base of smaller contractors. This award to Consigli Construction, a known entity in the construction space, aligns with typical patterns for major federal building projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting goals (sb: false). This suggests that the primary award went to a large business. While there are no explicit set-aside provisions, large federal construction contracts often include subcontracting requirements that can create opportunities for small businesses to participate in portions of the work. However, without explicit subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear and may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and facilities management divisions. As a large federal contract, it is subject to standard procurement regulations and oversight mechanisms. The firm-fixed-price nature of the contract implies that the contractor bears much of the cost risk, but the government will still monitor progress, quality, and adherence to contract terms. Inspector General oversight may be involved if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Military Construction
Federal Building and Infrastructure Projects
University and Campus Facility Renovations

Risk Flags

Long project duration
Potential for scope creep
Reliance on fixed-price contract for extended timeline

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.8 million to CONSIGLI CONSTRUCTION CO., INC.. REPAIR MACDONOUGH HALL BUILDING 102, USNA, ANNAPOLIS, MD

Who is the contractor on this award?

The obligated recipient is CONSIGLI CONSTRUCTION CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $56.8 million.

What is the period of performance?

Start: 2021-11-12. End: 2026-08-05.

What is the track record of Consigli Construction Co., Inc. with federal contracts, particularly within the Department of Defense?

Consigli Construction Co., Inc. has a notable history of securing federal contracts, particularly within the Department of Defense and other government agencies. Their portfolio includes a range of construction and renovation projects, often of significant scale and complexity, similar to the Macdonough Hall repair. While specific performance metrics for all past contracts are not publicly detailed in this summary, their repeated success in winning competitive bids for large federal projects suggests a generally positive track record and capability. Further analysis would involve examining past performance evaluations, any documented disputes or contract terminations, and the types of projects they have successfully completed for the government to fully assess their reliability and expertise in handling projects of this magnitude and type.

How does the $56.8 million award compare to other similar building repair contracts awarded by the Department of the Navy?

The $56.8 million award for the repair of Macdonough Hall is a substantial sum, placing it among larger contracts for institutional building repairs within the Department of the Navy. While the Navy undertakes numerous construction and repair projects annually, contracts exceeding $50 million are typically reserved for major renovations, new construction, or extensive infrastructure overhauls. For context, other significant Navy projects might include barracks construction, shipyard facility upgrades, or major renovations of historical buildings. The value of this contract suggests a project of considerable scope, likely involving extensive structural, mechanical, electrical, and architectural work, consistent with the repair of a large, potentially historic, academic building like Macdonough Hall.

What are the primary risks associated with a nearly 5-year duration for a construction project of this value?

A project duration of 1727 days (nearly 5 years) for a $56.8 million construction contract introduces several key risks. Firstly, there's an increased risk of cost escalation due to inflation affecting labor, materials, and equipment over such an extended period, even with a fixed-price contract, as unforeseen cost increases can strain the contractor's margins and potentially lead to claims or disputes. Secondly, the prolonged timeline heightens the possibility of encountering unforeseen site conditions or discovering additional repair needs as work progresses, which could necessitate change orders and budget adjustments. Thirdly, there's a risk of technological obsolescence in systems being installed, particularly if the project involves modernizing building systems. Finally, extended durations can impact contractor resource allocation and potentially lead to a loss of key personnel or a decline in workforce focus over time, impacting overall project momentum and quality.

What does the 'DEFINITIVE CONTRACT' award type imply about the project's scope and flexibility?

A 'DEFINITIVE CONTRACT' is a type of contract that is firm, fixed, and not subject to further negotiation once awarded. In the context of this project, it implies that the scope of work, specifications, and pricing were clearly defined and agreed upon by both the government and Consigli Construction Co., Inc. prior to the award. This provides a high degree of certainty regarding the project's deliverables and cost. However, it also suggests that the contract may have limited flexibility to accommodate significant changes in scope or requirements. While modifications can be made through contract amendments, they typically require formal negotiation and may impact the overall cost and schedule, making the initial definition of work particularly critical for this type of award.

How does the number of bidders (9) influence the potential value for taxpayers on this project?

The presence of nine bidders for this construction contract is a strong positive indicator for taxpayer value. A larger pool of bidders generally leads to more competitive pricing as companies vie for the award. This competition encourages contractors to offer their best possible prices and terms. It also suggests that the market has sufficient capacity and interest in undertaking projects of this nature and scale for the Department of the Navy. The government can leverage this competitive landscape to negotiate favorable terms and ensure that the final contract price reflects a fair market value, minimizing the risk of overpayment and maximizing the efficient use of public funds.

What are the implications of the project being located in Annapolis, Maryland, for federal spending patterns?

Locating this significant $56.8 million construction project in Annapolis, Maryland, reflects a pattern of federal investment in critical infrastructure and facilities within established military and governmental hubs. Maryland, particularly the region around Annapolis, hosts numerous federal installations and agencies, making it a consistent recipient of federal contracting dollars for construction, maintenance, and support services. This specific award contributes to the broader economic activity in the state, supporting local jobs and businesses within the construction supply chain. It underscores the federal government's commitment to maintaining and upgrading its physical assets, often concentrating these investments in areas with a high density of federal operations.

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: N4008021R0033

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 72 SUMNER ST, MILFORD, MA, 01757

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

Financial Breakdown

Contract Ceiling: $56,841,029

Exercised Options: $56,841,029

Current Obligation: $56,841,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline