Fort Bragg Barracks Renovation Awarded for $74M to Conti Federal Services, Boosting Construction Sector
Contract Overview
Contract Amount: $74,071,026 ($74.1M)
Contractor: Conti Federal Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-31
End Date: 2024-07-31
Contract Duration: 122 days
Daily Burn Rate: $607.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: BARRACKS RENOVATION, FORT BRAGG, NC (BARRACKS H4350, H5122, AND H4822)
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $74.1 million to CONTI FEDERAL SERVICES, LLC for work described as: BARRACKS RENOVATION, FORT BRAGG, NC (BARRACKS H4350, H5122, AND H4822) Key points: 1. Significant investment in military infrastructure at Fort Bragg. 2. Conti Federal Services, a large contractor, secured the award. 3. Potential for cost overruns in Cost Plus Fixed Fee contracts. 4. Construction sector benefits from substantial federal spending.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. The award amount is substantial for barracks renovation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to control costs.
Taxpayer Impact: Taxpayers are funding essential military housing upgrades, but the contract type necessitates careful monitoring to ensure value for money.
Public Impact
Modernization of critical military housing at Fort Bragg. Supports local and national construction industry employment. Ensures improved living conditions for service members.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Short performance period may lead to rushed work or increased costs.
- Lack of specific small business participation noted.
Positive Signals
- Full and open competition ensures a competitive bidding process.
- Addresses essential infrastructure needs for military personnel.
- Award to a known entity with experience in the sector.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar renovation projects vary widely based on scope and location.
Small Business Impact
The data indicates that small business participation was not a stated requirement or achievement for this specific contract. Federal policy aims to include small businesses, and their absence here warrants review.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight from the Department of the Army to ensure costs remain reasonable and within budget. Regular audits and performance reviews are crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Short performance duration.
- Lack of explicit small business participation.
- Potential for cost escalation if not managed tightly.
Tags
commercial-and-institutional-building-co, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.1 million to CONTI FEDERAL SERVICES, LLC. BARRACKS RENOVATION, FORT BRAGG, NC (BARRACKS H4350, H5122, AND H4822)
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 Army).
What is the total obligated amount?
The obligated amount is $74.1 million.
What is the period of performance?
Start: 2024-03-31. End: 2024-07-31.
What is the estimated profit margin for Conti Federal Services under this Cost Plus Fixed Fee contract?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the total contract value is $74M, the exact profit margin is not disclosed. It depends on the final allowable costs incurred and the fixed fee negotiated. CPFF contracts require careful oversight to prevent cost overruns from inflating the final payment.
What are the specific risks associated with the short 122-day performance period for these barracks renovations?
A short performance period for a project of this magnitude increases the risk of rushed work, potential quality issues, and increased labor costs due to overtime or expedited material delivery. It also limits the contractor's ability to absorb unforeseen delays, potentially leading to claims for additional time or money. The agency must ensure adequate resources and planning are in place to meet the deadline.
How will the effectiveness of these renovated barracks be measured to ensure improved living conditions for service members?
Effectiveness will likely be measured through post-occupancy surveys of service members, inspections for habitability standards, and tracking of maintenance requests related to the renovated areas. Feedback mechanisms should be established to capture user satisfaction and identify any lingering issues. The Department of the Army should have a formal process for evaluating the long-term impact on morale and readiness.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9128F19R0043
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2045 LINCOLN HWY, EDISON, NJ, 08817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,071,026
Exercised Options: $74,071,026
Current Obligation: $74,071,026
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9128F20D0007
IDV Type: IDC
Timeline
Start Date: 2024-03-31
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-06-17
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