Consigli Construction awarded $66.4M for Watervliet Arsenal building repair, a large project in commercial construction

Contract Overview

Contract Amount: $66,358,112 ($66.4M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-11

End Date: 2026-02-04

Contract Duration: 420 days

Daily Burn Rate: $158.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR OF BUILDING 120 AT WATERVLIET ARSENAL, NEW YORK

Place of Performance

Location: WATERVLIET, ALBANY County, NEW YORK, 12189

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $66.4 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: REPAIR OF BUILDING 120 AT WATERVLIET ARSENAL, NEW YORK Key points: 1. The contract value of $66.4 million represents a significant investment in infrastructure maintenance. 2. The project is a definitive contract, suggesting a well-defined scope of work. 3. The duration of 420 days indicates a substantial construction timeline. 4. The award was made under full and open competition, implying a competitive bidding process. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. The project is located in New York, potentially impacting local employment and businesses.

Value Assessment

Rating: good

The contract value of $66.4 million for building repair at Watervliet Arsenal appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale institutional building construction projects, the price seems competitive, especially given the fixed-price nature which typically includes contractor overhead and profit. The definitive contract structure suggests a clear scope, which aids in price predictability. Further analysis would require detailed cost breakdowns and comparison to specific construction types and materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this significant project. While more than two bidders would generally indicate stronger price discovery, full and open competition is the preferred method for ensuring fair access and potentially competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and ensuring the government receives the best value. Even with two bidders, the competitive pressure helps to ensure a fair market price is achieved.

Public Impact

The primary beneficiaries are the Department of the Army and the personnel utilizing Building 120 at Watervliet Arsenal, who will receive an upgraded and repaired facility. The services delivered include comprehensive repair and maintenance of a significant building structure. The geographic impact is concentrated in Watervliet, New York, potentially creating local job opportunities in the construction sector. Workforce implications include employment for construction workers, engineers, project managers, and support staff involved in the repair project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repair, despite fixed-price contract.
Risk of schedule delays impacting facility availability and operational readiness.
Ensuring quality of repairs meets long-term durability standards.
Managing contractor performance to adhere to contract specifications and safety protocols.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive bidding process was utilized.
Definitive contract indicates a well-defined scope of work.
Award to Consigli Construction Co., Inc., a known entity in the construction industry.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building and renovation of non-residential structures like government facilities, offices, and public buildings. The market size for federal construction projects is substantial, with agencies like the Department of Defense consistently investing in infrastructure maintenance and upgrades. This specific contract represents a notable investment in maintaining critical military infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language means direct opportunities for small businesses in this prime contract are unlikely. Further review of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and project managers responsible for Watervliet Arsenal. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified repairs within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Base Infrastructure Maintenance
Federal Building Construction and Repair
Department of Defense Facilities Management
Army Corps of Engineers Construction Projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during extensive repairs
Contractor performance management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.4 million to CONSIGLI CONSTRUCTION CO., INC.. REPAIR OF BUILDING 120 AT WATERVLIET ARSENAL, NEW YORK

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 Army).

What is the total obligated amount?

The obligated amount is $66.4 million.

What is the period of performance?

Start: 2024-12-11. End: 2026-02-04.

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

Consigli Construction Co., Inc. has a history of performing federal construction contracts. While specific details on their entire federal portfolio require deeper database analysis, their involvement in a $66.4 million definitive contract for building repair at Watervliet Arsenal indicates a capacity to handle large-scale government projects. Their track record with the Department of Defense would typically be assessed based on past performance reviews, on-time delivery, adherence to budget, and quality of work on previous similar contracts. A comprehensive review would involve examining their award history, any past performance issues or commendations, and their experience with military construction standards and security requirements.

How does the $66.4 million contract value compare to similar building repair projects at other military installations?

The $66.4 million contract value for repairing Building 120 at Watervliet Arsenal is substantial and suggests a significant scope of work, likely involving major structural, mechanical, or electrical system repairs. To benchmark this value, one would compare it to similar definitive contracts for building renovation or repair at other Department of Defense facilities of comparable size and age. Factors influencing cost include the specific type of building, the extent of damage or required upgrades, the complexity of systems involved (e.g., HVAC, electrical, plumbing), and prevailing construction labor and material costs in the region. Without specific data on comparable projects, it's difficult to definitively state if $66.4 million is high or low, but it signifies a major infrastructure investment.

What are the primary risks associated with a firm-fixed-price contract for a large-scale building repair project?

The primary risk with a firm-fixed-price (FFP) contract for a large-scale building repair project lies with the contractor. While FFP offers cost certainty to the government, the contractor assumes the risk of cost overruns. This can lead to potential issues if unforeseen conditions are discovered during the repair process (e.g., hidden structural damage, hazardous materials). To mitigate this, thorough site investigations and detailed specifications are crucial before contract award. If the contractor underestimates costs or encounters significant unexpected problems, they may face financial losses, potentially impacting project quality or leading to disputes. The government's risk is generally lower in terms of cost, but schedule delays or quality compromises due to contractor financial distress are still possibilities.

How effective are 'full and open competition' contract awards in ensuring optimal value for taxpayer money in construction projects?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer money in construction projects. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The government benefits from a wider pool of potential contractors, increasing the likelihood of finding a highly qualified bidder at a competitive price. This process promotes transparency and fairness, reducing the risk of favoritism or collusion. While it requires more administrative effort to manage the solicitation and evaluation process, the potential savings and improved outcomes typically outweigh these costs, especially for large-value contracts like the one for Watervliet Arsenal.

What are the historical spending patterns for building repair and maintenance at Watervliet Arsenal or similar Army installations?

Analyzing historical spending patterns for building repair and maintenance at Watervliet Arsenal or similar Army installations is crucial for context. This involves examining past contracts for similar work, their values, durations, and the frequency of such awards. Consistent, high spending on repairs might indicate aging infrastructure requiring ongoing investment, while sporadic large awards could suggest major renovation cycles or responses to specific issues. Comparing spending trends across multiple Army installations can reveal whether Watervliet Arsenal's investment is in line with the needs of comparable facilities. Understanding these patterns helps in forecasting future budget requirements and assessing the long-term maintenance strategy for federal assets.

What are the implications of a 420-day contract duration for the operational readiness of Building 120?

A 420-day duration (approximately 14 months) for the repair of Building 120 at Watervliet Arsenal implies a significant undertaking that will likely result in the building being out of commission for an extended period. This duration suggests that the repairs are substantial, potentially involving major structural work, system overhauls, or extensive renovations rather than superficial fixes. The implications for operational readiness depend heavily on the building's function. If it houses critical operations, the extended closure could necessitate temporary relocations, impact mission capabilities, or require the use of alternative facilities, potentially incurring additional costs and logistical challenges. Careful planning and scheduling by the Army are essential to minimize disruption.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DS24R0020

Offers Received: 2

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: $66,978,734

Exercised Options: $66,358,112

Current Obligation: $66,358,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline