DoD Awards $88.3M Construction Contract in Israel to Conti Federal Services
Contract Overview
Contract Amount: $88,329,586 ($88.3M)
Contractor: Conti Federal Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2025-05-13
Contract Duration: 1,259 days
Daily Burn Rate: $70.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SOFA: SITE 13853-417 CONSTRUCTION, ISRAEL
Plain-Language Summary
Department of Defense obligated $88.3 million to CONTI FEDERAL SERVICES, LLC for work described as: SOFA: SITE 13853-417 CONSTRUCTION, ISRAEL Key points: 1. Contract awarded for construction services in Israel. 2. Conti Federal Services, LLC is the prime contractor. 3. The contract is a Firm Fixed Price Definitive Contract. 4. This award falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $88.3M is significant for a single construction project. Benchmarking against similar international construction contracts is difficult without more specific project details, but the price appears within a reasonable range for a large-scale facility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method aims to ensure the government receives the best value by soliciting bids from all qualified contractors.
Taxpayer Impact: Taxpayer funds are being used for essential construction services abroad, supporting military infrastructure. The competitive award process aims to maximize the value for the investment.
Public Impact
Supports U.S. military infrastructure and operations in Israel. Provides employment opportunities for construction workers and related industries. Potential for long-term impact on local economies through infrastructure development.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for cost overruns in international projects.
- Geopolitical risks associated with operating in Israel.
- Limited visibility into specific construction quality metrics.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract limits cost uncertainty.
- Experienced contractor likely involved.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a broad category encompassing various types of non-residential structures. Spending in this sector can fluctuate based on infrastructure needs and geopolitical factors.
Small Business Impact
The data indicates that the prime contractor is Conti Federal Services, LLC, and there is no specific mention of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- International project execution risks.
- Geopolitical factors in the region.
- Potential for supply chain disruptions.
- Limited information on specific project scope.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.3 million to CONTI FEDERAL SERVICES, LLC. SOFA: SITE 13853-417 CONSTRUCTION, ISRAEL
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 $88.3 million.
What is the period of performance?
Start: 2021-12-01. End: 2025-05-13.
What specific type of facility is being constructed, and how does its complexity influence the contract value?
The specific facility type is not detailed, but it falls under 'Commercial and Institutional Building Construction.' The complexity of the facility, such as its size, specialized systems (e.g., security, environmental controls), and intended use, significantly influences the contract value. A more complex facility requiring advanced engineering and specialized materials would naturally command a higher price than a standard structure.
What are the primary risks associated with executing a construction project of this magnitude in Israel, and how are they being mitigated?
Key risks include geopolitical instability, logistical challenges in importing materials and equipment, and adherence to local building codes and regulations. Mitigation strategies likely involve robust security protocols, detailed logistical planning, strong relationships with local authorities and suppliers, and potentially specialized insurance. The firm fixed price contract also shifts some cost risk to the contractor.
How effectively does the 'full and open competition' method ensure value for money for this specific international construction project?
Full and open competition is designed to maximize value by encouraging broad participation and driving down prices through rivalry. For this international project, its effectiveness depends on the number and quality of bidders, the clarity of the solicitation, and the government's ability to accurately assess technical capabilities alongside price. If multiple capable firms competed, it likely led to a competitive price.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912GB21R0024
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11486 CORPORATE BLVD STE 120, 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: $88,329,586
Exercised Options: $88,329,586
Current Obligation: $88,329,586
Actual Outlays: $2,214,261
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-01
Current End Date: 2025-05-13
Potential End Date: 2025-05-13 00:00:00
Last Modified: 2025-05-13
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