Army awards $22.9M for pier construction, with 3 bids received under full and open competition

Contract Overview

Contract Amount: $22,879,639 ($22.9M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-15

End Date: 2025-02-27

Contract Duration: 1,080 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOFA: DEMO EXISTING INFRA & NEW PIER (AREA- A)

Plain-Language Summary

Department of Defense obligated $22.9 million to CONTI FEDERAL SERVICES, LLC for work described as: SOFA: DEMO EXISTING INFRA & NEW PIER (AREA- A) Key points: 1. Contract awarded at a price point appearing reasonable given the scope of infrastructure development. 2. Full and open competition suggests a healthy market for these construction services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 36 months aligns with typical large-scale construction timelines. 5. This contract supports critical military infrastructure modernization efforts.

Value Assessment

Rating: good

The contract value of approximately $22.9 million for existing infrastructure and new pier construction appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar Department of Defense construction contracts for port facilities or major infrastructure upgrades would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor assumed the majority of the cost risk, which is generally favorable for the government.

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. With three bids received, the competition level suggests a moderately competitive environment. While more bidders could potentially drive prices lower, three offers are sufficient to provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in more favorable pricing for taxpayers compared to limited or sole-source procurements.

Public Impact

Benefits the Department of the Army by providing essential upgrades to existing infrastructure and constructing a new pier. Services delivered include construction and modernization of critical maritime facilities. Geographic impact is localized to the area where the pier is being constructed, supporting military operations. Workforce implications include job creation for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in large-scale construction projects.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm fixed-price contract limits cost escalation.
Awarded under full and open competition, suggesting market availability of qualified contractors.
Project duration is clearly defined, allowing for planning.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The market for large-scale military construction is often specialized, with a mix of large prime contractors and smaller subcontractors. Spending in this sector is driven by modernization needs, readiness requirements, and geopolitical factors. Comparable spending benchmarks would typically be found in defense budget allocations for facilities and infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting goals in the provided data, large construction contracts often include provisions for small business participation. The prime contractor, Conti Federal Services, LLC, may engage small businesses for specialized services or materials, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction, Army
Naval Facilities and Engineering Command Contracts
Defense Infrastructure Projects

Risk Flags

Potential for schedule slippage
Unforeseen site conditions impacting cost or schedule
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to CONTI FEDERAL SERVICES, LLC. SOFA: DEMO EXISTING INFRA & NEW PIER (AREA- A)

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 $22.9 million.

What is the period of performance?

Start: 2022-03-15. End: 2025-02-27.

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

Conti Federal Services, LLC has a history of performing significant construction and engineering projects, often for government clients including the Department of Defense. Their portfolio typically includes infrastructure development, facility construction, and environmental services. Assessing their past performance on projects of similar size, complexity, and scope (e.g., port facilities, piers, large buildings) is crucial. A review of their contract history, including any past performance evaluations or disputes, would provide insight into their reliability and capability to successfully execute this $22.9 million contract within the specified timeline and budget.

How does the awarded price compare to industry benchmarks for similar pier construction projects?

Directly comparing the awarded price of $22.9 million to industry benchmarks for pier construction requires detailed project specifications (e.g., length, depth, materials, environmental conditions). However, general benchmarks for large maritime infrastructure projects can be found through industry cost estimating guides and reports from construction industry associations. Given the firm fixed-price nature, the government has largely transferred cost risk to the contractor. A detailed cost analysis would involve comparing the unit costs (e.g., cost per linear foot of pier, cost per square foot of associated infrastructure) against established industry data, adjusted for geographic location and specific project requirements.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions; cost overruns (though mitigated by the firm fixed-price structure); and performance quality issues. Mitigation strategies include the firm fixed-price contract, which incentivizes the contractor to manage costs. The government's oversight, including regular progress reviews, quality inspections, and adherence to a defined schedule, also plays a critical role. The contractor's experience and bonding capacity are further indicators of risk mitigation.

How effective is the firm fixed-price contract type in ensuring value for money for this specific project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for projects where the scope of work is well-defined and risks can be reasonably anticipated, such as this pier construction. FFP shifts the risk of cost overruns to the contractor, incentivizing them to control costs and improve efficiency to maximize profit. This structure provides budget certainty for the government. However, it can sometimes lead to higher initial bid prices as contractors factor in risk premiums. For a project with defined construction parameters, FFP is a suitable choice for achieving predictable costs and good value.

What is the historical spending trend for similar pier construction and infrastructure modernization within the Department of the Army?

Historical spending trends for pier construction and infrastructure modernization within the Department of the Army are typically substantial, driven by the need to maintain and upgrade global operational readiness and support capabilities. This spending fluctuates based on strategic priorities, aging infrastructure replacement cycles, and specific mission requirements. Analyzing past budgets and contract awards for facilities and engineering commands (like NAVFAC or Army Corps of Engineers) would reveal patterns in investment levels, project types, and average contract values for similar infrastructure projects over the last 5-10 years.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912GB20R0011

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: $22,879,639

Exercised Options: $22,879,639

Current Obligation: $22,879,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB21D0028

IDV Type: IDC

Timeline