Consigli Construction Co. awarded $34.3M for building construction, with 4 bidders indicating robust competition

Contract Overview

Contract Amount: $34,350,694 ($34.4M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2007-05-31

End Date: 2010-06-30

Contract Duration: 1,126 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: D/B WESTOVER AFRC, MA

Place of Performance

Location: CHICOPEE, HAMPDEN County, MASSACHUSETTS, 01022

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: D/B WESTOVER AFRC, MA Key points: 1. The contract value of $34.3 million appears reasonable given the scope of commercial and institutional building construction. 2. Full and open competition suggests a healthy market with multiple capable contractors vying for the work. 3. The fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies. 4. A duration of 1126 days indicates a significant project requiring substantial contractor resources and oversight. 5. The award was made by the Department of the Army, suggesting a need for facilities supporting military operations. 6. The absence of small business set-aside flags indicates the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this contract.

Value Assessment

Rating: good

The contract value of $34.3 million for commercial and institutional building construction is within a typical range for projects of this nature. Without specific details on the scope of work, it's difficult to provide a precise benchmark. However, the presence of four bidders in a full and open competition suggests that the pricing was likely competitive and reflective of market rates. The firm fixed-price nature of the contract also implies that the contractor is incentivized to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that four bids were received indicates a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured the government received a competitive offer for the construction services.

Public Impact

The primary beneficiaries are likely military personnel and support staff who will utilize the constructed facilities. The services delivered include the construction of commercial and institutional buildings, which could encompass offices, barracks, training facilities, or other essential infrastructure. The geographic impact is concentrated in D/B WESTOVER AFRC, MA, indicating a specific regional development or upgrade. The project likely created jobs in the construction sector, including skilled trades and project management roles, within Massachusetts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Ensuring the quality of construction meets all specified standards and requirements over the project's duration.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that likely secured a fair market price.
The award to a known entity (Consigli Construction Co., Inc.) may indicate a track record of successful project completion.

Sector Analysis

The construction sector is a significant part of the federal spending landscape, encompassing a wide range of projects from infrastructure to facility upgrades. This contract for commercial and institutional building construction falls under the broader umbrella of the construction industry. Federal spending in this sector is often driven by the need to maintain and modernize existing facilities, as well as build new ones to support various government functions. Comparable spending benchmarks would depend heavily on the specific type and scale of the building being constructed.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on securing the best overall offer from any responsible source. While not explicitly mandated here, large prime contractors often utilize small businesses for specialized tasks or as part of their broader subcontracting programs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Quality assurance personnel would likely monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization
General Services Administration (GSA) Public Buildings Service

Risk Flags

Long project duration may increase risk of cost escalation or schedule delays.
Firm fixed-price contract requires careful monitoring to ensure quality standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to CONSIGLI CONSTRUCTION CO., INC.. D/B WESTOVER AFRC, MA

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 $34.4 million.

What is the period of performance?

Start: 2007-05-31. End: 2010-06-30.

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

Consigli Construction Co., Inc. has a history of working with the federal government, including the Department of Defense. While this specific contract is for $34.3 million, their portfolio likely includes a range of project sizes and types. A deeper analysis would involve reviewing their past performance evaluations, any past performance issues or awards, and their experience with similar types of construction projects. Their ability to secure this contract suggests they met the government's requirements for experience and capability. Further investigation into their federal contract history, including any awards or disputes, would provide a more comprehensive understanding of their track record.

How does the awarded value of $34.3 million compare to similar building construction projects undertaken by the Department of the Army?

Comparing the $34.3 million award requires context on the specific type and scope of the building constructed. For instance, a large barracks complex would naturally cost more than a smaller administrative office building. However, given that this was a full and open competition with four bidders, the price is likely competitive for the market. Benchmarking against similar projects would involve analyzing the square footage, complexity of systems (e.g., HVAC, IT infrastructure), and location. Without these specifics, a direct comparison is challenging, but the competitive bidding process suggests the price is aligned with market expectations for a project of this scale.

What are the primary risks associated with a firm fixed-price contract for a project with a duration of over three years?

The primary risk with a firm fixed-price contract, especially for a long-duration project like this (1126 days), is that the contractor may face unforeseen cost increases due to market fluctuations in labor or materials, or unexpected site conditions. If these costs exceed what was factored into their fixed price, the contractor's profit margin will shrink, potentially leading to pressure to cut corners on quality or schedule. Conversely, the government benefits from cost certainty, but must ensure the initial price reflects a realistic assessment of potential costs and risks. Robust oversight is crucial to mitigate quality risks.

How effective is full and open competition in ensuring the best value for taxpayer dollars in construction contracts of this magnitude?

Full and open competition is generally considered the most effective method for ensuring the best value for taxpayer dollars in construction contracts. By allowing all qualified contractors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The presence of four bidders in this case suggests that the market had sufficient capacity and interest, leading to a more robust price discovery process. While the lowest bid doesn't always equate to the best value (which can include factors like technical approach and past performance), a competitive field increases the likelihood that the government will receive a high-quality product at a fair price.

What are the potential implications of this contract on the local construction labor market in Massachusetts?

A contract of this size and duration ($34.3 million over approximately three years) can have a significant positive impact on the local construction labor market in Massachusetts. It is likely to create numerous jobs for skilled tradespeople (carpenters, electricians, plumbers, etc.), as well as project managers, engineers, and support staff. The demand generated by this project could lead to increased employment opportunities and potentially higher wages in the region. Furthermore, it provides a substantial project for Consigli Construction Co., Inc., potentially allowing them to retain and expand their workforce.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Specific performance metrics or Key Performance Indicators (KPIs) for individual federal construction contracts are not always readily available in public databases. Typically, performance is assessed through contract administration processes, including site inspections, progress reports, and final acceptance. The Department of the Army would have internal mechanisms to track the contractor's adherence to the schedule, budget, quality standards, and safety regulations. While the contract award itself is public, the detailed performance evaluations are often considered internal government documents unless specific reporting requirements are mandated.

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: W912QR06R0080

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Consigli Building Group Inc (UEI: 963443499)

Address: 72 SUMNER ST, MILFORD, MA, 01757

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,350,694

Exercised Options: $34,350,694

Current Obligation: $34,350,694

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline