Consigli Construction awarded $24.1M for Puerto Rico Reserve Center, highlighting construction sector activity

Contract Overview

Contract Amount: $24,110,204 ($24.1M)

Contractor: Consigli Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-04

End Date: 2012-03-19

Contract Duration: 927 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARMED FORCES RESERVE CENTER, CEIBA, PR

Place of Performance

Location: CEIBA, CEIBA County, PUERTO RICO, 00735

Plain-Language Summary

Department of Defense obligated $24.1 million to CONSIGLI CONSTRUCTION CO., INC. for work described as: ARMED FORCES RESERVE CENTER, CEIBA, PR Key points: 1. Contract value represents a significant investment in military infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Project duration of 927 days indicates a substantial construction timeline. 4. Fixed-price contract type shifts risk to the contractor. 5. Construction services are essential for maintaining and expanding military readiness. 6. Geographic focus on Puerto Rico may indicate specific regional needs.

Value Assessment

Rating: fair

The contract value of $24.1 million for the Armed Forces Reserve Center in Ceiba, Puerto Rico, appears to be within a reasonable range for a project of this scale. Benchmarking against similar military construction projects would provide a more precise assessment of value for money. The firm fixed-price structure suggests that the initial bid was expected to cover all costs, but potential for cost overruns exists if not managed effectively by the contractor.

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 5 bidders, the competition level suggests a moderate degree of market interest. This level of competition is generally favorable for price discovery, as it encourages bidders to offer competitive pricing to secure the contract.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Armed Forces Reserve components stationed in or utilizing facilities in Puerto Rico. The project delivers a new or upgraded facility to support military training, readiness, and administrative functions. The geographic impact is concentrated in Ceiba, Puerto Rico, potentially creating local employment opportunities during construction. Workforce implications include jobs for construction laborers, tradespeople, project managers, and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on fixed-price contracts if project scope changes or unforeseen issues arise.
Ensuring timely completion within the 927-day duration is critical for operational readiness.
Quality control and adherence to military construction standards require diligent oversight.

Positive Signals

Full and open competition generally leads to better pricing for the government.
Fixed-price contract shifts cost risk to the contractor, providing budget certainty.
Award to Consigli Construction Co., Inc. suggests a contractor with experience in this type of project.

Sector Analysis

The construction sector is a significant part of the federal procurement landscape, encompassing a wide range of projects from infrastructure to facility maintenance. Military construction, in particular, represents a substantial segment, driven by the need for modern and secure facilities. This contract for a reserve center fits within the broader category of institutional building construction, where market dynamics are influenced by government demand, material costs, and labor availability.

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. The absence of specific small business provisions suggests that the primary focus was on securing the best overall bid from the pool of competitors. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and engineering commands. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified facility within budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly accessible.

Related Government Programs

Military Construction, Army
Reserve Forces Facilities
Federal Building Construction
Defense Infrastructure Projects

Risk Flags

Project Delays
Cost Overruns
Quality Control Issues
Logistical Challenges in Puerto Rico
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to CONSIGLI CONSTRUCTION CO., INC.. ARMED FORCES RESERVE CENTER, CEIBA, PR

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 $24.1 million.

What is the period of performance?

Start: 2009-09-04. End: 2012-03-19.

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 securing federal contracts, including those with the Department of Defense. Analyzing their past performance on similar projects, such as military installations or government facilities, would provide insight into their capabilities, reliability, and adherence to project timelines and budgets. A review of their contract history might reveal any patterns of cost overruns, delays, or successful project completions. This specific contract for the Armed Forces Reserve Center in Ceiba, PR, valued at approximately $24.1 million, represents a significant award. Understanding their experience with firm fixed-price contracts and projects of comparable size and complexity in similar geographic regions is crucial for assessing their suitability and the overall risk associated with this award.

How does the awarded amount of $24.1 million compare to similar Armed Forces Reserve Center construction projects?

Benchmarking the $24.1 million award for the Ceiba, Puerto Rico, Armed Forces Reserve Center against similar projects requires access to a database of comparable federal construction contracts. Factors such as project size (square footage), scope of work (new construction vs. renovation), specific facility requirements (e.g., training areas, administrative offices, vehicle maintenance), and geographic location (which influences labor and material costs) are critical for a fair comparison. Projects awarded in the years surrounding the 2009-2012 contract period (September 2009 - March 2012) would be most relevant. Without specific comparable data, it's challenging to definitively state whether this contract represented excellent, fair, or questionable value. However, the full and open competition with five bidders suggests a market-driven price.

What are the primary risks associated with a firm fixed-price contract for a large construction project like this?

The primary risk associated with a firm fixed-price (FFP) contract for a large construction project lies with the contractor. Consigli Construction Co., Inc. assumes the responsibility for all cost overruns that may occur during the project's execution. This risk is amplified by the project's duration (927 days) and the potential for unforeseen issues such as material price fluctuations, labor shortages, adverse weather conditions, or design modifications. While the FFP structure provides budget certainty for the government, it necessitates thorough initial planning and accurate cost estimation by the contractor. If the contractor's estimates are inaccurate or unforeseen circumstances significantly increase costs, they may incur financial losses, potentially impacting project quality or leading to disputes. Conversely, the government benefits from cost certainty, provided the scope of work remains unchanged.

How effective are the oversight mechanisms for ensuring the quality and timely completion of Department of the Army construction projects?

Oversight for Department of the Army construction projects typically involves a multi-layered approach to ensure quality and timely completion. This includes the contracting officer's representative (COR) who monitors day-to-day performance, quality assurance personnel who inspect work for compliance with specifications, and project managers who oversee scheduling and budget adherence. For projects like the Armed Forces Reserve Center, the Army Corps of Engineers often plays a significant role in design review, construction oversight, and quality control. Inspector General (IG) offices can also investigate allegations of fraud, waste, or abuse. The effectiveness of these mechanisms depends on adequate staffing, clear communication channels, robust inspection protocols, and the contractor's own commitment to quality management. The firm fixed-price nature of this contract incentivizes the contractor to manage risks and deliver efficiently, but diligent government oversight remains crucial.

What has been the historical spending trend for Armed Forces Reserve Center construction by the Department of the Army?

Historical spending on Armed Forces Reserve Center construction by the Department of the Army has generally been substantial, reflecting the ongoing need to maintain and modernize facilities supporting reserve components across the nation and its territories. This spending is influenced by factors such as national security priorities, troop readiness requirements, aging infrastructure, and federal budget allocations. Over the years, the Army has undertaken numerous projects to build, renovate, or expand reserve centers to accommodate new equipment, increased personnel, and evolving training needs. Analyzing specific spending trends would require examining budget appropriations and contract awards over multiple fiscal years. The $24.1 million awarded in 2009 for the Ceiba project is one data point within this broader historical context of investment in reserve infrastructure.

What is the significance of awarding this contract in Puerto Rico, considering potential logistical and economic factors?

Awarding a significant construction contract like the Armed Forces Reserve Center in Ceiba, Puerto Rico, carries specific logistical and economic implications. Logistically, transporting materials, equipment, and potentially specialized labor to the island can incur higher costs and longer lead times compared to projects on the mainland U.S. Economic factors include the local labor market conditions, availability of local subcontractors, and the overall economic impact on the region through job creation and spending. The $24.1 million contract value suggests a substantial injection of federal funds into the local economy. The government's decision to award the contract in Puerto Rico likely reflects a strategic need for reserve facilities in that geographic area, balancing logistical challenges against operational requirements and potential economic benefits for the territory.

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: W912QR09R0035

Offers Received: 5

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, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,110,204

Exercised Options: $24,110,204

Current Obligation: $24,110,204

Contract Characteristics

Cost or Pricing Data: NO

Timeline