DoD awards $30.9M for Army Range Facility Operations, highlighting construction and maintenance needs

Contract Overview

Contract Amount: $30,941,724 ($30.9M)

Contractor: Conti Federal Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2027-04-19

Contract Duration: 936 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: USARC FT. BUCHANAN ARMY RANGE FACILITY OPERATIONS BUILDING BASE

Place of Performance

Location: GUAYNABO, GUAYNABO County, PUERTO RICO, 00965

Plain-Language Summary

Department of Defense obligated $30.9 million to CONTI FEDERAL SERVICES, LLC for work described as: USARC FT. BUCHANAN ARMY RANGE FACILITY OPERATIONS BUILDING BASE Key points: 1. Contract focuses on essential facility operations and maintenance, crucial for military readiness. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Long duration indicates a need for sustained operational support. 5. Geographic focus on Puerto Rico may reflect specific training or operational requirements. 6. Contract value is moderate within the broader context of military infrastructure spending.

Value Assessment

Rating: good

The contract value of $30.9 million for facility operations and maintenance appears reasonable given the multi-year duration and the scope of services for an Army range facility. Benchmarking against similar contracts for base operations and facility management would provide a clearer picture of value for money. The firm-fixed-price structure suggests the government has a clear understanding of the requirements and is seeking cost certainty, which can be advantageous if the contractor manages costs effectively.

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 bids. The presence of two bidders suggests a degree of competition, though more bidders would typically lead to greater price discovery and potentially lower costs for the government. The level of competition is a positive sign for ensuring a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

Benefits the U.S. Army by ensuring the operational readiness and maintenance of critical training infrastructure. Delivers essential services including operations, maintenance, and potentially repair of the Fort Buchanan Army Range Facility. Geographic impact is concentrated in Puerto Rico, supporting military training and readiness in that region. Workforce implications include potential job creation for skilled trades and facility management personnel in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise under the fixed-price contract.
Dependence on a single contractor for critical facility operations could pose a risk if performance falters.
Limited competition (two bidders) might not have yielded the most cost-effective solution.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust procurement process.
Long contract duration allows for stable planning and execution of services.

Sector Analysis

This contract falls within the Construction and Facilities Management sector, a significant area of federal spending supporting military installations. The market for base operations and facility maintenance is substantial, with numerous contractors capable of providing these services. This specific award contributes to the Department of Defense's broader strategy of maintaining operational readiness across its global footprint, with a focus on essential infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Army Contracting Command and the relevant installation command at Fort Buchanan. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Army Base Operations Support
Military Construction and Facilities Management
Range Operations and Maintenance
Department of Defense Infrastructure Sustainment

Risk Flags

Potential for cost overruns due to fixed-price nature.
Contractor performance risk.
Limited competition may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to CONTI FEDERAL SERVICES, LLC. USARC FT. BUCHANAN ARMY RANGE FACILITY OPERATIONS BUILDING BASE

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 $30.9 million.

What is the period of performance?

Start: 2024-09-25. End: 2027-04-19.

What is the historical spending pattern for facility operations and maintenance at U.S. Army range facilities, particularly in Puerto Rico?

Historical spending on facility operations and maintenance for Army range facilities, especially in regions like Puerto Rico, can vary significantly based on the specific installation's size, age, and operational tempo. While specific data for Fort Buchanan's range facility operations prior to this award is not detailed here, the Department of the Army consistently allocates substantial funds towards maintaining its infrastructure. This includes routine upkeep, major repairs, and specialized services required for training environments. Trends often show an increasing need for modernization and sustainability upgrades, which can drive up costs over time. Analyzing past contracts for similar facilities, even if not in Puerto Rico, can reveal average annual spending per square foot or per user, providing a benchmark for assessing the current $30.9 million award over its duration.

How does the contractor, CONTI FEDERAL SERVICES, LLC, perform on similar government contracts, particularly in terms of cost control and timely delivery?

CONTI FEDERAL SERVICES, LLC has a track record of performing various government contracts, including those related to construction, facility maintenance, and base operations. A thorough assessment of their past performance would involve reviewing contract databases for on-time delivery rates, adherence to budget, and any instances of disputes or contract modifications. For instance, examining their performance on previous Department of Defense or Army contracts of similar scope and value would be crucial. Positive indicators would include a history of successful project completion with minimal cost overruns and a good standing with contracting officers. Conversely, any significant past performance issues, such as repeated delays or cost escalations, would raise concerns about the current contract's risk profile.

What are the specific performance metrics and key performance indicators (KPIs) that will be used to evaluate CONTI FEDERAL SERVICES, LLC's execution of this contract?

While the specific performance metrics and KPIs are not detailed in the award data, contracts of this nature typically include stringent requirements for facility operations and maintenance. These often encompass response times for emergency repairs, preventative maintenance schedules adherence, utility consumption efficiency, safety compliance rates, and overall facility condition assessments. Key Performance Indicators (KPIs) would likely be established to measure the contractor's effectiveness in maintaining the range facility to required operational standards, ensuring safety, and managing resources efficiently. The government's quality assurance personnel would monitor these KPIs, with performance impacting payment and potential future contract awards.

What is the estimated total cost of ownership for the Fort Buchanan Army Range Facility over the contract's duration, considering potential future needs?

The estimated total cost of ownership for the Fort Buchanan Army Range Facility over the contract's duration is primarily represented by the $30.9 million award. However, this figure covers the defined period of performance (approximately 2.75 years). The total cost of ownership could be higher when considering potential contract extensions, option periods, or future requirements not currently specified. Factors such as inflation, unforeseen major repairs, upgrades to meet new training requirements, or changes in environmental regulations could also influence long-term costs. A comprehensive total cost of ownership analysis would project these potential future expenditures beyond the current contract's scope.

How does the competition level (two bidders) for this contract compare to the average number of bids received for similar Army facility operations contracts?

The average number of bids received for similar Army facility operations and maintenance contracts can fluctuate based on contract complexity, duration, value, and geographic location. While two bidders indicate some level of competition, it is often considered moderate. Many large-scale facility management contracts, especially those with significant value and broad scope, can attract a larger pool of interested contractors, sometimes ranging from five to ten or more, particularly if they are highly sought after or represent a significant market opportunity. A lower number of bids, like two, might suggest factors such as high barriers to entry (specialized equipment, security clearances), limited qualified contractors in the region, or perhaps a less aggressive outreach strategy by the procuring agency. This could potentially lead to less competitive pricing than if more bidders had participated.

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: W912QR24R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11486 CORPORATE BLVD STE 190, 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: $32,689,046

Exercised Options: $30,941,724

Current Obligation: $30,941,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline