Navy awards $11.1M contract for construction services, with a 3-year duration

Contract Overview

Contract Amount: $11,089,376 ($11.1M)

Contractor: Lotos S.R.L.

Awarding Agency: Department of Defense

Start Date: 2005-12-13

End Date: 2009-04-17

Contract Duration: 1,221 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200602!602437!1700!N33191!NAVFAC ENGINEERING FIELD ACTIVIT!N3319103D0311 !A!N! !N!0006 ! !20051213!20080616!434965471!434965471!434965471!N!LOTOS S R L !VIA FIRENZE 136 !ACI CASTELLO !IT! !00000! !IT! ! !ITALY !+000010913139!N!N!000000000000!1910!TRANSPORT VESSELS, PASSENGER AND TROOP !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !488119!A!A!5!B!S! ! !D!20060620!B! ! !A! !A!Y!J!2!006!F! !Z!N!Z!B!IT!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1700!N62470!0001! !

Plain-Language Summary

Department of Defense obligated $11.1 million to LOTOS S.R.L. for work described as: 200602!602437!1700!N33191!NAVFAC ENGINEERING FIELD ACTIVIT!N3319103D0311 !A!N! !N!0006 ! !20051213!20080616!434965471!434965471!434965471!N!LOTOS S R L !VIA FIRENZE 136 !ACI CASTELLO !IT! !00000! !IT! ! … Key points: 1. Contract awarded to LOTOS S.R.L. for construction services. 2. The contract has a fixed-price type, indicating predictable costs. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract duration is approximately 3.3 years. 5. The contract was awarded by the Department of the Navy. 6. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The total contract value is $11.1 million over approximately 3.3 years. Without specific benchmarks for similar construction projects in the region or for the specific type of construction, it is difficult to definitively assess value for money. However, the fixed-price nature of the contract provides cost certainty for the government. Further analysis would require comparison to industry standards for similar scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 6 bids received. This level of competition is generally positive for price discovery and suggests that the government likely received competitive pricing. The presence of multiple bidders helps ensure that the chosen contractor is offering a fair market price.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to more cost-effective use of public funds.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive construction services. The services delivered are related to commercial and institutional building construction. The geographic impact is likely localized to where the construction services are performed, though this is not specified. Workforce implications would include employment opportunities for construction workers and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it hard to assess if the price is competitive.
Geographic location of the construction is not specified, limiting analysis of local market conditions.
No information provided on the contractor's past performance on similar projects.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty.
Multiple bids were received, suggesting competitive interest.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. This sector includes the building of non-residential structures such as offices, retail spaces, and public facilities. The total value of federal spending in this sector can vary significantly year to year based on infrastructure needs and agency priorities. Benchmarking this contract's value would require comparing it to similar construction projects undertaken by government agencies or private entities of comparable scale and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, project managers, and potentially an Inspector General's office within the Department of Defense. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the terms and conditions of the fixed-price contract, with penalties for non-performance or deviations from the scope of work.

Related Government Programs

Department of Defense Construction Contracts
Navy Facilities Engineering Command Contracts
Commercial Building Construction Services
Institutional Building Construction Services

Risk Flags

Contract duration is relatively long, increasing potential for scope creep or unforeseen issues.
Lack of specific project details limits in-depth value analysis.
Contractor's past performance history is not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to LOTOS S.R.L.. 200602!602437!1700!N33191!NAVFAC ENGINEERING FIELD ACTIVIT!N3319103D0311 !A!N! !N!0006 ! !20051213!20080616!434965471!434965471!434965471!N!LOTOS S R L !VIA FIRENZE 136 !ACI CASTELLO !IT! !00000! !IT! ! !ITALY !+000010913139!N!N!000000000000!1910!TRANSPORT VESSELS, PASSENGER AND TROOP !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !488119!A!A!5!B!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is LOTOS S.R.L..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2005-12-13. End: 2009-04-17.

What is the specific nature of the construction services provided under this contract?

The contract is categorized under NAICS code 236220, which pertains to Commercial and Institutional Building Construction. This broad category encompasses the construction of non-residential buildings such as office buildings, retail stores, warehouses, and public institutions like schools or hospitals. However, the specific details of the project, such as whether it involves new construction, renovation, or repair, and the type of facility being worked on, are not provided in the abbreviated data. Further investigation into the contract's statement of work would be necessary to understand the precise services rendered.

How does the awarded amount of $11.1 million compare to similar construction contracts awarded by the Navy or Department of Defense?

Benchmarking the $11.1 million award requires comparing it to similar construction projects by the Department of the Navy or DoD. Without specific details on the project's scope, size, complexity, and location, a direct comparison is challenging. However, federal contract databases often show a wide range of values for construction projects. Larger, more complex projects can easily exceed tens or hundreds of millions of dollars, while smaller renovations or repairs might be in the low millions. The duration of approximately 3.3 years suggests a project of moderate to significant scale. To provide a more precise comparison, one would need to identify contracts with similar NAICS codes, contract types (fixed-price), and project scopes within the same geographic region or for similar facility types.

What are the potential risks associated with a fixed-price contract for construction services?

Fixed-price contracts offer cost certainty to the buyer but can introduce risks for the contractor if the scope of work is not clearly defined or if unforeseen issues arise during construction. Potential risks include the contractor underestimating costs, leading to reduced profit margins or even losses. For the government, risks can include the contractor cutting corners on quality to maintain profitability, or potential disputes if the scope of work needs to be modified. Effective risk management involves a well-defined statement of work, clear change order procedures, and diligent oversight by the contracting agency to ensure quality and adherence to specifications.

What is LOTOS S.R.L.'s track record with federal contracts, particularly within the Department of Defense?

The provided data identifies LOTOS S.R.L. as the contractor for this specific award. To assess their track record, a review of their past federal contract history would be necessary. This would involve searching databases like the Federal Procurement Data System (FPDS) for previous awards, contract types, agencies served, and performance history. Information on whether they have successfully completed similar construction projects for the Department of Defense or other federal agencies, and if they have a history of performance issues or disputes, would be crucial for a comprehensive assessment of their reliability and capability.

How does the competition level (6 bidders) impact the value received by the government for this construction contract?

Having six bidders for this contract is generally a positive indicator for the government. A higher number of bidders typically intensifies competition, driving down prices as contractors vie for the award. This suggests that the government likely secured a competitive price for the construction services. The full and open competition further ensures that a wide range of potential contractors had the opportunity to participate, maximizing the chances of finding a capable bidder at a reasonable cost. This level of competition helps mitigate the risk of overpaying and promotes efficiency.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess program effectiveness?

The abbreviated data does not include specific performance metrics or deliverables for this contract. Typically, construction contracts will outline detailed specifications, quality standards, timelines, and milestones. Effectiveness would be assessed based on the contractor's adherence to these requirements, the quality of the completed work, and timely delivery. Without access to the full contract document, it's impossible to detail the specific metrics used to evaluate the contractor's performance and the overall effectiveness of the construction services provided.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dioscuri SPA

Address: VIA FIRENZE 136, ACI CASTELLO

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3319103D0311

IDV Type: IDC

Timeline