Agriculture Dept. Awards $15.7M for Peoria Building Renovation Under Full and Open Competition
Contract Overview
Contract Amount: $15,754,042 ($15.8M)
Contractor: Core Construction Services of Illinois ,Inc.
Awarding Agency: Department of Agriculture
Start Date: 2010-01-19
End Date: 2012-10-31
Contract Duration: 1,016 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAS::12 1402::TAS CONSTRUCTION OF THE CENTER WING RENOVATION, PHASES 3 AND 4, MIDWEST AREA, PEORIA, ILLINOIS
Place of Performance
Location: PEORIA, PEORIA County, ILLINOIS, 61604
State: Illinois Government Spending
Plain-Language Summary
Department of Agriculture obligated $15.8 million to CORE CONSTRUCTION SERVICES OF ILLINOIS ,INC. for work described as: TAS::12 1402::TAS CONSTRUCTION OF THE CENTER WING RENOVATION, PHASES 3 AND 4, MIDWEST AREA, PEORIA, ILLINOIS Key points: 1. The contract awarded to CORE CONSTRUCTION SERVICES OF ILLINOIS, INC. for $15.7 million covers renovation phases 3 and 4. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The project duration of 1016 days indicates a significant, multi-year undertaking. 4. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor.
Value Assessment
Rating: good
The award amount of $15.7 million for a large-scale renovation project appears reasonable given the scope and duration. Benchmarking against similar large commercial construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all qualified contractors to bid, fostering a market-driven price discovery.
Taxpayer Impact: The competitive bidding process is expected to have resulted in a fair market price, maximizing the value of taxpayer dollars spent on this infrastructure improvement.
Public Impact
Renovation of a key agricultural research facility in Illinois. Potential for job creation in the Peoria area during the construction period. Improved infrastructure for the Agricultural Research Service's Midwest operations. Long-term benefits from modernized facilities for research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in multi-phase renovation projects.
- Contractor performance risk over the extended project duration.
- Unforeseen site conditions impacting cost or schedule.
Positive Signals
- Firm Fixed Price contract mitigates cost overrun risk for the government.
- Full and open competition suggests competitive pricing.
- Experienced contractor likely selected through competitive process.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions and federal infrastructure priorities. The award amount is substantial for a single project.
Small Business Impact
While the primary award went to CORE CONSTRUCTION SERVICES OF ILLINOIS, INC., the use of full and open competition does not preclude subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's duration and multi-phase nature suggest ongoing oversight will be critical to ensure adherence to scope, budget, and schedule. The Department of Agriculture's contracting office (DCA) is responsible for this oversight.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Agriculture Contracting
- Agricultural Research Service Programs
Risk Flags
- Contract duration exceeds one year.
- Renovation projects carry inherent risks of unforeseen conditions.
- Potential for scope creep in multi-phase projects.
- Dependence on contractor performance over an extended period.
Tags
commercial-and-institutional-building-co, department-of-agriculture, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $15.8 million to CORE CONSTRUCTION SERVICES OF ILLINOIS ,INC.. TAS::12 1402::TAS CONSTRUCTION OF THE CENTER WING RENOVATION, PHASES 3 AND 4, MIDWEST AREA, PEORIA, ILLINOIS
Who is the contractor on this award?
The obligated recipient is CORE CONSTRUCTION SERVICES OF ILLINOIS ,INC..
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Research Service).
What is the total obligated amount?
The obligated amount is $15.8 million.
What is the period of performance?
Start: 2010-01-19. End: 2012-10-31.
What is the historical cost performance of CORE CONSTRUCTION SERVICES OF ILLINOIS, INC. on similar government contracts?
Analyzing the contractor's past performance on federal contracts, particularly those involving similar scope and scale, is crucial. This includes reviewing past project completion times, adherence to budget, and any documented disputes or claims. A strong track record suggests a lower risk of cost overruns or delays on the current project.
How will potential unforeseen site conditions be managed to prevent cost overruns?
Given the nature of renovation projects, unforeseen conditions are a common risk. The contract's provisions for handling such issues, including change order procedures and contingency allocation, are key. Clear communication protocols and a proactive approach to site assessment and problem-solving by both the contractor and the agency are essential to mitigate financial and schedule impacts.
What are the key performance indicators (KPIs) being used to measure the success of this renovation project?
Effective oversight requires clearly defined KPIs tied to project objectives. For this renovation, KPIs might include adherence to schedule milestones, quality of workmanship against specifications, occupant satisfaction post-completion, and final project cost relative to the awarded amount. Regular monitoring and reporting against these KPIs will ensure accountability and timely intervention if performance deviates.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Otto Baum CO, Inc (UEI: 006808935)
Address: 866 N MAIN ST, MORTON, IL, 16
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,754,042
Exercised Options: $15,754,042
Current Obligation: $15,754,042
Timeline
Start Date: 2010-01-19
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2012-09-10
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