Navy awards $28.7M renovation contract to The Nutmeg Companies, Inc. for Kittery, ME facility

Contract Overview

Contract Amount: $28,689,501 ($28.7M)

Contractor: THE Nutmeg Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-14

End Date: 2026-06-23

Contract Duration: 1,013 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: B79 2ND AND 3RD FLOOR RENOVATIONS, PNSY, KITTERY, ME

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to THE NUTMEG COMPANIES, INC. for work described as: B79 2ND AND 3RD FLOOR RENOVATIONS, PNSY, KITTERY, ME Key points: 1. Contract value appears reasonable for a large-scale renovation project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Project duration of over 1000 days indicates a significant scope of work. 5. The project is located in Maine, potentially impacting local construction workforce. 6. The award was made by the Department of the Navy, a major federal buyer.

Value Assessment

Rating: good

The contract value of approximately $28.7 million for the renovation of the 2nd and 3rd floors of a facility in Kittery, Maine, appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale commercial and institutional building construction projects awarded by the Department of Defense suggests that the pricing is competitive. The Firm Fixed Price contract type indicates that the contractor has assumed the primary cost risk, which is generally favorable for the government when scope is well-defined. Further analysis would require detailed cost breakdowns and comparison to specific project requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources.' While this indicates that the competition was not entirely unrestricted, it suggests that multiple sources were considered and evaluated after certain exclusions. The specific reasons for excluding certain sources would need further investigation to fully understand the competitive landscape. The number of bidders and the evaluation process are not detailed in the provided data, but the 'full and open' designation implies a structured procurement process aimed at achieving fair market prices.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and improve the quality of proposals received.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel who will utilize the renovated facility. The project will deliver updated and functional interior spaces within the Kittery, Maine facility. The geographic impact is localized to Kittery, Maine, potentially creating temporary construction jobs in the area. The renovation will likely involve skilled trades and construction labor, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of renovation is more complex than initially defined, despite the fixed-price contract.
Delays in project completion could impact the Navy's operational readiness or facility utilization plans.
The exclusion of certain sources in the competition process warrants further review to ensure maximum value for taxpayers.

Positive Signals

The use of a Firm Fixed Price contract transfers significant cost risk to the contractor.
The project is being executed under a full and open competition framework, promoting a competitive environment.
The contract is awarded to The Nutmeg Companies, Inc., whose track record would need to be assessed for performance history.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often involves large-scale projects for government facilities, including renovations, new builds, and infrastructure upgrades. The Department of Defense is a major client within this sector, frequently awarding contracts for military bases and related support facilities. Benchmarking this contract's value against similar renovation projects for federal agencies would provide further context on its market positioning.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value renovation project, it is likely that the prime contractor, The Nutmeg Companies, Inc., is a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project management team within the Department of the Navy. Accountability measures are inherent in the Firm Fixed Price contract type, which incentivizes the contractor to complete the work within budget. Transparency regarding project progress and expenditures would depend on the Navy's reporting practices and any public-facing contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Facility Renovations
Naval Facilities Engineering Command Contracts
Commercial Building Construction
Federal Building Modernization Projects

Risk Flags

Potential for unforeseen conditions in renovation projects.
Risk of scope creep impacting budget and timeline.
Contractor performance and delivery schedule adherence.
Adequacy of competition given source exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to THE NUTMEG COMPANIES, INC.. B79 2ND AND 3RD FLOOR RENOVATIONS, PNSY, KITTERY, ME

Who is the contractor on this award?

The obligated recipient is THE NUTMEG COMPANIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.7 million.

What is the period of performance?

Start: 2023-09-14. End: 2026-06-23.

What is the track record of The Nutmeg Companies, Inc. with federal contracts, particularly with the Department of Defense?

A review of federal contract databases would be necessary to ascertain the track record of The Nutmeg Companies, Inc. This would involve examining past performance on similar projects, including contract values, timeliness of completion, and any reported issues or disputes. Understanding their history with the Department of Defense specifically would provide insight into their experience and reliability in executing government contracts. Without this specific data, it is difficult to assess their past performance in detail. However, being awarded a contract of this magnitude suggests they have met certain pre-qualification criteria.

How does the $28.7 million contract value compare to similar Navy or DoD renovation projects in the Northeast region?

To benchmark the $28.7 million contract value, a comparative analysis of similar renovation projects undertaken by the Navy or Department of Defense in the Northeast region over the past 3-5 years would be required. This analysis should consider project scope, square footage, type of renovation (e.g., structural, interior, systems), and the specific facility type. Factors such as prevailing labor costs and material prices in the Kittery, Maine area would also influence comparisons. Preliminary assessment suggests the value is substantial, indicative of a significant renovation scope.

What are the specific risks associated with a Firm Fixed Price contract for a large-scale renovation project?

While a Firm Fixed Price (FFP) contract shifts cost risk to the contractor, significant risks can still arise for large-scale renovations. Unforeseen conditions discovered during demolition or construction (e.g., asbestos, structural issues, hazardous materials) can lead to change orders, potentially increasing the contract price if not managed carefully through contract clauses. Scope creep, where the government requests additional work beyond the original agreement, is another risk. Contractor performance issues, such as delays or quality defects, can also impact project timelines and require government intervention. The government's risk is primarily in ensuring the contractor has adequately priced for potential contingencies and has the capability to manage complex projects.

What is the expected impact of this renovation on the operational capabilities of the Kittery, Maine facility?

The specific impact on operational capabilities depends heavily on the nature of the renovations to the 2nd and 3rd floors. If these floors house critical administrative, technical, or support functions, the renovation could lead to temporary disruptions or relocation of personnel and operations. However, the long-term goal is typically to enhance operational capabilities through modernized facilities, improved energy efficiency, better workspace ergonomics, and updated technological infrastructure. The project duration of over 1000 days suggests a comprehensive overhaul that aims to significantly improve the functionality and utility of these spaces once completed.

How has federal spending on building construction and renovation in Maine trended over the last five years?

Analyzing federal spending trends on building construction and renovation in Maine over the last five years would require accessing historical federal procurement data. This would involve filtering contracts by agency (e.g., DoD, GSA), contract type (construction), and geographic location (Maine). Such an analysis would reveal whether this $28.7 million contract represents an outlier, a continuation of a trend, or a significant increase in federal investment in construction within the state. It would also help contextualize the scale of this particular award within the broader federal procurement landscape for Maine.

What does 'Full and Open Competition after Exclusion of Sources' imply about the procurement process and potential bidder pool?

This procurement method implies that the agency initially considered all responsible sources but then excluded certain ones based on specific criteria or justifications, as permitted by law (e.g., FAR Part 6). It is more restrictive than unrestricted full and open competition but less restrictive than sole-source or limited competition. The exclusion of sources suggests that either specific capabilities were required that only a subset of potential bidders possessed, or there were other regulatory or policy reasons for the exclusion. This could potentially limit the number of bidders and may have implications for price competition compared to a truly unrestricted process.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008523R2602

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 OHIO AVE, NORWICH, CT, 06360

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

Financial Breakdown

Contract Ceiling: $28,689,501

Exercised Options: $28,689,501

Current Obligation: $28,689,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline