New York Air National Guard facility renovation awarded to SPR Construction for $21.6M, highlighting significant investment in operational infrastructure

Contract Overview

Contract Amount: $21,607,479 ($21.6M)

Contractor: SPR Construction Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2026-04-09

Contract Duration: 925 days

Daily Burn Rate: $23.4K/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: RENOVATE OPERATIONS AND TRAINING FACILITY, B901 NIAGARA FALLS INTERNATIONAL AIRPORT COMPLETE RENOVATION OF A OF A TWO-STORY FACILITY TOTALING 43,029 SF FOR THE NEW YORK AIR NATIONAL GUARD.

Place of Performance

Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14304

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SPR CONSTRUCTION CORPORATION for work described as: RENOVATE OPERATIONS AND TRAINING FACILITY, B901 NIAGARA FALLS INTERNATIONAL AIRPORT COMPLETE RENOVATION OF A OF A TWO-STORY FACILITY TOTALING 43,029 SF FOR THE NEW YORK AIR NATIONAL GUARD. Key points: 1. The contract focuses on a substantial renovation of a 43,029 SF facility, indicating a need for modernized operational and training capabilities. 2. The award to SPR Construction Corporation suggests a competitive process, though the specific details of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrant further examination. 3. The firm-fixed-price contract type generally offers cost certainty for the government, but requires careful scope definition to avoid change orders. 4. The project duration of 925 days points to a complex undertaking, potentially involving significant logistical and construction challenges. 5. The location in Niagara Falls, NY, suggests a localized economic impact through construction jobs and material sourcing. 6. The contract's value of over $21 million represents a considerable investment in military infrastructure within the state.

Value Assessment

Rating: good

The contract value of $21.6 million for renovating a 43,029 SF facility translates to approximately $502 per square foot. Benchmarking this against similar large-scale commercial and institutional building construction projects, particularly those involving government facilities with specialized requirements, suggests this figure is within a reasonable range. However, a more precise comparison would require detailed breakdowns of the renovation scope, materials, and labor costs. The firm-fixed-price nature of the contract aims to control costs, but the final value will depend on the execution and management of the project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method indicates that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. This could be due to specific technical requirements, past performance issues with certain contractors, or other justifiable reasons. The exclusion of sources, even if justified, inherently limits the pool of potential bidders compared to a truly full and open competition, which could potentially impact price discovery and the level of innovation offered by the market.

Taxpayer Impact: While the exclusion of sources limits the breadth of competition, the remaining bidders still compete, which should drive a reasonable price. However, taxpayers may not benefit from the absolute lowest price achievable if highly capable contractors were excluded without clear justification.

Public Impact

The New York Air National Guard will benefit from an upgraded and modernized operations and training facility, enhancing readiness and operational effectiveness. The primary service delivered is the complete renovation of a two-story, 43,029 square foot building. The geographic impact is concentrated in Niagara Falls, New York, supporting local economic activity. The project will likely create temporary employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises questions about whether the full breadth of market capabilities was considered, potentially limiting competitive pressure.
The long project duration (925 days) increases the risk of cost overruns due to inflation, material price fluctuations, or unforeseen site conditions.
As a firm-fixed-price contract, scope creep due to poorly defined requirements could lead to costly change orders.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The renovation of a significant facility indicates a commitment to improving military infrastructure and operational capabilities.
The award to a single contractor suggests a clear selection process based on defined criteria.

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 area often supports critical infrastructure for defense, government operations, and public services. The market for large-scale facility renovations is competitive, with numerous firms capable of undertaking such projects. The value of this contract, at $21.6 million, places it in the mid-to-large tier for individual construction projects. Comparable spending benchmarks would typically be assessed based on square footage, complexity of renovation, and specific building systems involved.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract, as 'ss' (small business set-aside) is false and 'sb' (small business) is false. This suggests the contract was competed on the open market or through other means where small business status was not a determining factor for set-aside. While there is no explicit subcontracting requirement mentioned, large prime contractors are often encouraged or required to seek small business participation in their subcontracting plans. The absence of a specific set-aside may mean that larger, established construction firms were the primary targets for this bid, potentially limiting direct opportunities for smaller businesses to act as prime contractors on this specific project.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Army, which is overseeing the award for the Air National Guard. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Military Construction Projects
Facility Sustainment, Restoration, and Modernization (FSRM)
Air National Guard Infrastructure Modernization
Department of Defense Real Property Management

Risk Flags

Potential for limited competition due to source exclusion.
Risk of cost escalation over the long project duration.
Possibility of scope creep impacting fixed-price contract.
Uncertainty regarding specific technical requirements driving source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SPR CONSTRUCTION CORPORATION. RENOVATE OPERATIONS AND TRAINING FACILITY, B901 NIAGARA FALLS INTERNATIONAL AIRPORT COMPLETE RENOVATION OF A OF A TWO-STORY FACILITY TOTALING 43,029 SF FOR THE NEW YORK AIR NATIONAL GUARD.

Who is the contractor on this award?

The obligated recipient is SPR CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-04-09.

What specific factors led to the exclusion of certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The specific reasons for excluding sources are not detailed in the provided data. This procurement method typically involves a pre-qualification or exclusion process based on criteria such as technical capabilities, past performance, security clearances, or specific certifications required for the project. For instance, the renovation might require specialized knowledge of Air National Guard operational needs or specific building codes applicable to military facilities. Without further documentation, it's difficult to ascertain if the exclusions were broad or narrow, and whether they significantly limited the competitive landscape. Agencies often justify source exclusions based on ensuring project success and mitigating risks associated with unqualified bidders.

How does the cost per square foot of this renovation compare to similar military facility upgrades?

The renovation cost of approximately $502 per square foot ($21.6M / 43,029 SF) is substantial. Benchmarking this against similar military facility renovations requires access to detailed cost data for comparable projects, which is often not publicly available. However, general construction cost indices suggest that significant renovations, especially those involving structural, mechanical, electrical, and plumbing (MEP) upgrades, or specialized security and IT infrastructure, can range from $300 to $700+ per square foot. Given the nature of a military operations and training facility, which may have specific security, communication, and resilience requirements, this cost per square foot appears to be within a plausible range, though a detailed cost breakdown would be necessary for a definitive assessment of value.

What are the potential risks associated with the 925-day duration of this contract?

A contract duration of 925 days (approximately 2.5 years) presents several risks. Firstly, there's an increased exposure to economic fluctuations, including inflation in material costs and labor rates, which could impact the contractor's profitability or lead to requests for equitable adjustments if not adequately accounted for in the fixed price. Secondly, extended project timelines heighten the risk of unforeseen site conditions or discovery of hazardous materials, which can cause delays and increase costs. Thirdly, prolonged construction can disrupt ongoing operations at the airport or nearby facilities, requiring careful phasing and coordination. Finally, the longer the project, the greater the chance of changes in military requirements or technology that might necessitate design modifications, leading to scope creep and potential cost increases despite the firm-fixed-price structure.

What is the significance of the 'DEFINITIVE CONTRACT' award type in this context?

A 'Definitive Contract' is a standard contract type used for procurement. In this case, it signifies a formal, legally binding agreement between the government and SPR Construction Corporation for the renovation project. It implies that the terms, conditions, scope of work, and price have been finalized and agreed upon. Unlike other contract types that might be used for research and development or services with uncertain outcomes, a definitive contract is typically used for well-defined requirements like construction. The 'firm fixed price' designation further clarifies that the contractor bears the primary risk for cost overruns, provided the scope of work remains unchanged.

How might the 'exclusion of sources' impact the long-term availability of qualified contractors for similar future projects?

If the exclusion of sources was based on overly restrictive or subjective criteria, it could inadvertently limit the development and participation of qualified contractors in future bidding processes. Contractors who were excluded might feel discouraged from investing in the necessary qualifications or resources if they perceive the process as unfair or opaque. Conversely, if the exclusions were based on objective, performance-related criteria, it could signal to the market the importance of meeting high standards, potentially encouraging contractors to improve their capabilities. The specific impact depends heavily on the justification and transparency surrounding the exclusion process. A pattern of excluding capable firms without clear justification could reduce overall market competition over time.

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: SEALED BID

Solicitation ID: W50S8H23B0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 STATE STREET # 700, ALBANY, NY, 12207

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,046,368

Exercised Options: $21,607,479

Current Obligation: $21,607,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline