S. J. Amoroso Construction awarded $171.6M for outpatient clinic and utility plant construction in California

Contract Overview

Contract Amount: $171,630,572 ($171.6M)

Contractor: S. J. Amoroso Construction CO., LLC

Awarding Agency: Department of Defense

Start Date: 2019-08-29

End Date: 2024-06-03

Contract Duration: 1,740 days

Daily Burn Rate: $98.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC AND CENTRAL UTILITY PLANT

Place of Performance

Location: FRENCH CAMP, SAN JOAQUIN County, CALIFORNIA, 95231

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $171.6 million to S. J. AMOROSO CONSTRUCTION CO., LLC for work described as: CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC AND CENTRAL UTILITY PLANT Key points: 1. The contract value represents a significant investment in healthcare infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The project duration of 1740 days indicates a long-term commitment. 5. The contract is categorized under Commercial and Institutional Building Construction. 6. The award was made by the Department of the Army, indicating a defense-related healthcare need.

Value Assessment

Rating: good

The contract value of $171.6 million for a community-based outpatient clinic and central utility plant appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale healthcare construction projects would provide a more precise assessment of value for money. The firm fixed-price nature of the contract suggests that cost overruns are primarily the responsibility of the contractor, which is a positive indicator for the government.

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 moderate level of competition for this significant construction project. While two bidders is better than a sole-source award, a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite having only two bidders, provides some assurance that the government received competitive pricing. However, taxpayers may have benefited from even greater savings if more firms had participated in the bidding process.

Public Impact

The primary beneficiaries are likely military personnel, veterans, and their families who will receive enhanced outpatient medical services. The project will deliver a new community-based outpatient clinic and a central utility plant, improving healthcare access and operational efficiency. The geographic impact is focused on California, likely serving a specific military installation or surrounding community. The construction activities will create jobs for skilled tradespeople and support staff in the local California workforce. The central utility plant will ensure reliable and efficient energy and utility services for the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive construction period.
Risk of schedule delays impacting the availability of critical healthcare services.
Dependence on a single contractor for a large, complex project increases risk if performance issues emerge.

Positive Signals

Firm fixed-price contract structure mitigates financial risk for the government.
Full and open competition, even with two bidders, suggests a degree of market vetting.
The project addresses a clear need for enhanced healthcare infrastructure.

Sector Analysis

The construction sector, particularly for large institutional buildings like healthcare facilities, is characterized by significant capital investment and specialized expertise. This contract falls within the Commercial and Institutional Building Construction sub-sector. The market for such projects is often driven by government and private sector demand for new or upgraded facilities. Comparable spending benchmarks would involve analyzing the cost per square foot or per bed for similar outpatient clinics and utility plants constructed in recent years.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, S. J. Amoroso Construction Co., LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks to engage small businesses for specialized construction services or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally provided through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Department of Veterans Affairs Healthcare Facilities
Community Health Centers
Federal Building Construction
Energy Infrastructure Projects

Risk Flags

Limited competition (2 bidders)
Long project duration (1740 days)
Potential for unforeseen site conditions in construction
Risk of material price escalation over project lifecycle

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $171.6 million to S. J. AMOROSO CONSTRUCTION CO., LLC. CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC AND CENTRAL UTILITY PLANT

Who is the contractor on this award?

The obligated recipient is S. J. AMOROSO CONSTRUCTION CO., 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 $171.6 million.

What is the period of performance?

Start: 2019-08-29. End: 2024-06-03.

What is the track record of S. J. Amoroso Construction Co., LLC with federal contracts, particularly in healthcare or large-scale construction?

A review of federal contract databases would be necessary to fully assess S. J. Amoroso Construction Co., LLC's track record. However, their award of a $171.6 million contract for a community-based outpatient clinic and central utility plant suggests they possess the capacity and experience for large federal projects. Further analysis would involve examining past performance reviews, any history of contract disputes or terminations, and the types of federal agencies they have previously served. Understanding their experience with similar healthcare facilities and utility infrastructure would provide valuable context for evaluating their suitability and potential performance on this current contract.

How does the awarded price compare to the estimated cost or budget for this project?

The provided data does not include the government's estimated cost or budget for this project, making a direct comparison impossible. The awarded price of $171.6 million is the final negotiated amount between the government and S. J. Amoroso Construction Co., LLC. To assess value for money, this awarded price would need to be benchmarked against independent cost estimates, industry standards for similar construction projects (e.g., cost per square foot, cost per bed for outpatient clinics), and potentially against bids received from other competitors if that information were available. Without these comparative data points, it is difficult to definitively state whether the awarded price represents excellent or fair value.

What are the key risk indicators associated with a construction project of this magnitude and duration?

Key risk indicators for a construction project of this magnitude ($171.6 million) and duration (1740 days) include potential for unforeseen site conditions (e.g., soil issues, hazardous materials), material price escalation over the project lifecycle, labor shortages or disputes, design changes or scope creep, and weather-related delays. The complexity of integrating a central utility plant with an outpatient clinic also introduces technical risks. The firm fixed-price contract shifts some financial risk to the contractor, but performance and schedule risks remain significant. Robust project management, contingency planning, and clear communication channels are crucial to mitigate these risks.

How effective is the firm fixed-price contract type in ensuring cost control for this specific project?

The firm fixed-price (FFP) contract type is generally considered effective for cost control when the scope of work is well-defined and the risks are understood. For the construction of a community-based outpatient clinic and central utility plant, an FFP contract places the burden of managing costs and potential overruns on the contractor, S. J. Amoroso Construction Co., LLC. This incentivizes the contractor to be efficient and to accurately estimate costs. However, if unforeseen issues arise that significantly alter the scope or require substantial changes, the FFP structure can lead to contentious change order negotiations. The success of cost control under this FFP contract will depend on the thoroughness of the initial design and specifications, and the contractor's ability to manage their own costs effectively.

What is the historical spending pattern for similar outpatient clinic construction by the Department of the Army?

Historical spending patterns for similar outpatient clinic construction by the Department of the Army would require a detailed analysis of past contract awards. This would involve querying federal procurement databases for contracts with similar scopes of work (outpatient clinics, medical facilities) awarded by the Army over a specific period. Key metrics to examine would include the average contract value, the number of bidders per solicitation, the types of contract vehicles used (e.g., FFP, cost-plus), and the geographic distribution of these projects. Understanding these patterns can help benchmark the current $171.6 million award against historical norms and identify any trends in pricing, competition, or project scale.

What are the implications of having only two bidders for a contract of this size?

Having only two bidders for a contract valued at $171.6 million suggests a potentially limited competitive landscape for this specific project. While full and open competition was utilized, the low number of bids could indicate several factors: high barriers to entry for potential bidders (e.g., specialized expertise, bonding capacity requirements), a lack of market interest, or perhaps a highly specialized niche. From a taxpayer perspective, fewer bidders generally translate to less robust price discovery, potentially leading to a higher-than-optimal price. It also concentrates the risk on the two participating firms and the government's reliance on one of them being successful.

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: W9123818R0056

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 390 BRIDGE PKWY, REDWOOD CITY, CA, 94065

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

Financial Breakdown

Contract Ceiling: $171,630,572

Exercised Options: $171,630,572

Current Obligation: $171,630,572

Actual Outlays: $28,085,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline