USDA renovation contract awarded to Leonard S. Fiore Inc. for over $17 million

Contract Overview

Contract Amount: $17,090,307 ($17.1M)

Contractor: Leonard S Fiore Inc

Awarding Agency: Department of Defense

Start Date: 2023-03-17

End Date: 2025-10-15

Contract Duration: 943 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: U.S. DEPARTMENT OF AGRICULTURE (USDA) - ARS RENOVATION - PASTURE SYSTEMS WATERSHED MANAGEMENT RESEARCH UNIT (PSWMRU), UNIVERSITY PARK, PA

Place of Performance

Location: ALTOONA, BLAIR County, PENNSYLVANIA, 16602

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to LEONARD S FIORE INC for work described as: U.S. DEPARTMENT OF AGRICULTURE (USDA) - ARS RENOVATION - PASTURE SYSTEMS WATERSHED MANAGEMENT RESEARCH UNIT (PSWMRU), UNIVERSITY PARK, PA Key points: 1. The contract value of $17.1 million represents a significant investment in research infrastructure. 2. Competition dynamics for this large construction project are crucial for ensuring taxpayer value. 3. The fixed-price contract type aims to mitigate cost overrun risks for the government. 4. The project's duration of 943 days indicates a substantial and complex renovation. 5. This contract falls within the broader category of federal spending on facilities and infrastructure.

Value Assessment

Rating: fair

The contract value of $17.1 million for a renovation project requires careful benchmarking against similar construction projects. Without specific details on the scope of work, it is difficult to definitively assess value for money. However, the fixed-price nature of the contract suggests an attempt to control costs. Further analysis would involve comparing the cost per square foot or per unit of renovation against industry standards and historical government construction data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and negotiation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and can lead to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the researchers and staff at the Pasture Systems Watershed Management Research Unit (PSWMRU) who will gain access to updated and improved facilities. The project will deliver essential renovation and construction services to modernize the research unit's infrastructure. The geographic impact is localized to University Park, Pennsylvania, where the PSWMRU is located. The contract will likely have implications for the local construction workforce, providing employment opportunities during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large renovation projects, which could impact final costs despite the fixed-price contract.
Ensuring timely completion within the 943-day duration is critical to avoid disrupting research operations.
The complexity of renovating existing research facilities may present unforeseen challenges.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a robust bidding process.
The contract is for a critical research facility, indicating a strategic investment.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. Federal spending in this area supports the maintenance and modernization of government facilities, including research laboratories. The market for federal construction contracts is competitive, with numerous firms vying for projects. Benchmarks for similar renovation projects would typically consider factors like building size, age, scope of work, and location.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means the primary contractor, Leonard S. Fiore Inc., will manage the project, and opportunities for small businesses would likely depend on their subcontracting decisions. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the U.S. Department of Agriculture's Agricultural Research Service. The Department of Defense's role as the awarding agency suggests a potential for oversight from that department as well. Transparency would be facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Fund
Military Construction
Research Facilities Modernization
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Risk of material price escalation impacting fixed-price contract.
Dependency on contractor's ability to manage complex renovation schedule.
Potential for disruption to ongoing research operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to LEONARD S FIORE INC. U.S. DEPARTMENT OF AGRICULTURE (USDA) - ARS RENOVATION - PASTURE SYSTEMS WATERSHED MANAGEMENT RESEARCH UNIT (PSWMRU), UNIVERSITY PARK, PA

Who is the contractor on this award?

The obligated recipient is LEONARD S FIORE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2023-03-17. End: 2025-10-15.

What is the track record of Leonard S. Fiore Inc. with federal construction contracts?

Leonard S. Fiore Inc. has a history of federal contracting, as indicated by this award from the Department of the Army. To assess their track record thoroughly, one would need to examine past performance evaluations, any history of contract disputes or terminations, and the types and values of previous federal projects they have completed. A review of federal procurement data would reveal their experience with similar construction projects, adherence to schedules and budgets, and overall client satisfaction. This information is crucial for understanding their capability to successfully execute the USDA renovation project.

How does the cost per square foot of this renovation compare to similar federal projects?

Without the specific square footage of the renovated area, a direct cost-per-square-foot comparison is not possible. However, the total contract value of $17.1 million for a renovation project of 943 days suggests a substantial undertaking. To benchmark effectively, one would need to identify comparable federal renovation projects in terms of building type (research facility), scope of work (e.g., structural, MEP, finishes), and geographic location. Analyzing the cost per square foot of those comparable projects would then allow for an assessment of whether this contract's pricing is within an expected range, considering factors like material costs, labor rates, and project complexity.

What are the primary risks associated with this type of renovation contract?

The primary risks associated with this renovation contract include potential cost overruns despite the firm fixed-price structure, especially if unforeseen site conditions or material price escalations occur. Schedule delays are another significant risk, given the 943-day duration, which could disrupt critical research activities. Technical risks related to the integration of new systems with existing infrastructure, and the potential for scope creep if project requirements are not clearly defined and managed, also pose challenges. Furthermore, ensuring compliance with all relevant building codes and environmental regulations adds another layer of complexity and potential risk.

How effective is the firm fixed-price contract type in managing costs for large construction projects?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for large construction projects when the scope of work is well-defined and risks are understood. It shifts the majority of cost risk to the contractor, providing the government with a high degree of cost certainty. The contractor is incentivized to control costs and work efficiently to maximize profit. However, if the scope is poorly defined or unforeseen issues arise, contractors may build in higher contingencies, potentially leading to a higher initial price, or seek change orders, which can increase the total cost. For complex renovations, careful upfront planning and robust contract administration are essential for FFP to be truly cost-effective.

What is the historical spending trend for facility renovations at USDA research units?

Historical spending trends for facility renovations at USDA research units would require a detailed analysis of past USDA budgets and contract awards specifically allocated for infrastructure improvements and renovations across its various research arms. This would involve examining data over several fiscal years to identify patterns in the frequency, scale, and cost of such projects. Understanding these trends can help contextualize the $17.1 million award for the PSWMRU renovation, indicating whether it represents a typical investment, an increase in spending, or a deviation from historical norms. Such analysis would also highlight any recurring challenges or successful strategies employed in past renovation efforts.

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: W912DR22R0034

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5506 6TH AVE REAR, ALTOONA, PA, 16602

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

Financial Breakdown

Contract Ceiling: $18,493,307

Exercised Options: $17,090,307

Current Obligation: $17,090,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline