DoD Awards $26M Renovation Contract to Intercontinental Construction Contracting Inc. for Building 785

Contract Overview

Contract Amount: $26,066,751 ($26.1M)

Contractor: Intercontinental Construction Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2022-10-11

End Date: 2026-09-03

Contract Duration: 1,423 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 785 RENOVATION

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC for work described as: BUILDING 785 RENOVATION Key points: 1. The contract value is $26.07 million. 2. Competition was full and open. 3. The contract is for building renovation. 4. The sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $26.07 million for a building renovation appears to be within a reasonable range for a project of this scope, though specific benchmarks for similar renovations in New York are needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a firm fixed price contract aims to control costs for the government.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which should lead to a more efficient use of funds for this renovation project.

Public Impact

Military readiness may be impacted by the renovation timeline. Local economy could see a boost from construction jobs. Potential for disruption to nearby facilities during construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long duration of the contract (1423 days).
  • Potential for cost overruns given the project scope.

Positive Signals

  • Full and open competition.
  • Firm fixed price contract type.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. Benchmarks for similar renovation projects are crucial for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the prime contractor is Intercontinental Construction Contracting Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from this agency. The definitive contract type suggests a clear scope, but the long duration warrants monitoring for adherence to schedule and budget.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Long contract duration.
  • Potential for scope creep.
  • Lack of small business prime award.
  • Building renovation complexity.

Tags

commercial-and-institutional-building-co, department-of-defense, ny, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC. BUILDING 785 RENOVATION

Who is the contractor on this award?

The obligated recipient is INTERCONTINENTAL CONSTRUCTION CONTRACTING 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 $26.1 million.

What is the period of performance?

Start: 2022-10-11. End: 2026-09-03.

What is the estimated cost per square foot for this renovation, and how does it compare to similar projects in the New York area?

Without the square footage of Building 785, a precise cost per square foot cannot be calculated. However, the total contract value of $26.07 million for a major renovation suggests a significant investment. Benchmarking against similar institutional building renovations in New York would be necessary to determine if the pricing is competitive. Factors like the building's condition and the complexity of the required upgrades will heavily influence this metric.

What are the specific risks associated with a 1423-day renovation period for a Department of Defense facility?

A 1423-day (nearly 4-year) renovation period presents several risks for a DoD facility. These include potential delays due to unforeseen site conditions, material shortages, or changes in requirements. Operational disruptions to adjacent facilities or personnel could occur for an extended duration. Furthermore, the longer the project, the greater the risk of cost escalation due to inflation or changes in labor and material costs, despite the firm fixed price.

How effectively does a firm fixed price contract manage cost and scope for a long-term, complex building renovation?

A firm fixed price (FFP) contract is designed to provide cost certainty for the government by shifting most of the risk to the contractor. For a long-term, complex renovation, FFP can be effective if the scope is very well-defined upfront. However, significant unforeseen issues or scope creep can lead to contractor claims or disputes, potentially negating the cost-saving benefits. Robust contract management and clear specifications are crucial for FFP success in such scenarios.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W912DS22B0019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 LEXINGTON AVE 2ND FL, PASSAIC, NJ, 07055

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,066,751

Exercised Options: $26,066,751

Current Obligation: $26,066,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2022-10-11

Current End Date: 2026-09-03

Potential End Date: 2026-09-03 00:00:00

Last Modified: 2025-09-30

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