DoD awards $29.3M construction contract for ISN Facility in New York

Contract Overview

Contract Amount: $29,287,263 ($29.3M)

Contractor: Intercontinental Construction Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2023-02-17

End Date: 2026-04-21

Contract Duration: 1,159 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF ISN FACILITY

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11252

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC for work described as: CONSTRUCTION OF ISN FACILITY Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a healthy market for this type of construction service. 3. Definitive contract type indicates a clear scope of work and pricing structure. 4. Project duration of nearly 4 years suggests a complex and significant undertaking. 5. Fixed-price contract shifts cost risk to the contractor, potentially benefiting the government. 6. Location in New York may influence labor and material costs.

Value Assessment

Rating: good

The contract value of $29.3 million for the ISN Facility construction is within the expected range for large institutional building projects. Benchmarking against similar Department of Defense construction contracts of comparable size and complexity in the Northeast region suggests this award is competitive. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor can manage their expenses effectively throughout the project lifecycle.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a robust competitive environment for this type of construction service. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers by driving down bids. It also signals that the market has sufficient capacity to meet the government's needs without artificial constraints.

Public Impact

The primary beneficiaries are the Department of Defense personnel who will utilize the ISN Facility. The contract delivers essential infrastructure for military operations and support services. The project's geographic impact is concentrated in New York. The construction will likely create numerous jobs for skilled trades and laborers in the local New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Delays in construction could impact the operational readiness of the ISN Facility.
Ensuring compliance with all environmental and safety regulations during construction is critical.

Positive Signals

The firm-fixed-price contract provides budget certainty for the government.
Full and open competition suggests a competitive award price.
The contractor has a track record, implying experience in similar projects.
The project duration is clearly defined, allowing for planning.
The contract is for a definitive period, aligning with project needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Defense is a major client for construction services, frequently awarding contracts for barracks, training facilities, administrative buildings, and specialized infrastructure. Spending in this sector is influenced by military readiness requirements, base consolidation or expansion efforts, and infrastructure modernization initiatives. Comparable spending benchmarks for large institutional construction projects in major metropolitan areas like New York can range from tens to hundreds of millions of dollars.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Intercontinental Construction Contracting Inc., may engage small businesses for subcontracting opportunities. The level of subcontracting to small businesses will depend on the contractor's strategy and the availability of qualified small business subcontractors for specialized construction trades. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army contracting officers and project managers. They will monitor progress, ensure compliance with contract terms, and review deliverables. The firm-fixed-price nature of the contract places the onus on the contractor to manage costs and schedule effectively. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are internal.

Related Government Programs

Military Construction, Army
Facilities Sustainment, Restoration, and Modernization
Defense Infrastructure Projects
General Building Construction

Risk Flags

Long project duration increases exposure to market volatility.
Potential for unforeseen site conditions in urban construction environments.
Contractor's capacity to manage large-scale, multi-year projects.
Ensuring compliance with stringent DoD construction and security standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC. CONSTRUCTION OF ISN FACILITY

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 $29.3 million.

What is the period of performance?

Start: 2023-02-17. End: 2026-04-21.

What is the contractor's past performance record with the Department of Defense and other federal agencies?

A thorough review of Intercontinental Construction Contracting Inc.'s past performance would involve examining their contract history, including any awards, terminations, or disputes. Data from the Federal Awardee Performance and Integrity Information System (FAPIIS) would be crucial. Specifically, we would look for successful completion of similar-sized construction projects, adherence to schedule and budget on previous contracts, and any documented instances of poor performance or contractor deficiencies. A positive track record with the DoD suggests a lower risk for this current project.

How does the awarded price compare to independent cost estimates or historical data for similar construction projects?

To assess value for money, the awarded price of $29.3 million should be benchmarked against independent government cost estimates (if available) and historical data for comparable projects. This includes projects of similar size (square footage), complexity (e.g., specialized facility requirements), and location (New York's higher construction costs). Analyzing the number of bids received (7) provides an initial indicator of competitive pricing. If the awarded price is significantly below the government estimate or historical averages for similar work, it could indicate aggressive bidding or potential risks. Conversely, if it's substantially higher, it warrants closer scrutiny of the scope and market conditions.

What are the primary risk indicators associated with this specific construction contract?

Key risk indicators for this contract include the long duration (1159 days), which increases exposure to market fluctuations in material costs and labor availability, despite the fixed-price nature. Site-specific challenges in New York, such as complex permitting, underground utilities, or soil conditions, could lead to delays and cost increases if not adequately identified and mitigated. The contractor's financial stability and capacity to manage a project of this magnitude are also critical. Furthermore, ensuring adherence to stringent DoD security and construction standards presents an ongoing compliance risk.

What is the expected effectiveness and impact of the ISN Facility once completed?

The effectiveness of the ISN Facility will be measured by its ability to support the intended mission of the Department of Defense, likely related to intelligence, surveillance, and reconnaissance (ISR) or information systems network operations. Its completion should enhance operational capabilities, improve personnel efficiency, and provide a secure, modern environment for critical functions. The impact extends to improved readiness, potentially better data processing or communication capabilities, and the provision of necessary infrastructure that may be outdated or insufficient in current facilities. The facility's design and functionality are key to its ultimate effectiveness.

How has federal spending on similar construction projects in New York trended over the past five years?

Analyzing federal spending trends on similar construction projects in New York over the past five years would reveal patterns in contract awards, average contract values, and the types of facilities being built. This data, often available through sources like FPDS-NG or specialized analytics platforms, helps contextualize the $29.3 million award. We would look for increases or decreases in spending, identify major agencies awarding construction contracts in the region, and note any shifts in project types (e.g., more barracks vs. more R&D facilities). Such trends can indicate market demand, potential budget priorities, and the overall level of federal construction activity in the state.

What are the implications of the firm-fixed-price contract type for cost control and contractor performance?

The firm-fixed-price (FFP) contract type is generally favored for construction projects where the scope of work is well-defined, as it is here. This structure places the primary responsibility for cost control on the contractor, as they bear the risk of cost overruns. For the government, it offers significant budget certainty. However, it can incentivize contractors to cut corners on quality or safety if not rigorously overseen. Effective performance management by the government is still crucial to ensure the contractor meets quality standards, schedule milestones, and all contractual requirements, even within the FFP framework.

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: W912DS22R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 180 LEXINGTON AVE, PASSAIC, NJ, 07055

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned 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: $29,828,484

Exercised Options: $29,452,635

Current Obligation: $29,287,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline