DoD Logistics Agency warehouse renovations awarded to International Towers LLC for $43M, with a 681-day performance period

Contract Overview

Contract Amount: $42,996,284 ($43.0M)

Contractor: International Towers LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2027-07-28

Contract Duration: 681 days

Daily Burn Rate: $63.1K/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: WAREHOUSE RENOVATIONS FOR THE DEPARTMENT OF LOGISTICS AGENCY IN COLUMBUS, OHIO

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43213

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $43.0 million to INTERNATIONAL TOWERS LLC for work described as: WAREHOUSE RENOVATIONS FOR THE DEPARTMENT OF LOGISTICS AGENCY IN COLUMBUS, OHIO Key points: 1. The contract's value of $43 million for warehouse renovations appears substantial, necessitating a close examination of the scope and deliverables to ensure value for money. 2. Awarded under full and open competition, the procurement process suggests a competitive environment, which typically aids in price discovery and potentially favorable pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, International Towers LLC, which is a positive indicator for cost certainty. 4. The project duration of 681 days indicates a significant undertaking, requiring robust project management and oversight to ensure timely completion and quality. 5. The contract falls within the Commercial and Institutional Building Construction sector, a broad category with varying market dynamics and cost structures. 6. The absence of small business set-aside provisions means opportunities for small businesses may be limited unless subcontracting plans are robustly implemented.

Value Assessment

Rating: fair

Benchmarking the $43 million cost for warehouse renovations requires detailed project specifications, as the scope can vary significantly. However, for a project of this duration and apparent scale within the Department of Defense, the price appears within a reasonable range, assuming standard construction complexities. Without specific details on the square footage, type of renovations (e.g., structural, HVAC, specialized storage), and location-specific labor costs, a precise value-for-money assessment is challenging. Comparing it to similar DoD warehouse renovation projects would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation may have had some exclusions, the final award was made after a broad competitive process. The number of bidders is not specified, but the 'full and open' nature suggests multiple interested parties had the opportunity to submit proposals. This level of competition is generally favorable for achieving competitive pricing and ensuring the government receives proposals that meet its requirements.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors. This process increases the likelihood that the government is obtaining services at a fair and reasonable price.

Public Impact

The primary beneficiaries are the Department of Logistics Agency and the Department of the Army, who will receive upgraded warehouse facilities essential for their operational readiness. The services delivered include comprehensive renovations to existing warehouse structures, potentially improving storage capacity, efficiency, and safety. The geographic impact is localized to Columbus, Ohio, where the warehouse facilities are situated. Workforce implications may include employment opportunities for construction workers, project managers, and support staff involved in the renovation project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues or material price increases occur during the extended 681-day performance period.
Risk of project delays impacting the operational readiness of the logistics agency if the contractor faces challenges in execution or resource allocation.
Ensuring the renovations meet evolving logistical needs and technological advancements within the DoD over the project's lifespan.

Positive Signals

The firm-fixed-price contract structure transfers significant cost risk to the contractor, International Towers LLC.
Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, International Towers LLC, is expected to have the necessary expertise for commercial and institutional building construction.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to specialized facilities like warehouses. Spending in this sector is influenced by economic conditions, government infrastructure needs, and private sector development. For federal projects, competitive bidding is standard, and contract types like firm-fixed-price are common for construction to manage cost certainty. Comparable spending benchmarks for warehouse renovations can vary widely based on size, location, and the complexity of the required upgrades.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. This suggests that International Towers LLC, the prime contractor, may not be a small business, and opportunities for small business participation may be limited to those that can secure subcontracts directly from the prime. Further investigation into the contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the firm-fixed-price structure, incentivizing the contractor to complete the work within budget. Transparency regarding project progress and expenditures would typically be available through contract reporting mechanisms, though specific public access may vary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Modernization Programs
Army Corps of Engineers Construction Contracts
Logistics and Supply Chain Infrastructure Projects
Federal Building and Renovation Projects

Risk Flags

Extended performance period increases risk of cost escalation and delays.
Lack of specified small business subcontracting goals requires further review.
Potential for unforeseen site conditions in construction projects.
Need for detailed scope of work to validate value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.0 million to INTERNATIONAL TOWERS LLC. WAREHOUSE RENOVATIONS FOR THE DEPARTMENT OF LOGISTICS AGENCY IN COLUMBUS, OHIO

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL TOWERS 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 $43.0 million.

What is the period of performance?

Start: 2025-09-15. End: 2027-07-28.

What is the track record of International Towers LLC in completing similar large-scale government construction projects on time and within budget?

Assessing the track record of International Towers LLC requires a review of their past performance on federal contracts, specifically those involving warehouse renovations or similar large-scale commercial/institutional building construction. Key metrics to examine would include on-time completion rates, adherence to budget, quality of work as reflected in past performance evaluations (e.g., CPARS reports), and any history of contract disputes or claims. A contractor with a proven history of successful project delivery is generally a lower risk. Without specific data on International Towers LLC's past performance on comparable projects, it is difficult to definitively assess their reliability for this $43 million DoD contract.

How does the per-square-foot renovation cost compare to industry benchmarks for similar warehouse facilities?

To compare the per-square-foot renovation cost, we would need the total square footage of the warehouse being renovated and the specific scope of work. Assuming the $43 million contract covers extensive upgrades, the cost per square foot could range significantly. For instance, basic upgrades might fall between $50-$150 per square foot, while more complex renovations involving structural changes, advanced climate control, or specialized storage systems could push costs to $200-$400 per square foot or higher. Without these details, a precise benchmark is not possible. However, if the project involves standard renovations for a large facility, costs significantly exceeding $200-$300 per square foot might warrant further scrutiny regarding value for money.

What are the primary risks associated with a 681-day construction timeline for warehouse renovations?

A 681-day (approximately 22-23 months) timeline for warehouse renovations presents several inherent risks. Firstly, the extended duration increases the exposure to fluctuating material costs, potentially leading to budget overruns if not adequately managed through contract clauses or hedging strategies. Secondly, there's a higher probability of encountering unforeseen site conditions (e.g., subsurface issues, hazardous materials) that could cause delays and increase costs. Thirdly, the longer project lifecycle elevates the risk of design obsolescence if the renovated facility's intended use or technology requirements change during construction. Finally, contractor performance and resource availability can be impacted over such an extended period, potentially leading to delays or quality issues if not rigorously overseen.

What is the historical spending pattern for warehouse renovations by the Department of Logistics Agency or similar DoD entities?

Analyzing historical spending patterns for warehouse renovations by the Department of Logistics Agency or similar DoD entities is crucial for context. This involves examining past contract awards for similar projects, noting their size, scope, duration, and cost. For example, if the agency typically spends $20-$30 million on comparable renovations, a $43 million award might indicate a larger scope, more complex requirements, or potentially higher costs. Conversely, if similar projects have historically cost more, this award might represent good value. Understanding the trend of spending in this category can help identify if this contract aligns with historical investment levels or represents a significant deviation requiring further justification.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact potential cost savings for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific needs. While 'full and open' competition generally drives down prices through market forces, the 'exclusion of sources' element implies that certain potential bidders were not considered from the outset, perhaps due to specific technical requirements, security clearances, or past performance issues. The impact on taxpayer savings depends on how many qualified bidders were ultimately excluded and the competitiveness among the remaining pool. If the exclusion significantly limited the number of viable competitors, it could potentially lead to higher prices than a truly unrestricted full and open competition. However, if the exclusions were narrowly defined and a robust set of bidders remained, significant cost savings can still be realized.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW24R0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 63066 OLD HIGHWAY 93, SAINT IGNATIUS, MT, 59865

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,996,284

Exercised Options: $42,996,284

Current Obligation: $42,996,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline