Intercontinental Construction Contracting Inc. awarded $25.9M for CAVEN POINT BASE RENOVATION by the Department of the Army

Contract Overview

Contract Amount: $25,941,465 ($25.9M)

Contractor: Intercontinental Construction Contracting Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-16

End Date: 2024-10-13

Contract Duration: 1,488 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CAVEN POINT BASE RENOVATION

Place of Performance

Location: JERSEY CITY, HUDSON County, NEW JERSEY, 07305

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC for work described as: CAVEN POINT BASE RENOVATION Key points: 1. The contract's firm fixed-price structure aims to control costs, but the extended duration of nearly five years warrants close monitoring for potential overruns. 2. With four bidders, the competition level suggests a reasonably contested market for this type of construction project. 3. The project's focus on base renovation indicates a need for infrastructure modernization within a military installation. 4. Performance will be assessed against established construction standards and project timelines. 5. This contract falls within the broader Defense sector, specifically supporting Army infrastructure. 6. The absence of small business set-aside flags suggests the primary awardee is likely a larger entity, with subcontracting opportunities needing further investigation.

Value Assessment

Rating: fair

Benchmarking the $25.9 million cost for base renovation is challenging without specific project scope details. However, the duration of 1488 days (nearly 5 years) for a construction project of this magnitude raises concerns about potential cost escalation and schedule slippage. Comparing it to similar large-scale military construction projects would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides some cost certainty, but the extended timeline could still lead to unforeseen expenses.

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. With four bidders, the competition level appears moderate, suggesting that while there was interest, it may not represent the full spectrum of potential contractors in the market. This level of competition generally supports price discovery but could be enhanced with broader outreach.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices. Four bidders suggest a reasonable level of competition, which is beneficial for taxpayers.

Public Impact

Military personnel and operations at Caven Point Base will benefit from modernized facilities. The project delivers essential base renovation services, improving infrastructure and operational capabilities. The geographic impact is localized to Caven Point Base in New Jersey. The contract will likely support a workforce of construction professionals, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration of nearly five years increases risk of cost overruns and schedule delays.
Lack of specific details on the scope of renovation makes it difficult to assess value for money.
Potential for scope creep given the long performance period.
Reliance on a single prime contractor for an extended period could limit flexibility.

Positive Signals

Firm fixed-price contract provides cost certainty for the base amount.
Full and open competition suggests a robust bidding process.
Award to a single entity streamlines management and accountability.
Project addresses critical infrastructure needs for military readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for government operations, including military bases. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar renovation or construction projects on military installations, considering factors like location, complexity, and material costs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee is likely a larger firm. Further investigation into the subcontracting plan would be necessary to determine the extent to which small businesses will participate in this project and benefit from the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures will be tied to the firm fixed-price contract terms, performance milestones, and quality assurance surveillance plans. Transparency is generally maintained through contract award databases, though specific project details and oversight reports may be less publicly accessible.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Extended contract duration increases risk of cost overruns and schedule delays.
Lack of detailed scope of work hinders comprehensive value assessment.
Potential for scope creep over the long performance period.
Need for sustained oversight due to contract length.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to INTERCONTINENTAL CONSTRUCTION CONTRACTING INC. CAVEN POINT BASE 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 $25.9 million.

What is the period of performance?

Start: 2020-09-16. End: 2024-10-13.

What is the specific scope of work for the CAVEN POINT BASE RENOVATION project?

The provided data does not detail the specific scope of work for the CAVEN POINT BASE RENOVATION project. It only indicates the contract value ($25.9 million), the contractor (INTERCONTINENTAL CONSTRUCTION CONTRACTING INC), the awarding agency (Department of the Army), and the North American Industry Classification System (NAICS) code 236220 for Commercial and Institutional Building Construction. A detailed scope of work would typically outline the specific buildings or infrastructure to be renovated, the nature of the renovations (e.g., structural, electrical, plumbing, modernization), and any specific requirements or standards to be met. Without this information, a precise assessment of the project's objectives and value is limited.

How does the $25.9 million contract value compare to similar base renovation projects by the Department of the Army?

Directly comparing the $25.9 million contract value for the CAVEN POINT BASE RENOVATION to similar projects is difficult without more specific data on the scope and scale of renovations. However, for large-scale military base renovations, this value falls within a common range for significant infrastructure upgrades. Projects can vary widely in cost depending on the size of the facility, the extent of the work required (e.g., modernization of systems, structural repairs, new construction elements), and geographic location. To provide a robust comparison, one would need to analyze a portfolio of similar Army base renovation contracts awarded over a comparable period, adjusting for inflation and project complexity.

What are the key performance indicators (KPIs) and milestones for this contract?

The provided data does not explicitly list the key performance indicators (KPIs) or specific milestones for the CAVEN POINT BASE RENOVATION contract. However, as a firm fixed-price contract with a duration of 1488 days (approximately 4 years), it is highly probable that the contract includes phased delivery schedules, completion deadlines for specific work packages, and quality assurance checkpoints. Performance would likely be measured against adherence to the construction schedule, quality of workmanship, compliance with safety regulations, and successful completion of all specified renovation tasks. The Department of the Army's contracting officer and technical representatives would be responsible for monitoring these aspects.

What is the track record of INTERCONTINENTAL CONSTRUCTION CONTRACTING INC. with federal contracts, particularly with the Department of the Army?

The provided data indicates that INTERCONTINENTAL CONSTRUCTION CONTRACTING INC. has been awarded this $25.9 million contract by the Department of the Army. To assess their track record, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal the number and value of previous contracts awarded to this company, the agencies they have worked with, and the types of services or goods provided. Information on past performance, including any instances of contract disputes, delays, or successful project completions, would be crucial for a comprehensive evaluation of their reliability and capability.

What are the potential risks associated with the nearly five-year duration of this renovation contract?

The nearly five-year duration (1488 days) of the CAVEN POINT BASE RENOVATION contract presents several potential risks. Firstly, there is an increased likelihood of cost escalation due to inflation, material price fluctuations, and potential changes in labor costs over such an extended period, even with a firm fixed-price contract, if scope changes occur. Secondly, schedule delays are more probable due to unforeseen site conditions, weather impacts, or contractor performance issues. Thirdly, the long duration could lead to scope creep if additional requirements emerge during the renovation process, potentially leading to change orders that increase costs. Finally, maintaining consistent oversight and quality control over such a prolonged period requires sustained effort from the contracting agency.

How does the competition level (4 bidders) impact the value for money achieved in this contract?

A competition level of four bidders for the CAVEN POINT BASE RENOVATION suggests a moderately competitive environment. While more bidders generally lead to better price discovery and potentially lower prices for the government, four offers indicate that there was sufficient interest to generate multiple proposals. This level of competition likely helped ensure that the awarded price was reasonable and reflected market conditions. However, it is possible that a larger pool of bidders could have driven the price down further. The specific nature of the construction services and the geographic market for such specialized work would influence whether four bidders represent robust competition.

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: W912QR20R0018

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

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, 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: $26,532,315

Exercised Options: $25,941,465

Current Obligation: $25,941,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline