The Nutmeg Companies, Inc. awarded a $20M definitive contract for construction services, with a 970-day duration

Contract Overview

Contract Amount: $20,095,843 ($20.1M)

Contractor: THE Nutmeg Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-18

End Date: 2017-05-15

Contract Duration: 970 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE RTI

Place of Performance

Location: BUZZARDS BAY, BARNSTABLE County, MASSACHUSETTS, 02542

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to THE NUTMEG COMPANIES, INC. for work described as: BASE RTI Key points: 1. The contract's firm fixed-price structure suggests a defined scope and cost control. 2. A 970-day duration indicates a substantial, long-term project requiring significant contractor commitment. 3. The award to The Nutmeg Companies, Inc. represents a significant investment in construction services. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process. 5. The base value of over $20 million signifies a large-scale project within the construction sector. 6. The contract's completion date in May 2017 places it in a historical context for current analysis.

Value Assessment

Rating: fair

The base value of $20,095,842.99 for a definitive contract with a 970-day duration appears to be within a reasonable range for large-scale construction projects. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale construction contracts awarded by the Department of Defense or other federal agencies would provide a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 6 bidders suggests a healthy level of competition for this construction project. This competitive environment is generally favorable for price discovery and potentially leads to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The exclusion of sources implies a deliberate strategy to ensure the widest possible participation while maintaining specific requirements.

Public Impact

The primary beneficiaries are likely the Department of the Army, receiving construction services for its facilities. The contract delivers essential building construction and potentially related infrastructure improvements. The geographic impact is localized to the area where the construction project is being executed, likely a military installation. Workforce implications include job creation for construction laborers, tradespeople, and project management personnel employed by The Nutmeg Companies, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Risk of delays impacting project timelines and operational readiness for the Army.
Dependence on the performance and financial stability of a single prime contractor for a long duration.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The award to an established entity like The Nutmeg Companies, Inc. may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal procurement landscape. The Department of Defense is a major consumer of construction services, investing heavily in maintaining and upgrading its infrastructure. Comparable spending benchmarks would involve analyzing other large-scale construction contracts for military bases, barracks, and support facilities, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests the primary focus was on securing the best value through full and open competition. Subcontracting opportunities may exist for small businesses within the construction trades, but there is no explicit requirement for subcontracting set-asides within this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project's technical point of contact within the Department of the Army. Accountability measures are inherent in the firm fixed-price structure, linking payment to performance and delivery. Transparency is facilitated through contract databases like FPDS, though detailed project-specific oversight reports are not publicly available.

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

Potential for scope creep in long-duration construction projects.
Risk of contractor default or performance issues over the contract's extended timeline.
Market volatility impacting material costs and labor availability.
Ensuring adequate government oversight and quality assurance throughout the project lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to THE NUTMEG COMPANIES, INC.. BASE RTI

Who is the contractor on this award?

The obligated recipient is THE NUTMEG COMPANIES, 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 $20.1 million.

What is the period of performance?

Start: 2014-09-18. End: 2017-05-15.

What was the specific scope of construction services provided under this definitive contract?

The provided data indicates the contract was for 'Commercial and Institutional Building Construction' awarded to The Nutmeg Companies, Inc. by the Department of the Army. However, the precise scope of work, such as new construction, renovation, specific building types (e.g., barracks, administrative buildings, training facilities), or associated infrastructure, is not detailed in the summary data. Definitive contracts can encompass a wide range of services, and further investigation into the contract's statement of work would be necessary to understand the specific deliverables. The duration of 970 days suggests a project of considerable scale and complexity, likely involving significant labor and material resources.

How does the awarded amount of approximately $20.1 million compare to similar construction contracts for military facilities?

The $20.1 million award for construction services is a substantial sum, indicative of a significant project. To benchmark this value, one would need to compare it against other firm fixed-price definitive contracts awarded by the Department of the Army or other military branches for similar types of buildings or infrastructure projects over comparable durations. Factors such as geographic location, specific construction requirements (e.g., security, environmental standards), and prevailing market rates for labor and materials would influence comparability. Without access to a broader dataset of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or concerning value, but it aligns with the scale of major facility development or renovation.

What are the primary risks associated with a 970-day firm fixed-price construction contract?

A 970-day firm fixed-price construction contract, spanning over 2.5 years, carries several inherent risks. For the contractor (The Nutmeg Companies, Inc.), risks include potential cost overruns due to unforeseen site conditions, material price escalation, labor shortages, or changes in regulatory requirements over the extended period. For the government, risks involve potential delays impacting operational needs, contractor performance issues, and the possibility that the fixed price may not reflect the most current market value by the end of the contract if market conditions shift significantly. Effective risk mitigation would involve robust initial planning, contingency allowances, and diligent contract administration.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation signifies a procurement strategy that aimed for broad competition while potentially setting specific criteria or excluding certain types of sources that might not meet the project's unique requirements. 'Full and open competition' means the solicitation was made available to all responsible prospective contractors. The 'after exclusion of sources' part suggests that certain categories of contractors or specific sources were intentionally excluded, possibly due to specialized needs, security clearances, or other pre-defined criteria. This approach seeks to balance maximizing competition with ensuring that only qualified and appropriate bidders participate, potentially leading to a more tailored and effective outcome.

What is the historical spending trend for The Nutmeg Companies, Inc. with the federal government, particularly in construction?

The provided data only details this specific contract awarded in 2014. To understand The Nutmeg Companies, Inc.'s historical spending patterns, one would need to access federal procurement databases (like FPDS) to review all contracts awarded to this entity across all agencies and years. Analyzing their contract history would reveal the volume, value, types of services rendered, and agencies served. This would help assess their experience, track record, and consistency in performing federal contracts, particularly within the construction sector, and identify any trends in award types or competition levels.

How does the contract's North American Industry Classification System (NAICS) code '236220' define the scope of work?

The NAICS code 236220 specifically identifies 'Commercial and Institutional Building Construction.' This classification encompasses establishments primarily responsible for the construction and remodeling of nonresidential buildings, such as commercial office buildings, warehouses, factories, government buildings, schools, hospitals, and other institutional facilities. It includes general contractors, as well as specialty contractors who primarily engage in building construction, performing the construction of new buildings and/or the alteration, renovation, and repair of existing buildings.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912SV14R0001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31 NEW LONDON TPKE, NORWICH, CT, 06360

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,530,938

Exercised Options: $20,095,843

Current Obligation: $20,095,843

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline