DoD's $26.4M Natick Family Housing Construction Contract Awarded to Tocci Building Corp

Contract Overview

Contract Amount: $26,381,524 ($26.4M)

Contractor: Tocci Building Corp

Awarding Agency: Department of Defense

Start Date: 2019-05-09

End Date: 2022-02-18

Contract Duration: 1,016 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF FAMILY HOUSING AT NATICK SOLDIER SYSTEMS, NATICK, MA

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to TOCCI BUILDING CORP for work described as: CONSTRUCTION OF FAMILY HOUSING AT NATICK SOLDIER SYSTEMS, NATICK, MA Key points: 1. The contract awarded to Tocci Building Corp. for family housing construction at Natick Soldier Systems represents a significant investment in military infrastructure. 2. The project's firm-fixed-price structure aims to control costs, but the final expenditure of $26.4 million warrants scrutiny against initial estimates and market benchmarks. 3. With 6 bidders participating in a full and open competition, the pricing is expected to reflect competitive market dynamics. 4. The duration of the contract (1016 days) suggests a complex project with potential for schedule-related risks. 5. This construction project falls under the broader category of commercial and institutional building construction, a sector with established cost drivers and performance metrics. 6. The absence of small business set-aside provisions means opportunities for smaller firms may be limited to subcontracting roles.

Value Assessment

Rating: fair

The final award amount of $26.4 million for the construction of family housing at Natick Soldier Systems needs to be benchmarked against similar military housing projects and prevailing construction costs in Massachusetts. While a firm-fixed-price contract provides cost certainty, the actual value for money depends on the quality of construction and adherence to project scope. Without detailed cost breakdowns or comparisons to industry standards for similar square footage and amenities, a definitive assessment of value is challenging. The contract's duration of over 1000 days also implies a substantial project, where cost overruns or delays could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of 6 bidders suggests a reasonably competitive environment for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal. The level of competition here provides some assurance that the selected contractor's price is aligned with market expectations, although the specific profit margins are not publicly detailed.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it drives down prices through market forces, ensuring that federal dollars are used more efficiently for infrastructure projects.

Public Impact

Military families stationed at Natick Soldier Systems will benefit from improved housing quality and availability. The project delivers essential construction services, contributing to the modernization of military family support infrastructure. The geographic impact is localized to Natick, Massachusetts, directly serving the personnel and families at the Soldier Systems Center. The construction activities will likely involve a workforce of skilled tradespeople and laborers in the Massachusetts region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns or schedule delays given the project's significant duration (1016 days).
Ensuring the quality of construction meets military standards and long-term durability requirements.
The absence of specific small business set-asides might limit direct participation opportunities for smaller construction firms.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition with 6 bidders suggests a competitive pricing environment.
Project addresses critical need for improved family housing at a military installation.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for military construction is substantial, driven by the Department of Defense's continuous need to maintain and upgrade its facilities worldwide. Comparable spending benchmarks would involve analyzing the cost per square foot for similar military housing projects across different regions, taking into account material costs, labor rates, and specific design requirements. The size of this contract ($26.4 million) positions it as a mid-to-large scale construction project within the federal contracting landscape.

Small Business Impact

This contract did not include specific small business set-aside provisions, meaning it was not exclusively reserved for small businesses. While Tocci Building Corp. may engage small businesses as subcontractors, the primary award was not directed towards them. This approach is common for larger, complex projects where specialized capabilities or bonding requirements might favor larger firms. The impact on the small business ecosystem is indirect, relying on subcontracting opportunities rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project managers within the Department of the Army, responsible for monitoring progress, quality, and adherence to contract terms. Accountability measures are embedded in the firm-fixed-price structure, incentivizing the contractor to complete the work within budget. Transparency is facilitated through contract award databases, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Family Housing Construction
Department of Defense Construction Contracts
Commercial and Institutional Building Construction
Federal Infrastructure Projects
Army Corps of Engineers Construction

Risk Flags

Project Duration Risk
Cost Competitiveness
Contractor Performance History
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to TOCCI BUILDING CORP. CONSTRUCTION OF FAMILY HOUSING AT NATICK SOLDIER SYSTEMS, NATICK, MA

Who is the contractor on this award?

The obligated recipient is TOCCI BUILDING CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2019-05-09. End: 2022-02-18.

What is Tocci Building Corp.'s track record with federal construction contracts, particularly with the Department of Defense?

Tocci Building Corp. has a history of engaging in federal construction projects. A review of federal procurement data indicates past awards to Tocci for various construction services, including those for military branches. To fully assess their track record for this specific project, one would need to examine the performance history on similar-sized military housing or institutional building contracts, looking for any past issues related to schedule adherence, cost control, or quality disputes. Their experience with firm-fixed-price contracts and projects of comparable complexity would be key indicators of their capability to successfully execute the Natick family housing construction.

How does the $26.4 million award compare to the estimated cost or initial bids for this housing project?

The provided data indicates the final award amount was $26,381,523.68. To assess its value, this figure should be compared against the government's initial cost estimate for the project, if available, and the bids submitted by the other five competitors. A significant difference between the government's estimate and the winning bid, or a wide variance among the bids themselves, could signal issues with the initial planning or the competitiveness of the bidding process. Benchmarking the cost per square foot against similar military housing projects in Massachusetts during the same period would also provide crucial context for determining if the $26.4 million represents a fair market price.

What are the primary risk indicators associated with this firm-fixed-price construction contract?

While firm-fixed-price contracts are designed to offer cost certainty, risks remain, particularly in large-scale construction. For this project, the primary risk indicators include the substantial duration of 1016 days, which increases the potential for unforeseen site conditions, material price fluctuations (despite the fixed price, scope changes can occur), and labor availability issues. The complexity inherent in building family housing, potentially involving multiple units and specific military standards, also presents risks. Contractor performance history, though not detailed here, is another critical risk factor; any past performance issues could foreshadow difficulties in meeting schedule or quality requirements.

How effective is the 'full and open competition' strategy in ensuring optimal value for taxpayer dollars in military construction?

The 'full and open competition' strategy is generally considered the most effective method for ensuring optimal value for taxpayer dollars in federal contracting, including military construction. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The presence of 6 bidders in this specific case suggests that the strategy was successful in attracting multiple interested parties. However, the ultimate value depends on the thoroughness of the evaluation process and whether the lowest price technically acceptable or best value criteria were appropriately applied to select the most capable contractor at a competitive price.

What is the historical spending pattern for family housing construction by the Department of the Army at installations like Natick?

Historical spending patterns for family housing construction by the Department of the Army reveal a consistent and significant investment in maintaining and upgrading military family housing across numerous installations. This spending is driven by the need to provide adequate and modern living quarters for service members and their families, which is crucial for recruitment and retention. The Army typically utilizes a mix of contract types, including firm-fixed-price for new construction and renovations, often awarded through competitive bidding processes. Spending levels can fluctuate based on military readiness needs, congressional appropriations, and specific infrastructure improvement initiatives, but housing remains a perennial priority.

Are there any specific performance metrics or quality standards mandated for this family housing construction project?

While the provided data does not detail specific performance metrics or quality standards, federal construction contracts, especially for military housing, invariably include stringent requirements. These typically encompass adherence to building codes (e.g., International Building Code), specific military construction standards (e.g., Unified Facilities Criteria - UFC), and detailed architectural and engineering specifications. Performance metrics often relate to schedule adherence, safety compliance, and defect-free completion. Quality assurance is usually managed through government inspections at various project milestones, and final acceptance is contingent upon meeting all specified standards and requirements.

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: TWO STEP

Solicitation ID: W912WJ18R0006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 660 MAIN ST, WOBURN, MA, 01801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,381,524

Exercised Options: $26,381,524

Current Obligation: $26,381,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline