We are in the process of retiring one of those models so I have some experience with them. Without benefit of actually touching the computer, your report:
The Apple comes on and the progress bar starts and gets halfway and then stops.
sounds like an unhappy hard drive
"CTO" normally means "configure to order" but I never heard of Costco offering anything beyond the basic Apple configurations. What was up-orderd on that iMac?
Have you tried a Safe Mode Boot? Start up your Mac in safe mode - Apple Support
If you do it, let the computer "sit" in Safe Mode for about 30 minters before doing a regular restart. Safe Mode does some disk checking and the delay makes sure it's had time to finish all its work and put the tools away.
Has extra RAM been installed? If so, what make/model? Not all RAM claimed to be OK with Intel Macs is.
That was the last iMac model shipped with system install/restore optical disks. Do you still have those precious platters of plastic? Things you can do if so:
— See if the computer will boot from Disk 1. Hold c while booting.
— While booted from Disk 1, use its version of Disk Utility to test the hard drive. Repair a disk using Disk Utility on Mac - Apple Support
— One disk has Apple Hardware Test. Run it and tell us any error codes it reports. Instrucitons here: How to use Apple Hardware Test on your Mac - Apple Support