FBI awards $39M design and construction contract for Redstone Arsenal Zone, with competition driving value

Contract Overview

Contract Amount: $38,996,419 ($39.0M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: Department of Justice

Start Date: 2022-08-26

End Date: 2024-06-07

Contract Duration: 651 days

Daily Burn Rate: $59.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Construction

Official Description: DESIGN & CONSTRUCTION SERVICES FOR RFSS ZONE AT REDSTONE ARSENAL SOUTH CAMPUS

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $39.0 million to BRASFIELD & GORRIE LLC for work described as: DESIGN & CONSTRUCTION SERVICES FOR RFSS ZONE AT REDSTONE ARSENAL SOUTH CAMPUS Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price award fee structure incentivizes contractor performance while managing cost. 3. The contract duration of 651 days indicates a substantial project scope. 4. The award is for design and construction services, a critical component of infrastructure development. 5. The project is located at Redstone Arsenal, a significant federal facility. 6. The contractor, Brasfield & Gorrie LLC, has a track record in large-scale construction projects.

Value Assessment

Rating: good

The contract value of approximately $39 million for design and construction services appears reasonable given the scope and duration. Benchmarking against similar large-scale federal construction projects would provide a more precise value-for-money assessment. The fixed-price award fee structure is a common and generally effective pricing mechanism for construction, balancing cost control with performance incentives. Without specific cost breakdowns or comparable project data, a definitive assessment of cost efficiency is challenging, but the competitive award process suggests a degree of market-tested pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of a competitive bidding process generally leads to better price discovery and potentially lower costs for the government. The number of bidders (3 is noted, though this may refer to bids received or active participants) is a key indicator of the level of competition. A robust competition typically results in a more favorable outcome for taxpayers.

Taxpayer Impact: Full and open competition ensures that the government receives the best possible value by leveraging market forces to drive down prices and encourage innovation from a wide range of potential contractors.

Public Impact

The Federal Bureau of Investigation (FBI) benefits from enhanced facilities at Redstone Arsenal. The contract delivers essential design and construction services for the Redstone Arsenal South Campus. The project's geographic impact is concentrated in Alabama, specifically at Redstone Arsenal. The construction activities will likely involve a significant workforce, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee criteria are not strictly managed.
Delays in construction could impact the FBI's operational readiness at the facility.
Ensuring compliance with all federal building codes and environmental regulations requires diligent oversight.

Positive Signals

The fixed-price award fee structure incentivizes efficient project completion.
Awarded through full and open competition, suggesting competitive pricing.
The contractor has experience in large-scale construction, indicating capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as government facilities, offices, and educational institutions. Federal spending in this area is crucial for maintaining and expanding government infrastructure. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar federal facilities constructed in recent years.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Brasfield & Gorrie LLC, will likely manage the majority of the work internally or through their established supply chains. The impact on the small business ecosystem is therefore likely indirect, potentially through opportunities for smaller firms to act as subcontractors if they are part of Brasfield & Gorrie's network, rather than through direct set-aside awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Bureau of Investigation (FBI) contracting and project management offices. Accountability measures are embedded in the fixed-price award fee structure, which ties contractor compensation to performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction
Military Base Infrastructure
Department of Defense Construction Contracts
General Services Administration (GSA) Construction

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of cost escalation if award fee criteria are not strictly managed.
Ensuring compliance with stringent federal building and security standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39.0 million to BRASFIELD & GORRIE LLC. DESIGN & CONSTRUCTION SERVICES FOR RFSS ZONE AT REDSTONE ARSENAL SOUTH CAMPUS

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2022-08-26. End: 2024-06-07.

What is the track record of Brasfield & Gorrie LLC on similar federal construction projects?

Brasfield & Gorrie LLC is a large, well-established construction firm with a significant history of undertaking complex projects, including those for federal agencies. They have experience in building a variety of structures, from healthcare facilities to government installations. While specific details on past federal projects are not provided here, their general profile suggests they possess the capacity and expertise for projects of this scale. A deeper dive into their past performance ratings, any past disputes or claims on federal contracts, and the types of federal facilities they have previously constructed would offer a more comprehensive understanding of their track record relevant to this specific award.

How does the awarded price compare to similar federal construction projects of this size and scope?

Directly comparing the $39 million award to similar federal construction projects requires access to a database of comparable contracts, including details on square footage, complexity, location, and specific construction elements. Without such data, a precise benchmark is difficult. However, the fact that this contract was awarded under full and open competition suggests that the pricing was vetted against market rates. The fixed-price award fee structure also implies a degree of cost control. Generally, federal construction projects of this magnitude can range significantly in cost per square foot depending on specialized requirements, security features, and geographic location. Further analysis would involve identifying projects with similar functional requirements and construction types.

What are the primary risks associated with this design and construction contract?

The primary risks associated with this design and construction contract include potential cost overruns if the award fee criteria are not managed effectively, leading to increased final costs beyond the initial fixed price. Schedule delays are another significant risk, which could impact the FBI's operational needs at Redstone Arsenal. Technical risks related to unforeseen site conditions, design complexities, or material availability can also arise. Furthermore, ensuring strict adherence to federal building codes, environmental regulations, and security standards requires diligent oversight. The contractor's ability to manage subcontractors and supply chains effectively also presents a risk factor. Finally, the transition from design to construction phases must be seamless to avoid integration issues.

How effective is the fixed-price award fee (FPAF) contract type in ensuring value for money for this project?

The Fixed-Price Award Fee (FPAF) contract type is generally considered effective for projects where performance outcomes can be clearly defined and measured, such as design and construction. It provides a baseline fixed price, offering cost certainty to the government, while the award fee component incentivizes the contractor to exceed minimum performance standards in areas like quality, schedule adherence, and cost control. This structure aims to balance cost control with contractor motivation for superior performance. For this FBI project, the FPAF structure encourages Brasfield & Gorrie LLC to deliver high-quality construction efficiently. The effectiveness hinges on the clarity and measurability of the award criteria and the rigor of the government's performance evaluation process.

What is the historical spending pattern for design and construction services at Redstone Arsenal or for the FBI?

Historical spending patterns for design and construction services at Redstone Arsenal or for the FBI would require a detailed analysis of past contract awards within these specific entities and locations. Redstone Arsenal, being a significant military installation, likely sees consistent investment in infrastructure development and upgrades. The FBI, as a federal law enforcement agency, also invests in secure and functional facilities. Analyzing past contracts would reveal trends in contract types (e.g., fixed-price, cost-plus), average contract values, typical durations, and the prevalence of specific types of construction services. This historical data is crucial for understanding the typical cost structures, market dynamics, and the government's approach to procuring such services, providing context for the current $39 million award.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,065,104

Exercised Options: $39,065,104

Current Obligation: $38,996,419

Actual Outlays: $39,100,033

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06719D0003691

IDV Type: IDC

Timeline