GSA awards $33M construction contract for Nogales Central Processing Center, AZ to Cox Construction Co

Contract Overview

Contract Amount: $32,995,791 ($33.0M)

Contractor: COX Construction CO

Awarding Agency: General Services Administration

Start Date: 2021-07-13

End Date: 2023-06-19

Contract Duration: 706 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NOGALES CENTRAL PROCESSING CENTER, AZ CONSTRUCTION

Place of Performance

Location: NOGALES, SANTA CRUZ County, ARIZONA, 85621

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $33.0 million to COX CONSTRUCTION CO for work described as: NOGALES CENTRAL PROCESSING CENTER, AZ CONSTRUCTION Key points: 1. Contract value of $32.99M for construction services. 2. Awarded to Cox Construction Co. under a firm-fixed-price definitive contract. 3. Competition was full and open after exclusion of sources. 4. Contract duration of 706 days. 5. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction. 6. The contract was awarded by the General Services Administration (GSA), Public Buildings Service.

Value Assessment

Rating: fair

The contract value of $32.99 million for the Nogales Central Processing Center construction appears to be within a reasonable range for a project of this nature, though specific benchmarks for similar federal processing center constructions are not readily available. The firm-fixed-price contract type suggests that the contractor assumed most of the risk for cost overruns, which can be a positive indicator for value if managed effectively. However, without detailed cost breakdowns or comparisons to private sector projects of equivalent scale and complexity, a definitive assessment of value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The number of bidders is not specified, but the 'limited' competition level suggests that the exclusion of sources may have reduced the overall pool of potential offerors. This could potentially impact price discovery and may not have resulted in the most competitive pricing achievable.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price that could have been achieved through a truly unrestricted full and open competition. The exclusion of certain sources could have led to a higher final award price.

Public Impact

The Nogales Central Processing Center construction project directly benefits federal agencies requiring processing facilities in Arizona. The services delivered include the construction of a new or renovated processing center, enhancing operational capabilities. The geographic impact is focused on Nogales, Arizona, potentially creating local construction jobs and economic activity. Workforce implications include employment opportunities for construction workers and related trades during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher cost to taxpayers.
The exclusion of sources in the competition process warrants further investigation into the justification.
Lack of detailed cost breakdowns makes it difficult to assess true value for money.
The firm-fixed-price contract, while shifting risk, could still lead to cost overruns if not managed meticulously.

Positive Signals

The firm-fixed-price contract type generally provides cost certainty for the government.
The project addresses a specific federal need for processing facilities.
The contract duration of 706 days allows for a structured project timeline.
Awarding to a single contractor streamlines project management and accountability.

Sector Analysis

The construction sector, particularly for government facilities, is a significant part of the federal contracting landscape. This contract falls under commercial and institutional building construction, a segment that involves building and renovating structures for various public and private institutions. Federal spending in this area is often driven by infrastructure needs, agency expansion, or modernization efforts. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar government buildings in the region.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Cox Construction Co., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. The absence of set-asides means that opportunities for small businesses would primarily arise through subcontracting, the extent of which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and cost reporting may be internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Projects
Arizona Construction Contracts
Definitive Contracts
Firm Fixed Price Contracts

Risk Flags

Limited competition may impact price competitiveness.
Potential for cost overruns if unforeseen conditions arise.
Need for rigorous quality assurance to ensure standards are met.
Justification for exclusion of sources requires scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.0 million to COX CONSTRUCTION CO. NOGALES CENTRAL PROCESSING CENTER, AZ CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is COX CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $33.0 million.

What is the period of performance?

Start: 2021-07-13. End: 2023-06-19.

What is the track record of Cox Construction Co. in performing federal construction contracts?

Information regarding the specific track record of Cox Construction Co. in performing federal construction contracts is not detailed in the provided data. To assess their performance, one would typically review past federal contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims. A thorough review would involve searching federal procurement databases and agency records for similar projects completed by Cox Construction Co., noting their adherence to schedule, budget, and quality standards. Without this specific data, it is difficult to definitively gauge their past performance on government projects.

How does the awarded price compare to similar federal construction projects?

A direct comparison of the awarded price of $32.99 million for the Nogales Central Processing Center construction to similar federal projects is challenging without more specific project details and access to comprehensive benchmarking data. Factors such as project scope, size (square footage), complexity, specific construction materials, labor costs in the region, and the exact nature of 'processing center' functions significantly influence project costs. While the NAICS code 236220 provides a general category, variations within commercial and institutional building construction are vast. To perform a robust comparison, one would need data on recently awarded federal contracts for similar-sized facilities in the same geographic region, accounting for inflation and market conditions at the time of award.

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

The primary risks associated with this firm-fixed-price construction contract, despite its cost certainty for the government, revolve around potential contractor performance issues and unforeseen site conditions. If Cox Construction Co. underestimated costs, encountered significant design flaws, or faced unexpected subsurface issues, they might seek change orders, potentially increasing the contract price or leading to disputes. Quality control is another risk; a contractor focused solely on meeting the fixed price might compromise on material quality or workmanship if not rigorously overseen. Furthermore, the 'limited' competition aspect raises a risk that the initial price may not have been as competitive as it could have been, potentially leading to reduced value for the taxpayer.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing is inherently limited compared to unrestricted full and open competition. While it aims to solicit from a broad range of responsible sources, the explicit exclusion of certain entities restricts the potential bidder pool. This restriction can reduce the number of competitive offers received, potentially leading to less downward pressure on pricing. The justification for excluding sources is critical; if the exclusions are arbitrary or not based on legitimate technical or security reasons, the competition may be artificially constrained, resulting in higher costs for the government and taxpayers. The actual number of bids received would be a key indicator of its effectiveness in this instance.

What is the historical spending pattern for similar construction projects by the GSA?

Historical spending patterns for similar construction projects by the General Services Administration (GSA) would typically show a significant investment in public buildings and infrastructure. The GSA manages a vast portfolio of federal facilities, and construction and renovation are recurring activities. Analyzing past GSA contracts for commercial and institutional buildings, particularly those in the Southwest region or for similar types of facilities (e.g., processing centers, administrative buildings), would reveal trends in contract values, durations, and types of competition. This specific contract's value of $32.99 million would need to be contextualized against the average cost of GSA construction projects of comparable scale and complexity over recent fiscal years to identify any deviations or patterns.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 47PA0321R0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1210 DISTRIBUTION WAY, VISTA, CA, 92081

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

Financial Breakdown

Contract Ceiling: $32,995,791

Exercised Options: $32,995,791

Current Obligation: $32,995,791

Actual Outlays: $32,812,214

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $13,466,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline