GSA awards $61.3M design-build contract for Maine land port of entry to J & J Contractors

Contract Overview

Contract Amount: $61,303,003 ($61.3M)

Contractor: J & J Contractors, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-01-20

End Date: 2025-07-30

Contract Duration: 1,652 days

Daily Burn Rate: $37.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD CONSTRUCTION OF NEW LAND PORT OF ENTRY IN MADAWASKA, ME

Place of Performance

Location: MADAWASKA, AROOSTOOK County, MAINE, 04756

State: Maine Government Spending

Plain-Language Summary

General Services Administration obligated $61.3 million to J & J CONTRACTORS, INC. for work described as: DESIGN-BUILD CONSTRUCTION OF NEW LAND PORT OF ENTRY IN MADAWASKA, ME Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The project involves design-build construction, integrating both design and construction phases. 4. The land port of entry is located in Madawaska, Maine, impacting the local and regional economy. 5. The contract duration is 1652 days, indicating a significant, long-term construction project. 6. The award value of $61.3 million represents a substantial investment in border infrastructure.

Value Assessment

Rating: good

The contract value of $61.3 million for a design-build land port of entry appears reasonable given the scope. Benchmarking against similar large-scale federal construction projects, particularly those involving border infrastructure, would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a moderate level of competition for this significant project. While two bidders participated, further analysis of the bidding process and the nature of the bidders would be needed to fully assess the effectiveness of the competition in driving down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple firms to bid, potentially leading to lower prices and better quality services.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs, as well as the local economy in Madawaska, Maine, through job creation and economic activity. The project will deliver a new, modern land port of entry, enhancing the efficiency and security of cross-border trade and travel. The geographic impact is concentrated in Madawaska, Maine, but will also affect cross-border commerce between the US and Canada. Workforce implications include direct construction jobs for J & J Contractors and its subcontractors, as well as indirect employment in supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions arise during construction, despite the fixed-price contract.
Dependence on timely completion of design elements to avoid construction delays.
Risk of contractor performance issues impacting the project timeline or quality.
Potential for supply chain disruptions affecting material availability and cost.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits government exposure to price fluctuations.
Design-build approach can streamline the project delivery process and potentially reduce overall project duration.
Award to an established contractor (J & J Contractors) may indicate a higher likelihood of successful project completion.
The project addresses critical infrastructure needs for border security and trade facilitation.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant part of the federal procurement landscape. This contract falls within the broader category of infrastructure development, which often sees substantial federal investment. Comparable spending benchmarks would involve looking at other large-scale federal building projects, especially those related to transportation hubs or border facilities, to assess if the $61.3 million award is within the typical range for such undertakings.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to J & J Contractors, Inc. suggests a prime contractor capable of handling a project of this magnitude. Further investigation into the subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this project will likely be managed by the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms may include regular progress reports, site inspections, and quality assurance reviews. Transparency can be assessed through public contract databases and GSA's reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Land Ports of Entry Construction
GSA Public Buildings Construction Projects
Department of Homeland Security Infrastructure Projects
US-Canada Border Infrastructure

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting operational readiness.
Contractor performance and quality control concerns.
Dependency on timely design completion.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $61.3 million to J & J CONTRACTORS, INC.. DESIGN-BUILD CONSTRUCTION OF NEW LAND PORT OF ENTRY IN MADAWASKA, ME

Who is the contractor on this award?

The obligated recipient is J & J CONTRACTORS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $61.3 million.

What is the period of performance?

Start: 2021-01-20. End: 2025-07-30.

What is the track record of J & J Contractors, Inc. on similar federal construction projects?

A review of federal contract databases indicates that J & J Contractors, Inc. has a history of performing construction work for various federal agencies. While specific details on past land port of entry projects are not immediately available in the abbreviated data, their past performance on similar scale commercial and institutional building construction projects would be a key factor in assessing their suitability for this contract. Analyzing past contract awards, completion times, and any reported performance issues or awards would provide a clearer picture of their capabilities and reliability in executing complex federal construction projects.

How does the awarded price compare to similar land port of entry construction projects?

Benchmarking the $61.3 million award against similar land port of entry construction projects is crucial for assessing value for money. Without specific data on comparable projects (e.g., size, scope, location, complexity), a precise comparison is difficult. However, the firm-fixed-price nature of the contract provides a degree of cost certainty. Factors such as the specific design requirements, site conditions in Madawaska, and the overall economic climate at the time of bidding would influence the final price. A detailed cost analysis would involve comparing cost per square foot or cost per lane of traffic for this project against similar completed or ongoing federal land port projects.

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

The primary risks associated with this design-build contract include potential delays in the design phase that could impact the construction schedule, unforeseen site conditions at the Madawaska location that may lead to cost increases despite the fixed-price contract, and contractor performance issues. Supply chain disruptions for materials and labor shortages in the construction industry also pose risks. The firm-fixed-price structure mitigates some financial risk for the government, but effective project management and oversight are critical to managing these potential challenges and ensuring timely and quality completion.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for construction projects, especially when the scope of work is well-defined. It shifts the risk of cost overruns to the contractor, providing the government with a predictable final price. For this land port of entry project, the FFP contract offers cost certainty to the General Services Administration. However, the effectiveness can be diminished if the initial scope is poorly defined or if significant unforeseen conditions arise, potentially leading to change orders. Robust contract administration and clear specifications are essential to maximize the cost-control benefits of an FFP contract.

What is the historical spending pattern for land port of entry construction by the GSA?

Historical spending patterns for land port of entry construction by the GSA would reveal the frequency and average cost of such projects. Analyzing past GSA procurements for border infrastructure can indicate trends in contract values, types of construction (e.g., design-build vs. design-bid-build), and the competitive landscape. This specific $61.3 million contract for Madawaska, ME, can be compared against this historical data to determine if it represents a typical investment or an outlier in terms of cost and scale. Understanding these patterns helps in budgeting, forecasting, and evaluating the efficiency of current procurement strategies.

What are the implications of awarding a definitive contract versus other contract types for this project?

A definitive contract, in this context, likely refers to a contract that clearly outlines all terms, conditions, and specifications, often used for well-defined projects. Awarding a definitive contract for the design-build construction of a land port of entry suggests that the scope and requirements were sufficiently clear at the time of award. This contrasts with indefinite-delivery/indefinite-quantity (IDIQ) contracts, which offer more flexibility but less cost certainty. For a project with a defined end goal like a new port of entry, a definitive contract, especially a firm-fixed-price one, provides the government with greater predictability regarding cost and schedule, simplifying oversight and financial management.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PB0020R0055

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 BILLERICA AVENUE BLDG 5 STE-205, NORTH BILLERICA, MA, 01862

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,303,003

Exercised Options: $61,303,003

Current Obligation: $61,303,003

Actual Outlays: $60,094,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline