GSA awards $155M construction contract for COVID-19 safety protocols, with 2,890 days duration

Contract Overview

Contract Amount: $154,927,040 ($154.9M)

Contractor: Volmar Construction Inc

Awarding Agency: General Services Administration

Start Date: 2019-02-01

End Date: 2026-12-31

Contract Duration: 2,890 days

Daily Burn Rate: $53.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: EO14042: COVID-19 SAFETY PROTOCOLS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $154.9 million to VOLMAR CONSTRUCTION INC for work described as: EO14042: COVID-19 SAFETY PROTOCOLS Key points: 1. Contract value of $155M over nearly 8 years suggests significant investment in facility safety. 2. Fixed Price Incentive contract type aims to balance cost control with performance incentives. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract's duration of 2,890 days (approx. 8 years) is substantial for a construction project. 5. Geographic focus on New York (NY) suggests a concentrated need for these safety measures. 6. The project's objective is to implement COVID-19 safety protocols, a critical public health concern.

Value Assessment

Rating: fair

The contract value of $155M for an 8-year duration appears substantial, but without specific project scope details or comparable projects, a precise value-for-money assessment is challenging. The fixed-price incentive structure suggests an attempt to manage costs while encouraging contractor performance. Benchmarking against similar large-scale construction projects focused on health and safety protocols would be necessary for a more definitive assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method is generally preferred for maximizing competition and potentially achieving better pricing. The number of bidders is not specified, but the open competition framework implies a robust process was intended.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or goods received.

Public Impact

Federal employees and visitors to GSA-managed facilities in New York will benefit from enhanced safety measures. The contract will facilitate the implementation of COVID-19 safety protocols, contributing to public health. The geographic impact is concentrated in New York, addressing specific regional needs. The project will likely involve construction workers and potentially impact the local building trades workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) could lead to cost overruns if not managed effectively.
Fixed Price Incentive contracts can be complex to administer and may not always yield the best cost savings.
Scope creep related to evolving COVID-19 protocols could increase costs beyond initial projections.
Dependence on a single contractor for an extended period might limit flexibility.
Potential for unforeseen construction challenges or material cost fluctuations over the long term.

Positive Signals

Commitment to public health and safety through dedicated funding for COVID-19 protocols.
Full and open competition suggests a structured procurement process aimed at fairness and value.
The fixed-price incentive structure provides a framework for performance-based rewards.
Long-term contract allows for sustained implementation and monitoring of safety measures.
Focus on a specific, critical need (COVID-19 safety) demonstrates responsiveness to current challenges.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses firms that build new residential, commercial, and institutional buildings, as well as those that alter, repair, renovate, and remodel existing structures. The total value of federal spending in this sector can be substantial, particularly for large-scale infrastructure and facility management projects. This specific contract addresses a critical need for health and safety infrastructure within federal buildings.

Small Business Impact

The data indicates that small business participation (SB set-aside) is false, and subcontracting (SUB) is also not explicitly indicated as a requirement or focus in the provided data. This suggests that the primary award went to a large business, and there may be limited direct opportunities for small businesses through set-asides on this specific contract. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement practices and the nature of the work.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would typically include regular progress reviews, site inspections, and financial audits to ensure compliance with contract terms and performance standards. Accountability is managed through the contract's performance clauses and the incentive structure. Transparency is generally maintained through GSA's public contract databases, although specific details of ongoing project management may be internal.

Related Government Programs

Federal Building Construction
Public Health Infrastructure
COVID-19 Response Spending
GSA Facility Management
Construction Services

Risk Flags

Long contract duration
Potential for cost escalation
Complexity of FPI contract type
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $154.9 million to VOLMAR CONSTRUCTION INC. EO14042: COVID-19 SAFETY PROTOCOLS

Who is the contractor on this award?

The obligated recipient is VOLMAR CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $154.9 million.

What is the period of performance?

Start: 2019-02-01. End: 2026-12-31.

What is the specific scope of work for implementing COVID-19 safety protocols under this contract?

The provided data does not detail the specific scope of work for implementing COVID-19 safety protocols. However, based on the contract's objective and the sector (Commercial and Institutional Building Construction), the scope likely includes modifications to federal buildings to enhance safety. This could encompass a range of activities such as installing enhanced ventilation systems (HVAC upgrades), implementing physical barriers (e.g., plexiglass shields), modifying restroom facilities for better hygiene, upgrading cleaning and disinfection infrastructure, and potentially incorporating touchless technologies for doors and fixtures. The long duration suggests a comprehensive, phased approach to these upgrades across multiple facilities or extensive renovations within specific buildings managed by the GSA in New York.

How does the $155 million contract value compare to similar GSA construction projects for health and safety upgrades?

Benchmarking the $155 million contract value requires comparing it to similar large-scale construction projects undertaken by the GSA or other federal agencies specifically focused on health, safety, or pandemic-related facility upgrades. Without access to a database of comparable GSA projects with detailed cost breakdowns and scope, a precise comparison is difficult. However, $155 million over nearly eight years for construction services in a major metropolitan area like New York is a significant investment. It suggests a comprehensive effort, potentially involving multiple buildings or extensive retrofitting, rather than minor upgrades. Factors like the specific nature of the safety protocols (e.g., HVAC system overhauls vs. installing barriers) and the prevailing construction costs in the New York region would heavily influence this comparison.

What are the primary risks associated with a fixed-price incentive contract of this magnitude and duration?

A primary risk with a Fixed Price Incentive (FPI) contract of this scale ($155M) and duration (8 years) is the potential for cost overruns if the target cost is not accurately estimated or if unforeseen circumstances significantly increase expenses. While the incentive structure aims to align contractor and government interests in cost control, the government still bears the risk of exceeding the ceiling price. For the contractor, achieving the target cost and profit requires efficient management. Risks for the government include potential disputes over cost allowability, the complexity of tracking performance against incentives, and the possibility that the final price could be significantly higher than initially anticipated if performance targets are met but costs escalate. The long duration amplifies risks related to material price volatility, labor cost changes, and evolving regulatory requirements.

What is the historical spending pattern for construction contracts related to health and safety protocols by the GSA?

Historical spending data for GSA construction contracts specifically tagged for 'health and safety protocols' or similar terms like 'pandemic preparedness' prior to 2020 would likely be minimal. The significant increase in such spending is a direct consequence of the COVID-19 pandemic. Before the pandemic, GSA construction spending would have been primarily focused on routine maintenance, modernization, energy efficiency upgrades, and new construction. The $155 million awarded here represents a substantial shift towards addressing public health concerns within federal facilities. Analyzing GSA's spending trends would show a marked increase in contracts related to ventilation, air filtration, touchless technologies, and facility modifications for social distancing starting in 2020.

How does the contract's duration of 2,890 days impact project management and oversight?

The contract duration of 2,890 days (approximately 8 years) presents unique challenges and considerations for project management and oversight. It necessitates a long-term strategic approach, requiring sustained commitment from both the GSA and the contractor. Oversight must be robust and adaptive, capable of monitoring progress over an extended period, managing potential scope changes due to evolving health guidelines, and ensuring consistent quality. Key personnel continuity on both sides becomes crucial. Furthermore, managing budget allocation and expenditure over such a long timeframe requires careful financial planning. The extended duration also increases the risk of contractor performance degradation or shifts in priorities, necessitating strong contract administration and performance management throughout the project lifecycle.

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: 47PC0318R0008

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 4400 2ND AVE, BROOKLYN, NY, 11232

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: $154,927,040

Exercised Options: $154,927,040

Current Obligation: $154,927,040

Actual Outlays: $103,683,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline