GSA awards $22.9M contract for architectural services for Puerto Rico federal building

Contract Overview

Contract Amount: $22,945,310 ($22.9M)

Contractor: Page Southerland Page, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-11-10

End Date: 2027-02-22

Contract Duration: 1,565 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECT-ENGINEER (A/E) SERVICES FOR A NEW U.S. COURTHOUSE ANNEX FEDERICO DEGETAU FEDERAL BUILDING AND CLEMENTE RUIZ NAZARIO U.S. COURTHOUSE HATO REY, PR, 00918.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

General Services Administration obligated $22.9 million to PAGE SOUTHERLAND PAGE, INC. for work described as: ARCHITECT-ENGINEER (A/E) SERVICES FOR A NEW U.S. COURTHOUSE ANNEX FEDERICO DEGETAU FEDERAL BUILDING AND CLEMENTE RUIZ NAZARIO U.S. COURTHOUSE HATO REY, PR, 00918. Key points: 1. Contract awarded to Page Southerland Page, Inc. for architectural and engineering services. 2. Project involves design for a new U.S. Courthouse Annex and Federal Building in Hato Rey, Puerto Rico. 3. The contract is a firm-fixed-price definitive contract with a duration of 1565 days. 4. Awarded under full and open competition, indicating a broad solicitation process. 5. The contract value is $22,945,310.40. 6. The project aims to support the judicial and federal infrastructure in Puerto Rico.

Value Assessment

Rating: good

The contract value of $22.9 million for architectural and engineering services for a federal courthouse annex appears reasonable given the scope of designing a significant public building. Benchmarking against similar large-scale federal building projects suggests that costs for A/E services typically range from 5-15% of total construction costs. Without the total construction cost, a precise comparison is difficult, but the award amount seems within expected parameters for such a project. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning that all responsible sources were permitted to submit a bid. The solicitation process likely involved a detailed request for proposals (RFP) where technical capabilities, past performance, and price were evaluated. The presence of 17 bids indicates a healthy level of interest and competition for this project, which generally leads to better price discovery and potentially more competitive pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a wide range of potential contractors vying for the work, driving down costs and improving the quality of proposals received.

Public Impact

The primary beneficiaries are the U.S. judicial system and federal agencies requiring enhanced facilities in Puerto Rico. Services delivered include architectural design, engineering, and related support for the new courthouse annex and federal building. The geographic impact is focused on Hato Rey, Puerto Rico, improving federal infrastructure in the region. The project will likely involve architects, engineers, and construction-related professionals, potentially creating or sustaining jobs in the A/E sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design complexities arise during the extended performance period.
Dependence on the contractor's ability to manage complex stakeholder requirements for a federal courthouse.
Risk of schedule delays impacting the overall construction timeline and availability of the new facility.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that could lead to favorable pricing.
The contractor, Page Southerland Page, Inc., likely has experience with large-scale public projects, mitigating performance risks.

Sector Analysis

The architectural and engineering (A/E) services sector is a critical component of the construction industry, providing design and planning for public and private infrastructure. Federal spending in this sector is substantial, supporting everything from courthouses and federal offices to military installations and research facilities. The General Services Administration (GSA) is a major procurer of A/E services for federal buildings. This contract fits within the broader market for designing public buildings, where competition can be robust, and specialized expertise is highly valued.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While there is no explicit requirement for small business subcontracting mentioned in the provided data, large federal contracts often include provisions for small business participation. The prime contractor, Page Southerland Page, Inc., may engage small businesses for specialized design elements or support services, contributing to the small business ecosystem. However, without specific subcontracting plans, the direct impact on small businesses is not quantifiable from this data alone.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its construction and design projects. This includes contract administration by GSA personnel, regular progress reviews, and adherence to established design and construction standards. The Inspector General's office within GSA is responsible for auditing and investigating potential fraud, waste, and abuse, providing an additional layer of accountability. Transparency is generally maintained through public contract databases and reporting requirements.

Related Government Programs

Federal Building Construction
Courthouse Design Services
Architectural and Engineering Services
GSA Public Buildings Service Contracts
Infrastructure Development Projects

Risk Flags

Potential for schedule delays
Cost escalation risks for contractor
Logistical challenges in Puerto Rico

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.9 million to PAGE SOUTHERLAND PAGE, INC.. ARCHITECT-ENGINEER (A/E) SERVICES FOR A NEW U.S. COURTHOUSE ANNEX FEDERICO DEGETAU FEDERAL BUILDING AND CLEMENTE RUIZ NAZARIO U.S. COURTHOUSE HATO REY, PR, 00918.

Who is the contractor on this award?

The obligated recipient is PAGE SOUTHERLAND PAGE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2022-11-10. End: 2027-02-22.

What is the track record of Page Southerland Page, Inc. with federal contracts, particularly with the GSA?

Page Southerland Page, Inc. has a history of working with federal agencies, including the General Services Administration (GSA). Their portfolio often includes large-scale public projects such as courthouses, federal offices, and other civic buildings. Reviewing their past performance on similar GSA contracts would provide insight into their ability to deliver projects on time and within budget, manage complex stakeholder requirements, and adhere to federal standards. Information on past performance is typically a key evaluation factor in federal procurements and can be accessed through federal contract databases, though specific details on past GSA projects would require further investigation.

How does the awarded amount compare to similar federal courthouse annex projects in terms of cost per square foot or total project value?

Directly comparing the $22.9 million award for architectural services without knowing the total construction cost or the square footage of the facility makes a precise cost-per-square-foot analysis difficult. However, A/E fees for federal courthouses typically range from 5% to 15% of the total construction cost. If this $22.9 million represents the total project cost, it would be exceptionally low for a federal courthouse annex. Assuming it is for A/E services, and if the total construction cost were, for example, $200 million, then the A/E fee would be around 11.5%, which falls within the expected range. Further analysis would require the total construction budget or final design scope.

What are the primary risks associated with a firm-fixed-price contract for a multi-year design project?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor, especially on long-duration design projects like this one. The primary risk is that the contractor may underestimate the costs associated with labor, materials, or unforeseen design challenges over the 1565-day performance period. If costs escalate beyond their initial estimates, the contractor bears the loss, potentially impacting their financial stability or willingness to bid on future FFP projects. For the government, the risk is that the contractor might cut corners on quality to maintain profitability, although robust oversight should mitigate this. Changes in scope requested by the government would typically require contract modifications and adjustments to the fixed price.

What is the expected impact of this project on the local economy in Puerto Rico?

This project is expected to have a positive impact on the local economy in Puerto Rico. The design phase itself will create demand for architectural and engineering professionals, potentially employing local talent or requiring the firm to bring in specialized expertise. Furthermore, the subsequent construction phase, which this design contract precedes, will generate significant employment opportunities for skilled trades, laborers, and support staff. The development of modern federal facilities can also enhance the operational capacity of government services and potentially stimulate related economic activity in the surrounding area.

How does the number of bidders (17) influence the value received by taxpayers for this contract?

A high number of bidders, such as the 17 received for this contract, generally indicates robust competition. Robust competition is beneficial for taxpayers because it encourages contractors to submit their most competitive proposals, both in terms of technical approach and price. When multiple firms vie for a contract, they are incentivized to offer better value to win the bid. This can lead to lower overall costs for the government compared to a situation with limited or no competition. The GSA's use of full and open competition for this project likely contributed to the significant number of bids received.

What are the potential challenges in managing a federal building project in Puerto Rico compared to the mainland U.S.?

Managing a federal building project in Puerto Rico can present unique challenges compared to the mainland U.S. These may include logistical complexities related to shipping materials and equipment to the island, potential differences in local building codes and permitting processes, and the need to navigate specific labor market conditions. Additionally, factors such as climate (e.g., hurricane preparedness, humidity) require specialized design considerations. Cultural nuances and communication styles might also play a role in stakeholder management. The contractor must demonstrate an understanding of these regional factors and have robust plans to address them effectively throughout the design and subsequent construction phases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 47PC0321R0013

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1615 M ST NW STE 700, WASHINGTON, DC, 20036

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: $29,627,868

Exercised Options: $22,945,310

Current Obligation: $22,945,310

Actual Outlays: $8,563,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline