GSA awards $14.8M contract for JFK CBP facility upgrades, highlighting construction needs

Contract Overview

Contract Amount: $14,813,014 ($14.8M)

Contractor: Integrated Construction Enterprises Inc

Awarding Agency: General Services Administration

Start Date: 2024-08-12

End Date: 2026-04-30

Contract Duration: 626 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF THE CONSTRUCTION SERVICES FOR THE CUSTOMS AND BORDER PROTECTION (CBP) FOR JFK VAULT INSTALLATION, OFFICE RENOVATION, AND MECHANICAL REFURBISHMENT PROJECT

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11430

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $14.8 million to INTEGRATED CONSTRUCTION ENTERPRISES INC for work described as: AWARD OF THE CONSTRUCTION SERVICES FOR THE CUSTOMS AND BORDER PROTECTION (CBP) FOR JFK VAULT INSTALLATION, OFFICE RENOVATION, AND MECHANICAL REFURBISHMENT PROJECT Key points: 1. Contract addresses critical infrastructure needs for Customs and Border Protection at JFK. 2. Project scope includes vault installation, office renovation, and mechanical refurbishment. 3. Awarded by the General Services Administration (GSA), indicating a focus on federal building management. 4. The contract duration of 626 days suggests a substantial and complex renovation project. 5. Fixed-price contract type aims to control costs and provide budget certainty. 6. The project is located in New York, a key hub for international trade and travel.

Value Assessment

Rating: good

The award of $14.8 million for construction services appears reasonable given the scope of work, which includes vault installation, office renovation, and mechanical refurbishment for a critical federal facility. Benchmarking against similar large-scale government construction projects for high-security areas and office spaces would provide a more precise value assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, but the final value will depend on the contractor's execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded for specific reasons, potentially related to specialized capabilities or security requirements. The presence of two bidders suggests a degree of competition, but the exclusion of other potential bidders may have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that a broader, unrestricted competition might have yielded. However, the exclusion of sources could be justified if it ensures the selection of a contractor with the necessary specialized skills for a secure government facility.

Public Impact

Customs and Border Protection (CBP) personnel will benefit from improved and modernized facilities at JFK Airport. The project will deliver enhanced security and operational efficiency through vault installation and mechanical upgrades. The geographic impact is concentrated in New York, specifically at JFK International Airport. The construction services will likely involve a workforce of skilled tradespeople, including electricians, plumbers, and general construction laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during renovation.
Risk of schedule delays due to the complexity of mechanical refurbishment and vault installation.
Ensuring compliance with stringent security and operational requirements for a CBP facility.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award by GSA suggests adherence to established procurement and construction standards.
Project addresses critical infrastructure needs for a vital federal agency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports agency operational needs, infrastructure modernization, and security enhancements. Comparable spending benchmarks would involve analyzing other GSA or agency-specific construction awards for similar facility types and renovation scopes across major metropolitan areas.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was likely awarded to a larger firm capable of handling the scale and complexity of the project. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this federal construction need.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), which is responsible for managing federal buildings and procurement. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through federal procurement databases, though specific project-level oversight details are not provided.

Related Government Programs

Federal Building Construction
Customs and Border Protection Infrastructure
Airport Facility Modernization
General Services Administration Construction Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns
Limited competition may impact price
Ensuring specialized security requirements are met

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.8 million to INTEGRATED CONSTRUCTION ENTERPRISES INC. AWARD OF THE CONSTRUCTION SERVICES FOR THE CUSTOMS AND BORDER PROTECTION (CBP) FOR JFK VAULT INSTALLATION, OFFICE RENOVATION, AND MECHANICAL REFURBISHMENT PROJECT

Who is the contractor on this award?

The obligated recipient is INTEGRATED CONSTRUCTION ENTERPRISES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2024-08-12. End: 2026-04-30.

What is the track record of Integrated Construction Enterprises Inc. with federal contracts, particularly with GSA?

A review of federal procurement data would be necessary to fully assess Integrated Construction Enterprises Inc.'s track record. Specifically, one would look for past performance ratings on similar GSA or other federal agency construction contracts. Key indicators would include on-time delivery, adherence to budget, quality of work, and any history of disputes or contract terminations. Understanding their experience with projects involving secure facilities, renovations, and mechanical systems would be crucial for evaluating their capability to successfully execute this JFK CBP project.

How does the $14.8 million award compare to similar CBP facility renovation projects managed by GSA?

To benchmark this $14.8 million award, a comparative analysis of recent GSA or CBP construction contracts for similar facility upgrades at major airports or high-security federal sites would be required. Factors to consider include the square footage renovated, the scope of work (e.g., vault installation, mechanical systems, office fit-outs), and the contract duration. If this project's cost per square foot or cost per functional upgrade is significantly higher or lower than comparable projects, it would warrant further investigation into the specific project requirements, market conditions in New York, and the competitive bidding environment.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is a potentially narrowed competitive field, which could lead to higher prices than a truly unrestricted competition might achieve. While the exclusion of sources is typically justified by specific needs (e.g., unique technical requirements, security clearances), it limits the pool of potential bidders. This can reduce price pressure on the awarded contractor and may mean that the government does not receive the absolute lowest price achievable. However, it can also ensure that only qualified and capable contractors are considered for specialized projects.

What is the expected impact of this contract on the operational effectiveness of CBP at JFK?

This contract is expected to significantly enhance the operational effectiveness of CBP at JFK by providing modernized and secure facilities. The vault installation will improve the security of sensitive materials and operations. Office renovations will create a more functional and efficient workspace for CBP personnel, potentially improving morale and productivity. Mechanical refurbishments will ensure reliable building systems, reducing the risk of disruptions to critical airport security and processing functions. Overall, these upgrades are designed to support CBP's mission in facilitating legitimate trade and travel while safeguarding national security.

What are the historical spending patterns for CBP facility upgrades at major airports, and how does this award fit?

Historical spending patterns for CBP facility upgrades at major airports often reflect a need for continuous modernization to keep pace with evolving security threats, technological advancements, and increased passenger/cargo volumes. Such projects can range from millions to tens of millions of dollars, depending on the scope and location. This $14.8 million award for JFK appears to be a significant investment in a critical transportation hub, aligning with the general trend of federal agencies upgrading infrastructure to meet contemporary operational demands. It suggests a targeted investment rather than a broad, systemic upgrade.

Are there any specific performance metrics or KPIs defined in the contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) defined within the contract. However, for a construction project of this nature, typical KPIs would likely include adherence to the project schedule (e.g., milestones, substantial completion date), quality of workmanship (e.g., meeting building codes, specifications, and industry standards), safety performance (e.g., incident rates), and adherence to the firm-fixed-price budget. The GSA would typically have internal processes and potentially contract clauses to monitor these aspects throughout the project lifecycle.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 259 STEPHENS ST, BELLEVILLE, NJ, 07109

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: $14,813,014

Exercised Options: $14,813,014

Current Obligation: $14,813,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PC0220D0008

IDV Type: IDC

Timeline