GSA awards $170M construction contract for Harrisburg Courthouse, facing 9 bidders in full and open competition
Contract Overview
Contract Amount: $169,880,055 ($169.9M)
Contractor: Mascaro Construction CO LP
Awarding Agency: General Services Administration
Start Date: 2018-03-09
End Date: 2023-03-30
Contract Duration: 1,847 days
Daily Burn Rate: $92.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIXED PRICE INCENTIVE
Sector: Construction
Official Description: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE U.S. COURTHOUSE IN HARRISBURG, PENNSYLVANIA
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17102
Plain-Language Summary
General Services Administration obligated $169.9 million to MASCARO CONSTRUCTION CO LP for work described as: CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE U.S. COURTHOUSE IN HARRISBURG, PENNSYLVANIA Key points: 1. The contract value of $170 million represents a significant investment in federal infrastructure. 2. Competition was robust with 9 bidders, suggesting a healthy market for construction management services. 3. The fixed-price incentive contract type aims to balance cost control with contractor performance. 4. The project duration of approximately 5 years indicates a complex and long-term construction undertaking. 5. The project falls under the Commercial and Institutional Building Construction NAICS code, a common category for federal facilities. 6. The contract was awarded by the General Services Administration (GSA), a primary agency for federal building management.
Value Assessment
Rating: good
The contract value of $170 million for a U.S. Courthouse construction project appears within a reasonable range for large-scale public infrastructure. Benchmarking against similar federal courthouse construction projects would provide a more precise value-for-money assessment. The fixed-price incentive structure suggests an effort to manage costs while incentivizing timely completion, which is a positive sign for efficient resource utilization. However, without detailed cost breakdowns or comparisons to private sector construction of similar scale and complexity, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with 9 bidders participating. This indicates a broad outreach and a competitive marketplace for this type of construction management service. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government. The high number of bidders suggests that the requirements were well-defined and accessible to a wide range of qualified firms.
Taxpayer Impact: A high level of competition benefits taxpayers by driving down prices and encouraging efficiency from contractors vying for the award. It ensures that government funds are used effectively by selecting the most cost-competitive and capable bidder.
Public Impact
The primary beneficiaries are federal judicial operations, which will gain a new or improved courthouse facility. The project will deliver essential construction management services for a critical piece of federal infrastructure. The geographic impact is focused on Harrisburg, Pennsylvania, providing a modern facility for the local federal court system. Workforce implications include employment opportunities for construction workers, engineers, architects, and administrative staff in the Harrisburg area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if incentive targets are not met or if unforeseen issues arise during construction.
- Long project duration increases exposure to market fluctuations in material costs and labor availability.
- Dependence on a single prime contractor for a project of this magnitude carries inherent performance risks.
Positive Signals
- Robust competition with 9 bidders suggests a strong pool of qualified contractors.
- Fixed-price incentive contract type aligns contractor incentives with government objectives for cost and performance.
- Award by GSA indicates adherence to established federal procurement and construction standards.
Sector Analysis
The construction industry is a significant sector for federal spending, particularly for infrastructure projects like courthouses. This contract falls within the Commercial and Institutional Building Construction category. The market for large-scale public construction is often characterized by a mix of large prime contractors and specialized subcontractors. Federal projects typically adhere to stringent building codes, security requirements, and sustainability standards, which can influence project costs and timelines compared to private sector equivalents.
Small Business Impact
The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests the contract was competed broadly without specific targets for small business participation. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. The government's focus on small business subcontracting plans would be a key factor in assessing the impact on the small business ecosystem.
Oversight & Accountability
The General Services Administration (GSA) has established oversight mechanisms for construction projects, including regular site inspections, progress reporting, and financial reviews. The Inspector General's office provides an independent layer of oversight to ensure accountability and prevent fraud, waste, and abuse. Transparency is generally maintained through public contract awards and reporting, though detailed project-specific cost breakdowns may not always be publicly available.
Related Government Programs
- Federal Courthouse Construction
- Public Building Construction
- General Services Administration Contracts
- Construction Management Services
- Fixed-Price Incentive Contracts
Risk Flags
- Long project duration increases risk of cost escalation.
- Fixed-price incentive contracts require careful monitoring to ensure value.
- Dependence on prime contractor performance.
- Potential for unforeseen site conditions in construction.
Tags
construction, general-services-administration, harrisburg, pennsylvania, definitive-contract, full-and-open-competition, fixed-price-incentive, commercial-and-institutional-building-construction, federal-courthouse, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $169.9 million to MASCARO CONSTRUCTION CO LP. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE U.S. COURTHOUSE IN HARRISBURG, PENNSYLVANIA
Who is the contractor on this award?
The obligated recipient is MASCARO CONSTRUCTION CO LP.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $169.9 million.
What is the period of performance?
Start: 2018-03-09. End: 2023-03-30.
What is the track record of Mascaro Construction Co LP on similar federal projects?
Mascaro Construction Co LP has a history of working on large-scale construction projects, including public facilities. A review of their past performance on federal contracts, particularly those managed by the GSA or involving similar building types (e.g., courthouses, government offices), would be necessary to assess their suitability and reliability for this project. Key indicators would include on-time and on-budget completion rates, quality of work, and any history of disputes or contract modifications. Examining past performance evaluations and any debriefings from previous federal awards would provide further insight into their capabilities and potential risks associated with their involvement.
How does the awarded price compare to similar federal courthouse construction projects?
Directly comparing the $170 million award to similar federal courthouse projects requires access to a database of comparable contracts, considering factors like square footage, complexity, location, and specific functional requirements. The General Services Administration (GSA) manages a vast portfolio of federal buildings, and their internal benchmarks or publicly available data on similar projects (e.g., through the Federal Procurement Data System - FPDS) could offer insights. Without such specific comparative data, it's difficult to definitively state if this price represents excellent, good, or fair value. However, the robust competition suggests the price was deemed acceptable by multiple market participants.
What are the primary risks associated with a Fixed Price Incentive (FPI) contract for this project?
The primary risks with an FPI contract for a large construction project like a U.S. Courthouse involve balancing cost control with performance incentives. The government aims to achieve a target cost and target profit, with adjustments based on actual costs. Risks include the contractor potentially cutting corners on quality to meet cost targets, or conversely, the government incurring higher costs if the contractor struggles to meet performance incentives. Unforeseen site conditions or scope changes can also complicate the incentive structure, potentially leading to disputes. Effective oversight is crucial to ensure the contractor is motivated by the incentives without compromising the project's integrity or exceeding the government's acceptable cost ceiling.
How effective is the GSA's oversight in ensuring project success and taxpayer value?
The GSA generally employs a structured oversight process for its construction projects, involving project managers, contracting officers, and technical experts. This typically includes regular progress meetings, site inspections, review of payment requests, and change order management. The effectiveness of this oversight can vary depending on the specific project team's experience, resources, and the contractor's adherence to contract terms. The presence of an Inspector General's office adds a layer of accountability. Taxpayer value is maximized when oversight ensures adherence to scope, quality standards, budget, and schedule, while proactively identifying and mitigating risks.
What is the historical spending trend for construction management services by the GSA?
The General Services Administration (GSA) is a major federal agency responsible for managing and maintaining federal buildings, making it a significant spender on construction and construction management services. Historical spending trends for GSA in this area typically show consistent investment in new construction, renovations, and major repairs of federal facilities across the country. Spending levels can fluctuate based on federal infrastructure priorities, budget appropriations, and economic conditions. Analyzing GSA's annual reports or budget justifications would provide detailed insights into their historical spending patterns for construction management and related services, often showing billions of dollars allocated annually.
What are the implications of the project duration (1847 days) on cost and risk?
A project duration of approximately 1847 days (around 5 years) for a U.S. Courthouse construction project is substantial and carries significant implications for both cost and risk. Longer durations increase the potential for escalation in material and labor costs, especially in fluctuating economic environments. It also heightens the risk of encountering unforeseen site conditions, design challenges, or regulatory changes over an extended period. Furthermore, prolonged projects require sustained management oversight and can delay the intended use of the facility, impacting operational efficiency. However, a longer timeline might also be necessary for complex projects to ensure quality and thoroughness, potentially mitigating risks associated with rushed construction.
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: GS-03-P-17-AZ-C-0014
Offers Received: 9
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1720 METROPOLITAN ST, PITTSBURGH, PA, 15233
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $169,880,055
Exercised Options: $169,880,055
Current Obligation: $169,880,055
Actual Outlays: $52,445,725
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-03-09
Current End Date: 2023-03-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2025-01-28
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