GSA awards $40.2M construction contract to Brasfield & Gorrie LLC, incorporating COVID-19 safety protocols

Contract Overview

Contract Amount: $40,227,799 ($40.2M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: General Services Administration

Start Date: 2021-03-31

End Date: 2023-10-06

Contract Duration: 919 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: EO14042: THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.223-99, ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL CONTRACTORS INTO THIS CONTRACT.

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28401

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $40.2 million to BRASFIELD & GORRIE LLC for work described as: EO14042: THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.223-99, ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL CONTRACTORS INTO THIS CONTRACT. Key points: 1. Contract value of $40.2 million for construction services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Fixed Price Incentive, aligning contractor and government goals. 4. Duration of 919 days indicates a significant, long-term project. 5. Modification incorporates FAR Clause 52.223-99 for COVID-19 safety protocols. 6. No small business set-aside noted, potentially limiting small business participation. 7. Contract awarded by the General Services Administration (GSA).

Value Assessment

Rating: good

The contract value of $40.2 million for commercial and institutional building construction appears reasonable given the 919-day duration and the incorporation of specific safety protocols. Benchmarking against similar large-scale construction projects managed by GSA would provide further context on value for money. The Fixed Price Incentive (FPI) contract type suggests an effort to control costs while incentivizing performance, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bids suggests a healthy level of competition for this construction project. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, benefiting taxpayers by ensuring the government secures services at a fair market value.

Public Impact

Federal facilities in North Carolina will benefit from construction and safety upgrades. The contract supports the delivery of essential construction services for government infrastructure. The project has implications for the local construction workforce in North Carolina. Ensures compliance with federal mandates regarding workplace safety, specifically COVID-19 protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not met effectively.
Dependence on contractor's ability to manage complex construction schedules and safety requirements.
Risk associated with the implementation and enforcement of COVID-19 safety protocols.

Positive Signals

Full and open competition likely secured competitive pricing.
Fixed Price Incentive contract type aligns contractor and government objectives.
Inclusion of COVID-19 safety protocols demonstrates proactive public health measures.
Award to an established contractor, Brasfield & Gorrie LLC, suggests a degree of reliability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal procurement landscape. The General Services Administration (GSA) is a primary agency for managing federal building construction and maintenance. Spending in this sector is influenced by infrastructure needs, agency growth, and modernization efforts. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by GSA or other federal agencies for similar facility types and scopes of work.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor, Brasfield & Gorrie LLC, is a large business. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a set-aside or specific subcontracting goals could mean limited direct opportunities for small businesses on this particular prime contract, though they may participate indirectly through the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures are embedded in the Fixed Price Incentive contract type, which links payment to performance and cost targets. Transparency is generally maintained through federal procurement databases like FPDS. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Contracts
COVID-19 Federal Contractor Mandates
Fixed Price Incentive Contracts
Commercial Building Construction

Risk Flags

Potential for cost overruns due to FPI contract type.
Effectiveness of COVID-19 safety protocol implementation and enforcement.
Dependence on contractor's performance and schedule adherence.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.2 million to BRASFIELD & GORRIE LLC. EO14042: THE PURPOSE OF THIS MODIFICATION IS TO INCORPORATE FAR CLAUSE 52.223-99, ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL CONTRACTORS INTO THIS CONTRACT.

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2021-03-31. End: 2023-10-06.

What is the track record of Brasfield & Gorrie LLC with the federal government, particularly with the GSA?

Brasfield & Gorrie LLC has a significant history of federal contracting. While specific details for this contract are limited to the provided data, a review of federal procurement databases would reveal their past performance, including the types of contracts awarded, their value, and any reported issues or successes. Their experience with GSA projects, especially in commercial and institutional building construction, is crucial for assessing their capability to execute this $40.2 million contract effectively. Analyzing past performance metrics, such as on-time delivery, budget adherence, and quality of work, would provide a clearer picture of their reliability as a federal contractor.

How does the $40.2 million contract value compare to similar GSA construction projects in North Carolina?

To assess the value for money, the $40.2 million contract needs to be benchmarked against similar GSA construction projects in North Carolina. This involves comparing the contract's scope of work, duration (919 days), and specific requirements (like COVID-19 protocols) with other awarded contracts for commercial and institutional buildings of comparable size and complexity. Factors such as prevailing construction costs in the region, material prices, and labor rates during the contract period are also important. Without access to a broader dataset of GSA contracts, it's difficult to definitively state if $40.2 million represents a high, low, or average cost, but the full and open competition with 8 bidders suggests a market-driven price.

What are the specific risks associated with the Fixed Price Incentive (FPI) contract type for this project?

The Fixed Price Incentive (FPI) contract type aims to share cost savings or overruns between the government and the contractor, incentivizing performance. For this project, the primary risk is that the contractor may not meet the target cost or performance objectives, leading to higher-than-anticipated costs for the government or reduced profit for the contractor. Effective management of the incentive clauses is critical. If the targets are set too aggressively, the contractor might cut corners on quality or safety to meet cost goals. Conversely, if targets are too lenient, the government might overpay. Close monitoring of progress against cost and performance metrics is essential to mitigate these risks.

How effectively are the COVID-19 safety protocols likely to be implemented and enforced under this contract?

The incorporation of FAR Clause 52.223-99 signifies a commitment to ensuring adequate COVID-19 safety protocols. The effectiveness of implementation and enforcement hinges on several factors: the clarity and specificity of the protocols themselves, the contractor's internal safety management systems, and the government's oversight. Brasfield & Gorrie LLC's experience with similar mandates and the GSA's diligence in monitoring compliance will be key. Regular site inspections, reporting requirements, and clear communication channels between the government and the contractor are vital to ensure these protocols are followed, protecting the workforce and maintaining project continuity.

What is the historical spending pattern for commercial and institutional building construction by the GSA in North Carolina?

Analyzing historical spending patterns for commercial and institutional building construction by the GSA in North Carolina would provide context for this $40.2 million award. This involves examining previous contract values, durations, types of construction, and the number of bidders over several fiscal years. Understanding trends in GSA's investment in facilities in the region can reveal whether this contract represents a typical expenditure, an increase, or a decrease in activity. Such analysis helps in assessing the overall federal investment in infrastructure in North Carolina and the GSA's role within it.

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

Offers Received: 8

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,227,799

Exercised Options: $40,227,799

Current Obligation: $40,227,799

Actual Outlays: $38,830,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline