GSA awards $27.7M construction contract to Burchick Construction Co. Inc. in West Virginia

Contract Overview

Contract Amount: $27,740,918 ($27.7M)

Contractor: Burchick Construction CO Inc

Awarding Agency: General Services Administration

Start Date: 2024-01-08

End Date: 2027-05-14

Contract Duration: 1,222 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26301

State: West Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $27.7 million to BURCHICK CONSTRUCTION CO INC for work described as: CONSTRUCTION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. The duration of 1222 days indicates a significant, long-term construction project. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The award to Burchick Construction Co. Inc. represents a substantial investment in West Virginia's infrastructure.

Value Assessment

Rating: good

The contract value of $27.7 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects managed by the General Services Administration (GSA) would provide a more precise assessment of value for money. The firm-fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 4 bids indicates a healthy level of competition for this project. This competitive environment is generally expected to drive down prices and encourage innovative solutions from bidders.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the construction services rendered.

Public Impact

The primary beneficiaries are likely federal agencies requiring facilities in West Virginia, ensuring modern and functional spaces. The contract will result in the construction or renovation of commercial and institutional buildings. The geographic impact is concentrated in West Virginia, potentially stimulating local economic activity. Workforce implications include job creation for construction workers, engineers, architects, and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in construction timelines impacting facility readiness.
Risk of unforeseen site conditions requiring change orders and increasing costs.
Ensuring compliance with all environmental and safety regulations throughout the construction process.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long contract duration allows for thorough project planning and execution.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The GSA, as a major federal real estate manager, frequently awards contracts of this nature to maintain and expand government facilities. The market for federal construction services is substantial, with agencies like GSA, DoD, and VA being significant clients. Benchmarks for similar projects would typically consider factors like square footage, complexity of design, and location.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Burchick Construction Co. Inc. may engage small businesses as subcontractors, there is no explicit requirement for it in the contract details provided. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the local small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for construction contracts, including regular site inspections, progress reviews, and contract management. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed budget. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details may vary.

Related Government Programs

Federal Building Construction
Public Works Projects
Government Facility Modernization
Commercial Construction Services

Risk Flags

Potential for cost overruns if material prices increase significantly.
Risk of project delays due to unforeseen site conditions or weather.
Ensuring adequate small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.7 million to BURCHICK CONSTRUCTION CO INC. CONSTRUCTION SERVICES

Who is the contractor on this award?

The obligated recipient is BURCHICK CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2024-01-08. End: 2027-05-14.

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

A review of federal contract databases would be necessary to fully assess Burchick Construction Co. Inc.'s track record. This would involve examining past performance on similar construction projects, including contract values, timeliness of delivery, and any history of disputes or contract modifications. Understanding their experience with GSA specifically would highlight their familiarity with agency requirements and procedures. A positive track record with comparable projects would increase confidence in their ability to successfully execute this $27.7 million contract within the specified timeframe and budget.

How does the awarded price compare to similar construction projects managed by the GSA in the region?

To benchmark the value, we would compare the cost per square foot, cost per unit of work (e.g., per linear foot of road, per cubic yard of concrete), or overall project cost against recently awarded GSA construction contracts in West Virginia and surrounding states with similar project scopes (e.g., office buildings, institutional facilities). Factors such as prevailing wage rates, material costs, and site complexity in West Virginia would be considered. If this contract's pricing falls within or below the typical range for comparable projects, it suggests good value for money. Significant deviation upwards might warrant further investigation into the specific requirements or market conditions.

What are the primary risks associated with a firm-fixed-price construction contract of this duration?

The primary risks with a firm-fixed-price (FFP) contract, especially one spanning over three years, revolve around potential cost increases for the contractor that are not passed on to the government. This can lead to contractor financial distress or pressure to cut corners if material prices escalate unexpectedly or unforeseen site conditions arise. For the government, the risk is ensuring the contractor has adequately priced contingencies and that the scope is tightly defined to prevent scope creep. Robust contract administration, including clear change order procedures and regular progress monitoring, is crucial to mitigate these risks and ensure project success.

What is the expected impact of this contract on the local West Virginia economy and workforce?

This $27.7 million construction contract is expected to have a positive impact on the local West Virginia economy. It will likely create numerous direct and indirect jobs in the construction trades, engineering, architecture, and material supply sectors. Local businesses may benefit from supplying materials, equipment, and services to the prime contractor. Furthermore, the completed facility will contribute to the region's infrastructure and potentially support future economic development or government service delivery within West Virginia.

How does the number of bids (4) influence the perceived value and competition level for this contract?

Receiving 4 bids for a contract of this magnitude ($27.7 million) generally indicates a healthy level of competition. More bids typically increase the likelihood that the government receives competitive pricing and a wider range of technical approaches. A higher number of bidders suggests that the contract requirements were clear and accessible to the market, and that multiple firms were interested and capable of performing the work. While 4 bids are solid, a significantly higher number might suggest even more aggressive pricing, whereas fewer bids could potentially indicate barriers to entry or limited market interest.

What are the potential implications of the contract being a 'Definitive Contract'?

A 'Definitive Contract' is a standard, legally binding agreement that clearly outlines the rights and responsibilities of both the government and the contractor. In the context of construction, it signifies a finalized agreement with specific terms, conditions, scope of work, price, and schedule. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically represents a single, complete order for goods or services. This structure provides clarity and predictability for both parties, reducing ambiguity regarding the project's execution and final deliverables.

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

Solicitation Procedures: TWO STEP

Solicitation ID: 47PD0323R0003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 LOWRIES RUN RD, PITTSBURGH, PA, 15237

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,787,485

Exercised Options: $27,740,918

Current Obligation: $27,740,918

Actual Outlays: $6,315,832

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline