GSA awards $36.3M renovation contract for Philadelphia federal building, highlighting construction sector activity

Contract Overview

Contract Amount: $36,277,467 ($36.3M)

Contractor: Daniel J Keating CO

Awarding Agency: General Services Administration

Start Date: 2022-03-15

End Date: 2024-08-31

Contract Duration: 900 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WILLIAM J. GREEN FEDERAL BUILDING RESTACK RENOVATION PROJECT PHASE 2B, PHILADELPHIA PA CONTRACT NUMBER 47PD0322C0001

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $36.3 million to DANIEL J KEATING CO for work described as: WILLIAM J. GREEN FEDERAL BUILDING RESTACK RENOVATION PROJECT PHASE 2B, PHILADELPHIA PA CONTRACT NUMBER 47PD0322C0001 Key points: 1. Contract value represents a significant investment in public infrastructure. 2. Project duration of 900 days indicates a complex, multi-phase renovation. 3. Firm Fixed Price contract type shifts risk to the contractor. 4. The project falls within the broad category of commercial and institutional building construction. 5. Awarded by the Public Buildings Service, indicating a focus on federal facility management. 6. The contract is a definitive contract, suggesting a clear scope of work.

Value Assessment

Rating: fair

The contract value of $36.3 million for a federal building renovation in Philadelphia appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale federal building renovations would provide a more precise assessment of value for money. The firm fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor accurately estimates costs. However, without detailed cost breakdowns or comparisons to private sector projects of similar scope, 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, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple contractors to offer their best pricing and technical solutions. The presence of 7 bids suggests a healthy level of interest and competition for this project, which is a positive sign for price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives proposals from a wide range of qualified contractors.

Public Impact

Federal employees working in the William J. Green Federal Building will benefit from improved facilities. The project delivers essential renovation and restacking services for a key federal property. The geographic impact is concentrated in Philadelphia, Pennsylvania. The construction workforce in the Philadelphia area will see employment opportunities. The renovation aims to modernize and enhance the functionality of a significant federal asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite fixed-price contract.
Delays in project completion could impact the operational efficiency of the federal building.
Contractor performance risk associated with managing a large-scale construction project.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process likely resulted in a fair price.
Awarded by the General Services Administration, an agency with extensive experience in federal building management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building, alteration, and repair of nonresidential structures. Federal spending in this area is crucial for maintaining and upgrading government facilities, often involving complex projects that require specialized expertise. The market size for federal construction projects is substantial, driven by the need to house government agencies and provide public services. This specific contract for a federal building renovation is a typical example of how government agencies invest in their physical infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, DANIEL J KEATING CO, is not explicitly identified as a small business in the provided data, the absence of set-aside provisions means that subcontracting opportunities for small businesses would depend on the prime contractor's own subcontracting plan and outreach efforts. The impact on the small business ecosystem is therefore indirect, relying on the prime's commitment to utilizing small business partners.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms likely include regular progress reviews, site inspections, and adherence to contract milestones. Accountability is established through the firm fixed-price contract terms, which penalize the contractor for cost overruns and incentivize timely completion. Transparency is generally maintained through federal contract databases and public reporting, although detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

Federal Building Renovations
Public Infrastructure Projects
GSA Capital Investments
Commercial Construction Contracts
Building Modernization Projects

Risk Flags

Potential for unforeseen conditions in older federal buildings.
Contractor's financial stability and capacity for large-scale projects.
Timely delivery of materials and labor in the current economic climate.
Coordination with multiple federal agencies potentially occupying the building.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.3 million to DANIEL J KEATING CO. WILLIAM J. GREEN FEDERAL BUILDING RESTACK RENOVATION PROJECT PHASE 2B, PHILADELPHIA PA CONTRACT NUMBER 47PD0322C0001

Who is the contractor on this award?

The obligated recipient is DANIEL J KEATING CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.3 million.

What is the period of performance?

Start: 2022-03-15. End: 2024-08-31.

What is the track record of DANIEL J KEATING CO in completing federal construction projects of similar size and scope?

Assessing the track record of DANIEL J KEATING CO requires a review of their past performance on federal contracts, particularly those involving building renovations and construction projects of comparable value and complexity. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key metrics to examine include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. A strong performance history on similar projects would indicate a lower risk for the William J. Green Federal Building renovation. Conversely, a history of significant delays, cost overruns, or performance issues would raise concerns about the contractor's ability to successfully execute this project.

How does the awarded amount of $36.3 million compare to the estimated cost or benchmark for similar federal building renovations in the Philadelphia region?

To benchmark the $36.3 million award, one would need to compare it against the estimated costs or actual contract values of similar federal building renovation projects in the Philadelphia metropolitan area or comparable urban centers. This involves analyzing the scope of work (e.g., square footage renovated, types of systems upgraded like HVAC, electrical, plumbing), the age and condition of the building, and the prevailing construction market rates in the region. Data from the GSA's own historical project costs, industry cost estimating guides (e.g., RSMeans), or reports from construction cost consulting firms could provide relevant benchmarks. If the awarded amount is significantly higher than comparable projects after adjusting for scope and market conditions, it might suggest a less competitive bidding environment or potential overpricing. Conversely, if it aligns with or is below benchmarks, it indicates good value for taxpayer money.

What are the primary risks associated with this firm fixed-price contract, and how are they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may face unforeseen challenges (e.g., discovering hazardous materials, structural issues not apparent during inspection) that significantly increase their costs beyond the agreed-upon price. If these issues are substantial and not covered by specific contract clauses for unforeseen conditions, the contractor might seek change orders, potentially increasing the overall cost to the government, or face financial distress. Mitigation strategies employed by the government often include thorough pre-bid site investigations, detailed contract language defining responsibilities for unforeseen conditions, and robust project management oversight to identify potential issues early. The contractor's own risk mitigation involves accurate cost estimation, contingency planning, and efficient project execution.

What is the expected impact of this renovation on the operational efficiency and functionality of the William J. Green Federal Building?

The renovation project is expected to significantly enhance the operational efficiency and functionality of the William J. Green Federal Building. By 'restacking' and renovating, the project likely addresses outdated building systems (e.g., HVAC, electrical, IT infrastructure), improves space utilization, and modernizes workspaces. This can lead to reduced energy consumption, lower maintenance costs, improved occupant comfort and productivity, and enhanced security. The goal is typically to bring the facility up to current building codes and standards, making it a more effective and sustainable environment for federal agencies and their employees housed within the building.

How does the historical spending by the GSA's Public Buildings Service on similar renovation projects compare to this contract's value?

Analyzing historical spending by the GSA's Public Buildings Service (PBS) on similar renovation projects provides context for the $36.3 million award. The PBS manages a vast portfolio of federal buildings, and its annual capital investment budget reflects priorities in maintenance, repair, and modernization. Comparing this contract's value to the average or median cost of large-scale federal building renovations undertaken by PBS in recent years, adjusted for inflation and project complexity, can indicate whether this project is an outlier or representative of typical PBS investments. Significant deviations from historical spending patterns might warrant further investigation into the specific needs or market conditions driving this particular contract's value.

What are the key performance indicators (KPIs) likely being used to measure the success of this renovation project?

Key performance indicators (KPIs) for this renovation project would likely focus on several critical areas. These typically include adherence to the project schedule (e.g., completion dates for major phases and final completion), cost control (ensuring the project stays within the firm fixed price, managing change orders effectively), quality of workmanship (meeting specified standards and building codes, minimizing defects), and safety performance (maintaining a safe work environment with minimal incidents). Additionally, KPIs might relate to occupant satisfaction post-renovation, energy efficiency improvements achieved, and compliance with environmental regulations. The GSA's project management team would track these KPIs 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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PD0121R0022

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 134 N NARBERTH AVE, NARBERTH, PA, 19072

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: $36,277,467

Exercised Options: $36,277,467

Current Obligation: $36,277,467

Actual Outlays: $36,277,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline