GSA Awards $143M Construction Contract to Brasfield & Gorrie LLC Under Full and Open Competition

Contract Overview

Contract Amount: $143,481,874 ($143.5M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: General Services Administration

Start Date: 2018-01-31

End Date: 2023-06-30

Contract Duration: 1,976 days

Daily Burn Rate: $72.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EO14042: COVID-19 2020 FAR CLAUSE 52.223-99

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28202

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $143.5 million to BRASFIELD & GORRIE LLC for work described as: EO14042: COVID-19 2020 FAR CLAUSE 52.223-99 Key points: 1. The contract value of $143.5 million represents a significant investment in commercial building construction. 2. Brasfield & Gorrie LLC, a large business, secured this contract through full and open competition. 3. The contract's duration of 1976 days (over 5 years) suggests a complex, long-term project. 4. The North Carolina location may indicate regional construction needs or market dynamics.

Value Assessment

Rating: good

The contract was awarded using a firm-fixed-price (FFP) type, which is standard for construction projects to manage cost certainty. The award amount appears reasonable given the project's scope and duration, though a direct comparison to similar projects would require more detailed project specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing the value received for the $143.5 million expenditure.

Public Impact

This contract supports the development or renovation of public buildings, potentially impacting federal agency operations or public access. The significant investment could stimulate economic activity in the construction sector and related industries in North Carolina. The project's success will be crucial for ensuring the functionality and modernization of federal infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Contract duration is exceptionally long, potentially leading to cost overruns if not managed tightly.
No small business participation noted, which could be a missed opportunity for economic inclusion.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, driven by the need to maintain, upgrade, and build government facilities. Benchmarks for similar large-scale construction projects vary widely based on location, complexity, and specific requirements.

Small Business Impact

This contract was awarded to a large business and did not include specific small business set-aside provisions. While full and open competition is beneficial for overall value, it may limit opportunities for small businesses to participate in large federal construction projects.

Oversight & Accountability

The General Services Administration (GSA), specifically the Public Buildings Service, is responsible for overseeing federal real estate. Oversight of this contract would involve monitoring progress, ensuring compliance with terms, and managing any potential changes to maintain cost and schedule integrity.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration increases risk of cost escalation and schedule delays.
Lack of small business participation.
Potential for unforeseen site conditions or design changes impacting cost and schedule.
Dependence on a single large contractor for a significant federal asset.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $143.5 million to BRASFIELD & GORRIE LLC. EO14042: COVID-19 2020 FAR CLAUSE 52.223-99

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 $143.5 million.

What is the period of performance?

Start: 2018-01-31. End: 2023-06-30.

What specific public buildings or infrastructure improvements does this contract entail, and how do they align with current federal needs?

The contract is for Commercial and Institutional Building Construction, likely involving the building, renovation, or maintenance of federal facilities. Without more specific project details, it's difficult to ascertain the exact nature of the improvements. Alignment with federal needs would depend on the agency's strategic infrastructure plans and the specific functions these buildings serve.

Given the 5-year duration, what risk mitigation strategies are in place to manage potential cost escalations or scope creep?

The firm-fixed-price (FFP) contract structure inherently shifts cost escalation risk to the contractor. However, robust project management, clear change order procedures, and regular performance reviews by the GSA are critical to prevent scope creep and ensure the project stays within the agreed-upon budget and timeline.

How does the awarded price of $143.5 million compare to industry benchmarks for similar-sized construction projects, considering the project's complexity and location?

A precise benchmark comparison is challenging without detailed project specifications (e.g., square footage, type of construction, specific systems). However, $143.5 million for a multi-year federal construction project is substantial. The GSA likely conducted a thorough price reasonableness analysis during the procurement process, comparing the bid to historical data and independent cost estimates.

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: 47PE0317R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $143,481,874

Exercised Options: $143,481,874

Current Obligation: $143,481,874

Actual Outlays: $29,420,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline