GSA awards $17.4M contract for Chattanooga courthouse design, highlighting architectural services competition

Contract Overview

Contract Amount: $17,435,953 ($17.4M)

Contractor: Hellmuth, Obata & Kassabaum, Inc.

Awarding Agency: General Services Administration

Start Date: 2025-04-15

End Date: 2031-05-22

Contract Duration: 2,228 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LEAD DESIGN ARCHITECT NEW UNITED STATES COURTHOUSE IN CHATTANOOGA, TN

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37402

State: Tennessee Government Spending

Plain-Language Summary

General Services Administration obligated $17.4 million to HELLMUTH, OBATA & KASSABAUM, INC. for work described as: LEAD DESIGN ARCHITECT NEW UNITED STATES COURTHOUSE IN CHATTANOOGA, TN Key points: 1. The contract value represents a significant investment in federal infrastructure. 2. Competition dynamics for architectural services can influence design quality and cost-effectiveness. 3. The duration of the contract suggests a complex and long-term project. 4. Fixed-price contracts aim to control costs but require careful scope definition. 5. The project's success hinges on effective project management and adherence to design specifications. 6. Geographic concentration in Tennessee may indicate regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of $17.4 million for architectural design services appears reasonable given the scope of designing a new federal courthouse. Benchmarking against similar large-scale public building design projects suggests that costs can range significantly, but this figure falls within expected parameters for a project of this magnitude. The firm-fixed-price structure indicates an effort to establish cost certainty upfront, which is a positive indicator for value if the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple firms were eligible to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the contract. The fact that it was competed openly suggests a healthy market for architectural services for federal projects and provides assurance that the government sought the most advantageous offer.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives high-quality services at a competitive rate, maximizing the value of public funds.

Public Impact

The primary beneficiaries are the citizens of Chattanooga and the surrounding Tennessee region who will gain access to a new, modern federal courthouse. The contract will deliver essential architectural design services for a critical piece of federal infrastructure. The geographic impact is concentrated in Chattanooga, Tennessee, potentially stimulating local economic activity through associated design and construction phases. The project will likely involve a team of architects, engineers, and support staff, creating employment opportunities within the design and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-duration design projects, impacting final costs.
Ensuring adequate oversight to maintain design quality and adherence to federal standards.
Risk of unforeseen site conditions or regulatory changes impacting the design timeline and budget.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Long contract duration allows for thorough design development and planning.

Sector Analysis

The architectural services sector for federal buildings is a specialized market characterized by stringent requirements, extensive pre-qualification processes, and significant competition. Projects like the new United States Courthouse in Chattanooga are substantial undertakings that require firms with proven expertise in public infrastructure design. Spending in this sector is driven by the need for modernization, expansion, and replacement of aging federal facilities across the country. Comparable benchmarks for large public building designs vary widely based on complexity, size, and location, but this contract's value aligns with significant federal construction projects.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is a large firm, there may be opportunities for small businesses to participate as subcontractors for specialized design elements, engineering services, or other support roles. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements outlined in the contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures will include adherence to the firm-fixed-price agreement, delivery of design milestones, and compliance with all federal regulations and building codes. Transparency is generally maintained through contract award databases and public reporting, though specific design details may be proprietary.

Related Government Programs

Federal Courthouse Construction Projects
General Services Administration (GSA) Capital Investments
Architectural and Engineering Services for Public Infrastructure

Risk Flags

Long contract duration may increase risk of cost overruns if not managed effectively.
Potential for scope creep in complex, multi-year design projects.
Reliance on a single prime contractor for a critical infrastructure design.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.4 million to HELLMUTH, OBATA & KASSABAUM, INC.. LEAD DESIGN ARCHITECT NEW UNITED STATES COURTHOUSE IN CHATTANOOGA, TN

Who is the contractor on this award?

The obligated recipient is HELLMUTH, OBATA & KASSABAUM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2025-04-15. End: 2031-05-22.

What is the track record of Hellmuth, Obata & Kassabaum, Inc. (HOK) in delivering federal architectural design contracts?

Hellmuth, Obata & Kassabaum, Inc. (HOK) is a globally recognized architectural firm with a substantial portfolio of large-scale projects, including numerous federal facilities. They have a history of working with government agencies on complex designs, encompassing courthouses, federal offices, and other public infrastructure. Their experience typically involves navigating rigorous federal procurement processes, adhering to strict design standards, and managing large project teams. While specific performance metrics for individual federal contracts are not always publicly detailed, HOK's continued engagement in major public projects suggests a generally positive track record in delivering complex architectural solutions for government clients.

How does the $17.4 million contract value compare to similar federal courthouse design projects?

The $17.4 million contract value for the lead design architect of the new United States Courthouse in Chattanooga is within the expected range for significant federal infrastructure projects. The cost of architectural design services for courthouses can vary widely based on factors such as the building's size, complexity, security requirements, and geographic location. For example, larger or more complex federal buildings might see design contracts in the tens of millions, while smaller projects could be in the low millions. Given that this is for a new United States Courthouse, a substantial and critical piece of federal infrastructure, the awarded amount appears to be a reasonable investment for comprehensive design services.

What are the primary risks associated with a firm-fixed-price contract for a multi-year design project?

The primary risk with a firm-fixed-price (FFP) contract for a long-duration design project like this courthouse is the potential for scope creep. If the project requirements evolve significantly after the contract is awarded, the contractor may incur additional costs not covered by the fixed price, leading to potential disputes or requests for contract modifications. Conversely, the government risks paying a premium if the contractor overestimates costs to mitigate their own risk. Effective contract management, clear initial scope definition, and a robust change order process are crucial to mitigating these risks and ensuring the project stays within budget and on schedule.

What is the expected impact of this contract on the local Chattanooga economy?

This contract is expected to have a positive impact on the local Chattanooga economy. While the primary award is for design services, the extensive planning and design work will likely necessitate the hiring of local architectural and engineering talent, as well as support staff. Furthermore, the successful completion of the design phase is a precursor to the construction phase, which will create a significant number of jobs for local construction workers, material suppliers, and related service providers. The presence of a new federal courthouse can also spur ancillary economic development in the surrounding area.

How does the duration of the contract (2228 days) influence the assessment of value for money?

The contract duration of approximately 2228 days (over six years) for the design phase suggests a complex and potentially phased approach to the project. For value for money, a longer duration can be beneficial if it allows for more thorough planning, iterative design development, and adaptation to evolving needs or technologies, ultimately leading to a higher quality and more cost-effective final product. However, it also introduces risks such as potential cost escalation if not managed tightly, and the possibility of design becoming outdated. The firm-fixed-price structure aims to mitigate cost escalation risk for the government over this extended period, provided the scope is well-defined and managed.

What are the implications of the 'Architectural Services' (NAICS 541310) classification for this contract?

The NAICS code 541310, 'Architectural Services,' signifies that the core service being procured is the planning, design, and oversight of building construction projects. This classification indicates that the contractor is expected to provide expertise in translating functional requirements into physical designs, ensuring compliance with building codes, zoning regulations, and aesthetic standards. For federal projects like a courthouse, this also includes adherence to specific government standards for security, accessibility, and sustainability. The classification helps define the scope of work, the required professional qualifications of the contractor, and the relevant industry benchmarks for pricing and performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 47PE0324R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 S BROADWAY STE 200, SAINT LOUIS, MO, 63102

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

Financial Breakdown

Contract Ceiling: $17,435,953

Exercised Options: $17,435,953

Current Obligation: $17,435,953

Actual Outlays: $902,132

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline