GSA awards $58.7M contract to Turner Construction for FDA Forensic Chemistry Center modernization

Contract Overview

Contract Amount: $58,652,439 ($58.7M)

Contractor: Turner Construction Company

Awarding Agency: General Services Administration

Start Date: 2021-01-12

End Date: 2023-12-21

Contract Duration: 1,073 days

Daily Burn Rate: $54.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: CONTRACTOR TO PROVIDE CONSTRUCTION MANAGER AS CONSTRUCTOR SERVICES INCLUDING DESIGN PHASE SERVICES AND CONSTRUCTION PHASE SERVICES FOR THE FDA FORENSIC CHEMISTRY CENTER MODERNIZATION PROJECT IN CINCINNATI, OH.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45237

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $58.7 million to TURNER CONSTRUCTION COMPANY for work described as: CONTRACTOR TO PROVIDE CONSTRUCTION MANAGER AS CONSTRUCTOR SERVICES INCLUDING DESIGN PHASE SERVICES AND CONSTRUCTION PHASE SERVICES FOR THE FDA FORENSIC CHEMISTRY CENTER MODERNIZATION PROJECT IN CINCINNATI, OH. Key points: 1. Contract value represents a significant investment in federal laboratory infrastructure. 2. The project aims to modernize critical research facilities for the FDA. 3. Fixed Price Incentive contract type suggests shared risk and reward between GSA and the contractor. 4. The project duration of over 1000 days indicates a complex and lengthy undertaking. 5. Competition was robust, potentially leading to better pricing and value. 6. The contract is for construction management services, encompassing both design and construction phases.

Value Assessment

Rating: good

The contract value of $58.7 million for the FDA Forensic Chemistry Center modernization appears reasonable given the scope of construction management services for a federal facility. Benchmarking against similar large-scale federal building projects suggests that costs for such endeavors can range widely, but this award falls within expected parameters for a project of this complexity and duration. The fixed-price incentive structure implies that cost savings or overruns will be shared, incentivizing efficient project execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders (no) suggests a healthy level of competition for this significant federal construction project. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from a range of experienced contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which is beneficial for taxpayers by ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the Food and Drug Administration (FDA) scientists and staff who will utilize the modernized facilities. The project will deliver updated laboratory and research spaces, enhancing the FDA's forensic chemistry capabilities. The geographic impact is concentrated in Cincinnati, Ohio, where the facility is located. The project will likely create numerous jobs in the construction and related trades sectors in the Cincinnati area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in large-scale construction projects, even with incentive contracts.
Delays in project completion could impact FDA's operational timelines and research output.
Ensuring compliance with stringent federal laboratory standards throughout the construction process.

Positive Signals

Award to an experienced contractor, Turner Construction Company, suggests a lower risk of execution issues.
Fixed Price Incentive contract type aligns contractor and government interests for cost control.
Robust competition indicates a strong market for these services, potentially driving quality.

Sector Analysis

The construction industry is a significant sector for federal spending, encompassing a wide range of projects from infrastructure to facility modernization. This contract falls within the Commercial and Institutional Building Construction sub-sector. Federal spending in this area is driven by the need to maintain, upgrade, and build facilities across various agencies. Comparable spending benchmarks for large federal building projects can vary significantly based on size, complexity, and location, but projects in the tens of millions of dollars are common for specialized facilities like laboratories.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Turner Construction Company voluntarily engages small businesses for specialized services or materials. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA), specifically the Public Buildings Service, which is responsible for federal building management. Accountability measures are embedded within the contract terms, particularly the fixed-price incentive structure, which incentivizes performance and cost control. Transparency is generally maintained through federal contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FDA Laboratory Modernization Projects
Federal Building Construction
GSA Public Buildings Service Contracts
Construction Management Services

Risk Flags

Potential for cost overruns
Project timeline risks
Ensuring quality and compliance with federal standards

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $58.7 million to TURNER CONSTRUCTION COMPANY. CONTRACTOR TO PROVIDE CONSTRUCTION MANAGER AS CONSTRUCTOR SERVICES INCLUDING DESIGN PHASE SERVICES AND CONSTRUCTION PHASE SERVICES FOR THE FDA FORENSIC CHEMISTRY CENTER MODERNIZATION PROJECT IN CINCINNATI, OH.

Who is the contractor on this award?

The obligated recipient is TURNER CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $58.7 million.

What is the period of performance?

Start: 2021-01-12. End: 2023-12-21.

What is Turner Construction Company's track record with similar federal projects?

Turner Construction Company has a substantial track record of undertaking large-scale federal construction projects. They have been involved in numerous projects for agencies such as the Department of Defense, Department of Veterans Affairs, and other civilian agencies. Their experience often includes complex facilities such as laboratories, hospitals, and courthouses. While specific details on past performance for projects identical in scope to the FDA Forensic Chemistry Center modernization are not provided here, their general portfolio suggests they possess the necessary expertise and capacity to manage such an undertaking. A deeper dive into their past performance ratings and any past performance issues on federal contracts would provide a more complete picture of their reliability for this specific project.

How does the awarded amount compare to the estimated value or budget for this project?

The provided data indicates an award amount of $58,652,438.52. Without access to the original estimated cost or budget set by the General Services Administration (GSA) for the FDA Forensic Chemistry Center Modernization Project, a direct comparison is not possible. However, the fact that the contract was awarded under full and open competition with three bidders suggests that the award amount is likely competitive and reflects market conditions. If the award is significantly above or below initial estimates, it could indicate changes in project scope, market fluctuations, or successful negotiation. Further information on the GSA's initial budget would be necessary for a definitive value assessment.

What are the primary risks associated with a Fixed Price Incentive (FPI) contract for a project of this nature?

Fixed Price Incentive (FPI) contracts aim to share cost risks and rewards between the government and the contractor. For a large construction project like the FDA Forensic Chemistry Center modernization, key risks include the contractor's ability to accurately estimate costs, especially during the design phase, and manage unforeseen construction challenges. If the final costs exceed the target cost, both parties share the overrun, but the government's liability is capped at the ceiling price. Conversely, if costs are below the target, savings are shared. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs if the profit margin remains high even with overruns, or conversely, that the contractor might cut corners on quality to meet cost targets if the incentive structure is not carefully designed. Effective oversight is crucial to mitigate these risks.

What is the expected impact of this modernization on the FDA's forensic chemistry capabilities?

The modernization of the FDA Forensic Chemistry Center is expected to significantly enhance the agency's capabilities in forensic analysis. Modern laboratories typically feature updated equipment, improved workflows, and enhanced safety features, all of which contribute to more efficient and accurate testing. This upgrade should enable the FDA to handle a greater volume of samples, employ more advanced analytical techniques, and potentially reduce turnaround times for critical analyses. Ultimately, this investment supports the FDA's mission to protect public health by ensuring the safety and integrity of regulated products through robust scientific analysis.

How has federal spending on laboratory construction and modernization evolved in recent years?

Federal spending on laboratory construction and modernization has generally seen consistent investment, driven by the need to maintain state-of-the-art research facilities across various agencies, including the FDA, NIH, and defense laboratories. Factors influencing this spending include aging infrastructure, the need for specialized equipment, advancements in scientific research, and evolving regulatory requirements. While specific year-over-year trends can fluctuate based on budget appropriations and national priorities, there is a sustained focus on upgrading federal laboratories to ensure they can support critical scientific missions. The COVID-19 pandemic also highlighted the importance of robust public health infrastructure, potentially influencing future investments in related facilities.

What is the significance of the 'Commercial and Institutional Building Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' signifies the primary industry sector this contract serves. This code encompasses establishments primarily responsible for the construction or remodeling of nonresidential buildings, such as commercial, industrial, and institutional structures. For this FDA project, it indicates that the contract is for the physical construction and management of a facility intended for commercial (in the sense of non-governmental operational use) and institutional (a government research institution) purposes. This classification helps in benchmarking costs, understanding labor requirements, and identifying relevant industry standards and regulations applicable to the project.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PF0020R0057S

Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: ACS, Actividades DE Construccion Y Servicios, SA

Address: 375 HUDSON ST FL 6, NEW YORK, NY, 10014

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

Financial Breakdown

Contract Ceiling: $58,652,439

Exercised Options: $58,652,439

Current Obligation: $58,652,439

Actual Outlays: $56,451,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline