GSA Awards $3.07M for Federal Building Switch Replacement in Chicago

Contract Overview

Contract Amount: $3,067,512 ($3.1M)

Contractor: KEO & Associates Inc

Awarding Agency: General Services Administration

Start Date: 2023-08-30

End Date: 2026-05-31

Contract Duration: 1,005 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS AWARD IS FOR THE AUTOMATIC TRANSFER SWITCH REPLACEMENT PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING, 230 SOUTH DEARBORN STREET, CHICAGO, ILLINOIS.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $3.1 million to KEO & ASSOCIATES INC for work described as: THIS AWARD IS FOR THE AUTOMATIC TRANSFER SWITCH REPLACEMENT PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING, 230 SOUTH DEARBORN STREET, CHICAGO, ILLINOIS. Key points: 1. The award focuses on critical infrastructure upgrades for the John C. Kluczynski Federal Building. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The project's fixed-price nature aims to control costs, but the duration is substantial. 4. Construction sector spending in Illinois is a key context for this award.

Value Assessment

Rating: good

The award amount of $3.07M for an automatic transfer switch replacement appears reasonable for a federal building project of this scope and duration. Benchmarking against similar infrastructure upgrades in large federal facilities would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple vendors were considered, but specific sources were excluded. This method can still yield competitive pricing if the exclusion criteria are justified and the remaining pool is sufficiently large.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the contract.

Public Impact

Ensures reliable power for federal operations at a major Chicago building. Supports the modernization of critical infrastructure within the federal estate. Creates construction jobs and economic activity in the Chicago area. Potential for improved energy efficiency and system resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Duration of the project (1005 days) is lengthy.
Exclusion of sources in the competition method warrants scrutiny.
Small business participation is not indicated.

Positive Signals

Firm fixed price contract type.
Awarded under full and open competition.
Addresses critical infrastructure needs.

Sector Analysis

This award falls within the Commercial and Institutional Building Construction sector. Federal spending in this area often involves significant infrastructure upgrades and maintenance for government facilities, with costs influenced by building size, complexity, and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business set-asides were considered or if opportunities were available for subcontracting.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing federal building construction and maintenance. The 'Public Buildings Service' sub-agency likely manages this project, with oversight focused on ensuring timely completion, quality, and adherence to budget.

Related Government Programs

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

Risk Flags

Lengthy project duration.
Exclusion of sources in competition.
No indication of small business participation.
Potential for cost escalation over the project timeline.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.1 million to KEO & ASSOCIATES INC. THIS AWARD IS FOR THE AUTOMATIC TRANSFER SWITCH REPLACEMENT PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING, 230 SOUTH DEARBORN STREET, CHICAGO, ILLINOIS.

Who is the contractor on this award?

The obligated recipient is KEO & ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2023-08-30. End: 2026-05-31.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that only a subset of potential bidders possess. Understanding these criteria is crucial to assess if the exclusion was justified and if it limited competition to the extent that it negatively impacted price discovery. Without this information, it's difficult to definitively state if the best possible price was achieved for the taxpayer.

Given the 1005-day duration, what are the primary risks associated with project delays and potential cost overruns?

A project duration of over two and a half years presents significant risks. These include potential escalation of material and labor costs, unforeseen site conditions requiring scope changes, and disruptions to building operations. Effective project management, clear communication channels, and robust contingency planning by the GSA and KEO & ASSOCIATES INC are essential to mitigate these risks and keep the project on schedule and within budget.

How will the new automatic transfer switch system contribute to the overall resilience and operational effectiveness of the John C. Kluczynski Federal Building?

An upgraded automatic transfer switch is critical for ensuring seamless power continuity during outages or grid instability. This directly enhances the operational effectiveness of the federal building by minimizing downtime for essential services and sensitive equipment. It also bolsters resilience against disruptions, safeguarding critical government functions housed within the facility.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PF0023R0053

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18286 WYOMING ST, DETROIT, MI, 48221

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,067,512

Exercised Options: $3,067,512

Current Obligation: $3,067,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PF0019D0030

IDV Type: IDC

Timeline