GSA awards $12.5M contract for Detroit courthouse security upgrades, highlighting construction sector activity

Contract Overview

Contract Amount: $12,531,141 ($12.5M)

Contractor: Christman Company, the

Awarding Agency: General Services Administration

Start Date: 2023-11-01

End Date: 2025-06-30

Contract Duration: 607 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD ISSUED FOR CAPITAL SECURITY PROGRAM PROJECT AT THE THEODORE LEVIN UNITED STATES COURTHOUSE, 231 WEST LAFAYETTE BOULEVARD, DETROIT, MICHIGAN 48226

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $12.5 million to CHRISTMAN COMPANY, THE for work described as: AWARD ISSUED FOR CAPITAL SECURITY PROGRAM PROJECT AT THE THEODORE LEVIN UNITED STATES COURTHOUSE, 231 WEST LAFAYETTE BOULEVARD, DETROIT, MICHIGAN 48226 Key points: 1. Contract awarded for essential security enhancements at a federal courthouse. 2. The project falls within the broad commercial and institutional building construction sector. 3. A firm-fixed-price contract suggests defined scope and cost certainty. 4. The duration of 607 days indicates a substantial construction undertaking. 5. The award was made under full and open competition, suggesting a competitive bidding process. 6. The General Services Administration (GSA) is the awarding agency, a key player in federal real estate.

Value Assessment

Rating: good

The award of $12.5 million for the Capital Security Program Project at the Theodore Levin United States Courthouse appears reasonable given the scope of construction and security enhancements. Benchmarking against similar federal courthouse modernization projects would provide a more precise value assessment. The firm-fixed-price structure generally indicates that the contractor has assessed risks and costs, aiming for a predictable outcome for the government. Without specific details on the scope of work, direct comparison to other contracts is challenging, but the amount aligns with significant building construction endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection of the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple firms to bid, potentially leading to more competitive pricing and a better overall value for the government.

Public Impact

The primary beneficiaries are federal court operations and personnel at the Theodore Levin United States Courthouse, who will experience enhanced security. The services delivered include construction and installation of capital security systems and upgrades. The geographic impact is localized to Detroit, Michigan, specifically at the courthouse located at 231 West Lafayette Boulevard. The project will likely involve a workforce of construction laborers, electricians, security system installers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the courthouse's operational schedule.
Risk of cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.
Ensuring the security systems meet evolving federal standards and are future-proofed.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses critical security needs for a federal facility.
The contractor, The Christman Company, has experience in construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. This sector encompasses the building of non-residential structures like courthouses, government buildings, and commercial facilities. Federal spending in this area is often driven by the need to maintain, upgrade, and secure government infrastructure. Comparable spending benchmarks would involve analyzing other GSA construction contracts for federal buildings or courthouses of similar size and complexity.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to The Christman Company, a large contractor, suggests that the primary focus was on technical capability and price for a project of this scale. Further analysis would be needed to determine if subcontracting opportunities exist within the broader ecosystem of this project.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), likely through its Public Buildings Service. The firm-fixed-price contract structure provides a degree of accountability by fixing the total cost. Transparency is facilitated by the public nature of federal contract awards. The Inspector General for the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Courthouse Construction
GSA Capital Security Program
Building Security Upgrades
Federal Building Maintenance
Construction Services for Government Facilities

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Ensuring long-term effectiveness and maintainability of installed security systems.
Coordination with ongoing courthouse operations during construction.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.5 million to CHRISTMAN COMPANY, THE. AWARD ISSUED FOR CAPITAL SECURITY PROGRAM PROJECT AT THE THEODORE LEVIN UNITED STATES COURTHOUSE, 231 WEST LAFAYETTE BOULEVARD, DETROIT, MICHIGAN 48226

Who is the contractor on this award?

The obligated recipient is CHRISTMAN COMPANY, THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2023-11-01. End: 2025-06-30.

What is the track record of The Christman Company in completing federal construction projects, particularly those involving security enhancements?

The Christman Company has a significant history of undertaking large-scale construction projects, including those for government and institutional clients. While specific details on their past federal security enhancement projects are not provided in this data, their general experience in commercial and institutional building construction suggests they possess the necessary expertise. A deeper dive into their contract history with the GSA and other federal agencies would reveal the extent and success of their prior work on similar security-focused initiatives. Reviewing past performance evaluations and project close-out reports would offer further insight into their reliability and ability to meet federal requirements on time and within budget.

How does the awarded amount of $12.5 million compare to similar courthouse security upgrade projects managed by the GSA?

The $12.5 million award for security upgrades at the Theodore Levin United States Courthouse represents a substantial investment. To benchmark this value effectively, it's crucial to compare it with similar projects undertaken by the GSA or other federal agencies. Factors such as the square footage of the facility, the specific security systems being installed (e.g., access control, surveillance, blast mitigation), the age and condition of the existing infrastructure, and the prevailing construction market rates in Detroit at the time of award are critical. Without access to a database of comparable federal courthouse security projects with detailed cost breakdowns, a precise comparison is difficult. However, this figure aligns with the expected costs for significant renovations and security enhancements in large federal buildings.

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

The primary risk with a firm-fixed-price (FFP) contract is that the contractor bears the brunt of any cost overruns, which could incentivize them to cut corners on quality or scope if not properly managed. For this project, potential risks include unforeseen site conditions (e.g., asbestos, structural issues), material price escalations beyond what was anticipated, or labor shortages. Mitigation strategies employed by the GSA would typically involve thorough pre-bid site assessments, detailed technical specifications, robust quality assurance and inspection protocols throughout the project lifecycle, and clear communication channels with the contractor. The FFP structure itself mitigates the risk of the government paying more than the agreed-upon price, provided the scope remains unchanged.

What is the expected impact of these security upgrades on the operational effectiveness and safety of the courthouse?

These security upgrades are expected to significantly enhance the operational effectiveness and safety of the Theodore Levin United States Courthouse. By implementing advanced security measures, the project aims to protect federal judges, court staff, visitors, and sensitive case information from potential threats. Improved access control, enhanced surveillance capabilities, and potentially upgraded physical security barriers will create a more secure environment, allowing court proceedings to operate without undue security concerns. This contributes to the overall mission of the judicial branch by ensuring a safe and functional space for the administration of justice.

How has federal spending on courthouse construction and security evolved over the past five years, and does this award align with trends?

Federal spending on courthouse construction and security has generally remained robust, driven by the need to maintain aging infrastructure and adapt to evolving security threats. Agencies like the GSA consistently allocate significant funds towards modernizing federal buildings, including courthouses, to ensure they meet contemporary safety and operational standards. This $12.5 million award for security upgrades aligns with this ongoing trend of investment in federal infrastructure. While specific year-over-year spending figures would require detailed analysis of federal budget data and contract awards, the consistent need for secure and functional federal facilities suggests that such projects remain a priority.

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: 47PF0023R0065

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 208 N CAPITOL AVE, LANSING, MI, 48933

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

Financial Breakdown

Contract Ceiling: $12,531,141

Exercised Options: $12,531,141

Current Obligation: $12,531,141

Actual Outlays: $11,820,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline