GSA awards $2.1M contract for Hammond Courthouse renovations, highlighting construction sector activity

Contract Overview

Contract Amount: $2,135,109 ($2.1M)

Contractor: Berglund Construction CO

Awarding Agency: General Services Administration

Start Date: 2024-12-18

End Date: 2026-08-31

Contract Duration: 621 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES FOR THE ATRIUM WINDOW WALL AND SLOPED CANOPY RENOVATIONS PROJECT AT THE HAMMOND U.S. COURTHOUSE, 5400 FEDERAL PLAZA, HAMMOND, INDIANA.

Place of Performance

Location: HAMMOND, LAKE County, INDIANA, 46320

State: Indiana Government Spending

Plain-Language Summary

General Services Administration obligated $2.1 million to BERGLUND CONSTRUCTION CO for work described as: CONSTRUCTION SERVICES FOR THE ATRIUM WINDOW WALL AND SLOPED CANOPY RENOVATIONS PROJECT AT THE HAMMOND U.S. COURTHOUSE, 5400 FEDERAL PLAZA, HAMMOND, INDIANA. Key points: 1. Contract focuses on critical infrastructure upgrades for a federal courthouse. 2. Project duration of 621 days indicates a substantial renovation scope. 3. Firm Fixed Price contract type suggests defined project parameters and cost certainty. 4. Competition was open, potentially leading to competitive pricing. 5. The award to Berglund Construction Co. adds to their federal contracting portfolio. 6. Indiana location places the project within a specific regional construction market.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for window wall and canopy renovations at a U.S. Courthouse appears reasonable given the project's scope and duration. Without specific benchmarks for courthouse renovations of this nature, a direct comparison is difficult. However, the firm fixed-price structure suggests that the government has secured a defined cost for the work. The number of bids received (2) is on the lower side for an open competition, which could imply less aggressive pricing than a more crowded field, but the overall value is still considered fair for the services rendered.

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. Two bids were received for this project. While two bidders represent some level of competition, it is on the lower end for an open solicitation. This suggests that while the process was competitive, the market may have had limited capacity or interest in bidding on this specific project, potentially impacting the degree of price discovery.

Taxpayer Impact: A competitive process, even with two bidders, generally benefits taxpayers by encouraging contractors to offer their best pricing. However, a higher number of bids could have potentially driven the price down further.

Public Impact

The primary beneficiaries are federal judicial operations at the Hammond U.S. Courthouse, ensuring a secure and functional environment. The project delivers essential renovations to the building's exterior, improving its structural integrity and aesthetic appeal. Geographic impact is localized to Hammond, Indiana, supporting the federal presence in the region. Workforce implications include employment opportunities for construction professionals and laborers involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in an open competition could indicate potential market saturation or lack of contractor interest, possibly impacting price competitiveness.
The project duration of over 20 months (621 days) for renovations might suggest potential for delays or unforeseen complexities in execution.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government, mitigating budget risks.
Awarding to a known entity (Berglund Construction Co.) may suggest a level of confidence in their capability to perform.
The project addresses critical infrastructure needs for a federal facility, ensuring continued operational capacity.

Sector Analysis

The construction services sector is a significant component of federal spending, particularly for agencies like the General Services Administration (GSA) responsible for federal building management. This contract falls within the commercial and institutional building construction sub-sector. Federal spending in this area often involves renovations, repairs, and new construction of courthouses, post offices, and administrative buildings. Benchmarks for similar courthouse renovation projects would typically consider factors like square footage, complexity of work (e.g., structural, MEP, facade), and prevailing labor and material costs in the specific region.

Small Business Impact

This contract was not set aside for small businesses and the contractor, Berglund Construction Co., is likely a large business. There is no explicit mention of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often utilize small businesses for specialized subcontracting work.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for construction projects, including project management, site inspections, and quality control. The Public Buildings Service (PBS) within GSA is responsible for managing these types of contracts. Transparency is generally maintained through contract award databases and public reporting. Inspector General audits may be conducted if specific concerns or irregularities arise during the project lifecycle.

Related Government Programs

Federal Courthouse Renovations
GSA Building Maintenance and Repair
Commercial Building Construction Services
Infrastructure Improvement Projects

Risk Flags

Limited competition (2 bidders)
Potential for schedule delays due to project duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.1 million to BERGLUND CONSTRUCTION CO. CONSTRUCTION SERVICES FOR THE ATRIUM WINDOW WALL AND SLOPED CANOPY RENOVATIONS PROJECT AT THE HAMMOND U.S. COURTHOUSE, 5400 FEDERAL PLAZA, HAMMOND, INDIANA.

Who is the contractor on this award?

The obligated recipient is BERGLUND CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-12-18. End: 2026-08-31.

What is Berglund Construction Co.'s track record with the federal government, specifically with the GSA?

Berglund Construction Co. has a history of federal contracting, including work with the General Services Administration. Analyzing their past performance on similar projects, particularly those involving federal buildings or renovations, would provide insight into their reliability and capability. Federal procurement data often includes past performance ratings and contract history, which can be reviewed to assess their experience with firm-fixed-price contracts, project timelines, and adherence to budget. A review of their award history would indicate if they have successfully completed projects of comparable size and complexity, and if they have a record of meeting deadlines and quality standards required by agencies like the GSA.

How does the $2.1 million cost compare to similar courthouse renovation projects managed by the GSA?

Benchmarking this $2.1 million contract against similar GSA courthouse renovation projects requires access to a database of comparable contracts, considering factors like square footage, scope of work (e.g., facade, interior, structural), and geographic location. Projects involving window wall and sloped canopy renovations can vary significantly in cost based on the building's age, architectural complexity, and material choices. Without specific comparative data, it's challenging to definitively state if this price is high or low. However, the firm-fixed-price nature suggests a defined scope, and the two bids received indicate some level of market assessment, though a more competitive bid environment might have yielded different pricing.

What are the primary risks associated with this construction contract, and how are they being mitigated?

Key risks for this construction contract include potential cost overruns due to unforeseen site conditions, material price fluctuations, or scope creep, although the firm-fixed-price contract aims to mitigate cost overruns. Schedule delays are another significant risk, given the 621-day duration, which could arise from weather, labor shortages, or supply chain disruptions. The GSA's oversight, including regular site inspections and adherence to a detailed project schedule, serves as a primary mitigation strategy. The contractor's experience and the fixed-price nature of the contract also help manage financial risks. Ensuring clear communication channels and a robust change order process are crucial for managing scope and cost.

What is the expected impact of these renovations on the operational effectiveness and security of the Hammond U.S. Courthouse?

These renovations are expected to significantly enhance the operational effectiveness and security of the Hammond U.S. Courthouse. Replacing or repairing the window wall and sloped canopy addresses potential vulnerabilities related to weatherproofing, energy efficiency, and structural integrity. A well-maintained building envelope is crucial for maintaining a controlled internal environment, protecting sensitive court documents and equipment, and ensuring the safety of judges, staff, and the public. Improved facade elements can also enhance the building's security by preventing unauthorized access and providing better surveillance capabilities, thereby supporting the core functions of the judicial system.

How has federal spending on construction services for federal buildings trended over the past five years, and where does this contract fit?

Federal spending on construction services for federal buildings has generally remained robust, driven by the need to maintain and modernize aging infrastructure across various agencies, including the GSA. Trends often reflect priorities in infrastructure investment, energy efficiency upgrades, and security enhancements. This $2.1 million contract for the Hammond U.S. Courthouse fits within the broader category of GSA's capital investments and major repairs program. While specific year-over-year trends fluctuate based on appropriations and agency needs, such contracts are a consistent part of federal spending to ensure the functionality and longevity of government-owned facilities nationwide.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PF0024R0090

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8410 S SOUTH CHICAGO AVE, CHICAGO, IL, 60617

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

Financial Breakdown

Contract Ceiling: $2,135,109

Exercised Options: $2,135,109

Current Obligation: $2,135,109

Actual Outlays: $138,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline