GSA awards $3.2M contract for federal building maintenance in Texas, highlighting construction needs

Contract Overview

Contract Amount: $3,200,918 ($3.2M)

Contractor: A.R.E. Design & Build, LLC

Awarding Agency: General Services Administration

Start Date: 2024-06-28

End Date: 2026-10-30

Contract Duration: 854 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS REQUIREMENT IS FOR WINDOWS UPDATES, OPTIONS FOR EXTERIOR CLEANING AND RESTORATION, ROOFING, AND SETTLEMENT REPAIRS AT THE SAM B HALL FEDERAL BUILDING IN MARSHALL, TEXAS

Place of Performance

Location: MARSHALL, HARRISON County, TEXAS, 75670

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $3.2 million to A.R.E. DESIGN & BUILD, LLC for work described as: THIS REQUIREMENT IS FOR WINDOWS UPDATES, OPTIONS FOR EXTERIOR CLEANING AND RESTORATION, ROOFING, AND SETTLEMENT REPAIRS AT THE SAM B HALL FEDERAL BUILDING IN MARSHALL, TEXAS Key points: 1. Contract addresses essential building upkeep including roofing and repairs, indicating a focus on asset preservation. 2. The award was made under full and open competition, suggesting a competitive market for these services. 3. A fixed-price contract type suggests cost certainty for the government, though potential for change orders exists. 4. The duration of the contract (854 days) indicates a medium-term commitment to ongoing maintenance. 5. The contract is for a specific federal building, suggesting localized impact rather than broad federal program support.

Value Assessment

Rating: good

The contract value of $3.2 million for building maintenance over approximately two years appears reasonable for a federal facility of this nature. Benchmarking against similar GSA contracts for commercial and institutional building construction and repair in Texas would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the scope of work, including exterior cleaning, restoration, roofing, and settlement repairs, suggests potential for unforeseen issues that could impact the final cost if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the solicitation and evaluation process would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of at least two bidders suggests that the government received multiple offers, increasing the likelihood of a fair market price being achieved.

Public Impact

The primary beneficiary is the General Services Administration (GSA) through the maintenance and preservation of the Sam B. Hall Federal Building. Services delivered include exterior cleaning, restoration, roofing repairs, and settlement repairs, ensuring the structural integrity and aesthetic condition of the facility. The geographic impact is localized to Marshall, Texas, where the federal building is located. The contract supports the construction and maintenance workforce, likely benefiting local or regional skilled tradespeople and construction firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues arise beyond initial settlement repairs.
Dependence on a single contractor for critical building systems (roofing, structure) could pose a risk if performance issues emerge.
The fixed-price nature might disincentivize proactive identification of minor issues that could become larger problems if not addressed promptly.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract provides cost certainty for the government.
Contract addresses essential maintenance needs, contributing to the longevity of federal infrastructure.
The contractor, A.R.E. DESIGN & BUILD, LLC, is being awarded a contract, implying they met the necessary qualifications.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The federal government, through agencies like the GSA, is a major consumer of construction and maintenance services. Spending in this sector is influenced by infrastructure needs, building age, and government facility management policies. Comparable spending benchmarks would typically be derived from historical GSA awards for similar building types and scopes of work in the same geographic region.

Small Business Impact

This contract was not set aside for small businesses, as indicated by `sb: false`. The prime contractor, A.R.E. DESIGN & BUILD, LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans or goals for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to those that may be engaged by the prime contractor as subcontractors, without a specific set-aside requirement.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), specifically its Public Buildings Service. The contract is a delivery order under a larger contract vehicle, implying that the underlying contract likely has established oversight mechanisms. Accountability will be ensured through performance monitoring against the contract's scope of work and delivery schedule. Transparency is generally facilitated by public contract databases where such awards are reported, though detailed performance metrics may not always be publicly accessible.

Related Government Programs

Federal Building Maintenance Contracts
GSA Public Buildings Service Contracts
Commercial Building Construction Services
Roofing and Repair Contracts
Infrastructure Maintenance

Risk Flags

Potential for unforeseen conditions impacting scope and cost.
Contractor performance risk.
Adequacy of competition for optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.2 million to A.R.E. DESIGN & BUILD, LLC. THIS REQUIREMENT IS FOR WINDOWS UPDATES, OPTIONS FOR EXTERIOR CLEANING AND RESTORATION, ROOFING, AND SETTLEMENT REPAIRS AT THE SAM B HALL FEDERAL BUILDING IN MARSHALL, TEXAS

Who is the contractor on this award?

The obligated recipient is A.R.E. DESIGN & BUILD, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-06-28. End: 2026-10-30.

What is the track record of A.R.E. DESIGN & BUILD, LLC with federal contracts, particularly with the GSA?

A review of federal procurement data would be necessary to fully assess the track record of A.R.E. DESIGN & BUILD, LLC. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar types of projects, such as federal building maintenance, restoration, and roofing, would provide insight into their capabilities and reliability. Without specific historical data on this contractor, it is difficult to definitively assess their past performance and suitability for this particular federal building maintenance requirement.

How does the awarded amount of $3.2 million compare to similar federal building maintenance contracts in Texas?

To benchmark the $3.2 million award, one would need to analyze recent GSA or other federal agency contracts for similar scope (exterior cleaning, restoration, roofing, settlement repairs) on federal buildings of comparable size and age within Texas. Factors such as the specific condition of the building, the complexity of the repairs, and prevailing market rates for construction labor and materials in the Marshall, Texas area would influence cost. A preliminary assessment suggests the amount is within a reasonable range for such a project, but a detailed comparative analysis of contract line items and unit pricing against market data would be required for a definitive value-for-money conclusion.

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

Key risks include potential cost overruns due to unforeseen structural issues (settlement repairs, roofing integrity), contractor underperformance, or delays impacting building operations. Mitigation strategies likely involve the firm fixed-price contract type, which shifts some cost risk to the contractor, and the GSA's oversight of performance and quality. The contract's defined duration and scope aim to limit the potential for significant scope creep. However, the effectiveness of mitigation depends heavily on the GSA's contract administration and the contractor's proactive management of potential issues.

How effective is the competition level (2 bidders) in ensuring optimal pricing for taxpayers?

Having two bidders indicates a degree of competition, which is generally preferable to a sole-source award. However, a market with only two bidders might not be sufficiently competitive to guarantee the lowest possible price for taxpayers. Ideally, a larger number of bids allows for more robust price discovery and encourages contractors to offer more competitive terms. The specific pricing and terms offered by these two bidders, relative to each other and to independent cost estimates, would determine the actual benefit to taxpayers in this instance. Further analysis of the bid proposals would be needed.

What is the historical spending pattern for maintenance and repair at the Sam B. Hall Federal Building?

To determine historical spending patterns, one would need to access GSA's historical contract databases or financial records pertaining to the Sam B. Hall Federal Building. This would involve searching for previous contracts awarded for maintenance, repairs, renovations, or similar services at this specific facility over several years. Analyzing this data would reveal the frequency, cost, and types of past expenditures, helping to establish a baseline for current spending and identify any trends or significant deviations. Without access to this specific historical data, it's impossible to describe the spending pattern.

What are the implications of the 'Commercial and Institutional Building Construction' NAICS code for this contract?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' signifies that the primary activity under this contract involves the construction or renovation of non-residential buildings. For this contract, it encompasses a range of activities beyond simple maintenance, including potential restoration and settlement repairs that could involve structural work. This classification suggests the contract is for significant building work rather than routine upkeep. It also places the contract within a specific industry segment, allowing for comparison with other similar construction projects and market trends within that sector.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PH0524R0067

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4301 LAURA KOPPE RD, HOUSTON, TX, 77016

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,200,918

Exercised Options: $3,200,918

Current Obligation: $3,200,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PH0821D0017

IDV Type: IDC

Timeline