GSA awards $59.5M contract for Hebert Federal Building construction, completed under full and open competition

Contract Overview

Contract Amount: $59,535,026 ($59.5M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: General Services Administration

Start Date: 2019-05-09

End Date: 2023-11-30

Contract Duration: 1,666 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EO14042: COVID-19 SAFETY PROTOCOLS - HEBERT FEDERAL BUILDING, NEW ORLEANS, LA

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $59.5 million to BRASFIELD & GORRIE LLC for work described as: EO14042: COVID-19 SAFETY PROTOCOLS - HEBERT FEDERAL BUILDING, NEW ORLEANS, LA Key points: 1. Contract value of $59.5 million represents a significant investment in federal infrastructure. 2. The project was awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1666 days indicates a substantial, long-term construction project. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The project is located in New Orleans, LA, impacting local construction workforce and economy. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $59.5 million for the Hebert Federal Building construction appears reasonable given the scope of commercial and institutional building construction. Without specific benchmarks for similar federal building projects in New Orleans, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. The duration of the contract (1666 days) also suggests a comprehensive project, making the overall cost a key factor in assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition for this project. While more bidders could potentially drive prices lower, three bids suggest that the opportunity was attractive enough to elicit interest from multiple qualified construction firms. This level of competition is generally favorable for price discovery and ensuring the government receives a competitive offer.

Taxpayer Impact: Full and open competition, with three bidders, suggests that taxpayers likely benefited from a competitive pricing environment, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are federal agencies requiring space within the Hebert Federal Building, ensuring modern and functional facilities. The project delivers essential construction services, likely involving significant upgrades or new construction for a federal building. The geographic impact is concentrated in New Orleans, Louisiana, potentially stimulating the local economy through job creation and material sourcing. The construction activities will likely involve a substantial workforce, including skilled tradespeople, project managers, and support staff, impacting the local labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Dependence on the contractor's ability to manage complex construction schedules and deliver on time.
Risk associated with the long duration of the contract, potentially leading to scope creep or changes in requirements.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, indicating a competitive bidding process.
The project addresses the need for federal building infrastructure, a critical government function.
The contractor, Brasfield & Gorrie LLC, is a known entity in the construction industry.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant part of the U.S. economy. Federal building projects like this represent a substantial portion of government spending on infrastructure. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project for similar federal courthouses, office buildings, or administrative facilities. The market size for federal construction is considerable, with agencies like the General Services Administration (GSA) consistently investing in maintaining and upgrading federal properties.

Small Business Impact

This contract was not set aside for small businesses, as indicated by `ss: false` and `sb: false`. Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Brasfield & Gorrie LLC, may engage small businesses as subcontractors for various construction trades or material supply, contributing indirectly to the small business ecosystem. The absence of a set-aside means the primary competition was open to all responsible sources, not specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms likely include regular progress reports, site inspections, and contract performance reviews. Accountability measures are embedded in the firm-fixed-price contract terms, holding the contractor responsible for delivering the project within the agreed-upon cost and specifications. Transparency is generally maintained through contract award databases and public reporting, though specific project details and ongoing oversight activities may not always be fully public.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Projects
Commercial and Institutional Building Construction Contracts
Infrastructure Investment Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns
Contractor performance issues
Unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $59.5 million to BRASFIELD & GORRIE LLC. EO14042: COVID-19 SAFETY PROTOCOLS - HEBERT FEDERAL BUILDING, NEW ORLEANS, LA

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $59.5 million.

What is the period of performance?

Start: 2019-05-09. End: 2023-11-30.

What is the track record of Brasfield & Gorrie LLC on similar federal construction projects?

Brasfield & Gorrie LLC is a well-established construction firm with a significant portfolio of large-scale projects, including federal facilities. While specific details on their past performance on GSA projects of this exact nature are not provided in the abbreviated data, their general reputation suggests experience in managing complex construction endeavors. To fully assess their track record, one would typically review past performance evaluations, any documented disputes or claims on previous federal contracts, and their history of meeting schedule and budget requirements on similar projects. Their involvement in projects like the Hebert Federal Building indicates they are considered a capable contractor for government work.

How does the cost per square foot of this project compare to similar federal building constructions?

The provided data does not include the square footage of the Hebert Federal Building, making a direct cost-per-square-foot comparison impossible. To benchmark this, one would need to obtain the total square footage of the building and then divide the contract value ($59.5 million) by that figure. Subsequently, this rate would be compared against industry averages or data from similar GSA construction projects awarded around the same time. Factors such as location, building type (e.g., courthouse, office, laboratory), and specific construction requirements significantly influence cost per square foot, so a precise comparison requires detailed project specifications and market data.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration?

While firm-fixed-price (FFP) contracts offer cost certainty, a long duration (1666 days) introduces specific risks. The primary risk is that unforeseen site conditions, material price escalations beyond the contractor's control, or changes in regulatory requirements could significantly impact the contractor's profitability, potentially leading to claims or disputes. Although the contractor assumes most cost risk, significant changes in scope requested by the government could necessitate contract modifications, impacting the final price and schedule. Effective project management, clear initial scope definition, and robust change order processes are crucial to mitigate these risks over the extended project timeline.

How effective was the full and open competition in achieving the best value for taxpayers?

The award under full and open competition with three bids suggests a reasonably competitive environment, which is generally conducive to achieving good value. This process allows multiple qualified contractors to propose solutions and pricing, theoretically driving down costs. However, 'best value' is not solely determined by the lowest price but also by factors like technical approach, past performance, and schedule. Without knowing the evaluation criteria used and the relative strengths of the three proposals, it's difficult to definitively state if the absolute 'best value' was achieved. Nonetheless, competition inherently provides a mechanism for price discovery and accountability that benefits taxpayers.

What is the historical spending trend for similar federal building construction projects by the GSA?

Historical spending data for similar federal building construction projects by the GSA would typically show a consistent investment in infrastructure maintenance, upgrades, and new construction. Trends are often influenced by federal budget allocations, infrastructure initiatives, and the aging of existing federal facilities. Analyzing past GSA spending on projects with NAICS code 236220 would reveal patterns in contract values, types of construction, and geographic distribution. This specific contract's value of $59.5 million should be viewed within the context of these broader historical spending trends to assess if it represents a typical, elevated, or reduced level of investment for such projects.

What are the implications of the contract ending in November 2023, given its start date in May 2019?

The contract's end date of November 30, 2023, signifies the completion of the construction period for the Hebert Federal Building project. Given its start date of May 9, 2019, and a duration of 1666 days (approximately 4.5 years), the project timeline appears to have been met or concluded within the planned timeframe. This implies that the construction activities, as defined by the contract, were finalized by that date. Any post-construction activities, such as final inspections, punch lists, or warranty periods, would typically fall outside the primary contract duration or be handled under separate provisions.

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: TWO STEP

Solicitation ID: 47PH0819R-HEBERT

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,535,026

Exercised Options: $59,535,026

Current Obligation: $59,535,026

Actual Outlays: $21,714,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline