GSA Awards $47.3M Contract to Big-D Construction for IRS Service Center Modernization in Utah
Contract Overview
Contract Amount: $47,265,366 ($47.3M)
Contractor: Big-D Construction Corp
Awarding Agency: General Services Administration
Start Date: 2019-11-30
End Date: 2023-08-14
Contract Duration: 1,353 days
Daily Burn Rate: $34.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CMC SERVICES FOR THE IRS SERVICE CENTER LIMITED SCOPE MODERNIZATION PROJECT IN OGDEN UT
Place of Performance
Location: OGDEN, WEBER County, UTAH, 84201
State: Utah Government Spending
Plain-Language Summary
General Services Administration obligated $47.3 million to BIG-D CONSTRUCTION CORP for work described as: CMC SERVICES FOR THE IRS SERVICE CENTER LIMITED SCOPE MODERNIZATION PROJECT IN OGDEN UT Key points: 1. The contract value of $47.3 million is significant for a building construction project of this nature. 2. Competition was full and open, suggesting a competitive bidding process was utilized. 3. The project involves commercial building construction, a sector with established benchmarks. 4. Risk factors may include project delays, cost overruns, and adherence to modernization goals.
Value Assessment
Rating: good
The contract value of $47.3 million appears reasonable for a large-scale commercial building construction project. Benchmarking against similar GSA projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. Multiple bidders likely contributed to achieving a competitive price for the services.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure modernization, aiming for long-term efficiency gains at the IRS.
Public Impact
Modernization of the IRS Service Center in Ogden, Utah, is expected to improve operational efficiency. The project supports local employment and economic activity in Utah through construction services. Improved federal facilities contribute to better service delivery for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep impacting final cost.
- Construction project risks: weather, material availability, labor shortages.
- Ensuring long-term maintainability and operational effectiveness of the modernized facility.
Positive Signals
- Full and open competition likely yielded a fair price.
- Project addresses critical infrastructure needs for the IRS.
- Located in a region with construction expertise.
Sector Analysis
This project falls under commercial and institutional building construction, a sector that GSA frequently engages in. Spending benchmarks vary widely based on project scope, location, and specific construction needs.
Small Business Impact
The contract was awarded to Big-D Construction Corp. Analysis is needed to determine the extent of small business subcontracting within this award.
Oversight & Accountability
The General Services Administration (GSA) is responsible for managing federal building construction and modernization. Oversight would involve monitoring project progress, budget adherence, and quality of work.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Project duration is substantial (1353 days).
- Potential for cost escalation in construction projects.
- Dependence on contractor performance for successful modernization.
- Ensuring long-term value and functionality of the facility.
Tags
commercial-and-institutional-building-co, general-services-administration, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $47.3 million to BIG-D CONSTRUCTION CORP. CMC SERVICES FOR THE IRS SERVICE CENTER LIMITED SCOPE MODERNIZATION PROJECT IN OGDEN UT
Who is the contractor on this award?
The obligated recipient is BIG-D CONSTRUCTION CORP.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $47.3 million.
What is the period of performance?
Start: 2019-11-30. End: 2023-08-14.
What is the projected impact of this modernization on IRS operational efficiency and taxpayer service?
The modernization aims to enhance the IRS Service Center's operational capabilities, potentially leading to faster processing of tax documents and improved taxpayer support. Specific metrics for efficiency gains and service improvements should be established and tracked post-completion to quantify the project's success.
What are the primary risks associated with this construction project and how are they being mitigated?
Key risks include potential delays due to unforeseen site conditions, material price fluctuations, and labor availability. Mitigation strategies likely involve detailed project planning, contingency budgeting, robust contract management, and proactive communication with the contractor to address issues promptly.
How does the awarded price compare to industry benchmarks for similar modernization projects?
A direct comparison requires detailed project specifications. However, the firm-fixed-price contract awarded through full and open competition suggests a competitive market price was achieved. Further analysis would involve comparing cost per square foot or per functional unit against similar GSA or private sector projects.
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: 47PJ0019R0203
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 404 W 400 S, SALT LAKE CITY, UT, 84101
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,265,366
Exercised Options: $47,265,366
Current Obligation: $47,265,366
Actual Outlays: $22,255,969
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-11-30
Current End Date: 2023-08-14
Potential End Date: 2023-10-12 00:00:00
Last Modified: 2023-09-14
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