GSA's $141M Otay Mesa Land Port Expansion awarded to Atkinson/Clark JV, a design-build project

Contract Overview

Contract Amount: $141,285,496 ($141.3M)

Contractor: Atkinson/Clark, a Joint Venture

Awarding Agency: General Services Administration

Start Date: 2019-05-13

End Date: 2024-03-29

Contract Duration: 1,782 days

Daily Burn Rate: $79.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD CONTRACT FOR THE EXPANSION&MODERNIZATION PROJECT AT THE OTAY MESA LAND PORT OF ENTRY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $141.3 million to ATKINSON/CLARK, A JOINT VENTURE for work described as: DESIGN-BUILD CONTRACT FOR THE EXPANSION&MODERNIZATION PROJECT AT THE OTAY MESA LAND PORT OF ENTRY Key points: 1. The contract value of $141.3 million for a design-build expansion and modernization project indicates a significant investment in border infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for ensuring cost-effectiveness and quality. 3. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor, which can incentivize efficiency. 4. The project's duration of 1782 days (nearly 5 years) points to a complex undertaking requiring sustained management and oversight. 5. The project is situated in California, a state with high construction costs, which may influence the overall value assessment. 6. The absence of small business set-aside or subcontracting goals warrants examination of potential impacts on smaller firms in the construction ecosystem.

Value Assessment

Rating: fair

The contract value of $141.3 million for the Otay Mesa Land Port of Entry expansion and modernization appears substantial. Benchmarking against similar large-scale federal design-build projects for critical infrastructure would be necessary for a precise value-for-money assessment. The firm-fixed-price structure, while transferring risk to the contractor, also necessitates careful initial pricing. Without detailed cost breakdowns or comparisons to independent cost estimates, it's challenging to definitively assess if this price represents optimal value, but the scale and complexity suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders, the competition level suggests a reasonable degree of market interest for a project of this magnitude. While three bidders provide some price discovery, a higher number of bidders could potentially lead to more aggressive pricing and further cost savings for the government.

Taxpayer Impact: Full and open competition with three bidders is generally positive for taxpayers, as it encourages multiple firms to vie for the contract, potentially driving down costs and improving the quality of proposals received.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs operations at the Otay Mesa Port of Entry, including CBP and GSA. The project delivers modernized and expanded facilities to enhance the efficiency and capacity of cross-border trade and travel. The geographic impact is concentrated in San Diego County, California, specifically at the Otay Mesa border crossing. Workforce implications include job creation for construction workers, engineers, architects, and project managers involved in the design and build phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed-price estimates do not adequately account for unforeseen construction challenges or material price fluctuations over the nearly five-year duration.
The complexity of a design-build project requires robust oversight to ensure the design meets functional requirements and the construction adheres to specifications.
Dependence on a single joint venture for both design and construction could limit recourse if performance issues arise in either phase.
The lack of specific small business subcontracting goals may mean limited direct economic benefit for smaller construction firms in the region.

Positive Signals

The firm-fixed-price contract type shifts significant cost risk to the contractor, incentivizing efficient project execution.
Awarding to a joint venture (Atkinson/Clark) suggests a combination of expertise potentially suited for complex infrastructure projects.
The project aims to modernize critical border infrastructure, which is vital for national security and economic activity.
Full and open competition, even with three bidders, provides a baseline level of market validation for the contract award.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for large-scale government infrastructure. The federal government is a major client for construction services, particularly for facilities like ports of entry, courthouses, and federal office buildings. The design-build delivery method is increasingly common for complex projects, aiming to streamline the process by integrating design and construction under a single contract. Comparable spending benchmarks would involve analyzing other large federal land port modernization projects or significant design-build contracts for public facilities.

Small Business Impact

The contract data indicates no specific small business set-aside (ss: false) or subcontracting goals (sb: false). This means that opportunities for small businesses are primarily through the prime contractor's voluntary subcontracting efforts or by competing directly for future, smaller contracts related to this project. The absence of mandated participation could limit the direct infusion of federal dollars into the small business construction ecosystem for this specific project, although larger firms often engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this project would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs project managers, contracting officers' representatives (CORs), and quality assurance specialists to monitor progress, ensure compliance with contract terms, and verify the quality of work. Transparency is usually maintained through contract award databases and potentially through public project information portals. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Border Infrastructure Modernization Programs
Federal Land Port of Entry Construction
GSA Design-Build Contracts
Customs and Border Protection Facilities

Risk Flags

Long project duration increases risk of cost escalation and scope creep.
Firm-fixed-price contracts can lead to quality compromises if not rigorously overseen.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.
Complexity of design-build requires strong government oversight to ensure alignment between design and construction.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $141.3 million to ATKINSON/CLARK, A JOINT VENTURE. DESIGN-BUILD CONTRACT FOR THE EXPANSION&MODERNIZATION PROJECT AT THE OTAY MESA LAND PORT OF ENTRY

Who is the contractor on this award?

The obligated recipient is ATKINSON/CLARK, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $141.3 million.

What is the period of performance?

Start: 2019-05-13. End: 2024-03-29.

What is the track record of Atkinson/Clark, A Joint Venture, on similar federal design-build projects?

Information on the specific track record of the joint venture 'Atkinson/Clark' for federal design-build projects is not directly available in the provided data. However, Atkinson Construction and Clark Construction Group are both established construction firms with extensive experience in large-scale projects, including federal infrastructure and design-build delivery. A deeper dive into their individual and joint venture histories, project portfolios, past performance evaluations, and any litigation or disputes would be necessary to fully assess their suitability and past performance on similar federal contracts. This would involve reviewing federal procurement databases and potentially industry reports.

How does the $141.3 million contract value compare to similar land port of entry modernization projects?

The $141.3 million contract value for the Otay Mesa Land Port of Entry expansion and modernization is substantial, reflecting the scale and complexity of upgrading critical border infrastructure. To benchmark this value, one would need to compare it against other recent federal design-build contracts for land ports of entry or similar large-scale government facilities. Factors such as the scope of work (e.g., new construction vs. renovation), geographic location (construction costs vary significantly by region), specific security requirements, and the number of bidders influence project costs. Without specific comparable project data, it's difficult to definitively state if this represents high or low value, but it aligns with the significant investment typically required for such critical national infrastructure.

What are the primary risks associated with a nearly five-year firm-fixed-price design-build contract for a land port of entry?

The primary risks associated with this contract include potential cost overruns if the initial fixed price does not account for unforeseen site conditions, material price escalation over the 1782-day duration, or design changes. For the government, the risk lies in ensuring the final design meets all operational and security requirements and that the construction quality is high, despite the fixed-price nature. The contractor bears the risk of cost overruns, which could lead to financial strain or quality compromises if not managed effectively. Delays due to permitting, environmental reviews, or unforeseen construction challenges also pose significant risks to the project timeline and budget. Robust government oversight is crucial to mitigate these risks.

How effective is the full and open competition with three bidders in ensuring optimal pricing for taxpayers?

Full and open competition is generally the most effective method for ensuring optimal pricing for taxpayers, as it allows the widest possible pool of qualified contractors to bid. In this case, having three bidders provides a reasonable level of competition. This number suggests that the market is interested in the project, and the bidders are likely to offer competitive pricing to win the contract. However, a higher number of bidders (e.g., five or more) could potentially drive prices down further. The effectiveness also depends on the clarity and completeness of the government's solicitation documents and the evaluation criteria used.

What are the potential long-term impacts of this modernization project on border security and trade efficiency?

The modernization and expansion of the Otay Mesa Land Port of Entry are expected to significantly enhance border security and trade efficiency. Upgraded facilities can improve the processing capacity for both vehicles and pedestrians, reducing wait times and facilitating smoother cross-border commerce. Enhanced security infrastructure, such as improved inspection areas and technology integration, can bolster the ability of agencies like Customs and Border Protection (CBP) to detect illicit activities and contraband. Ultimately, this project aims to support increased economic activity by making the movement of goods and people across the border more secure and efficient, contributing to regional and national economic well-being.

Are there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) included in the contract. However, for a large design-build project of this nature, typical KPIs would likely include adherence to the schedule (project completion date), adherence to the budget (final contract cost), quality of construction (meeting design specifications and building codes), safety performance (incident rates), and potentially operational efficiency metrics post-completion (e.g., processing times). The GSA's project management and oversight teams would be responsible for monitoring these aspects throughout the contract lifecycle.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PK0118R0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Construction LLC

Address: 18201 VON KARMAN STE 800, IRVINE, CA, 92612

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

Financial Breakdown

Contract Ceiling: $141,285,496

Exercised Options: $141,285,496

Current Obligation: $141,285,496

Actual Outlays: $48,718,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline