GSA awards $14.5M contract for DHS consolidation services, with AECOM Technical Services Inc. selected

Contract Overview

Contract Amount: $14,469,314 ($14.5M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-08-07

End Date: 2029-08-06

Contract Duration: 1,825 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR SHALL PROVIDE CM SVCS FOR PH3 OF US DHS CONSOLIDATION AT ST E. SVCS INCLUDE, BUT NOT BE LIMITED TO, PREPLANNING, PROGRAMMING, DESIGN MGMT, DESIGN REV, PROCUREMENT SUPPORT, CONSTRUCTION MGMT, POST CONSTRUCTION, SUPPORT, AND ONM SVCS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $14.5 million to AECOM TECHNICAL SERVICES, INC. for work described as: CONTRACTOR SHALL PROVIDE CM SVCS FOR PH3 OF US DHS CONSOLIDATION AT ST E. SVCS INCLUDE, BUT NOT BE LIMITED TO, PREPLANNING, PROGRAMMING, DESIGN MGMT, DESIGN REV, PROCUREMENT SUPPORT, CONSTRUCTION MGMT, POST CONSTRUCTION, SUPPORT, AND ONM SVCS Key points: 1. Contract focuses on comprehensive construction management services for a multi-phase Department of Homeland Security consolidation project. 2. The contract duration of 1825 days suggests a long-term commitment to the project's lifecycle. 3. A firm-fixed-price structure aims to provide cost certainty for the government. 4. The award was made under full and open competition, indicating a broad search for qualified bidders. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract's value of approximately $14.5 million is a significant investment in federal infrastructure consolidation.

Value Assessment

Rating: good

The contract value of $14.5 million for comprehensive construction management services over five years appears reasonable given the scope. Benchmarking against similar large-scale federal building consolidation projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests an expectation of predictable costs, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple companies were invited to bid. The presence of 5 bidders indicates a healthy level of interest and competition for this type of federal construction management work. This competitive process is designed to ensure the government receives the best value by allowing various firms to present their qualifications and pricing.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

The Department of Homeland Security (DHS) will benefit from consolidated facilities, potentially improving operational efficiency and collaboration. Services include pre-planning, design management, procurement support, construction management, and post-construction support. The project is located in the District of Columbia, impacting the local construction and professional services workforce. The contract supports the government's ongoing efforts to modernize and consolidate federal agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction management contracts if not rigorously managed.
Reliance on a single contractor for critical construction management phases could pose a risk if performance falters.
The complexity of consolidating multiple DHS functions could introduce unforeseen challenges impacting timelines and costs.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Award under full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor, AECOM Technical Services, Inc., likely possesses significant experience in large-scale federal projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on construction management services. The federal government is a major consumer of these services for infrastructure projects. Comparable spending benchmarks would involve analyzing other large-scale federal building projects managed by the General Services Administration (GSA) or other agencies, considering factors like project size, complexity, and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements in the provided data. This suggests that the primary focus was on securing the most capable large-scale contractor. Further review of the full contract would be needed to determine if any subcontracting opportunities for small businesses are mandated or encouraged.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reviews, performance evaluations, and adherence to contract terms. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of Homeland Security Facilities Management
Federal Building Construction Projects
General Services Administration Capital Investments
Public Buildings Service Construction Management

Risk Flags

Potential for scope creep in long-term contracts.
Contractor performance risk over the 5-year duration.
Complexity of consolidating multiple agency functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.5 million to AECOM TECHNICAL SERVICES, INC.. CONTRACTOR SHALL PROVIDE CM SVCS FOR PH3 OF US DHS CONSOLIDATION AT ST E. SVCS INCLUDE, BUT NOT BE LIMITED TO, PREPLANNING, PROGRAMMING, DESIGN MGMT, DESIGN REV, PROCUREMENT SUPPORT, CONSTRUCTION MGMT, POST CONSTRUCTION, SUPPORT, AND ONM SVCS

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2024-08-07. End: 2029-08-06.

What is AECOM Technical Services, Inc.'s track record with similar large-scale federal construction management contracts?

AECOM Technical Services, Inc. has a substantial history of performing large-scale federal contracts, including significant work for agencies like the Department of Defense and the GSA. Their portfolio often includes complex infrastructure, facility management, and construction oversight projects. While specific details for contracts of identical scope and value to this DHS consolidation project would require deeper analysis of past performance reports and contract databases, AECOM's general profile suggests they are a capable provider for such requirements. Their experience likely encompasses the full range of services outlined, from pre-planning and design management to post-construction support, across various geographic locations and project types.

How does the $14.5 million contract value compare to similar DHS consolidation projects managed by GSA?

Benchmarking the $14.5 million contract value against similar Department of Homeland Security (DHS) consolidation projects managed by the General Services Administration (GSA) requires access to historical contract data for comparable projects. Factors such as the size of the consolidated facilities, the complexity of the construction management services required, the duration of the contract, and the specific geographic location all influence cost. Without direct comparative data on recent DHS consolidation efforts of similar scale and scope, it is difficult to definitively state whether $14.5 million represents a high, low, or average cost. However, for a five-year comprehensive construction management contract supporting a major federal agency consolidation, this figure appears within a plausible range for significant federal real estate initiatives.

What are the primary risks associated with this firm-fixed-price construction management contract?

The primary risks associated with this firm-fixed-price (FFP) construction management contract, despite its cost certainty benefits, revolve around potential scope definition issues and contractor performance. If the initial scope of work is not meticulously defined and managed, there's a risk of change orders or claims for additional work, which could inflate costs beyond the initial FFP. Another risk is contractor performance; if AECOM Technical Services, Inc. fails to deliver services effectively, it could lead to project delays, cost overruns (if not managed contractually), and impact the overall success of the DHS consolidation. Furthermore, unforeseen site conditions or regulatory changes could introduce complexities that strain the FFP structure. Robust government oversight and clear communication channels are crucial to mitigating these risks.

How effective is the 'full and open competition' approach likely to be in ensuring value for this DHS consolidation project?

The 'full and open competition' approach is generally considered highly effective in ensuring value for federal projects like this DHS consolidation. By allowing any responsible source to submit a bid, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive proposals. This broad competition drives down prices and encourages innovation as contractors vie for the award. The fact that five bidders participated suggests a robust competitive environment. This process helps the GSA identify the contractor offering the best combination of technical capability, past performance, and price, ultimately benefiting taxpayers by securing the most advantageous terms for the government's investment in consolidating DHS facilities.

What are the historical spending patterns for construction management services by GSA for similar federal consolidation efforts?

Analyzing historical spending patterns for construction management services by the GSA for similar federal consolidation efforts would involve examining past contract awards for large-scale agency consolidations or major building projects. GSA's spending in this area can fluctuate based on the federal government's real estate portfolio needs, agency relocation initiatives, and infrastructure modernization priorities. Historically, GSA has managed numerous complex projects, and spending on construction management services can range from millions to hundreds of millions of dollars depending on the project's scale and duration. Trends might show an increasing emphasis on sustainable building practices, advanced technology integration in facilities, and efficient space utilization, all of which influence the scope and cost of management services. This specific $14.5 million award fits within the typical expenditure range for significant federal building projects.

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: 47PM0024R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 S GRAND AVE, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $17,049,715

Exercised Options: $14,469,314

Current Obligation: $14,469,314

Actual Outlays: $3,118,083

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,645,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline