DHS's $15.4M FLETC building construction contract awarded to Skanska USA Building Inc. in 2005

Contract Overview

Contract Amount: $15,445,820 ($15.4M)

Contractor: Skanska USA Building Incorporated (2540)

Awarding Agency: Department of Homeland Security

Start Date: 2005-08-10

End Date: 2008-03-27

Contract Duration: 960 days

Daily Burn Rate: $16.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT BUILDING 12, FLETC, CHELTENHAM, MD

Place of Performance

Location: CHELTENHAM, PRINCE GEORGE'S County, MARYLAND, 20623

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.4 million to SKANSKA USA BUILDING INCORPORATED (2540) for work described as: CONSTRUCT BUILDING 12, FLETC, CHELTENHAM, MD Key points: 1. The contract was a competitive delivery order, suggesting a degree of market vetting. 2. The fixed-price nature of the contract aimed to control costs, but final expenditure needs review. 3. The duration of 960 days indicates a significant construction project. 4. The contract was awarded by the Department of Homeland Security (DHS) to support the Federal Law Enforcement Training Center. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The final award amount of $15.4 million for the construction of Building 12 at FLETC in Cheltenham, MD, needs to be benchmarked against similar federal construction projects of that era. Without specific cost breakdowns or comparisons to industry standards at the time of award, it is difficult to definitively assess value for money. The fixed-price contract type suggests an attempt to cap costs, but the total expenditure should be analyzed against the initial bid and any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, implying that multiple vendors likely had the opportunity to bid. The presence of 4 bids (as indicated by 'no': 4) suggests a reasonable level of competition for this construction project. A competitive process generally helps in achieving better pricing and ensuring that the government receives proposals that align with its needs and budget.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely drove down costs through bidding, leading to a more efficient use of public funds compared to a sole-source procurement.

Public Impact

Federal law enforcement personnel will benefit from improved training facilities at FLETC. The construction project provided employment opportunities within the construction sector in Maryland. The project directly supports the operational capabilities of the Department of Homeland Security. The geographic impact is localized to Cheltenham, Maryland, where the FLETC facility is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if change orders were extensive, despite the fixed-price structure.
Long project duration (960 days) could introduce risks related to material price fluctuations or labor availability.
Adequacy of the competitive bidding process to ensure the lowest feasible price for the taxpayer.

Positive Signals

Awarded through a competitive process, indicating multiple bids were received.
Fixed-price contract type helps in cost control and predictability.
Contract supports a critical federal training facility, aligning with national security objectives.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction spending in this area is driven by the need for new facilities, upgrades, and maintenance across various government agencies. Benchmarking this $15.4 million project would involve comparing its cost per square foot and overall value against similar government and private sector building projects completed around 2005-2008.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, Skanska USA Building Inc. While there's no direct information on subcontracting plans, large federal construction contracts often involve significant subcontracting opportunities for smaller firms, which could have benefited the small business ecosystem in the region.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Homeland Security, likely through contracting officers and program managers. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency would be facilitated by public contract databases, though detailed performance reviews or Inspector General reports specific to this delivery order are not immediately apparent from the provided data.

Related Government Programs

Federal Law Enforcement Training Center (FLETC) Operations
Department of Homeland Security Facilities Management
General Services Administration (GSA) Construction Contracts
Military Construction Projects

Risk Flags

Potential for cost escalation due to long project duration.
Need to verify scope adherence and change order management.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.4 million to SKANSKA USA BUILDING INCORPORATED (2540). CONSTRUCT BUILDING 12, FLETC, CHELTENHAM, MD

Who is the contractor on this award?

The obligated recipient is SKANSKA USA BUILDING INCORPORATED (2540).

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2005-08-10. End: 2008-03-27.

What was the initial estimated cost of the project, and how did the final award amount compare?

The provided data shows a final award amount of $15,445,820.26. However, the initial estimated cost or the value of the base bid is not explicitly stated. To assess value for money, a comparison between the initial estimate and the final award is crucial. Significant deviations could indicate issues with initial planning, scope creep through change orders, or unforeseen construction challenges. Without the baseline estimate, it's difficult to determine the efficiency of the procurement and execution phases.

How many change orders were issued, and what was their cumulative value?

The provided data does not specify the number or value of any change orders associated with this contract. Change orders are common in construction projects and can significantly impact the final cost and timeline. A thorough analysis would require access to the contract's modification history. If numerous or substantial change orders were approved, it could suggest that the initial scope or pricing was not fully defined, or that unforeseen circumstances significantly altered the project's requirements, potentially impacting the original value proposition.

What is the cost per square foot for this building construction, and how does it benchmark against similar federal facilities?

The provided data does not include the square footage of Building 12. Therefore, a cost per square foot calculation cannot be performed. To benchmark this contract effectively, the total square footage is essential. Once known, this metric could be compared to average construction costs for similar institutional or training facilities procured by the federal government during the mid-2000s. This comparison would offer insights into whether the $15.4 million expenditure was reasonable relative to industry standards and government procurement practices at the time.

What was the contractor's performance history with DHS or similar agencies prior to this award?

The provided data does not include specific details on Skanska USA Building Incorporated's prior performance history with DHS or other federal agencies. A comprehensive risk assessment would involve reviewing past performance evaluations, any documented disputes or claims, and the contractor's track record on similar-sized and complex construction projects. A history of successful project completion, adherence to budget and schedule, and positive client feedback would indicate a lower risk profile for this contract.

What were the key performance metrics or milestones for this construction project?

The data indicates a duration of 960 days (approximately 32 months) for the contract, suggesting a significant construction timeline. However, specific performance metrics, such as phased completion dates, quality standards for materials and workmanship, or specific functional requirements for Building 12, are not detailed. Understanding these milestones is crucial for evaluating whether the project was delivered on time and met the required quality standards, which are key indicators of project success beyond just the final cost.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 70 ELLIS ST NE, ATLANTA, GA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,445,820

Exercised Options: $15,445,820

Current Obligation: $15,445,820

Parent Contract

Parent Award PIID: HSFLGL05D00015

IDV Type: IDC

Timeline