Suffolk Construction awarded $157.7M for John W. McCormack Federal Building repairs, a significant investment in historic infrastructure

Contract Overview

Contract Amount: $157,660,378 ($157.7M)

Contractor: Suffolk Construction Company, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-09-25

End Date: 2010-12-31

Contract Duration: 1,558 days

Daily Burn Rate: $101.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AND ALTERATION OF THE JOHN. W. MCCORMACK & POCH FEDERAL BUILDING, BOSTON, MA

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02116

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $157.7 million to SUFFOLK CONSTRUCTION COMPANY, INC. for work described as: REPAIR AND ALTERATION OF THE JOHN. W. MCCORMACK & POCH FEDERAL BUILDING, BOSTON, MA Key points: 1. The contract value represents a substantial commitment to maintaining critical federal facilities. 2. Competition dynamics for this large-scale renovation are key to understanding value. 3. Performance history of the contractor will be a significant risk indicator. 4. The fixed-price nature of the contract aims to control cost overruns. 5. This project falls within the broader context of federal building modernization efforts. 6. The General Services Administration (GSA) oversees a vast portfolio of federal properties.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of repairs and alterations. However, a $157.7 million price tag for a major federal building renovation in a high-cost area like Boston suggests a significant undertaking. Comparing it to similar large-scale historical building renovations managed by GSA would provide better context for value for money. The firm fixed-price structure indicates an attempt to lock in costs, but the duration of the contract (over four years) introduces potential for unforeseen issues impacting the final value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple, qualified bidders had the opportunity to submit proposals. This approach is generally favored for large federal contracts as it promotes a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders (3) is on the lower side for a contract of this magnitude, which could warrant further investigation into the complexity of the requirements or market conditions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for services rendered, minimizing the risk of inflated costs due to a lack of alternatives.

Public Impact

The primary beneficiaries are federal agencies operating within the John W. McCormack Federal Building, ensuring a secure and functional workspace. The contract delivers essential repair and alteration services to a historic and significant federal property. The geographic impact is concentrated in Boston, Massachusetts, supporting the local economy through construction jobs and related services. Workforce implications include employment opportunities for skilled trades, construction managers, and support staff in the Boston area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over four years increases the risk of scope creep and cost escalation.
Limited number of bidders (3) for a large contract may indicate potential barriers to entry or market concentration.
Firm Fixed Price contracts can sometimes lead to contractors cutting corners on quality if not rigorously overseen.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor has a significant presence and history in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a critical segment of the construction industry responsible for building and renovating non-residential structures. Federal building maintenance and modernization represent a substantial portion of government spending in this sector. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation projects managed by GSA or other agencies, considering factors like building age, size, and complexity of required work.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While the prime contractor, Suffolk Construction Company, Inc., is a large entity, the implications for small businesses lie in potential subcontracting opportunities. Large construction projects often rely on specialized subcontractors, which can include small businesses. The extent to which Suffolk Construction engages small businesses for portions of this renovation will impact the small business ecosystem in the Boston area.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs contract officers, project managers, and inspectors to monitor progress, ensure compliance with contract terms, and verify the quality of work. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Renovations
GSA Capital Investments
Historic Preservation Projects
Public Infrastructure Maintenance

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of quality compromise in a firm-fixed-price contract over an extended period.
Limited competition may impact price competitiveness.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $157.7 million to SUFFOLK CONSTRUCTION COMPANY, INC.. REPAIR AND ALTERATION OF THE JOHN. W. MCCORMACK & POCH FEDERAL BUILDING, BOSTON, MA

Who is the contractor on this award?

The obligated recipient is SUFFOLK CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $157.7 million.

What is the period of performance?

Start: 2006-09-25. End: 2010-12-31.

What is Suffolk Construction Company's track record with similar large-scale federal building renovation projects?

Suffolk Construction Company, Inc. has a substantial track record in large-scale construction, including significant projects for government and institutional clients. While specific details on federal building renovations of this exact scale and type are not provided in the summary data, their experience in commercial and institutional building construction suggests they possess the capabilities for such a project. A deeper dive into their past performance on GSA contracts or similar public sector projects would be necessary to fully assess their suitability and identify any potential performance risks. Reviewing past project close-out reports, any litigation history, and client satisfaction surveys would provide a more comprehensive understanding of their reliability and expertise in managing complex, high-value federal contracts.

How does the awarded amount compare to the estimated cost or initial solicitations for this project?

The provided data shows the final awarded amount of $157,660,378. However, it does not include information about the initial cost estimates or the range of bids received during the solicitation process. To assess value for money, it is crucial to compare the awarded price against the government's independent cost estimate and the bids from other competitors. If the awarded amount is significantly higher than the estimate or the next lowest bid, it could indicate potential overpricing or a less competitive outcome. Conversely, if it aligns closely with estimates and other bids, it suggests a market-driven price. Without this comparative data, a definitive assessment of the award's financial prudence is difficult.

What are the primary risks associated with a four-year firm-fixed-price contract for building renovation?

A four-year firm-fixed-price (FFP) contract for a building renovation presents several risks. For the government, the primary risk is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise during the extended period, especially if the initial pricing was aggressive. Scope creep, where additional work is requested or required beyond the original contract, can also become a significant issue, potentially leading to costly change orders if not managed strictly. For the contractor, the risk lies in underestimating the complexity or duration of the work, leading to financial losses if costs exceed the fixed price. The long duration increases exposure to market fluctuations in material costs and labor availability, which are fixed under an FFP agreement.

What is the historical spending pattern for repairs and alterations at the John W. McCormack Federal Building prior to this contract?

The provided data focuses solely on this specific $157.7 million contract awarded in 2006 for repairs and alterations. It does not offer any historical context regarding previous spending on maintenance, repairs, or alterations for the John W. McCormack Federal Building. To understand historical spending patterns, one would need to access GSA's historical contract databases or facility management records. Analyzing past expenditures would reveal the frequency and cost of previous maintenance cycles, identify recurring issues, and help determine if this large contract represents a significant increase in investment or a necessary comprehensive overhaul after a period of deferred maintenance.

How does the number of bidders (3) for this contract compare to typical competition levels for similar GSA renovation projects?

Receiving only three bids for a contract valued at $157.7 million for a major federal building renovation could be considered a moderate to low level of competition, depending on the specific market conditions and the complexity of the project. For large-scale construction contracts, particularly those managed by the GSA, one might expect a higher number of interested and capable bidders, perhaps five or more. A lower number of bidders can sometimes indicate that the project requirements were highly specialized, the bidding process was complex, or that the market for such large-scale renovations in that geographic area is limited. This could potentially impact price discovery and the government's ability to secure the most competitive pricing.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-01P-05-BZ-C-3010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 65 ALLERTON ST, BOSTON, MA, 02119

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $157,660,378

Exercised Options: $157,660,378

Current Obligation: $157,660,378

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline