GSA's $97.8M contract for IRS Andover Service Center modernization awarded to Columbia Construction Co

Contract Overview

Contract Amount: $97,828,262 ($97.8M)

Contractor: Columbia Construction CO

Awarding Agency: General Services Administration

Start Date: 2009-07-21

End Date: 2015-09-30

Contract Duration: 2,262 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY MODERNIZATION OF IRS ANDOVER SERVICE CENTER IN ANDOVER, MA

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $97.8 million to COLUMBIA CONSTRUCTION CO for work described as: TAS::47 4543::TAS RECOVERY MODERNIZATION OF IRS ANDOVER SERVICE CENTER IN ANDOVER, MA Key points: 1. The contract value represents a significant investment in federal infrastructure modernization. 2. The use of a firm-fixed-price contract suggests a defined scope and budget, aiming to control costs. 3. The duration of the contract (2262 days) indicates a long-term project with potential for phased execution. 4. The award was made under full and open competition, implying a broad search for qualified bidders. 5. The project's focus on a specific IRS service center highlights targeted improvements to federal operations. 6. The absence of small business set-aside or subcontracting goals warrants further investigation into small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of modernization. However, the total award of $97.8 million over approximately six years suggests a substantial project. The firm-fixed-price structure is generally favorable for cost control, but the ultimate value for money depends on the quality of the completed modernization and its long-term operational benefits. Comparing this to similar large-scale federal building renovations would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the General Services Administration (GSA) sought bids from all responsible sources. The presence of 5 bids suggests a competitive process, which typically leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive sign for ensuring taxpayer dollars are used efficiently.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to participate, leading to potentially better value.

Public Impact

The primary beneficiaries are the Internal Revenue Service (IRS) employees who will utilize the modernized Andover Service Center, leading to improved working conditions and potentially enhanced operational efficiency. The services delivered include the modernization of a federal building, encompassing construction and potentially upgrades to infrastructure and facilities. The geographic impact is localized to Andover, Massachusetts, where the IRS service center is located. Workforce implications include employment opportunities for construction workers and related trades during the contract period, as well as the long-term impact on IRS staff at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals may limit opportunities for small businesses in this large contract.
The long contract duration could introduce risks related to scope creep or changing requirements if not managed effectively.
The firm-fixed-price nature, while good for cost control, could lead to disputes if unforeseen issues arise during construction.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps to lock in costs and manage budget predictability.
The project addresses modernization needs for a critical federal facility (IRS Service Center).

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The federal government is a significant consumer of construction services for maintaining and upgrading its vast portfolio of buildings. This contract represents a substantial investment in a specific facility, contributing to the broader trend of federal infrastructure renewal. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation or construction projects managed by GSA or other agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). With 5 bids received, it's important to understand if any of these were small businesses or if subcontracting opportunities were mandated or encouraged. Without explicit set-aside provisions or detailed subcontracting plans, the direct impact on the small business ecosystem for this specific contract may be limited, though prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance reviews. Accountability measures are inherent in the firm-fixed-price contract structure, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Building Modernization Programs
IRS Facilities Management
GSA Public Buildings Service Contracts
Large-Scale Construction Projects
Infrastructure Investment Initiatives

Risk Flags

Long Contract Duration
Potential for Scope Creep
Lack of Explicit Small Business Subcontracting Goals

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $97.8 million to COLUMBIA CONSTRUCTION CO. TAS::47 4543::TAS RECOVERY MODERNIZATION OF IRS ANDOVER SERVICE CENTER IN ANDOVER, MA

Who is the contractor on this award?

The obligated recipient is COLUMBIA CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $97.8 million.

What is the period of performance?

Start: 2009-07-21. End: 2015-09-30.

What specific modernization activities were included in this $97.8 million contract for the IRS Andover Service Center?

The provided data indicates the contract (ID: 474543) was for the 'RECOVERY MODERNIZATION OF IRS ANDOVER SERVICE CENTER IN ANDOVER, MA' awarded to Columbia Construction Co. for $97,828,262. While the specific modernization activities are not detailed in the summary data, typical projects of this nature and scale for federal service centers often include upgrades to HVAC systems, electrical and plumbing infrastructure, roofing, interior renovations for improved workspace functionality, energy efficiency improvements, and potentially security enhancements. The 'Recovery' designation in the contract title might suggest it was part of broader economic stimulus or infrastructure recovery initiatives following a specific event or period, potentially focusing on energy efficiency or resilience upgrades.

How does the $97.8 million contract value compare to other federal building modernization projects of similar scope?

Direct comparison of the $97.8 million contract value requires detailed scope information not present in the summary data. However, large-scale federal building modernization projects can range widely. For instance, major renovations of federal courthouses or office buildings can easily run into tens or hundreds of millions of dollars, depending on the size, age, and complexity of the facility. The IRS Andover Service Center modernization, awarded over a 2262-day period (approx. 6.2 years), suggests a significant, multi-faceted undertaking. To benchmark effectively, one would need to compare it against similar projects managed by the General Services Administration (GSA) or other agencies for facilities of comparable size and function, considering factors like square footage, age of the building, and the extent of planned upgrades (e.g., structural, MEP, energy, security).

What were the key performance indicators (KPIs) or success metrics defined for this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) or success metrics established for this contract. Typically, for construction and modernization projects, KPIs would focus on adherence to schedule (e.g., completion dates for milestones and final project), budget control (staying within the $97.8 million firm-fixed-price), quality of workmanship (meeting building codes, specifications, and industry standards), safety (incident rates), and potentially post-occupancy performance related to energy efficiency or system functionality. The GSA's contract administration would likely involve regular progress reviews and inspections to ensure these metrics are being met.

What is the track record of Columbia Construction Co. in handling large federal contracts, particularly in building modernization?

Information on Columbia Construction Co.'s specific track record with large federal contracts, especially in building modernization, is not detailed in the provided summary data. To assess their capabilities, one would need to examine their past performance history, including the types and values of federal contracts they have successfully completed, client satisfaction ratings (e.g., from past performance questionnaires), and any history of contract disputes or performance issues. Federal procurement systems often maintain databases (like the Contractor Performance Assessment Reporting System - CPARS) that document contractor performance on previous government projects, which would be crucial for a thorough evaluation.

Given the 5 bids received, what does this suggest about the competitiveness of the market for federal building modernization in Massachusetts?

Receiving 5 bids for the IRS Andover Service Center modernization suggests a moderately competitive market for federal building modernization services in Massachusetts. While not an exceptionally high number, it indicates that multiple firms were interested and capable of undertaking a project of this scale ($97.8 million). The level of competition can influence pricing; more bidders generally lead to lower prices for the government. This number suggests that GSA was able to attract a reasonable number of qualified contractors, indicating sufficient market capacity, though perhaps not a hyper-competitive scenario where dozens of firms vie for the contract.

What are the potential risks associated with a firm-fixed-price contract for a project spanning over six years?

A firm-fixed-price (FFP) contract, while aiming for cost certainty, carries specific risks over a long duration like the 2262 days (approx. 6.2 years) of this project. The primary risk is that unforeseen issues or changes in material costs, labor rates, or regulatory requirements could significantly impact the contractor's profitability or ability to complete the work as specified without additional claims or disputes. If the scope is not meticulously defined and managed, scope creep can become a major issue, potentially leading to change orders that increase the overall cost. Conversely, the government bears the risk if the initial price was set too high due to inadequate market research or overly conservative contractor bidding. Effective contract management, clear communication, and a well-defined change order process are critical to mitigating these risks.

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-09-BZ-C-0014

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 RIVERPARK DR, NORTH READING, MA, 01864

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,170,873

Exercised Options: $97,870,873

Current Obligation: $97,828,262

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline