GSA's $26.2M Derby Line Border Station contract awarded to D.E.W. Construction Corp. after full and open competition

Contract Overview

Contract Amount: $26,204,920 ($26.2M)

Contractor: D.E.W. Construction Corp.

Awarding Agency: General Services Administration

Start Date: 2016-04-26

End Date: 2020-05-08

Contract Duration: 1,473 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DERBY LINE I-91 LPOE, DERBY LINE, VERMONT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE NEW BORDER STATION AT I91 IN DERBY LINE VERMONT, 05830-9998.

Place of Performance

Location: DERBY LINE, ORLEANS County, VERMONT, 05830

State: Vermont Government Spending

Plain-Language Summary

General Services Administration obligated $26.2 million to D.E.W. CONSTRUCTION CORP. for work described as: IGF::OT::IGF DERBY LINE I-91 LPOE, DERBY LINE, VERMONT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE NEW BORDER STATION AT I91 IN DERBY LINE VERMONT, 05830-9998. Key points: 1. The contract value of $26.2 million represents a significant investment in border infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The project duration of 1473 days indicates a complex and lengthy construction undertaking. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The project is located in Derby Line, Vermont, impacting local and regional economic activity. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and scope comparisons. However, the total award of $26.2 million for a border station construction manager role suggests a substantial project. The firm-fixed-price nature of the contract implies that the contractor assumed most of the risk for cost overruns, which can sometimes lead to higher initial bids. Further analysis would require comparing the cost per square foot or per unit of service against similar federal construction projects of comparable complexity and scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bidders (as indicated by 'no': 2) suggests a competitive environment, though the exact number of proposals received and evaluated would provide a clearer picture of the competition intensity. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value. This process helps prevent inflated costs that can occur with less competitive solicitations.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and the General Services Administration, who will utilize the new border station. The project delivers essential infrastructure for border security and trade facilitation. The geographic impact is concentrated in Derby Line, Vermont, potentially creating local jobs and stimulating the regional economy during construction. The construction workforce will see implications, with opportunities for skilled trades and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all project contingencies.
Risk of schedule delays impacting the operational readiness of the border station.
Quality control concerns inherent in large-scale construction projects.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses a critical need for updated border infrastructure.
The contractor, D.E.W. CONSTRUCTION CORP., has experience in construction projects.

Sector Analysis

This contract falls within the construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The market for federal construction projects is substantial, with agencies like GSA frequently procuring services for building and infrastructure upgrades. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar federal facilities, such as courthouses, post offices, or other border control points, considering regional labor costs and material prices.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false) and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracts awarded by D.E.W. CONSTRUCTION CORP. The impact on the small business ecosystem depends on the extent to which the prime contractor engages with and utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms likely include regular progress meetings, site inspections, and review of contractor performance reports. Accountability is typically managed through contract clauses, performance metrics, and potential penalties for non-compliance. Transparency is facilitated through contract award databases and public reporting, though detailed project-specific oversight documentation may not always be publicly accessible.

Related Government Programs

Federal Border Station Construction
GSA Public Buildings Service Projects
Department of Homeland Security Infrastructure
Construction Management Services Contracts

Risk Flags

Potential for schedule delays
Risk of cost escalation (mitigated by FFP)
Quality control during construction
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.2 million to D.E.W. CONSTRUCTION CORP.. IGF::OT::IGF DERBY LINE I-91 LPOE, DERBY LINE, VERMONT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE NEW BORDER STATION AT I91 IN DERBY LINE VERMONT, 05830-9998.

Who is the contractor on this award?

The obligated recipient is D.E.W. CONSTRUCTION CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2016-04-26. End: 2020-05-08.

What is the track record of D.E.W. CONSTRUCTION CORP. on federal contracts, particularly those involving construction management?

A comprehensive review of D.E.W. CONSTRUCTION CORP.'s federal contract history would involve searching databases like the Federal Procurement Data System (FPDS) or USAspending.gov. This would reveal past performance on similar projects, including contract values, agencies served, and any reported performance issues or awards. For this specific contract, understanding their experience with large-scale institutional or government building projects, especially border facilities, would be crucial. A history of successful, on-time, and within-budget project completion would indicate a lower risk profile for this project. Conversely, a pattern of disputes, delays, or cost overruns on prior federal work would raise concerns about their capacity to manage the Derby Line project effectively.

How does the awarded amount of $26.2 million compare to similar border station construction projects?

Direct comparison of the $26.2 million award for the Derby Line I-91 LPOE construction manager services requires identifying comparable federal border station projects in terms of size, scope, complexity, and location. Factors such as square footage, number of inspection lanes, technological integration, and specific security requirements significantly influence project costs. Without access to detailed project scopes and cost breakdowns for similar projects, a precise benchmark is difficult. However, general market knowledge suggests that large-scale federal infrastructure projects, especially those involving specialized security and operational needs like border stations, can range from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract also implies that the quoted price includes contractor profit and risk premium, which should be considered when comparing to cost-plus contracts or estimates.

What are the primary risks associated with this construction management contract, and how were they mitigated?

Key risks for a construction management contract of this scale include potential cost overruns, schedule delays, quality control issues, and contractor performance failures. Given the firm-fixed-price (FFP) nature of the contract, D.E.W. CONSTRUCTION CORP. bears the primary financial risk for cost overruns, which incentivizes them to manage the budget tightly. Schedule risks might be mitigated through detailed project planning, phased construction, and clear milestones outlined in the contract. Quality control is typically managed through rigorous government inspections, adherence to building codes and specifications, and performance monitoring. Contractor performance failures could be addressed through contractual remedies, including termination for default if necessary. The GSA's oversight and the competitive bidding process itself serve as initial risk mitigation measures.

What is the historical spending pattern for border station construction and upgrades by the GSA?

Analyzing historical spending patterns for GSA's border station construction and upgrades would involve examining contract data over several fiscal years. This would reveal trends in the number and value of such contracts, the types of services procured (e.g., design-build, construction management), and the agencies utilizing these facilities. For instance, spending might fluctuate based on federal budget allocations, national security priorities, and infrastructure modernization initiatives. Understanding historical spending can help contextualize the $26.2 million award for the Derby Line project, indicating whether it represents a typical investment, an increase, or a decrease in federal spending for similar infrastructure. It could also highlight any shifts in procurement strategies or the types of contractors GSA has historically engaged.

How does the duration of 1473 days (approximately 4 years) impact the overall cost and effectiveness of the border station?

A project duration of approximately four years for the Derby Line border station construction management services is substantial and has several implications. Firstly, a longer duration can increase indirect costs for both the contractor and the government, such as extended project management, site supervision, and potential inflation adjustments if not fully accounted for in the FFP. Secondly, it extends the period before the new, potentially more efficient and secure, border facilities become operational, delaying the realization of benefits like improved processing times and enhanced security. However, a longer duration might also indicate a more thorough and carefully managed construction process, potentially leading to higher quality and fewer long-term issues. The specific reasons for this duration—whether due to project complexity, phased construction, or funding schedules—would determine its net impact on cost-effectiveness.

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: GS01P16BWC7011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 277 BLAIR PARK RD STE 130, WILLISTON, VT, 05495

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

Financial Breakdown

Contract Ceiling: $26,204,920

Exercised Options: $26,204,920

Current Obligation: $26,204,920

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline