GSA's $19.5M Tenant Fit-Out Contract Awarded to Volmar Construction Inc. for New York Facility

Contract Overview

Contract Amount: $19,533,370 ($19.5M)

Contractor: Volmar Construction Inc

Awarding Agency: General Services Administration

Start Date: 2004-12-21

End Date: 2009-12-31

Contract Duration: 1,836 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: U.S. ATTORNEY TENANT FIT - OUT WORK (GP0)

Place of Performance

Location: KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $19.5 million to VOLMAR CONSTRUCTION INC for work described as: U.S. ATTORNEY TENANT FIT - OUT WORK (GP0) Key points: 1. Contract value represents a significant investment in federal building infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 5 years indicates a long-term need for services. 4. Fixed-price contract type aims to control costs for the government. 5. Awarded by the Public Buildings Service, highlighting focus on federal property management. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and the size of the facility. However, a $19.5 million contract for tenant fit-out over five years suggests a substantial project. The fixed-price nature of the contract provides cost certainty, but the ultimate value for money depends on the quality of the work and adherence to budget. Comparing this to similar large-scale federal building construction projects would provide a clearer picture of its relative 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 all responsible sources were permitted to submit a bid. With three bids received, the level of competition appears moderate. While more bidders could potentially drive prices lower, three bids suggest that there was sufficient interest and capability in the market to ensure some degree of price discovery and selection of a qualified contractor.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best prices. Moderate competition, as seen here, can lead to a reasonable balance between cost and quality.

Public Impact

Federal employees working in the New York facility will benefit from improved workspaces. The contract supports the maintenance and modernization of federal government property. The project's geographic impact is localized to New York. The construction work will likely involve a workforce of skilled tradespeople and construction professionals. The General Services Administration (GSA) benefits from enhanced facility management capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Ensuring timely completion within the 5-year duration is critical for operational continuity.
Quality of construction must meet federal standards to ensure long-term durability and safety.

Positive Signals

Fixed-price contract provides budget certainty for the government.
Full and open competition suggests a fair and transparent procurement process.
Award to an established contractor like Volmar Construction Inc. may indicate a track record of successful project delivery.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as office buildings, government facilities, and educational institutions. Federal spending in this area is crucial for maintaining and upgrading government infrastructure. Comparable spending benchmarks would involve analyzing other GSA or agency contracts for similar tenant fit-out or new construction projects in major metropolitan areas.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. The absence of small business participation goals or subcontracting requirements in the provided data means its direct impact on the small business ecosystem is unclear. However, the prime contractor, Volmar Construction Inc., may engage small businesses as subcontractors, which would then contribute to small business utilization.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would include performance reviews, adherence to contract terms, and potential remedies for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Construction
Government Office Space Modernization
Public Infrastructure Projects
GSA Real Estate Portfolio Management

Risk Flags

Potential for cost escalation beyond fixed price due to market volatility.
Risk of project delays impacting government operational needs.
Ensuring compliance with all federal building codes and accessibility standards.
Adequate oversight needed to guarantee quality of construction.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.5 million to VOLMAR CONSTRUCTION INC. U.S. ATTORNEY TENANT FIT - OUT WORK (GP0)

Who is the contractor on this award?

The obligated recipient is VOLMAR CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2004-12-21. End: 2009-12-31.

What is Volmar Construction Inc.'s track record with federal contracts, particularly with the GSA?

Volmar Construction Inc. has a history of securing federal contracts, including those with the General Services Administration. Analyzing their past performance on similar projects, such as building renovations, tenant fit-outs, or new construction for government agencies, would provide insight into their reliability, quality of work, and ability to manage complex projects within budget and schedule. A review of their contract history might reveal any past performance issues, awards, or significant project completions that indicate their suitability for this $19.5 million contract.

How does the $19.5 million contract value compare to similar federal tenant fit-out projects in New York?

Comparing the $19.5 million contract value to similar federal tenant fit-out projects in New York requires access to a broader dataset of comparable contracts. Factors such as the square footage of the space, the complexity of the required modifications, the specific building systems involved (e.g., HVAC, electrical, plumbing), and the prevailing market rates for construction services in the New York metropolitan area are crucial for a meaningful comparison. Without these details, it's difficult to definitively state whether this contract represents a particularly high or low value. However, for a large-scale fit-out in a high-cost area like New York, this figure could be within a reasonable range.

What are the primary risks associated with a 5-year fixed-price contract for building construction?

The primary risks associated with a 5-year fixed-price contract for building construction include potential cost overruns if material prices or labor costs escalate significantly beyond initial projections, unforeseen site conditions that require extensive and costly remediation, and scope creep if the government requests additional work not originally included in the contract. While the fixed price offers budget certainty, the contractor bears the risk of increased costs. Conversely, the government risks receiving lower quality work if the contractor attempts to cut corners to maintain profitability under a fixed price, or delays if the contractor struggles with unforeseen challenges.

How effective is 'full and open competition' in ensuring competitive pricing for large federal construction projects?

Full and open competition is generally considered the most effective method for ensuring competitive pricing in federal contracting, as it allows all responsible sources to participate. This broad participation increases the likelihood of receiving multiple bids, which in turn drives down prices as contractors compete for the award. For large construction projects, the effectiveness can be influenced by the number of qualified bidders available in the market and the complexity of the solicitation. While it maximizes potential competition, the actual price achieved still depends on market dynamics and the specific requirements of the project.

What is the historical spending trend for federal tenant fit-out and building construction contracts managed by GSA?

Historical spending trends for federal tenant fit-out and building construction contracts managed by the GSA indicate a consistent and substantial investment in maintaining and modernizing federal facilities. GSA is responsible for a vast portfolio of government buildings, and annual spending on construction, renovation, and fit-out projects typically runs into billions of dollars. Factors influencing these trends include federal budget allocations, infrastructure needs, agency space requirements, and economic conditions. Analyzing specific historical data for GSA's Public Buildings Service would reveal patterns in contract values, types of projects, and geographic distribution of spending over time.

What are the implications of the NAICS code 236220 for this contract?

The North American Industry Classification System (NAICS) code 236220 signifies 'Commercial and Institutional Building Construction.' This classification indicates that the contract is for the construction of non-residential buildings, such as office buildings, government facilities, schools, and hospitals. For this specific contract, it means the work performed by Volmar Construction Inc. will involve the physical construction or significant renovation of a commercial or institutional space, likely an office building managed by the GSA. This code helps categorize the contract within the broader construction industry and allows for industry-specific analysis and benchmarking.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-02P-05-DTC-0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4400 2ND AVE, BROOKLYN, NY, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,533,370

Exercised Options: $19,533,370

Current Obligation: $19,533,370

Timeline