GSA awards $54.4M contract for Massena, NY Land Port of Entry construction to Northland Associates

Contract Overview

Contract Amount: $54,369,592 ($54.4M)

Contractor: Northland Associates, Incorporated

Awarding Agency: General Services Administration

Start Date: 2007-06-18

End Date: 2020-12-31

Contract Duration: 4,945 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF A NEW US LAND PORT OF ENTRY, MASSENA, N.Y.

Place of Performance

Location: MASSENA, ST. LAWRENCE County, NEW YORK, 13662

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $54.4 million to NORTHLAND ASSOCIATES, INCORPORATED for work described as: CONSTRUCTION OF A NEW US LAND PORT OF ENTRY, MASSENA, N.Y. Key points: 1. Contract awarded via full and open competition, suggesting a robust market search. 2. The contract duration of approximately 13.5 years (4945 days) is exceptionally long for a construction project, raising questions about scope and management. 3. The award amount of $54.4 million for a land port of entry construction appears within a reasonable range for such infrastructure projects. 4. The project falls under the Commercial and Institutional Building Construction NAICS code, indicating a focus on general construction services. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated. 6. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor.

Value Assessment

Rating: fair

The contract value of $54.4 million for constructing a land port of entry is a significant investment. Benchmarking this against similar projects is challenging without more specific details on the scope of work, size, and complexity of the facility. However, the extended duration of nearly 14 years raises concerns about potential cost escalations or scope creep, even with a fixed-price contract. The value needs to be assessed against the final delivered product and its operational lifespan.

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 bids. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders would typically indicate stronger price discovery, three offers can still lead to competitive pricing, especially for specialized construction projects.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple firms to bid, potentially driving down costs and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs operations at the Massena, NY port of entry. The project delivers essential infrastructure for facilitating legal trade and travel across the U.S.-Canada border. The geographic impact is concentrated in Massena, New York, and the surrounding border region. The construction phase will likely create temporary jobs for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exceptionally long contract duration (4945 days) is a significant concern, potentially indicating scope creep, extended project timelines, or inadequate initial planning.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms in the execution of this large construction project.
The absence of specific performance metrics or quality indicators in the provided data makes it difficult to assess the contractor's performance beyond the award itself.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The Firm Fixed Price contract type transfers cost overrun risk to the contractor, protecting the government from unexpected price increases.
The project addresses critical infrastructure needs for border security and trade facilitation.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale federal infrastructure projects like land ports of entry is specialized, often involving a limited number of experienced general contractors. The General Services Administration (GSA) is a major procurer of such facilities, and spending in this area is driven by national security, trade facilitation, and infrastructure modernization needs. Comparable spending benchmarks would typically be found in large federal building projects or major transportation infrastructure initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). With 3 bidders and a large contract value, it's likely that the prime contractor, Northland Associates, Inc., is a larger entity. While there are no explicit subcontracting requirements mentioned, large federal construction projects often involve significant subcontracting opportunities for specialized trades. The impact on the small business ecosystem depends on whether Northland Associates actively seeks to engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. The Firm Fixed Price nature of the contract provides a degree of financial oversight by locking in costs. However, the extended duration necessitates robust project management and oversight to ensure the project stays on schedule and within the defined scope. Transparency would be enhanced by public reporting on project milestones and any modifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Land Port of Entry Modernization Projects
GSA Public Buildings Construction Contracts
Department of Homeland Security Border Infrastructure
Commercial and Institutional Building Construction Contracts

Risk Flags

Extended contract duration raises concerns about project management and potential scope creep.
Limited number of bidders in a full and open competition may indicate a concentrated market.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $54.4 million to NORTHLAND ASSOCIATES, INCORPORATED. CONSTRUCTION OF A NEW US LAND PORT OF ENTRY, MASSENA, N.Y.

Who is the contractor on this award?

The obligated recipient is NORTHLAND ASSOCIATES, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $54.4 million.

What is the period of performance?

Start: 2007-06-18. End: 2020-12-31.

What is the specific scope of work for the construction of the new US Land Port of Entry in Massena, NY, and how does it justify the nearly 14-year duration?

The provided data does not detail the specific scope of work. However, a contract duration of 4945 days (approximately 13.5 years) for a single construction project is highly unusual and warrants further investigation. Typically, such long durations might indicate a phased approach, multiple distinct construction efforts under one contract, or potentially a very complex, multi-faceted facility. It could also suggest extended planning, design, environmental review, or even operational integration phases included within the construction contract. Without a detailed statement of work, it is difficult to ascertain if this duration represents efficient project execution or potential inefficiencies and scope creep. Further analysis would require access to the contract's SOW and any amendments.

How does the $54.4 million award compare to the estimated cost or market value for similar land port of entry construction projects?

Direct comparison of the $54.4 million award to similar projects is challenging without detailed project specifications (e.g., square footage, number of inspection booths, technological integration, site complexity). However, land port of entry construction costs can vary widely. For instance, smaller facilities might cost tens of millions, while major upgrades or new builds at high-traffic borders can run into hundreds of millions. The GSA's own portfolio includes projects of varying scales. Given the award amount, this project appears to be of moderate to significant scale. A more precise benchmark would require comparing it to projects with similar geographic locations, traffic volumes, and functional requirements, which are not detailed in the provided data.

What are the potential risks associated with a Firm Fixed Price contract spanning over 13 years?

While a Firm Fixed Price (FFP) contract shifts cost overrun risk to the contractor, a duration of over 13 years introduces unique risks. The contractor is locked into the price agreed upon at the outset, regardless of market fluctuations in labor, materials, or unforeseen site conditions that may arise over such an extended period. This could incentivize the contractor to cut corners on quality if costs escalate significantly, or conversely, lead to disputes if the government believes the contractor is not performing adequately due to the fixed price constraint. Furthermore, the contractor's financial stability over such a long term is a consideration. The government's risk shifts more towards ensuring the contractor's long-term viability and adherence to the contract's quality and performance standards.

What does the limited number of bidders (3) for this 'Full and Open Competition' suggest about the market for constructing land ports of entry?

A 'Full and Open Competition' with only three bidders suggests that the market for constructing large-scale federal land ports of entry may be relatively concentrated. This could be due to several factors: the specialized nature of the work requiring specific expertise and bonding capacity, high barriers to entry (e.g., security clearances, past performance requirements), or the geographic location limiting the pool of interested contractors. While three bidders indicate some level of competition, it is not as robust as one might see in less specialized industries. This concentration could potentially limit price competition compared to markets with numerous qualified bidders, although it does not automatically imply a lack of value for money.

Are there any indications of contractor performance issues or successes based on historical data for Northland Associates, Inc.?

The provided data does not include historical performance information for Northland Associates, Inc. Assessing contractor track record would require accessing databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) or reviewing past contract performance evaluations. Without this information, it's impossible to determine if Northland Associates has a history of successful project completion, cost overruns, schedule delays, or quality issues on previous government contracts. This is a critical gap in evaluating the overall risk and value proposition of this specific award.

How has federal spending on land port of entry construction evolved over time, and does this contract represent a significant shift?

The provided data focuses on a single contract and does not offer historical spending trends for land port of entry construction. Federal spending in this category is typically driven by infrastructure needs, security requirements, and international trade agreements. Spending can fluctuate based on congressional appropriations, modernization initiatives, and the condition of existing facilities. To determine if this $54.4 million contract represents a significant shift, one would need to analyze aggregate federal spending data for similar projects over several fiscal years. This single award, while substantial, may be part of a larger, ongoing program or a response to specific border security needs.

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: TWO STEP

Solicitation ID: GS-02P-06-DT-C-0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4701 BUCKLEY RD, LIVERPOOL, NY, 22

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

Financial Breakdown

Contract Ceiling: $54,369,592

Exercised Options: $54,369,592

Current Obligation: $54,369,592

Timeline