GSA awards $61M for Brooklyn Post Office facade and roof repair, completed over 5 years

Contract Overview

Contract Amount: $60,962,578 ($61.0M)

Contractor: Nicholson & Galloway Inc

Awarding Agency: General Services Administration

Start Date: 2009-07-27

End Date: 2014-12-31

Contract Duration: 1,983 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY ACT: THIS AWARD IS FOR THE FACADE AND SLATE ROOF REPAIR OF THE U.S. POST OFFICE & COURTHOUSE AT 271 CADMAN PLAZA EAST, BROOKLYN, NY.

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $61.0 million to NICHOLSON & GALLOWAY INC for work described as: TAS::47 4543::TAS RECOVERY ACT: THIS AWARD IS FOR THE FACADE AND SLATE ROOF REPAIR OF THE U.S. POST OFFICE & COURTHOUSE AT 271 CADMAN PLAZA EAST, BROOKLYN, NY. Key points: 1. The contract focused on essential building maintenance, addressing critical structural elements. 2. A firm-fixed-price contract was used, indicating a defined scope and cost structure. 3. The project spanned over five years, suggesting a complex or phased repair process. 4. The award was made under full and open competition, implying a competitive bidding environment. 5. The General Services Administration (GSA) managed this significant infrastructure investment. 6. The project targeted a specific federal building, the U.S. Post Office & Courthouse in Brooklyn, NY.

Value Assessment

Rating: fair

The contract value of approximately $61 million for facade and roof repairs over five years appears substantial. Benchmarking this against similar large-scale historical preservation and repair projects for federal buildings would be necessary for a precise value-for-money assessment. The firm-fixed-price structure suggests the government aimed to control costs, but the long duration could introduce risks of cost escalation if not managed effectively. Without specific details on the scope of work and comparable project costs, it's difficult to definitively assess if this represented excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders (as suggested by 'br': 30743, though 'br' typically refers to bid received, not bidders) suggests a moderate level of competition for this specialized construction project. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive marketplace, driving down prices and encouraging efficiency among contractors.

Public Impact

The primary beneficiaries are federal agencies and the public utilizing the U.S. Post Office & Courthouse in Brooklyn, ensuring continued access to services in a well-maintained facility. The contract delivered essential repair and maintenance services for the building's facade and roof, preserving a significant piece of federal infrastructure. The geographic impact is localized to Brooklyn, New York, specifically at 271 Cadman Plaza East. The project likely supported jobs in the construction sector, including skilled tradespeople and project management professionals in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 5 years) could lead to potential cost overruns or scope creep if not meticulously managed.
The specific nature of facade and roof repair can be subject to unforeseen structural issues, potentially impacting final costs.
Reliance on a single contractor for an extended period might limit opportunities for competitive pricing on future maintenance or related work.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
Focus on essential infrastructure repair ensures the longevity and functionality of a key federal building.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector involves the construction or renovation of non-residential buildings. Federal spending in this area is crucial for maintaining government facilities, courthouses, post offices, and administrative buildings. The market for large-scale federal building construction and repair is often characterized by a few large, specialized contractors capable of handling complex projects with stringent requirements. Spending benchmarks would typically compare costs per square foot or per major repair item against similar federal or large commercial projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and specialized nature of facade and roof repair for a large federal building, it is likely that the prime contract was awarded to a large business. However, the prime contractor may have subcontracted portions of the work to small businesses, which is a common practice in federal construction projects to meet small business subcontracting goals.

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 checks to ensure the work meets specifications and timelines. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Federal Building Construction and Renovation
Public Infrastructure Maintenance
Historic Preservation Projects
GSA Capital Investments
Post Office Facility Upgrades

Risk Flags

Potential for cost overruns due to long contract duration.
Unforeseen site conditions impacting scope and budget.
Contractor performance risks over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $61.0 million to NICHOLSON & GALLOWAY INC. TAS::47 4543::TAS RECOVERY ACT: THIS AWARD IS FOR THE FACADE AND SLATE ROOF REPAIR OF THE U.S. POST OFFICE & COURTHOUSE AT 271 CADMAN PLAZA EAST, BROOKLYN, NY.

Who is the contractor on this award?

The obligated recipient is NICHOLSON & GALLOWAY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $61.0 million.

What is the period of performance?

Start: 2009-07-27. End: 2014-12-31.

What was the specific scope of work for the facade and slate roof repair?

The award description indicates the work involved 'FACADE AND SLATE ROOF REPAIR' for the U.S. Post Office & Courthouse at 271 Cadman Plaza East, Brooklyn, NY. While the exact specifications are not detailed in the provided data, this type of work typically includes structural assessments, repair or replacement of roofing materials (specifically slate), masonry repair, window and door sealing, and potentially facade cleaning or restoration. The duration of nearly five years suggests a comprehensive approach, possibly involving phased repairs to minimize disruption to building operations or addressing extensive deterioration.

How does the $61 million cost compare to similar federal building repair projects?

A direct cost comparison for a $61 million facade and roof repair project is challenging without more specific data points like square footage, building age, and the extent of damage. However, large-scale federal building renovations and repairs can range from tens to hundreds of millions of dollars. For context, major historic building restorations or significant structural overhauls of federal properties often incur substantial costs due to specialized labor, materials, and compliance with preservation standards. The firm-fixed-price nature of this contract suggests the GSA aimed for cost certainty, but the long performance period necessitates careful management to avoid cost overruns.

What were the primary risks associated with this contract?

The primary risks associated with this contract likely included unforeseen structural issues discovered during the repair process, which could lead to scope creep and cost increases, despite the firm-fixed-price structure. The extended duration of nearly five years also presented risks related to contractor performance, potential material price fluctuations, and the need for sustained government oversight. Weather-related delays, especially for exterior work like roofing and facade repair, are also a common risk in construction projects, particularly in the New York climate.

What is the track record of Nicholson & Galloway Inc. in federal contracting?

Nicholson & Galloway Inc. appears to be a specialized construction firm with experience in facade restoration and roofing. A comprehensive review of their federal contracting history would involve examining their past performance on similar projects, including contract values, timeliness of completion, and any reported disputes or quality issues. Their ability to secure a $61 million contract from the GSA suggests they have a demonstrated capacity and a positive performance record with the agency, particularly in complex building envelope work.

How did the competition level impact the final price?

The contract was awarded under 'full and open competition' with three bids received. While this indicates a competitive process, the number of bidders (three) is moderate. Generally, a higher number of bids tends to drive prices down more aggressively. The final price reflects the negotiated terms between the GSA and the winning bidder, Nicholson & Galloway Inc. The firm-fixed-price structure means the contractor assumed the risk of cost overruns, which they would have factored into their bid. Without knowing the other bids, it's difficult to quantify the exact impact of competition on the final price, but the process itself aimed to achieve a fair market price.

What is the significance of this award within the GSA's portfolio?

This award represents a significant investment in maintaining critical federal infrastructure. The GSA is responsible for managing a vast portfolio of federal buildings, and projects like this are essential for ensuring their structural integrity, safety, and continued usability. Awards of this magnitude highlight the GSA's commitment to preserving historic and functional government properties, ensuring they can serve the public and government operations effectively for years to come. It also reflects the ongoing need for specialized construction services within the federal government.

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: GS-02P-07-DT-C-0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 261 GLEN HEAD RD, GLEN HEAD, NY, 11545

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

Financial Breakdown

Contract Ceiling: $60,962,578

Exercised Options: $60,962,578

Current Obligation: $60,962,578

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline