GSA Awards $126.5M for William J. Green Federal Building Construction Management Services

Contract Overview

Contract Amount: $126,574,009 ($126.6M)

Contractor: Intech Construction, LLC

Awarding Agency: General Services Administration

Start Date: 2016-11-10

End Date: 2022-07-29

Contract Duration: 2,087 days

Daily Burn Rate: $60.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: IGF::OT::IGF INITIAL AWARD OF RESTACK OF THE WILLIAM J. GREEN FEDERAL BUILDING CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES PROJECT AT THE WILLIAM J. GREEN FEDERAL BUILDING IN PHILADELPHIA, PA.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $126.6 million to INTECH CONSTRUCTION, LLC for work described as: IGF::OT::IGF INITIAL AWARD OF RESTACK OF THE WILLIAM J. GREEN FEDERAL BUILDING CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES PROJECT AT THE WILLIAM J. GREEN FEDERAL BUILDING IN PHILADELPHIA, PA. Key points: 1. The contract value of $126.5 million for construction management services is substantial, indicating a significant project scope. 2. Awarded via full and open competition, suggesting a competitive bidding process for this large contract. 3. The project involves construction management for a federal building, a sector with inherent risks related to cost overruns and delays. 4. The fixed-price incentive contract type aims to balance cost control with contractor performance incentives.

Value Assessment

Rating: good

The contract value of $126.5 million is a significant investment. Benchmarking against similar large-scale federal building construction management contracts would be necessary to fully assess pricing, but the fixed-price incentive structure suggests an effort to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is generally expected to yield fair market value.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for this significant infrastructure project.

Public Impact

Federal building modernization projects impact public services and the local economy through job creation and infrastructure improvement. The successful completion of this project will ensure the continued functionality and safety of a key federal facility. Transparency in the bidding and execution phases is crucial for public trust and accountability in large government contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns despite fixed-price incentive structure.
Project delays could impact federal operations and increase overall costs.
Complexity of managing a large federal building construction project.

Positive Signals

Awarded through full and open competition.
Fixed-price incentive contract aims for cost control.
Significant investment in federal infrastructure.

Sector Analysis

Construction management for federal buildings falls within the broader construction sector. Spending benchmarks for similar projects vary widely based on size, complexity, and location, but $126.5 million represents a major undertaking.

Small Business Impact

The contract was awarded to INTECH CONSTRUCTION, LLC, and the data does not indicate any specific provisions or set-asides for small businesses in this particular award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Robust oversight mechanisms are essential to monitor progress, manage risks, and ensure compliance with contract terms and taxpayer interests.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Large contract value increases financial risk exposure.
Fixed-price incentive contracts can be complex to administer.
Construction projects are inherently subject to delays and cost overruns.
Federal building projects require strict adherence to regulations and security protocols.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $126.6 million to INTECH CONSTRUCTION, LLC. IGF::OT::IGF INITIAL AWARD OF RESTACK OF THE WILLIAM J. GREEN FEDERAL BUILDING CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES PROJECT AT THE WILLIAM J. GREEN FEDERAL BUILDING IN PHILADELPHIA, PA.

Who is the contractor on this award?

The obligated recipient is INTECH CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $126.6 million.

What is the period of performance?

Start: 2016-11-10. End: 2022-07-29.

What specific performance metrics are tied to the incentive portion of the fixed-price incentive contract, and how are they measured?

The fixed-price incentive contract structure implies that both the contractor and the government share in any cost savings or overruns relative to target costs. Specific performance metrics would likely relate to project milestones, quality standards, and adherence to schedule. Detailed contract clauses would outline the target cost, incentive sharing ratio, and ceiling price, ensuring alignment between contractor efforts and project objectives.

What are the primary risks associated with the restacking and construction management of a federal building of this scale?

Key risks include unforeseen site conditions, potential for scope creep, contractor performance issues, and delays due to permitting or regulatory hurdles. Managing these risks requires diligent project planning, effective communication, strong oversight, and contingency planning. The fixed-price incentive contract attempts to mitigate cost risks by sharing overruns, but schedule and quality risks remain significant.

How does the $126.5 million contract value compare to the estimated total project cost for the restacking and renovation?

The $126.5 million represents the award for Construction Manager as Constructor (CMC) services, which typically includes pre-construction services and construction execution. It is not necessarily the total project cost. The total cost would encompass all direct construction expenses, materials, labor, and potentially other associated fees. This award is a significant component, but a full cost assessment requires understanding the entire project budget.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-03-P-16-AZ-C-7004

Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 3020 MARKET ST FL 2, PHILADELPHIA, PA, 19104

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,476,198

Exercised Options: $126,574,009

Current Obligation: $126,574,009

Actual Outlays: $21,300,814

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $45,978,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline