GSA's $136M Courthouse Construction Contract Awarded to W. G. Yates & Sons, Full and Open Competition

Contract Overview

Contract Amount: $136,091,299 ($136.1M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: General Services Administration

Start Date: 2004-10-14

End Date: 2012-02-17

Contract Duration: 2,682 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRECONSTRUCTION SERVICES PHASE OF NEW U.S. COURTHOUSE, JACKSON, MS

Place of Performance

Location: JACKSON, HINDS County, MISSISSIPPI, 39201

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $136.1 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: PRECONSTRUCTION SERVICES PHASE OF NEW U.S. COURTHOUSE, JACKSON, MS Key points: 1. Contract value of $136M for preconstruction services indicates a significant investment in federal infrastructure. 2. The use of 'Full and Open Competition' suggests a robust bidding process aimed at achieving competitive pricing. 3. A contract duration of 2682 days points to a long-term project with potential for cost overruns or efficiencies. 4. The award to a single contractor, W. G. Yates & Sons, warrants scrutiny of performance and adherence to scope. 5. Fixed-price contract type aims to control costs, but requires careful management of change orders. 6. The absence of small business set-aside flags the need to examine subcontracting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $136 million for preconstruction services for a new courthouse is substantial. Benchmarking this against similar large-scale federal building projects would be necessary for a precise value-for-money assessment. However, the duration of the contract (2682 days) suggests a long-term commitment, which can introduce risks of cost escalation if not managed tightly. The firm-fixed-price nature provides some cost certainty, but the sheer scale implies significant potential for change orders that could impact the final cost.

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 a bid. With 6 bidders identified, this suggests a healthy level of competition for this significant project. The presence of multiple bidders generally aids in price discovery and can lead to more competitive pricing for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process like 'Full and Open Competition' is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the services rendered, minimizing wasteful spending.

Public Impact

The primary beneficiaries are the citizens of Jackson, Mississippi, who will gain a new federal courthouse. The contract delivers essential preconstruction services, laying the groundwork for the physical construction of a critical public facility. The geographic impact is localized to Jackson, Mississippi, but the project contributes to the broader federal judicial infrastructure. This project will likely have implications for the local construction workforce, creating jobs during the preconstruction and subsequent construction phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2682 days) increases risk of cost escalation and scope creep.
Firm-fixed-price contracts can lead to disputes and change orders if scope is not perfectly defined upfront.
Lack of explicit small business participation noted; subcontracting opportunities need monitoring.
Performance history of W. G. Yates & Sons on similar large-scale federal projects requires review.
Potential for delays in courthouse delivery impacting judicial operations.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses a clear need for federal infrastructure in Jackson, MS.
Significant investment in public infrastructure can stimulate local economy.
The General Services Administration (GSA) is a reputable agency overseeing federal building projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a public facility. The General Services Administration (GSA) is a major player in federal construction, managing a vast portfolio of government buildings. The market for large-scale public construction is often characterized by a mix of large prime contractors and numerous subcontractors. Benchmarks for similar courthouse construction projects would typically consider factors like square footage, complexity, and location to assess cost-effectiveness.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While W. G. Yates & Sons is the prime contractor, the absence of a small business set-aside means that opportunities for small businesses will primarily arise through subcontracting. It is crucial to monitor subcontracting plans to ensure that small businesses have a meaningful role in this project, contributing to the broader small business ecosystem and federal contracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs project managers and contracting officers to monitor progress, costs, and compliance. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) involvement isn't detailed here, the GSA IG has jurisdiction over GSA contracts and would investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Federal Courthouse Construction Projects
GSA Public Buildings Service Contracts
Large-Scale Commercial Construction Awards
Firm-Fixed-Price Construction Contracts
Infrastructure Investment Projects

Risk Flags

Long contract duration may increase cost risk.
Potential for scope creep in extended projects.
Need to verify contractor's past performance on similar projects.
Monitor subcontracting to ensure small business inclusion.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $136.1 million to W. G. YATES & SONS CONSTRUCTION COMPANY. PRECONSTRUCTION SERVICES PHASE OF NEW U.S. COURTHOUSE, JACKSON, MS

Who is the contractor on this award?

The obligated recipient is W. G. YATES & SONS CONSTRUCTION COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $136.1 million.

What is the period of performance?

Start: 2004-10-14. End: 2012-02-17.

What is the track record of W. G. Yates & Sons Construction Company on similar large-scale federal courthouse projects?

Assessing the track record of W. G. Yates & Sons on comparable federal courthouse projects is crucial for understanding their capacity and past performance. Information regarding their experience with projects of similar size, complexity, and duration, particularly those managed by the GSA, would provide valuable insights. This includes examining their history of meeting deadlines, staying within budget, managing change orders effectively, and maintaining quality standards. A review of past performance evaluations and any documented disputes or contract terminations would further inform an assessment of their reliability and suitability for this significant undertaking.

How does the awarded amount compare to the estimated cost or benchmark for similar courthouse preconstruction services?

To benchmark the value of this $136 million contract, a comparison with the estimated costs or actual awarded amounts for preconstruction services on similar federal courthouses is necessary. Factors such as the size of the facility, its complexity, the specific services included in preconstruction (e.g., design development, site investigations, value engineering), and the geographic location all influence costs. Without access to specific benchmark data for comparable projects, it is difficult to definitively state whether this award represents excellent, good, or fair value. However, the 'Full and Open Competition' with 6 bidders suggests a competitive market that likely drove the price towards a reasonable level.

What are the primary risks associated with a 2682-day (approximately 7.3 years) contract duration for preconstruction services?

A contract duration of 2682 days for preconstruction services presents several significant risks. Firstly, the extended timeline increases the potential for market fluctuations in material and labor costs, which could impact the overall project budget, even under a firm-fixed-price contract, if not adequately accounted for. Secondly, there is a higher risk of design changes or scope creep over such a long period, potentially leading to numerous change orders that could inflate the final cost and delay the project. Thirdly, maintaining consistent project oversight and contractor engagement over many years can be challenging. Finally, the prolonged duration might lead to a loss of institutional knowledge or key personnel within the contracting agency or the contractor's team, potentially affecting project continuity and quality.

What is the significance of the contract type being 'FIRM FIXED PRICE' for this courthouse project?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor, W. G. Yates & Sons Construction Company. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs. This provides the government, represented by the GSA, with a high degree of cost certainty. However, it also necessitates a very clearly defined scope of work at the outset. Any deviations or changes required by the government after the contract is awarded will typically be handled through change orders, which can be a point of negotiation and potential conflict. For the government, the benefit is budget predictability, while the contractor bears the burden of managing costs efficiently to ensure profitability.

How does the absence of small business subcontracting goals (sb: false) impact the potential for small business participation?

The absence of explicit small business subcontracting goals (sb: false) means that there is no mandatory requirement for the prime contractor, W. G. Yates & Sons, to subcontract a specific percentage of the work to small businesses. While prime contractors are often encouraged to utilize small businesses, the lack of a formal goal reduces the direct incentive and accountability. This could limit the opportunities for small businesses to participate in this significant $136 million project. It becomes crucial for the GSA to actively monitor and encourage subcontracting opportunities for small businesses, perhaps through outreach or by emphasizing the value of small business participation during contract performance, to ensure that federal small business contracting objectives are still considered.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Yates Companies Inc (UEI: 017041232)

Address: 1 GULLY AVE, PHILADELPHIA, MS, 03

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

Financial Breakdown

Contract Ceiling: $136,091,299

Exercised Options: $136,091,299

Current Obligation: $136,091,299

Timeline