AFRH Awards $205.7M Design-Build Contract for Gulfport Facility Demolition and Construction
Contract Overview
Contract Amount: $205,671,823 ($205.7M)
Contractor: W. G. Yates & Sons Construction Company
Awarding Agency: General Services Administration
Start Date: 2007-09-20
End Date: 2012-03-30
Contract Duration: 1,653 days
Daily Burn Rate: $124.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE ARMED FORCES RETIREMENT HOME (AFRH) HAS A REQUIREMENT TO PROCURE A FIRM FIXED-PRICE DESIGN BUILD SERVICE CONTRACT TO DEMOLISH AND CONSTRUCTION OF THE NEW ARMED FORCES RETIREMENT HOME IN GULFPORT,MS. THE REMEDIATION AND DEMOLITION OF THE AIR FORCE RETIREMENT HOME IS NECESSARY TO BE CLEARED FROM THE SITE IN ORDER TO CONSTRUCT THE NEW AIR FORCE RETIREMENT HOME.
Place of Performance
Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501
Plain-Language Summary
General Services Administration obligated $205.7 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: THE ARMED FORCES RETIREMENT HOME (AFRH) HAS A REQUIREMENT TO PROCURE A FIRM FIXED-PRICE DESIGN BUILD SERVICE CONTRACT TO DEMOLISH AND CONSTRUCTION OF THE NEW ARMED FORCES RETIREMENT HOME IN GULFPORT,MS. THE REMEDIATION AND DEMOLITION OF THE AIR FORCE RETIREMENT HOME IS NECESSARY… Key points: 1. Significant investment in infrastructure for the Armed Forces Retirement Home. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. Risk associated with large-scale construction projects, including potential delays and cost overruns. 4. Sector is primarily construction, specifically new multifamily housing.
Value Assessment
Rating: fair
The contract value of $205.7 million for a design-build service contract for demolition and new construction is substantial. Benchmarking against similar large-scale government construction projects would be necessary to assess its pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The selection of W. G. Yates & Sons Construction Company indicates they were the most advantageous offer.
Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure project aimed at improving facilities for military retirees.
Public Impact
Improved living and operational facilities for residents of the Armed Forces Retirement Home. Potential for job creation in the Gulfport, Mississippi area during the construction phase. Modernization of critical infrastructure for a veteran support organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Construction project complexity
- Potential for unforeseen site conditions during demolition
- Long project duration (over 4 years)
Positive Signals
- Full and open competition
- Firm fixed-price contract type can limit cost escalation
Sector Analysis
This contract falls within the construction sector, specifically new multifamily housing. Government spending on construction projects of this scale is common for infrastructure development and facility upgrades.
Small Business Impact
The data indicates the prime contractor is W. G. Yates & Sons Construction Company, and there is no explicit mention of small business participation. Further investigation would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The General Services Administration (GSA), Public Buildings Service, is the contracting agency, implying standard federal procurement oversight. The firm fixed-price contract type provides some cost control, but oversight of project execution is crucial.
Related Government Programs
- New Multifamily Housing Construction (except For-Sale Builders)
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Large contract value increases financial risk.
- Long project duration increases risk of scope creep and cost escalation.
- Demolition phase may uncover unforeseen environmental hazards.
- Reliance on a single prime contractor for complex design and build.
Tags
new-multifamily-housing-construction-exc, general-services-administration, ms, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $205.7 million to W. G. YATES & SONS CONSTRUCTION COMPANY. THE ARMED FORCES RETIREMENT HOME (AFRH) HAS A REQUIREMENT TO PROCURE A FIRM FIXED-PRICE DESIGN BUILD SERVICE CONTRACT TO DEMOLISH AND CONSTRUCTION OF THE NEW ARMED FORCES RETIREMENT HOME IN GULFPORT,MS. THE REMEDIATION AND DEMOLITION OF THE AIR FORCE RETIREMENT HOME IS NECESSARY TO BE CLEARED FROM THE SITE IN ORDER TO CONSTRUCT THE NEW AIR FORCE RETIREMENT HOME.
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 $205.7 million.
What is the period of performance?
Start: 2007-09-20. End: 2012-03-30.
What were the key performance metrics and milestones established in the contract to ensure timely and quality completion of the demolition and construction?
The contract likely included detailed performance specifications, delivery schedules, and quality assurance provisions. Milestones would typically be tied to design completion, demolition progress, foundation work, structural completion, and final occupancy. Adherence to these would be monitored by the contracting officer's representative (COR) to ensure the project meets AFRH's needs and federal standards.
How were potential environmental remediation risks identified and mitigated during the design and demolition phases?
Given the demolition requirement, environmental assessments (like Phase I and potentially Phase II ESAs) were likely conducted prior to contract award to identify hazardous materials. The contract's design-build nature should incorporate mitigation strategies for any identified contaminants, with costs and procedures clearly defined to ensure safe remediation and disposal according to regulations.
What is the projected long-term operational cost savings or efficiency gains expected from the new facility compared to the old one?
The new facility is expected to offer improved energy efficiency, reduced maintenance requirements, and potentially better space utilization, leading to lower long-term operational costs. Modern building codes and sustainable design principles likely incorporated into the new construction should contribute to these savings over the facility's lifespan.
Industry Classification
NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)
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-04P-07-EX-C-0099
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Yates Companies Inc (UEI: 017041232)
Address: ONE GULLY AVE, PHILADELPHIA, MS, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $205,671,823
Exercised Options: $205,671,823
Current Obligation: $205,671,823
Timeline
Start Date: 2007-09-20
Current End Date: 2012-03-30
Potential End Date: 2012-03-30 00:00:00
Last Modified: 2011-12-22
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