GSA's $19.9M contract for Chicago federal building maintenance awarded to Gilbane Building Company
Contract Overview
Contract Amount: $19,889,938 ($19.9M)
Contractor: Gilbane Building Company
Awarding Agency: General Services Administration
Start Date: 2006-06-05
End Date: 2006-12-31
Contract Duration: 209 days
Daily Burn Rate: $95.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CMC SERVICES FOR THE FEDERAL BUILDING LOCATED AT 536 SOUTH CLARK STREET IN CHICAGO, IL. GILBANE BUILDING COMPANY.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60604
State: Illinois Government Spending
Plain-Language Summary
General Services Administration obligated $19.9 million to GILBANE BUILDING COMPANY for work described as: CMC SERVICES FOR THE FEDERAL BUILDING LOCATED AT 536 SOUTH CLARK STREET IN CHICAGO, IL. GILBANE BUILDING COMPANY. Key points: 1. Contract value represents a significant investment in maintaining a key federal facility. 2. Awarded through full and open competition, suggesting a robust market response. 3. Performance period of 209 days indicates a focused, short-term maintenance effort. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Contractor, Gilbane Building Company, has a substantial presence in federal construction and maintenance. 6. Geographic focus on Chicago highlights localized federal infrastructure needs.
Value Assessment
Rating: good
The contract value of approximately $19.9 million for a 209-day period for building maintenance services at the federal building in Chicago appears reasonable given the scope of work. Benchmarking against similar large-scale federal building maintenance contracts would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the General Services Administration (GSA) solicited bids from all responsible prospective contractors. The presence of 3 bidders, as indicated in the data, suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.
Taxpayer Impact: Full and open competition generally results in more competitive pricing, meaning taxpayers benefit from potentially lower costs compared to sole-source or limited competition awards.
Public Impact
Federal employees and visitors benefit from a well-maintained and safe working environment within the federal building. Essential building maintenance services, including potentially HVAC, plumbing, electrical, and structural upkeep, are delivered. The geographic impact is localized to Chicago, Illinois, ensuring the operational integrity of a federal facility in a major metropolitan area. The contract supports jobs within the construction and building maintenance sectors, likely benefiting skilled tradespeople and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work was underestimated by the contractor, though mitigated by firm-fixed-price.
- Ensuring consistent quality of maintenance services throughout the contract period requires diligent oversight.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Firm fixed-price contract type transfers cost risk to the contractor.
- Contractor, Gilbane Building Company, is an established entity with experience in similar projects.
Sector Analysis
This contract falls within the broader construction and facilities management sector, specifically focusing on the maintenance and upkeep of government-owned real estate. The federal government, through agencies like GSA, is a significant consumer of these services. Spending in this area is crucial for preserving the lifespan and functionality of federal buildings, ensuring operational continuity, and providing safe environments for federal employees and the public. Comparable spending benchmarks would involve analyzing other large federal building maintenance contracts across different regions.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Gilbane Building Company, may engage small businesses as subcontractors for specialized services, which would contribute to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily be managed by the General Services Administration (GSA), likely through a contracting officer's representative (COR). Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is facilitated by the public nature of federal contract awards. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the GSA's Office of Inspector General typically oversees agency spending and contract performance for potential fraud, waste, and abuse.
Related Government Programs
- Federal Building Maintenance Contracts
- General Services Administration Real Property Management
- Public Buildings Service Operations
- Large-Scale Construction Services
Risk Flags
- Potential for cost escalation if scope is not clearly defined.
- Quality control and assurance are critical for long-term asset preservation.
- Contractor performance history should be thoroughly vetted.
Tags
construction, facilities-management, building-maintenance, general-services-administration, chicago, illinois, firm-fixed-price, full-and-open-competition, large-contract, federal-building
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $19.9 million to GILBANE BUILDING COMPANY. CMC SERVICES FOR THE FEDERAL BUILDING LOCATED AT 536 SOUTH CLARK STREET IN CHICAGO, IL. GILBANE BUILDING COMPANY.
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2006-06-05. End: 2006-12-31.
What is Gilbane Building Company's track record with the federal government, particularly with the GSA?
Gilbane Building Company has a significant and long-standing track record of performing work for the federal government, including numerous contracts with the General Services Administration (GSA). Their experience spans a wide range of construction, renovation, and facilities management projects for various federal agencies. This includes work on courthouses, office buildings, and other critical infrastructure. Their history suggests a capacity to handle large-scale federal projects and navigate the complexities of government contracting. A detailed review of their past performance ratings and any past performance issues would provide further insight into their reliability for this specific contract.
How does the awarded amount compare to similar federal building maintenance contracts in major metropolitan areas?
The awarded amount of approximately $19.9 million for a 209-day contract for building maintenance at the federal building in Chicago is substantial. To benchmark this effectively, one would need to compare it against contracts for similar-sized federal buildings in other major metropolitan areas (e.g., New York, Los Angeles, Washington D.C.) over comparable timeframes. Factors such as the age and complexity of the building's systems, the specific scope of maintenance required (e.g., routine vs. major overhauls), and prevailing labor and material costs in the respective regions would influence these comparisons. Without access to a database of comparable contracts, a precise benchmark is difficult, but the value suggests a significant scope of work.
What are the primary risks associated with a firm-fixed-price contract for building maintenance, and how are they mitigated?
The primary risk with a firm-fixed-price (FFP) contract for building maintenance lies with the contractor (Gilbane Building Company) potentially underestimating the scope of work or encountering unforeseen issues, leading to reduced profit margins or even losses if they cannot control costs. For the government, the risk is that the contractor might cut corners on quality to maintain profitability, or that the initial price might be inflated to account for contractor risk. Mitigation strategies for the government include thorough pre-bid scope definition, robust performance specifications, diligent oversight by a Contracting Officer's Representative (COR) to ensure quality standards are met, and clear contract clauses addressing non-performance or quality deficiencies.
What is the expected effectiveness of the maintenance services delivered under this contract?
The expected effectiveness of the maintenance services hinges on the clarity of the contract's performance work statement (PWS) and the contractor's ability to execute it. Assuming the PWS adequately defines the required maintenance tasks, schedules, and quality standards for the federal building at 536 South Clark Street, the services should ensure the building's operational integrity, safety, and habitability. Effectiveness will be measured by the contractor's adherence to the PWS, timely completion of tasks, and the absence of critical system failures or safety incidents during the contract period. The GSA's oversight and performance evaluations will be key indicators of effectiveness.
How has federal spending on building maintenance in Chicago trended over the past five years?
Analyzing the trend of federal spending on building maintenance specifically in Chicago over the past five years would require access to detailed federal procurement databases. This data would allow for the aggregation of contract awards related to building maintenance, repair, and operations for federal facilities within the Chicago metropolitan area. Such an analysis could reveal patterns of increased or decreased investment, identify major projects, and highlight shifts in contracting strategies (e.g., more FFP vs. cost-plus contracts). Without this specific data, it's impossible to provide a trend analysis, but it's a crucial area for understanding the context of this particular $19.9 million award.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 8550 W BRYN MAWR AVE # 50, CHICAGO
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,889,983
Exercised Options: $19,889,983
Current Obligation: $19,889,938
Timeline
Start Date: 2006-06-05
Current End Date: 2006-12-31
Potential End Date: 2010-09-20 00:00:00
Last Modified: 2011-06-29
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