GSA awards $34M contract for courthouse construction services, highlighting full and open competition

Contract Overview

Contract Amount: $34,075,783 ($34.1M)

Contractor: Berglund Construction CO

Awarding Agency: General Services Administration

Start Date: 2006-04-11

End Date: 2015-06-30

Contract Duration: 3,367 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR TO PROVIDE CMC SERVICES AT THE POTTER STEWART COURTHOUSE.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45202, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $34.1 million to BERGLUND CONSTRUCTION CO for work described as: CONTRACTOR TO PROVIDE CMC SERVICES AT THE POTTER STEWART COURTHOUSE. Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract duration of over 9 years indicates a long-term need for these construction services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award to Berglund Construction Co. represents a significant investment in federal infrastructure. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the General Services Administration (GSA), a key federal procurement agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'CMC services' and the Potter Stewart Courthouse project. However, a $34 million contract over a 9-year period suggests an average annual spend of approximately $3.7 million. This figure needs to be compared against similar courthouse construction or renovation projects managed by the GSA to assess if the pricing is competitive. The firm fixed-price nature of the contract provides some predictability, but the overall value depends heavily on the successful execution and final cost of the construction.

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. The presence of 3 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, a competitive process was still employed, which is generally favorable for price discovery and ensuring the government receives a reasonable offer.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment among contractors, potentially leading to better pricing and service quality.

Public Impact

The primary beneficiaries are the users of the Potter Stewart Courthouse, who will experience improved facilities. The contract delivers essential construction and maintenance services for a federal courthouse. The geographic impact is localized to the area where the Potter Stewart Courthouse is situated. The contract supports jobs within the commercial and institutional building construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'CMC services' is not clearly defined and managed.
Long contract duration increases the risk of unforeseen market changes impacting material or labor costs.
Dependence on a single contractor for a significant construction project can create performance risks.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Firm fixed-price contract type offers budget certainty for the government.
The General Services Administration's involvement suggests adherence to established procurement standards.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant area of federal spending. This contract falls within the broader category of government infrastructure development and maintenance. Federal spending in this sector often involves large-scale projects requiring specialized expertise. Comparable benchmarks would include other courthouse constructions, federal building renovations, or similar public infrastructure projects managed by agencies like GSA or the Army Corps of Engineers.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests that the contract was not specifically targeted for small businesses. While there's no explicit mention of subcontracting goals for small businesses, the prime contractor, Berglund Construction Co., may still engage small businesses for specialized services as part of their project execution. Further analysis would be needed to determine the extent of small business involvement through subcontracting.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and financial reviews. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would likely fall under the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

Federal Courthouse Construction
General Services Administration Procurement
Public Buildings Service Projects
Commercial Building Construction Contracts

Risk Flags

Scope definition for 'CMC services' may be unclear.
Potential for cost escalation over the long contract duration.
Contractor performance risk on a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.1 million to BERGLUND CONSTRUCTION CO. CONTRACTOR TO PROVIDE CMC SERVICES AT THE POTTER STEWART COURTHOUSE.

Who is the contractor on this award?

The obligated recipient is BERGLUND CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2006-04-11. End: 2015-06-30.

What specific 'CMC services' are being provided under this contract, and how do they relate to the Potter Stewart Courthouse project?

The provided data does not specify what 'CMC services' entails. CMC typically stands for Construction Management Consulting or Construction Materials Company, among other possibilities. For this contract, it likely refers to construction management or related services essential for the project at the Potter Stewart Courthouse. Without further details from the contract's statement of work, it's impossible to ascertain the precise nature of these services. This ambiguity could represent a risk if the scope is not well-defined, potentially leading to disputes or cost overruns. Understanding the specific services is crucial for evaluating the contract's objectives and performance.

How does the $34 million award compare to the typical cost of similar courthouse construction or renovation projects managed by the GSA?

To accurately benchmark the $34 million award, we would need to compare it against similar projects undertaken by the GSA or other federal agencies. Factors such as the size of the courthouse, the extent of renovation versus new construction, the complexity of the required work, and the geographic location significantly influence project costs. A $34 million project over approximately 9 years averages around $3.7 million annually. This figure needs to be contextualized with data on other federal courthouse projects of comparable scope and complexity to determine if it represents good value for money. Without access to a database of comparable projects and their costs, a definitive assessment of value is not possible.

What are the potential risks associated with a firm fixed-price contract for a long-duration construction project like this?

Firm fixed-price (FFP) contracts are generally preferred by the government for cost control. However, for long-duration construction projects (over 9 years in this case), an FFP contract can introduce risks for the contractor. If material costs, labor rates, or unforeseen site conditions escalate significantly beyond initial projections, the contractor may incur substantial losses. Conversely, if the contractor is highly efficient or market conditions improve, they could realize higher-than-expected profits. For the government, the primary risk with FFP on long projects is that the initial price might be inflated to account for contractor risk, or that the contractor may cut corners on quality to protect their profit margin if costs rise unexpectedly. Robust oversight is crucial to mitigate these risks.

What does the level of competition (3 bids) suggest about the market for these types of construction services?

Receiving 3 bids for a federal construction contract generally indicates a moderate level of competition. While more bids could potentially lead to more competitive pricing, 3 bidders suggest that the market is not overly concentrated or limited. It implies that there are multiple capable firms interested in and able to undertake such projects. This level of competition is sufficient to provide the government with options and encourage reasonable pricing, though it might not represent the most aggressive price discovery possible. The specific nature of the 'CMC services' and the project's location could influence the number of interested bidders.

What is the historical spending pattern for construction services by the General Services Administration in Ohio?

The provided data indicates this contract was awarded to Berglund Construction Co. in Ohio (st: OH, sn: OHIO). To analyze historical spending patterns, one would need to query federal procurement databases for all contracts awarded by the GSA (or specifically the Public Buildings Service) in Ohio within the construction sector (NAICS 236220 and related codes) over a period of several years. This would reveal trends in contract values, types of services procured, and the distribution of awards among contractors. Such an analysis would help contextualize the $34 million award within the broader GSA procurement landscape in Ohio and identify any significant shifts or consistencies in spending.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8410 SOUTH CHICAGO AVENUE, CHICAGO, IL, 60617

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

Financial Breakdown

Contract Ceiling: $34,075,783

Exercised Options: $34,075,783

Current Obligation: $34,075,783

Timeline