GSA's $109M facade recladding project awarded to DCK North America, highlighting construction management needs

Contract Overview

Contract Amount: $108,834,230 ($108.8M)

Contractor: DCK North America, LLC

Awarding Agency: General Services Administration

Start Date: 2009-12-03

End Date: 2015-09-30

Contract Duration: 2,127 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE A. J. CELEBREZZE FACADE RECLADDING PROJECT IN CLEVELAND, OHIO.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44101

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $108.8 million to DCK NORTH AMERICA, LLC for work described as: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE A. J. CELEBREZZE FACADE RECLADDING PROJECT IN CLEVELAND, OHIO. Key points: 1. The contract value suggests a significant investment in building infrastructure, likely involving complex project management. 2. The use of a Definitive Contract indicates a long-term relationship for a specific project. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project's focus on facade recladding points to a need for specialized building envelope expertise. 5. The duration of the contract (over 2000 days) implies a substantial and multi-phased construction effort.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of work and market conditions at the time of award. However, a $109 million contract for facade recladding on a federal building suggests a significant undertaking. The firm-fixed-price nature provides cost certainty, but the overall value-for-money depends heavily on the execution and final outcome of the project. Without comparable projects or detailed cost breakdowns, a precise assessment of pricing efficiency is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The presence of 5 bids suggests a reasonable level of interest from the market for this type of construction project.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, driving down prices and improving the quality of services received.

Public Impact

The primary beneficiaries are the occupants and users of the A. J. Celebrezze Federal Building in Cleveland, Ohio, who will experience improved building envelope performance and aesthetics. The project delivers essential building envelope repair and modernization services, ensuring the long-term structural integrity and energy efficiency of a federal facility. The geographic impact is localized to Cleveland, Ohio, supporting the federal government's presence in the region. The contract likely supports a significant number of construction jobs, including skilled trades, project managers, and support staff, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive recladding process.
Risk of project delays impacting building operations and user satisfaction.
Dependence on the contractor's ability to manage complex construction logistics in an occupied federal building.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that could lead to better value.
The project addresses critical infrastructure needs, ensuring the longevity of a federal asset.

Sector Analysis

The construction industry, particularly the commercial and institutional building construction sector, is characterized by large-scale projects requiring specialized expertise. Federal building maintenance and renovation contracts represent a significant segment of this market. This contract fits within the broader category of federal infrastructure spending aimed at preserving and modernizing government-owned facilities. Comparable spending benchmarks would typically involve other large federal building renovation projects, with costs varying based on building size, complexity, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, DCK North America, LLC, is likely a large business. While there's no explicit mention of small business subcontracting goals in the provided data, large federal construction contracts often include requirements for small business participation. The impact on the small business ecosystem would depend on whether DCK North America actively seeks to subcontract portions of the work to qualified small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include regular progress meetings, site inspections, and performance reviews to ensure adherence to contract terms, quality standards, and timelines. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Modernization Programs
Public Infrastructure Construction
General Services Administration Capital Investments
Building Envelope Repair and Maintenance

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Facade projects can encounter unforeseen conditions requiring additional funding.
Dependence on a single contractor for a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $108.8 million to DCK NORTH AMERICA, LLC. TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE A. J. CELEBREZZE FACADE RECLADDING PROJECT IN CLEVELAND, OHIO.

Who is the contractor on this award?

The obligated recipient is DCK NORTH AMERICA, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $108.8 million.

What is the period of performance?

Start: 2009-12-03. End: 2015-09-30.

What was the specific scope of work for the A. J. Celebrezze facade recladding project?

The provided data indicates the project involved 'CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE A. J. CELEBREZZE FACADE RECLADDING PROJECT'. This suggests the contract encompassed managing and executing the recladding of the building's facade. Specifics would likely include removal of existing facade materials, installation of new cladding systems, insulation upgrades, window replacements, and potentially associated structural repairs or waterproofing. The 'Construction Manager as Constructor' role implies the contractor was responsible for both pre-construction services (planning, design review) and direct construction execution, often involving self-performance of certain tasks and management of subcontractors.

How does the $108.8 million contract value compare to similar federal building facade projects?

Directly comparing the $108.8 million value requires detailed project scope, building size, and location-specific cost data, which is not fully available. However, for a major federal building, a facade recladding project of this magnitude is substantial. Large-scale facade renovations on significant public structures can easily run into tens of millions of dollars, especially if they involve complex materials, energy efficiency upgrades, or historical preservation requirements. The duration of nearly six years also suggests a comprehensive and potentially phased approach, contributing to the overall cost. Without specific benchmarks for similar GSA projects of comparable size and complexity, it's difficult to definitively label this as high or low, but it represents a significant capital investment.

What are the key risks associated with a project of this scale and duration?

Key risks for a nearly six-year, $109 million facade recladding project include: 1) **Unforeseen Conditions:** Discovering structural issues, hazardous materials (like asbestos), or unexpected site constraints during demolition can significantly increase costs and timelines. 2) **Scope Creep:** Changes or additions to the original scope requested by the agency or identified during construction can lead to budget overruns and delays. 3) **Contractor Performance:** Ensuring the contractor maintains quality standards, manages subcontractors effectively, and adheres to the schedule over such a long period is critical. 4) **Material and Labor Cost Volatility:** Fluctuations in the price of construction materials and availability of skilled labor over several years can impact project costs, even under a firm-fixed-price contract if contingencies are not adequately managed. 5) **Weather Delays:** Construction, especially facade work, is highly susceptible to weather, which can cause significant schedule disruptions.

What does the 'Construction Manager as Constructor' (CMC) contract type imply for project execution?

The 'Construction Manager as Constructor' (CMC) model implies a hybrid approach where the contractor takes on responsibilities typically split between a construction manager (CM) and a general contractor. In a CMC role, the contractor is involved early in the design phase, providing constructability reviews and cost estimating. Crucially, during the construction phase, the CMC often performs a significant portion of the work with its own forces while also managing and coordinating subcontractors. This model can offer benefits like streamlined communication and potentially faster project delivery, but it also places a high degree of responsibility on the CMC for both management and direct execution, requiring robust internal capabilities and oversight.

How has federal spending on building construction and renovation evolved, and where does this contract fit?

Federal spending on building construction and renovation fluctuates based on infrastructure needs, agency priorities, and budget appropriations. Historically, there have been periods of significant investment in federal facilities, followed by times of deferred maintenance. This contract, awarded in late 2009 and spanning through 2015, falls within a period where infrastructure investment was a focus. The $109 million allocated for the facade recladding of a specific federal building represents a targeted investment in maintaining and modernizing a key piece of government real estate. It aligns with broader federal efforts to ensure the safety, efficiency, and longevity of its building portfolio, preventing deterioration and reducing long-term lifecycle costs.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DCK Worldwide, LLC

Address: 1900 ROUTE 51, CLAIRTON, PA, 15025

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

Financial Breakdown

Contract Ceiling: $108,834,230

Exercised Options: $108,834,230

Current Obligation: $108,834,230

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline