GSA awards $60M contract for pre-construction services to J.E. Dunn Construction Company

Contract Overview

Contract Amount: $59,941,064 ($59.9M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: General Services Administration

Start Date: 2007-03-08

End Date: 2013-12-31

Contract Duration: 2,490 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRE-CONSTRUCTION PHASE SERVICES

Place of Performance

Location: JEFFERSON CITY, COLE County, MISSOURI, 65101

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $59.9 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: PRE-CONSTRUCTION PHASE SERVICES Key points: 1. Contract value of $59.9M for pre-construction services. 2. Awarded by the General Services Administration (GSA) Public Buildings Service. 3. Contract type is Firm Fixed Price, indicating defined costs. 4. Duration of 2490 days suggests a long-term project. 5. No small business set-aside, indicating a focus on larger firms. 6. Competition was full and open, suggesting a broad search for bidders.

Value Assessment

Rating: fair

The contract value of $59.9 million for pre-construction services appears substantial. Without specific details on the scope of these services (e.g., design, planning, risk assessment), it's difficult to benchmark against similar contracts. The firm fixed-price nature provides cost certainty, but the long duration could introduce risks if not managed effectively. Further analysis would require understanding the deliverables and market rates for comparable pre-construction phases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 2 bidders suggests a moderate level of competition for this specific pre-construction services contract. While two bidders participated, the extent of the competition's effectiveness in driving down costs or ensuring the best value cannot be fully determined without knowing the bid amounts and the specific requirements of the solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider pool of potential contractors, which can lead to more competitive pricing and a greater likelihood of selecting the most qualified bidder.

Public Impact

The primary beneficiaries are likely federal agencies requiring new or renovated building infrastructure managed by the GSA. Services delivered include essential planning and preparation for construction projects, ensuring a solid foundation before physical work begins. The geographic impact is tied to the specific projects undertaken by the GSA, potentially across various locations within Missouri, as indicated by the 'MO' code. Workforce implications include employment opportunities for architects, engineers, project managers, and other professionals involved in the pre-construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2490 days) may lead to cost overruns if not closely monitored.
Firm Fixed Price contract could incentivize contractor to cut corners on quality if not properly overseen.
Lack of small business participation might limit innovation and broader economic impact.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a robust process for selecting the contractor.
Award to an established entity like J.E. Dunn Construction Company may indicate a track record of successful project delivery.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on pre-construction services. This sector is vital for developing and maintaining public infrastructure. The value of $59.9 million is significant for a pre-construction phase, suggesting a large-scale or complex project. Comparable spending benchmarks would depend on the specific type and scale of the building project the services are supporting.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the scope or requirements of the pre-construction services were likely geared towards larger firms with the capacity and expertise to handle such a significant undertaking. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader small business engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight information may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Construction
Public Infrastructure Projects
Architectural and Engineering Services
Construction Management Services

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Lack of small business participation could limit broader economic benefits.
Pre-construction services scope is not detailed, making value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $59.9 million to J. E. DUNN CONSTRUCTION COMPANY. PRE-CONSTRUCTION PHASE SERVICES

Who is the contractor on this award?

The obligated recipient is J. E. DUNN 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 $59.9 million.

What is the period of performance?

Start: 2007-03-08. End: 2013-12-31.

What specific pre-construction services are included in this $59.9 million contract?

The provided data indicates the contract is for 'PRE-CONSTRUCTION PHASE SERVICES' with a value of $59,941,064. However, the specific details of these services are not itemized in the given data. Typically, pre-construction services can encompass a wide range of activities, including feasibility studies, site analysis, conceptual design, detailed design development, cost estimating, value engineering, scheduling, permitting assistance, and procurement strategy development. The long duration of the contract (2490 days) suggests these services are comprehensive and integral to a large-scale construction project. Without the full contract document or a detailed statement of work, the precise scope remains undefined.

How does the $59.9 million contract value compare to typical pre-construction service costs for similar federal projects?

Benchmarking the $59.9 million contract value for pre-construction services is challenging without knowing the specific project's scale, complexity, and location. Pre-construction costs can range significantly, often representing a percentage of the total construction cost, typically between 5% and 15% for design and planning phases. If this contract represents the entirety of pre-construction services for a large federal building, the amount might be within a reasonable range. However, if it covers only a portion, or if the total construction project is smaller than anticipated for this expenditure, it could be considered high. Further analysis would require comparing it to similar GSA projects of comparable size and scope.

What are the potential risks associated with a 2490-day contract duration for pre-construction services?

A 2490-day (approximately 6.8 years) duration for pre-construction services presents several potential risks. Firstly, market conditions, material costs, and labor rates can fluctuate significantly over such a long period, potentially impacting the accuracy of initial cost estimates and the overall project budget if not managed with robust escalation clauses or contingency planning. Secondly, design and technological advancements may occur, potentially rendering initial designs or specifications outdated before construction even begins, necessitating costly revisions. Thirdly, there's a risk of contractor "scope creep" or a decline in performance over an extended period if oversight is not consistently rigorous. Finally, changes in federal funding priorities or agency needs could lead to project delays, cancellations, or significant modifications, impacting the contractor's ability to maintain momentum and expertise.

What is the track record of J. E. Dunn Construction Company with federal contracts, particularly with the GSA?

J. E. Dunn Construction Company is a large, well-established construction firm with a significant history of undertaking complex projects, including those for federal agencies. While specific details of their past performance with the GSA are not provided in this data snippet, their general reputation suggests they possess the capacity and experience for large-scale federal contracts. Federal contract databases often contain performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) that would offer more granular insights into their past performance, including timeliness, quality of work, and adherence to budget on previous government projects. A review of these records would be necessary for a comprehensive assessment.

How does the 'Firm Fixed Price' contract type influence the risk allocation between the government and J. E. Dunn Construction Company?

A Firm Fixed Price (FFP) contract type places the majority of the cost risk on the contractor, J. E. Dunn Construction Company. This means the contractor agrees to a set price for the defined scope of work, and they are responsible for managing their costs to remain profitable. If their costs exceed the fixed price, their profit margin decreases, or they may incur a loss. Conversely, if they manage their costs effectively and complete the work under budget, their profit increases. For the government, an FFP contract offers significant cost certainty, as the final price is known upfront, barring any contract modifications. This type of contract is generally preferred when the scope of work is well-defined and risks are manageable by the contractor.

What does the absence of small business participation (SB=false) imply for this contract?

The indication that this contract did not involve small business participation (SB=false) suggests that the requirements for the pre-construction services were likely deemed too complex, specialized, or large in scope for small businesses to effectively compete or fulfill. Federal agencies often use small business set-asides to promote competition among smaller firms and foster economic growth. When a contract is not set aside, it typically means it was competed under full and open competition, and the resulting award went to the best value offeror, which in this case was not a small business. This could also imply that the contractor, J. E. Dunn, is a large business, and there may be limited opportunities for small businesses to participate as subcontractors unless specifically required or pursued by the prime contractor.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JE Dunn Construction Group Inc (UEI: 007836448)

Address: 1001 LOCUST, KANSAS CITY, MO, 05

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

Financial Breakdown

Contract Ceiling: $59,941,064

Exercised Options: $59,941,064

Current Obligation: $59,941,064

Timeline