GSA awards $125M for Richard Bolling Federal Building renovation, highlighting significant infrastructure investment in Kansas City

Contract Overview

Contract Amount: $125,310,998 ($125.3M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: General Services Administration

Start Date: 2008-08-25

End Date: 2015-06-30

Contract Duration: 2,500 days

Daily Burn Rate: $50.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RICHARD BOLLING FEDERAL BUILDING - PHASE IV RENOVATION 601 E. 12TH STREET KANSAS CITY, MO

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $125.3 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: RICHARD BOLLING FEDERAL BUILDING - PHASE IV RENOVATION 601 E. 12TH STREET KANSAS CITY, MO Key points: 1. The contract represents a substantial investment in federal building infrastructure, focusing on modernization and long-term facility management. 2. Competition dynamics for large-scale construction projects can influence pricing and contractor selection, impacting overall value. 3. Project duration and fixed-price nature suggest a defined scope, but potential for change orders could affect final cost. 4. The award to J. E. Dunn Construction Company indicates a focus on established contractors with demonstrated experience in complex projects. 5. Geographic concentration of the project in Kansas City, MO, implies localized economic and workforce impacts. 6. The absence of small business set-asides warrants examination of subcontracting opportunities for smaller firms.

Value Assessment

Rating: good

The $125.3 million contract for the Richard Bolling Federal Building renovation is a significant public works expenditure. Benchmarking against similar large-scale federal building renovations is complex due to unique project scopes and locations. However, the firm-fixed-price contract type suggests a degree of cost certainty for the government, provided scope remains controlled. The duration of the project (2008-2015) also implies a substantial undertaking, typical for major renovations of federal facilities.

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 solicited and evaluated. This method is generally preferred for maximizing competition and achieving the best value for the government. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should have driven pricing towards market rates.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are federal agencies operating within the Richard Bolling Federal Building, who will gain modernized and improved facilities. The project delivers essential renovation and construction services, ensuring the long-term viability and functionality of a key federal asset. The geographic impact is concentrated in Kansas City, Missouri, potentially creating local jobs and stimulating the regional construction economy. Workforce implications include employment opportunities for construction workers, project managers, and related trades during the project's extensive timeline.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if change orders are extensive due to unforeseen renovation challenges.
Long project duration increases exposure to market fluctuations in material and labor costs.
Lack of specific small business participation targets may limit opportunities for smaller firms in the subcontracting chain.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base scope of work.
Full and open competition suggests a robust bidding process aimed at securing value.
Award to an established construction company like J. E. Dunn implies a focus on experience and capability for a complex project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal building renovations are crucial for maintaining government infrastructure, often involving substantial investments. Comparable spending benchmarks would typically be assessed against other large-scale public building projects, considering factors like square footage, complexity, and location. The General Services Administration (GSA) is a major player in managing and renovating federal properties nationwide.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside criterion, as 'sb' is false. This suggests the primary contract was awarded based on best value without a specific small business goal. However, the prime contractor, J. E. Dunn Construction Company, may engage small businesses as subcontractors. An analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this project would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. The firm-fixed-price contract type provides a degree of financial oversight by fixing the price. Transparency would be facilitated through GSA's public contract databases and reporting. Accountability measures are inherent in the contract terms, with potential penalties for non-performance or delays. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Renovations
Public Infrastructure Projects
GSA Capital Investments
Large-Scale Construction Contracts
Missouri State Construction Spending

Risk Flags

Potential for scope creep impacting budget and schedule.
Long project duration increases exposure to market volatility.
Adequacy of contingency planning for unforeseen site conditions.
Ensuring effective coordination with building occupants during renovation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $125.3 million to J. E. DUNN CONSTRUCTION COMPANY. RICHARD BOLLING FEDERAL BUILDING - PHASE IV RENOVATION 601 E. 12TH STREET KANSAS CITY, MO

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 $125.3 million.

What is the period of performance?

Start: 2008-08-25. End: 2015-06-30.

What was the track record of J. E. Dunn Construction Company with the GSA prior to this award?

Prior to the award of the Richard Bolling Federal Building renovation contract in 2008, J. E. Dunn Construction Company had a history of working with the General Services Administration on various projects. While specific details of all prior GSA contracts are not readily available in this dataset, large construction firms like J. E. Dunn often secure multiple contracts with federal agencies over time. Their experience with federal projects, including adherence to federal regulations, security protocols, and reporting requirements, would have been a key factor in their selection for this significant renovation. The GSA typically vets contractors based on past performance, financial stability, and technical capabilities, suggesting J. E. Dunn met these criteria.

How does the per-square-foot cost of this renovation compare to similar federal building projects?

Determining the precise per-square-foot cost for this renovation requires additional data, specifically the total square footage of the Richard Bolling Federal Building and the final adjusted contract value. The provided data shows a base award of approximately $125.3 million. Without the building's size, a direct comparison is impossible. However, large-scale federal building renovations can range significantly in cost per square foot, often between $200 to over $600 per square foot, depending on the scope of work (e.g., structural upgrades, MEP systems, interior finishes, energy efficiency improvements) and geographic location. Given the project's duration and the nature of a major renovation, it likely involved extensive upgrades, placing it within the mid-to-higher range of such projects.

What were the primary risks identified during the bidding process for this contract?

For a large-scale, multi-year construction project like the Richard Bolling Federal Building renovation, primary risks identified during the bidding process would typically include: 1) Schedule delays due to unforeseen site conditions, permitting issues, or contractor performance. 2) Cost overruns, particularly if the fixed-price contract did not adequately account for potential fluctuations in material prices or the need for extensive change orders. 3) Technical risks related to the complexity of integrating new systems with existing infrastructure. 4) Contractor performance risks, ensuring the chosen firm had the capacity and expertise to manage such a large undertaking. 5) Potential disruptions to ongoing federal operations within the building. The GSA's procurement process aims to mitigate these risks through thorough evaluations of technical proposals, past performance, and financial stability of bidders.

How effective has the GSA been in managing similar large-scale building renovation projects?

The General Services Administration (GSA) manages a vast portfolio of federal buildings and has extensive experience with large-scale renovation projects. Their effectiveness can be assessed through various metrics, including project completion rates, adherence to budget and schedule, and post-renovation facility performance. While the GSA has a mandate to provide high-quality, sustainable federal workspaces, like any large organization, it faces challenges. Successes often involve modernizing aging infrastructure, improving energy efficiency, and enhancing workplace functionality. Challenges can include budget constraints, complex procurement processes, and managing the sheer scale and diversity of its real estate holdings. Publicly available reports from the GSA Inspector General and Government Accountability Office (GAO) often provide insights into the effectiveness and areas for improvement in GSA's project management.

What is the historical spending trend for federal building renovations managed by the GSA?

Historical spending trends for federal building renovations managed by the GSA generally reflect the overall federal budget, infrastructure needs, and priorities. Over the years, there has been a consistent need for modernization and repair of the federal building inventory, which often ages beyond its useful life. Spending can fluctuate based on economic conditions, congressional appropriations, and specific administration initiatives focused on infrastructure investment. The GSA's budget for repairs and alterations (R&A) is a key indicator. In recent years, there has been a growing emphasis on sustainable building practices and resilience, which can influence the scope and cost of renovations. Tracking GSA's R&A budget over time, alongside major renovation awards like the one for the Richard Bolling Federal Building, provides insight into these trends.

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: 1

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, 64106

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

Financial Breakdown

Contract Ceiling: $125,310,998

Exercised Options: $125,310,998

Current Obligation: $125,310,998

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline