GSA's $67M FBI Field Office contract awarded to W. G. Yates & Sons, utilizing full and open competition

Contract Overview

Contract Amount: $66,970,547 ($67.0M)

Contractor: W. G. Yates & Sons Construction Company

Awarding Agency: General Services Administration

Start Date: 2005-03-31

End Date: 2009-03-20

Contract Duration: 1,450 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRECONSTRUCTION VALUE ENGINEERING SERVICES WITH A CONSTRUCTION OPTION FOR NEW FBI FIELD OFFICE, HOUSTON, TX

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77092

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $67.0 million to W. G. YATES & SONS CONSTRUCTION COMPANY for work described as: PRECONSTRUCTION VALUE ENGINEERING SERVICES WITH A CONSTRUCTION OPTION FOR NEW FBI FIELD OFFICE, HOUSTON, TX Key points: 1. The contract's value engineering component suggests an effort to optimize costs during the preconstruction phase. 2. Full and open competition indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract duration of approximately 4 years (1450 days) is substantial for a construction project of this nature. 4. The award was made by the General Services Administration (GSA), a key agency for federal building construction. 5. The project's focus on a new FBI Field Office highlights investment in critical law enforcement infrastructure. 6. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor.

Value Assessment

Rating: good

The contract value of $67 million for preconstruction services and construction of an FBI Field Office in Houston appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar federal building projects would provide a more precise assessment, but the inclusion of value engineering suggests a proactive approach to cost management. The firm fixed-price structure also provides cost certainty, although it may command a premium compared to cost-plus contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 14 bidders (no) indicates a healthy level of interest and competition for this significant federal construction project. This broad competition is generally expected to drive down prices and encourage innovative solutions from the bidding firms.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it increases the likelihood of securing the best possible price for the services and construction required for the FBI Field Office.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation (FBI), which will gain a new, modern field office facility. The contract delivers essential preconstruction services and the construction of a significant federal building. The geographic impact is localized to Houston, Texas, providing a critical law enforcement presence in the region. The project will likely create numerous jobs in the construction sector, including skilled trades and project management roles in the Houston area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all project contingencies.
The long duration of the contract could expose the project to risks associated with material price fluctuations or labor availability.
Ensuring the quality of construction meets the stringent requirements for an FBI facility will be critical.

Positive Signals

The use of value engineering in the preconstruction phase aims to identify cost savings and efficiencies.
Firm Fixed Price contract type provides budget certainty for the government.
Awarding to a single contractor for both preconstruction and construction can streamline project delivery and communication.

Sector Analysis

This contract falls within the federal construction sector, specifically for specialized government facilities. The General Services Administration (GSA) is a major player in federal building acquisition and management. The market for large-scale federal construction projects is competitive, with numerous firms capable of undertaking such work. The value of this contract, approximately $67 million, places it in the mid-to-large tier for federal building projects.

Small Business Impact

The data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Given the scale and nature of the project, it is possible that the prime contractor, W. G. Yates & Sons Construction Company, may engage small businesses for specialized services or materials, but this is not explicitly detailed in the provided information. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction projects, including project management teams, regular site inspections, and financial reviews. The firm fixed-price nature of the contract shifts some financial risk to the contractor, but GSA would still monitor progress and adherence to contract terms. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details for this individual contract would require deeper investigation.

Related Government Programs

FBI Headquarters Construction Projects
GSA Public Buildings Service Contracts
Federal Law Enforcement Facility Construction
Large-Scale Government Building Projects
Firm Fixed Price Construction Contracts

Risk Flags

Potential for cost escalation due to long contract duration.
Quality control for specialized federal facility requirements.
Contractor's past performance on similar federal projects.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $67.0 million to W. G. YATES & SONS CONSTRUCTION COMPANY. PRECONSTRUCTION VALUE ENGINEERING SERVICES WITH A CONSTRUCTION OPTION FOR NEW FBI FIELD OFFICE, HOUSTON, TX

Who is the contractor on this award?

The obligated recipient is W. G. YATES & SONS 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 $67.0 million.

What is the period of performance?

Start: 2005-03-31. End: 2009-03-20.

What is the track record of W. G. Yates & Sons Construction Company with federal contracts, particularly with the GSA?

W. G. Yates & Sons Construction Company has a history of performing federal construction contracts. A detailed review of their past performance with the General Services Administration (GSA) and other federal agencies would be necessary to fully assess their track record. This would involve examining contract completion timeliness, adherence to budget, quality of work, and any past disputes or performance issues. Their experience with similar-sized projects and facility types, such as law enforcement or government buildings, would be particularly relevant for evaluating their suitability for this FBI Field Office project.

How does the $67 million value compare to similar FBI Field Office construction projects?

The $67 million value for the FBI Field Office in Houston falls within a typical range for such facilities, though costs can vary significantly based on size, location, security requirements, and specific amenities. For instance, other FBI field offices or similar federal law enforcement facilities constructed around the same period (project award in 2005) might offer comparable benchmarks. Factors like prevailing construction costs in Houston at the time, the complexity of the building's design, and specialized security features would influence the final cost. A comprehensive comparison would involve analyzing the square footage, number of floors, and specific functional requirements against other projects of similar scope.

What are the primary risks associated with a firm fixed-price contract for a project of this duration?

The primary risk with a firm fixed-price (FFP) contract, especially for a project spanning approximately four years, is the contractor's exposure to unforeseen cost increases. While FFP provides budget certainty for the government, the contractor assumes the risk of material price escalation, labor cost increases, and potential scope creep if not managed tightly. For the government, the risk is that the contractor may cut corners on quality to maintain profitability if costs rise unexpectedly, or that the initial price may have included a significant contingency, making it less cost-effective than other contract types if costs remain stable. Effective contract administration and change order management are crucial to mitigate these risks.

What does the inclusion of 'Value Engineering' in the contract title signify for project cost and efficiency?

The inclusion of 'Value Engineering' (VE) in the contract title signifies a deliberate effort to optimize the project's lifecycle cost and functionality during the preconstruction phase. VE is a systematic process to review designs, materials, and construction methods to identify potential cost savings without compromising essential performance, quality, or safety. For this FBI Field Office project, it suggests that the GSA and W. G. Yates & Sons Construction Company are committed to finding efficiencies, perhaps through alternative materials, construction techniques, or system designs, that could reduce the overall project cost or improve its long-term operational efficiency. This proactive approach can lead to significant savings for taxpayers.

How has GSA's approach to federal building construction evolved since this contract was awarded in 2005?

Since the award of this contract in 2005, the GSA's approach to federal building construction has likely evolved in several key areas. There has been an increasing emphasis on sustainability and green building standards (e.g., LEED certification), energy efficiency, and resilience against environmental factors. Technological advancements in building information modeling (BIM) have become more prevalent, improving design coordination and project management. Furthermore, GSA has continued to refine its procurement processes, focusing on best value awards and encouraging innovation. Security requirements for federal facilities have also likely been updated and strengthened over time, potentially influencing design and construction considerations for new projects.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Yates Companies Inc (UEI: 017041232)

Address: ONE GULLY AVENUE, PHILADELPHIA, MS, 03

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

Financial Breakdown

Contract Ceiling: $66,970,547

Exercised Options: $66,970,547

Current Obligation: $66,970,547

Timeline