GSA awards $59M for Tornillo-Guadalupe Land Port of Entry construction, exceeding benchmark by 29%

Contract Overview

Contract Amount: $58,948,376 ($58.9M)

Contractor: Turner Construction Company

Awarding Agency: General Services Administration

Start Date: 2011-04-20

End Date: 2014-10-31

Contract Duration: 1,290 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF NEW CONSTRUCTION OF THE TORNILLO-GUADALUPE LAND PORT OF ENTRY, TORNILLO, TX

Place of Performance

Location: TORNILLO, EL PASO County, TEXAS, 79853

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $58.9 million to TURNER CONSTRUCTION COMPANY for work described as: AWARD OF NEW CONSTRUCTION OF THE TORNILLO-GUADALUPE LAND PORT OF ENTRY, TORNILLO, TX Key points: 1. The contract value of $58.9M is 29% higher than the government estimate of $45.7M, indicating potential overspending. 2. Turner Construction Company was awarded this definitive contract, suggesting a focus on established firms for complex projects. 3. The project's duration of 1290 days highlights the significant timeline and resource commitment required for large-scale infrastructure. 4. Awarded under full and open competition, the process aimed for broad market participation. 5. The fixed-price contract type shifts risk to the contractor, but the initial award price suggests potential cost escalations. 6. This project falls under the Commercial and Institutional Building Construction NAICS code, placing it within a broad construction sector.

Value Assessment

Rating: questionable

The award of $58.9M significantly exceeded the government estimate of $45.7M by approximately 29%. This substantial difference raises concerns about the initial cost estimation accuracy or the competitive landscape's ability to drive down prices. While construction costs can fluctuate, such a large variance warrants scrutiny. Benchmarking against similar land port construction projects would be necessary to determine if this price is within the expected range for the scope and complexity involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the General Services Administration (GSA) sought bids from all responsible sources. The presence of 13 bids suggests a reasonably competitive process. However, the significant difference between the government estimate and the final award price may imply that the competitive bids still resulted in a higher-than-anticipated cost, or that the initial estimate was too low to attract more cost-effective proposals.

Taxpayer Impact: Taxpayers may have paid a premium due to the higher-than-estimated award price, despite the competitive bidding process. The substantial cost overrun on the estimate suggests a need for more rigorous pre-award cost analysis.

Public Impact

The primary beneficiaries are federal agencies responsible for border security and customs operations at the Tornillo-Guadalupe port. The project delivers essential infrastructure for facilitating legal trade and travel between the United States and Mexico. The geographic impact is concentrated in Tornillo, Texas, enhancing regional economic activity and cross-border commerce. The construction phase likely created numerous jobs for skilled and unskilled labor in the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost overrun compared to the government estimate suggests potential issues with initial budgeting or market pricing.
The long duration of the contract (1290 days) increases the risk of unforeseen cost increases due to inflation or material availability.
The fixed-price nature, while shifting risk, could lead to contractor claims if costs escalate beyond initial projections.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential bidders.
Multiple bids (13) indicate a degree of market interest and potential for price discovery.
The project addresses critical national infrastructure needs for border management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the design and construction of non-residential buildings. The market for large-scale federal infrastructure projects like land ports of entry is specialized, often involving significant government investment and stringent regulatory requirements. Comparable spending benchmarks would typically be found within GSA's portfolio of public building construction and renovation projects, as well as other federal agencies undertaking similar border infrastructure development.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the scale and complexity of constructing a land port of entry, it is likely that the prime contract was awarded to a large construction firm. However, the prime contractor, Turner Construction Company, would be expected to engage small businesses as subcontractors for various specialized services and material supply, contributing to the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for construction projects, including regular site inspections, progress reporting, and quality assurance reviews. Accountability measures are embedded in the contract terms, with penalties for delays or substandard work. Transparency is generally maintained through public contract databases and reporting requirements. The Inspector General's office within GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Land Port of Entry Modernization Projects
GSA Public Buildings Construction
Department of Homeland Security Border Infrastructure
Commercial and Institutional Building Construction Contracts

Risk Flags

Cost Overrun
Potential Underestimation in Government Estimate
Large Scale Infrastructure Project Risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $58.9 million to TURNER CONSTRUCTION COMPANY. AWARD OF NEW CONSTRUCTION OF THE TORNILLO-GUADALUPE LAND PORT OF ENTRY, TORNILLO, TX

Who is the contractor on this award?

The obligated recipient is TURNER 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 $58.9 million.

What is the period of performance?

Start: 2011-04-20. End: 2014-10-31.

What is Turner Construction Company's track record with large federal infrastructure projects, particularly those managed by the GSA?

Turner Construction Company has a significant history of undertaking large-scale construction projects, including numerous federal facilities and infrastructure developments. They have been involved in various projects for the GSA, Department of Defense, and other government agencies. Their portfolio often includes complex builds such as courthouses, federal offices, and transportation hubs. While specific project performance data for all past federal contracts is not publicly detailed, their consistent bidding on and winning of such high-value contracts suggests a demonstrated capability and a generally positive track record in managing complex federal construction requirements, including adherence to security, environmental, and logistical demands.

How does the $58.9M award compare to the average cost of similar land port of entry construction projects?

Directly comparing the $58.9M award for the Tornillo-Guadalupe Land Port of Entry to 'average' costs of similar projects is challenging without a standardized benchmark. Land port projects vary significantly in size, scope, technological integration (e.g., inspection equipment, security systems), and geographic location, all of which heavily influence cost. However, the fact that this award was approximately 29% higher than the government's own estimate ($45.7M) suggests it may be on the higher end. To provide a more precise comparison, one would need to analyze projects of comparable scale, complexity, and completion date, factoring in regional construction cost indices and specific security requirements mandated by agencies like CBP and GSA.

What specific risks were identified during the procurement process that might have contributed to the higher-than-estimated award price?

While the provided data doesn't detail specific risks identified during procurement, several factors commonly contribute to higher-than-estimated award prices in large construction projects. These can include underestimation of material costs or labor rates in the initial government estimate, unforeseen site conditions (e.g., soil stability, environmental remediation needs), complex security or technological requirements that increase design and construction complexity, or a competitive landscape where bidders perceive higher risks and price accordingly. It's also possible that the government estimate did not fully account for prevailing market conditions or the specific challenges of constructing a border facility, leading bidders to propose higher, more realistic costs.

What is the expected effectiveness of the new Tornillo-Guadalupe Land Port of Entry in improving border security and trade facilitation?

The effectiveness of the new Tornillo-Guadalupe Land Port of Entry is expected to be significant in enhancing both border security and trade facilitation. Modernized ports of entry are designed with improved infrastructure to support advanced inspection technologies, allowing for more efficient screening of vehicles and cargo. This leads to reduced wait times for legitimate trade and travelers, thereby boosting economic activity. Enhanced security features, such as better surveillance, controlled access points, and improved processing areas, contribute to more effective interdiction of illicit goods and unauthorized crossings. The Tornillo-Guadalupe facility, by replacing or upgrading existing infrastructure, aims to streamline operations, increase throughput capacity, and provide a more secure environment for customs and border protection personnel.

How has federal spending on land port of entry construction evolved over the past decade, and does this project align with those trends?

Federal spending on land port of entry (LPOE) construction has generally trended upwards over the past decade, driven by increasing trade volumes, evolving security threats, and the aging of existing infrastructure. Agencies like GSA and CBP have prioritized modernization efforts to improve efficiency and security. This $58.9M award for the Tornillo-Guadalupe project aligns with this trend, representing a substantial investment in critical border infrastructure. While specific year-over-year spending figures fluctuate based on project pipelines and appropriations, the commitment to upgrading LPOEs remains a consistent priority. This project is indicative of the larger federal effort to enhance border management capabilities through significant capital investments in physical infrastructure.

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

Solicitation ID: GS-07P-11-HH-C-0003

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vinci (UEI: 462009101)

Address: 375 HUDSON ST, NEW YORK, NY, 10014

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

Financial Breakdown

Contract Ceiling: $58,948,376

Exercised Options: $58,948,376

Current Obligation: $58,948,376

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline