GSA's $73M Data Center Construction Contract Awarded to HITT Contracting Inc. for Denver Federal Center

Contract Overview

Contract Amount: $73,157,414 ($73.2M)

Contractor: Hitt Contracting, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-02-17

End Date: 2011-12-05

Contract Duration: 656 days

Daily Burn Rate: $111.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERY TAS::19 1119::TAS - DESIGN/BUILD CONSTRUCTION SERVICES FOR THE CONSTRUCTION OF A NEW A TIER III DATA CENTER AT DENVER FEDERAL CENTER, LAKEWOOD, COLORADO

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $73.2 million to HITT CONTRACTING, INC. for work described as: RECOVERY TAS::19 1119::TAS - DESIGN/BUILD CONSTRUCTION SERVICES FOR THE CONSTRUCTION OF A NEW A TIER III DATA CENTER AT DENVER FEDERAL CENTER, LAKEWOOD, COLORADO Key points: 1. The contract value of $73.16 million represents a significant investment in federal infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance context will be key to evaluating the success of this design/build data center. 4. Sector positioning within commercial and institutional building construction highlights the specialized nature of the work. 5. Risk indicators may include project timelines, budget adherence, and the complexity of Tier III data center requirements.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparisons to similar Tier III data center constructions. The firm-fixed-price nature suggests an attempt to control costs, but the final expenditure against the awarded amount will be a key indicator of value. Without more granular data on construction inputs and market rates at the time of award, a definitive value-for-money assessment 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. The presence of four bidders (no) suggests a reasonable level of competition for this substantial construction project. This competitive process is generally expected to drive prices toward market rates and encourage efficiency from the winning contractor.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a more competitive bidding environment, which can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are federal agencies requiring secure and reliable data center facilities, ensuring continuity of operations. The project delivers essential construction services for a new Tier III data center, a critical piece of federal IT infrastructure. The geographic impact is concentrated in Lakewood, Colorado, at the Denver Federal Center. Workforce implications include job creation for construction trades, project management, and specialized data center technicians in the Denver area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on large-scale construction projects if not meticulously managed.
Complexity of Tier III data center requirements may introduce unforeseen technical challenges.
Dependence on a single contractor for the full design and build phases can concentrate risk.

Positive Signals

Firm-fixed-price contract structure helps to cap potential cost increases.
Full and open competition suggests a robust vetting of potential contractors.
Awarding to an established contractor like HITT Contracting Inc. may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized facilities like data centers. The market for federal data center construction is driven by the need for secure, resilient, and high-performance computing environments. Comparable spending benchmarks would involve analyzing other large federal building projects and specialized IT infrastructure constructions, considering factors like square footage, technological requirements, and geographic location.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While HITT Contracting Inc. may engage small businesses as subcontractors, the primary award was not directed towards small business entities. This means the direct impact on the small business ecosystem is through potential subcontracting opportunities rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed oversight reports are not always publicly available.

Related Government Programs

Federal Data Center Consolidation Initiative
GSA Public Buildings Service Construction Projects
IT Infrastructure Modernization Programs
Design-Build Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns despite fixed-price contract
Complexity of Tier III data center requirements
Contractor performance and quality assurance

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $73.2 million to HITT CONTRACTING, INC.. RECOVERY TAS::19 1119::TAS - DESIGN/BUILD CONSTRUCTION SERVICES FOR THE CONSTRUCTION OF A NEW A TIER III DATA CENTER AT DENVER FEDERAL CENTER, LAKEWOOD, COLORADO

Who is the contractor on this award?

The obligated recipient is HITT CONTRACTING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $73.2 million.

What is the period of performance?

Start: 2010-02-17. End: 2011-12-05.

What is HITT Contracting Inc.'s track record with large federal construction projects, particularly data centers?

HITT Contracting Inc. has a significant history of undertaking large-scale federal construction projects. While specific details on their data center portfolio within federal contracts require deeper investigation, their general experience in complex commercial and institutional building construction suggests a capacity for such projects. A review of their past performance on similar government contracts, including any past performance evaluations or awards from agencies like GSA, would provide a clearer picture of their reliability and expertise in delivering projects of this magnitude and technical specification. Their involvement in projects at federal centers indicates familiarity with government site requirements and protocols.

How does the awarded amount of $73.16 million compare to similar federal data center construction projects?

Directly comparing the $73.16 million award to similar federal data center construction projects requires access to a comprehensive database of recent awards with comparable specifications (e.g., Tier level, square footage, specific technological requirements, and geographic location). Without such a benchmark, it's difficult to definitively state whether this represents a high, low, or average cost. However, given the complexity and security requirements of a Tier III data center, this figure appears to be within a plausible range for a substantial federal infrastructure project. Further analysis would involve identifying comparable projects awarded around the same timeframe (2010-2011) by agencies like GSA, DOD, or others.

What are the primary risk indicators associated with this firm-fixed-price design-build contract for a Tier III data center?

The primary risk indicators for this firm-fixed-price design-build contract revolve around the inherent complexities of constructing a Tier III data center and the potential for scope creep or unforeseen issues. While the firm-fixed-price structure aims to contain costs, risks include potential delays if the design phase encounters significant challenges or if site conditions are more complex than anticipated. The 'design-build' nature means the contractor is responsible for both, which can be efficient but also concentrates risk if coordination between design and construction falters. Ensuring the contractor's robust quality control and risk management processes are in place is crucial, especially given the critical uptime requirements of a Tier III facility.

How effective is the full and open competition process in ensuring value for money for this type of specialized construction contract?

The full and open competition process is generally considered the most effective method for ensuring value for money in specialized construction contracts. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. For a project like a Tier III data center, where technical expertise is paramount, this process allows agencies to evaluate not only price but also the technical capabilities and past performance of bidders. The presence of four bidders suggests a healthy level of competition, which should drive down costs and improve the quality of the final product, ultimately benefiting taxpayers.

What are the historical spending patterns for data center construction by the General Services Administration?

Historical spending patterns for data center construction by the General Services Administration (GSA) reflect a growing emphasis on modernizing federal IT infrastructure and consolidating existing facilities. In the years leading up to and following this 2010 contract, GSA has been involved in numerous projects aimed at improving the efficiency, security, and resilience of federal data centers. This includes new constructions, major renovations, and upgrades to existing facilities. Analyzing GSA's budget allocations and contract awards for IT infrastructure and facilities management over the past decade would reveal trends in investment, potentially showing an increase in spending on high-availability facilities like Tier III data centers to support agency digital transformation efforts.

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-08P-09-JA-C-0089

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $73,368,263

Exercised Options: $73,338,263

Current Obligation: $73,157,414

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline