GSA's $114M contract for UN Plaza building services awarded to Hathaway Dinwiddie Construction Company

Contract Overview

Contract Amount: $114,307,680 ($114.3M)

Contractor: Hathaway Dinwiddie Construction Company

Awarding Agency: General Services Administration

Start Date: 2009-12-17

End Date: 2015-09-28

Contract Duration: 2,111 days

Daily Burn Rate: $54.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS *RECOVERY* DESIGN PHASE SERVICES, PRELIMINARY DEMOLITION/HAZARDOUS MATERIALS ABATEMENT WORK, & ALLOWANCES - 50 UNITED NATIONS PLAZA, SAN FRANCISCO, CA

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94102, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $114.3 million to HATHAWAY DINWIDDIE CONSTRUCTION COMPANY for work described as: TAS::47 4543::TAS *RECOVERY* DESIGN PHASE SERVICES, PRELIMINARY DEMOLITION/HAZARDOUS MATERIALS ABATEMENT WORK, & ALLOWANCES - 50 UNITED NATIONS PLAZA, SAN FRANCISCO, CA Key points: 1. Contract value of $114.3M for design, demolition, and hazardous materials abatement. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. Contract duration of 2111 days suggests a complex, long-term project. 4. Firm Fixed Price contract type aims to control costs and manage financial risk. 5. The project is located in San Francisco, CA, a high-cost construction market. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for design, demolition, and abatement. However, the total award of $114.3 million for a multi-year project at a prime San Francisco location suggests a significant investment. The firm fixed price structure implies an attempt to lock in costs, but the actual value-for-money depends on the efficiency of execution and the accuracy of the initial cost estimates. Further analysis would require comparing the per-square-foot cost or cost per phase against similar large-scale commercial construction projects in the region.

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. With 8 bidders, the competition level appears healthy, which typically drives more competitive pricing and encourages innovation. The presence of multiple bidders suggests that the market has sufficient capacity and interest for this type of large-scale construction project. The General Services Administration (GSA) likely leveraged this competition to secure a reasonable price and a qualified contractor for the complex work required.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs and promoting the selection of the most capable and cost-effective contractor.

Public Impact

The primary beneficiaries are federal agencies that will utilize the renovated United Nations Plaza building. Services delivered include preliminary demolition, hazardous materials abatement, and design phase work, preparing the building for future use. The geographic impact is concentrated in San Francisco, California, specifically at 50 United Nations Plaza. Workforce implications include employment opportunities for construction workers, engineers, architects, and hazardous materials specialists in the San Francisco Bay Area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen hazardous materials are encountered beyond initial assessments.
Delays in project completion could impact the availability of federal office space.
The long duration of the contract increases the risk of market condition changes affecting costs.

Positive Signals

Firm Fixed Price contract helps mitigate cost escalation risks for the government.
Full and open competition suggests a robust selection process for a qualified contractor.
The project addresses critical infrastructure needs for federal facilities in a major metropolitan area.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The General Services Administration (GSA) is a major player in federal building construction and renovation. The market for such services in San Francisco is highly competitive and subject to stringent regulations due to seismic activity and environmental concerns. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation projects, particularly those involving demolition and hazardous material remediation in major urban centers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and complexity of the project, it is likely that Hathaway Dinwiddie Construction Company, as the prime contractor, may engage small businesses as subcontractors for specialized tasks. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear. Further investigation into subcontracting goals and achievements would be necessary to assess the full impact.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction projects, including regular site inspections, progress reports, and financial reviews. Accountability is managed through the contract terms, performance metrics, and the firm fixed price structure. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific financial breakdowns may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Renovations
Hazardous Materials Abatement Services
Government Office Space Construction
Public Infrastructure Projects

Risk Flags

Potential for unforeseen hazardous materials discovery
Risk of project delays impacting federal operations
Cost uncertainty due to contract allowances
Long contract duration increases exposure to market volatility

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $114.3 million to HATHAWAY DINWIDDIE CONSTRUCTION COMPANY. TAS::47 4543::TAS *RECOVERY* DESIGN PHASE SERVICES, PRELIMINARY DEMOLITION/HAZARDOUS MATERIALS ABATEMENT WORK, & ALLOWANCES - 50 UNITED NATIONS PLAZA, SAN FRANCISCO, CA

Who is the contractor on this award?

The obligated recipient is HATHAWAY DINWIDDIE 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 $114.3 million.

What is the period of performance?

Start: 2009-12-17. End: 2015-09-28.

What is the track record of Hathaway Dinwiddie Construction Company with federal contracts, particularly with the GSA?

Hathaway Dinwiddie Construction Company has a history of working on large-scale construction projects, including those for public entities. While specific details on their federal contract history with the GSA require deeper database searches, their ability to win a $114M contract under full and open competition suggests they possess the necessary qualifications, experience, and financial stability. Analyzing past performance on similar government projects, including adherence to schedules, budgets, and quality standards, would provide a clearer picture of their reliability. Reviewing any past performance evaluations or disputes associated with their federal work is crucial for a comprehensive assessment.

How does the $114.3 million contract value compare to similar GSA renovation projects in San Francisco?

Comparing the $114.3 million contract value requires context regarding the scope and scale of similar GSA renovation projects in San Francisco. Factors such as the size of the building (square footage), the extent of demolition and hazardous material abatement required, and the complexity of the design phase significantly influence project costs. San Francisco is also a high-cost construction market. To benchmark effectively, one would need to identify comparable projects, analyze their total cost, cost per square foot, and the specific services rendered. Without such direct comparisons, it's difficult to definitively state whether this contract represents a high, low, or average investment for the services provided.

What are the primary risks associated with this specific contract, and how are they being managed?

The primary risks associated with this contract include potential cost overruns due to unforeseen hazardous materials, project delays impacting federal agency operations, and the inherent risks of large-scale construction in a complex urban environment like San Francisco. The firm fixed price (FFP) contract structure is a key risk management tool, shifting much of the cost overrun risk to the contractor. The long contract duration (2111 days) also presents risks related to market fluctuations and potential changes in project requirements. The GSA's oversight, including regular progress monitoring and adherence to the contract's specifications, aims to mitigate these risks. A thorough review of the contract's contingency allowances and the contractor's risk mitigation plan would provide further insight.

What is the expected effectiveness of the services delivered under this contract in terms of preparing the building for future use?

The effectiveness of the services delivered under this contract hinges on the successful completion of the design phase, preliminary demolition, and hazardous materials abatement. These are foundational steps crucial for preparing the 50 United Nations Plaza building for subsequent renovation and occupancy. If executed according to specifications and industry best practices, these services will create a safe and structurally sound environment, ready for the next stages of development. The effectiveness will ultimately be measured by how well these initial phases enable the subsequent renovation to proceed efficiently and meet the intended functional and occupancy requirements for federal agencies.

How has federal spending in commercial building construction, specifically by the GSA, trended in recent years, and how does this contract fit?

Federal spending in commercial building construction, particularly by the GSA, has historically fluctuated based on infrastructure needs, budget allocations, and government priorities. The GSA manages a vast portfolio of federal buildings, requiring ongoing maintenance, renovation, and new construction. This $114.3 million contract for the UN Plaza building in San Francisco represents a significant investment in a specific asset. It fits within the broader GSA mission of providing and managing federal workspaces. Analyzing GSA's historical spending patterns in construction, especially for major renovations in high-cost urban areas, would provide context on whether this contract's value is typical, elevated, or reduced compared to past investments.

What are the implications of the 'allowances' mentioned in the contract description for cost certainty and taxpayer exposure?

The inclusion of 'allowances' in the contract description, such as for preliminary demolition and hazardous materials abatement, introduces a degree of uncertainty regarding the final cost. Allowances are sums set aside for specific work items where the exact quantity or cost cannot be determined at the time of contract award. While they provide a mechanism to address unforeseen conditions (like discovering unexpected hazardous materials), they can lead to cost increases if the actual work exceeds the allowance amount. The firm fixed price nature of the contract likely applies to the base scope, but the use and management of these allowances are critical for taxpayer exposure. Transparent tracking and justification for the use of allowances are essential to ensure cost certainty and prevent unwarranted expenditure.

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

Solicitation ID: GS-09P-09-KT-C-0065

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hathaway Dinwiddie Construction Group (UEI: 962599221)

Address: 275 BATTERY ST STE 300, SAN FRANCISCO, CA, 94111

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

Financial Breakdown

Contract Ceiling: $114,307,680

Exercised Options: $114,307,680

Current Obligation: $114,307,680

Timeline