GSA awards $189M construction contract for San Ysidro Port of Entry expansion, a large-scale federal building project

Contract Overview

Contract Amount: $189,232,836 ($189.2M)

Contractor: Atkinson/Clark, a Joint Venture

Awarding Agency: General Services Administration

Start Date: 2016-03-15

End Date: 2020-11-30

Contract Duration: 1,721 days

Daily Burn Rate: $110.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CL::IGF AWARD A CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) CONTRACT FOR PHASE 3 OF THE EXPANSION AND RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY, SAN DIEGO, CALIFORNIA.

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $189.2 million to ATKINSON/CLARK, A JOINT VENTURE for work described as: IGF::CL::IGF AWARD A CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) CONTRACT FOR PHASE 3 OF THE EXPANSION AND RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY, SAN DIEGO, CALIFORNIA. Key points: 1. The contract value represents a significant investment in critical infrastructure at a major U.S. border crossing. 2. Competition was robust, with 109 bids received, suggesting a healthy market for this type of construction service. 3. The project's duration of 1721 days indicates a complex, multi-year undertaking requiring extensive planning and execution. 4. The firm-fixed-price contract type aims to provide cost certainty for the government, though potential for change orders exists. 5. This award falls within the Commercial and Institutional Building Construction sector, a vital segment of the construction industry. 6. The General Services Administration (GSA) is the contracting agency, responsible for managing federal buildings and infrastructure.

Value Assessment

Rating: good

The contract value of $189.2 million for a major port of entry expansion is substantial. Benchmarking this against similar large-scale federal construction projects is challenging without more specific project scope details. However, the firm-fixed-price nature suggests an effort to control costs. The number of bids received (109) indicates competitive pricing was likely a key factor in the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for maximizing competition and achieving best value. The high number of bids received (109) demonstrates significant market interest and suggests that a wide range of qualified contractors were aware of and able to bid on the project. This level of competition generally leads to more competitive pricing and a broader selection of capabilities.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among bidders. The large number of bids suggests that the government received a wide array of proposals, increasing the likelihood of selecting a contractor that offers the best combination of price and performance.

Public Impact

The primary beneficiaries are federal agencies operating at the San Ysidro Port of Entry, including Customs and Border Protection, who will gain improved facilities. The project delivers expanded and reconfigured facilities to enhance the efficiency and capacity of cross-border traffic and trade. The geographic impact is concentrated in San Diego, California, a critical hub for U.S.-Mexico trade and travel. The construction activities will likely create numerous jobs for skilled tradespeople and construction workers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope changes arise, despite the firm-fixed-price structure.
Long project duration increases exposure to market fluctuations in material costs and labor availability.
Coordination challenges among multiple stakeholders and agencies involved in port operations and construction.

Positive Signals

Awarded under full and open competition, indicating a strong market response and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses a critical national infrastructure need, enhancing border security and trade facilitation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on large-scale public infrastructure. The San Ysidro Port of Entry is one of the busiest land ports in the world, and its expansion is a significant undertaking. Comparable spending benchmarks would typically involve other major federal construction projects, such as courthouse renovations, new agency headquarters, or other port of entry upgrades, often running into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and complexity of the San Ysidro Port of Entry expansion, it is common for such large prime contracts to be awarded to large construction firms or joint ventures. However, the prime contractor may be required to subcontract portions of the work, potentially creating opportunities for small businesses to participate in the project.

Oversight & Accountability

The General Services Administration (GSA) Public Buildings Service is responsible for overseeing this project. Oversight mechanisms likely include regular progress reports, site inspections, and contract management reviews. Accountability is managed through the contract terms and performance requirements. Transparency is generally maintained through public contract databases and GSA reporting. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Federal Port of Entry Modernization Projects
GSA Public Buildings Construction
Department of Homeland Security Infrastructure
Border Infrastructure Improvement Programs

Risk Flags

Potential for schedule delays
Risk of cost overruns due to change orders
Coordination complexity with multiple stakeholders
Long-term project duration exposes to market volatility

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $189.2 million to ATKINSON/CLARK, A JOINT VENTURE. IGF::CL::IGF AWARD A CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) CONTRACT FOR PHASE 3 OF THE EXPANSION AND RECONFIGURATION PROJECT AT THE SAN YSIDRO LAND PORT OF ENTRY, SAN DIEGO, CALIFORNIA.

Who is the contractor on this award?

The obligated recipient is ATKINSON/CLARK, A JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $189.2 million.

What is the period of performance?

Start: 2016-03-15. End: 2020-11-30.

What is the track record of Atkinson/Clark, A Joint Venture, on similar large-scale federal construction projects?

Information regarding the specific track record of the joint venture 'Atkinson/Clark' on similar large-scale federal construction projects is not directly available in the provided data snippet. However, the award of a $189 million contract by the GSA suggests that the joint venture possesses the necessary experience, financial capacity, and technical expertise to undertake such a significant infrastructure project. Federal agencies typically conduct thorough pre-award evaluations of bidders' past performance, including their history on comparable projects, to assess their capability and reliability. Further investigation into the individual entities comprising the joint venture or their joint project history would be required for a comprehensive assessment of their track record.

How does the awarded price compare to the estimated cost or budget for this phase of the San Ysidro Port of Entry expansion?

The provided data indicates the awarded contract price is $189,232,835.63. However, it does not include information about the government's initial cost estimate or budget for this specific phase of the expansion project. Without this comparative data, it is impossible to definitively assess whether the awarded price represents a good value relative to expectations. The fact that the contract was awarded under full and open competition with 109 bids suggests that the GSA likely received competitive pricing. A detailed value analysis would require access to the government's independent cost estimate and potentially a comparison of the awarded price to similar projects completed by other agencies.

What are the primary risks associated with a construction project of this magnitude and duration?

Construction projects of this magnitude and duration, such as the San Ysidro Port of Entry expansion, inherently carry several significant risks. These include: 1. Schedule delays due to unforeseen site conditions (e.g., soil issues, historical artifacts), weather, labor disputes, or supply chain disruptions. 2. Cost overruns, even with a firm-fixed-price contract, can occur through change orders necessitated by design modifications, scope creep, or escalation of material and labor costs over the extended project timeline. 3. Performance risks related to the quality of workmanship and adherence to specifications. 4. Coordination challenges among various stakeholders, including federal agencies (GSA, CBP, etc.), local authorities, and the public, especially given the ongoing operations at a busy port of entry. 5. Security risks associated with a major border infrastructure project. Mitigation strategies are typically embedded in the contract and project management plans.

What is the expected impact of this expansion on the efficiency and capacity of the San Ysidro Port of Entry?

The expansion and reconfiguration project at the San Ysidro Port of Entry is designed to significantly enhance its operational efficiency and capacity. By providing updated and expanded facilities, the project aims to streamline the processing of vehicles and pedestrians, reduce wait times, and improve the flow of legitimate trade and travel. This includes potentially adding more inspection booths, improving traffic circulation patterns, and modernizing infrastructure to accommodate current and future volumes. The ultimate goal is to facilitate faster and more secure border crossings, which benefits travelers, commercial carriers, and the overall economy by reducing delays and improving throughput at one of the busiest international crossings in the world.

How does the GSA typically ensure accountability and transparency in large construction contracts like this?

The GSA employs multiple mechanisms to ensure accountability and transparency in large construction contracts. Accountability is primarily driven by the contract itself, which outlines specific performance standards, deliverables, timelines, and payment terms. Regular progress meetings, site inspections, and performance evaluations are conducted by GSA project managers. Financial accountability is maintained through rigorous invoice review and payment processes. Transparency is fostered through the Federal Procurement Data System (FPDS), where contract awards are publicly reported, providing details on the contractor, value, and type of contract. GSA also often publishes project updates and information on its public website. Furthermore, the GSA Office of Inspector General (OIG) provides an independent layer of oversight, investigating allegations of fraud, waste, and abuse, thereby enhancing overall accountability.

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-09-P-16-KT-C-7000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18201 VON KARMAN STE 800, IRVINE, CA, 92612

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

Financial Breakdown

Contract Ceiling: $189,232,836

Exercised Options: $189,232,836

Current Obligation: $189,232,836

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline