GSA's $88.7M Peace Arch POE Redevelopment contract awarded to J.E. Dunn Construction, a firm-fixed-price deal

Contract Overview

Contract Amount: $88,681,145 ($88.7M)

Contractor: J. E. Dunn Construction Company

Awarding Agency: General Services Administration

Start Date: 2007-03-14

End Date: 2012-10-01

Contract Duration: 2,028 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CMC DESIGN PHASE SERVICES WITH BILATERAL CONSTRUCTION OPTION FOR PEACE ARCH POE REDEVELOPMENT, BLAINE, WA

Place of Performance

Location: BLAINE, WHATCOM County, WASHINGTON, 98230

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $88.7 million to J. E. DUNN CONSTRUCTION COMPANY for work described as: CMC DESIGN PHASE SERVICES WITH BILATERAL CONSTRUCTION OPTION FOR PEACE ARCH POE REDEVELOPMENT, BLAINE, WA Key points: 1. The contract's value of $88.7 million represents a significant investment in border infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The project duration of 2028 days indicates a long-term commitment to the redevelopment. 5. The contract's focus on design and construction points to a comprehensive approach to the facility upgrade. 6. The General Services Administration (GSA) is the awarding agency, overseeing federal building projects.

Value Assessment

Rating: good

The contract value of $88.7 million for the Peace Arch POE Redevelopment appears to be within a reasonable range for a project of this scale and complexity, involving design and construction services. Benchmarking against similar large-scale federal building projects managed by GSA would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps in budget predictability, though it necessitates careful initial scope definition to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and potential for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives competitive pricing for services rendered.

Public Impact

The primary beneficiaries are federal agencies operating at the Peace Arch Port of Entry, including Customs and Border Protection, who will gain an upgraded and more efficient facility. The project delivers essential design and construction services for the redevelopment of a critical international border crossing. The geographic impact is concentrated in Blaine, Washington, enhancing the infrastructure at a key point of entry between the U.S. and Canada. The construction phase will likely create numerous jobs in the local and regional workforce, supporting the construction industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the initial scope is not precisely defined, despite the firm-fixed-price structure.
Delays in construction could impact the operational efficiency of the border crossing.
Ensuring the long-term durability and maintainability of the new construction will be critical.
Coordination between design and construction phases needs to be seamless to avoid conflicts.

Positive Signals

The firm-fixed-price contract shifts significant cost risk to the contractor, J.E. Dunn Construction.
Awarding under full and open competition suggests a competitive pricing environment was achieved.
The project addresses a critical piece of federal infrastructure, ensuring continued border security and trade facilitation.
The long duration indicates a thorough and well-planned approach to the redevelopment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on federal infrastructure development. The General Services Administration (GSA) is a major player in this sector, managing a vast portfolio of federal buildings. The market for large-scale public infrastructure projects is competitive, with significant players like J.E. Dunn Construction regularly bidding on and winning government contracts. The total federal spending on construction services is substantial, and this project represents a specific investment in border security and trade facilitation infrastructure.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While J.E. Dunn Construction may engage small businesses as subcontractors, the primary award was not set aside. This contract's size and scope likely favored larger, established construction firms capable of handling complex, multi-year projects.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Mechanisms likely include regular progress reviews, site inspections, and contract performance management. Accountability is ensured through the firm-fixed-price contract terms, which obligate the contractor to deliver the specified design and construction within the agreed-upon price. Transparency is generally maintained through GSA's public contract databases and reporting requirements.

Related Government Programs

Federal Port of Entry Modernization Projects
GSA Public Buildings Construction Contracts
Border Infrastructure Improvement Programs
Commercial and Institutional Building Construction

Risk Flags

Long-duration project risk
Potential for scope creep
Material and labor cost volatility
Coordination between design and construction
Ensuring long-term facility maintainability

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $88.7 million to J. E. DUNN CONSTRUCTION COMPANY. CMC DESIGN PHASE SERVICES WITH BILATERAL CONSTRUCTION OPTION FOR PEACE ARCH POE REDEVELOPMENT, BLAINE, WA

Who is the contractor on this award?

The obligated recipient is J. E. DUNN 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 $88.7 million.

What is the period of performance?

Start: 2007-03-14. End: 2012-10-01.

What is the track record of J. E. Dunn Construction with the General Services Administration?

J. E. Dunn Construction has a significant history of working with the General Services Administration on various federal building projects. Their experience with GSA likely includes a range of contract types and project scopes, from renovations to new construction. Analyzing their past performance on similar GSA contracts would reveal their ability to meet deadlines, stay within budget, and adhere to quality standards. A review of past performance evaluations and any disputes or claims filed on previous GSA contracts would provide further insight into their reliability as a federal contractor. Their ability to secure a large contract like the Peace Arch POE Redevelopment suggests a positive and established relationship with the agency.

How does the $88.7 million contract value compare to similar federal port of entry redevelopment projects?

The $88.7 million contract value for the Peace Arch POE Redevelopment is substantial and aligns with the scale of major infrastructure upgrades at critical international border crossings. Similar projects, such as the redevelopment of other major ports of entry or the construction of new federal facilities requiring extensive design and construction, often fall within the tens to hundreds of millions of dollars. Factors influencing cost include the size of the facility, the complexity of the design, the specific security requirements, and the prevailing construction market rates in the project's geographic location. Without specific data on comparable projects, it's difficult to provide an exact benchmark, but the figure is consistent with the significant investment required for such critical national infrastructure.

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

The primary risk with a firm-fixed-price (FFP) contract, especially for a long-duration project like this (2028 days), is the potential for the contractor to incur losses if costs escalate beyond their initial estimates. This can happen due to unforeseen site conditions, material price increases, labor shortages, or changes in regulations. While FFP shifts cost risk to the contractor, it also incentivizes them to control costs rigorously. For the government, the risk lies in the contractor potentially cutting corners on quality or scope to maintain profitability, or in the possibility of significant change order requests if the initial scope was not perfectly defined. Effective government oversight is crucial to mitigate these risks.

What is the expected impact of this redevelopment on border crossing operations and efficiency?

The redevelopment of the Peace Arch Port of Entry is expected to significantly enhance operational efficiency and capacity. Modernized facilities typically incorporate improved traffic flow, updated inspection booths, enhanced security features, and better amenities for both personnel and travelers. This can lead to reduced wait times, increased throughput of vehicles and pedestrians, and a more secure environment for border operations. The project's focus on design and construction suggests a comprehensive upgrade aimed at modernizing outdated infrastructure to meet current and future demands for border security and trade facilitation.

How has federal spending on port of entry infrastructure evolved over the past decade?

Federal spending on port of entry infrastructure has generally seen fluctuations driven by national security priorities, trade agreements, and infrastructure investment initiatives. Following 9/11, there was a significant push to enhance border security, leading to increased investment in upgrading facilities and technology at ports of entry. More recently, administrations have emphasized modernizing aging infrastructure and improving the efficiency of trade flows. Specific funding levels can vary annually based on congressional appropriations and agency budget allocations. The GSA, as a primary manager of federal buildings, plays a key role in executing these investments.

What are the implications of the 'BILATERAL CONSTRUCTION OPTION' mentioned in the contract description?

The mention of a 'BILATERAL CONSTRUCTION OPTION' suggests that the contract includes provisions for potential future construction work that can be exercised by mutual agreement between the government (GSA) and the contractor (J. E. Dunn Construction). This option allows for flexibility; if the scope of the redevelopment needs to expand or if additional construction phases are identified as necessary after the initial design phase, the government can choose to exercise this option. This can streamline the process for awarding subsequent construction work to a contractor already familiar with the project, potentially saving time and administrative costs compared to a new procurement.

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-10P-06-LT-C-3022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JE Dunn Construction Group Inc (UEI: 007836448)

Address: 1001 LOCUST, KANSAS CITY, MO, 05

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

Financial Breakdown

Contract Ceiling: $91,681,337

Exercised Options: $91,681,337

Current Obligation: $88,681,145

Timeline