GSA awards $137.8M for Edith Green-Wendell Wyatt Federal Building modernization, with construction phase as an unpriced option

Contract Overview

Contract Amount: $137,835,857 ($137.8M)

Contractor: Howard S Wright Companies Oregon Joint Venture

Awarding Agency: General Services Administration

Start Date: 2009-12-11

End Date: 2014-05-01

Contract Duration: 1,602 days

Daily Burn Rate: $86.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERY TAS::47 4543::TAS CMC CONTRACT (MAINLY CONSTRUCTION SERVICES) FOR EDITH GREEN-WENDELL WYATT FEDERAL BUILDING MODERNIZATION, PORTLAND, OR. BASE AWARD IS DESIGN PHASE SERVICES. CONSTRUCTION PHASE SERVICES ARE AN UNPRICED OPTION.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

General Services Administration obligated $137.8 million to HOWARD S WRIGHT COMPANIES OREGON JOINT VENTURE for work described as: RECOVERY TAS::47 4543::TAS CMC CONTRACT (MAINLY CONSTRUCTION SERVICES) FOR EDITH GREEN-WENDELL WYATT FEDERAL BUILDING MODERNIZATION, PORTLAND, OR. BASE AWARD IS DESIGN PHASE SERVICES. CONSTRUCTION PHASE SERVICES ARE AN UNPRICED OPTION. Key points: 1. The contract's base award covers design phase services, with construction services being an unpriced option, indicating phased project development. 2. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns for the awarded design phase. 3. With 6 bidders, the competition level appears healthy for the design phase services. 4. The project targets a significant federal building modernization in Portland, Oregon, impacting public infrastructure. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction, a key sector for federal infrastructure.

Value Assessment

Rating: fair

The base award of $137.8 million for design phase services is substantial. Without comparable data for similar large-scale federal building modernization design contracts, a precise value-for-money assessment is challenging. The unpriced option for construction services means the total potential cost is unknown at this stage, making a full value assessment difficult. Benchmarking against industry standards for design services on projects of this scale would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This indicates a broad outreach to potential contractors, which generally fosters competitive pricing and a wider selection of qualified firms. The presence of multiple bidders suggests that the market for these services is robust enough to support significant competition, potentially leading to better outcomes for the government.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are federal agencies and employees who will utilize the modernized Edith Green-Wendell Wyatt Federal Building. The project delivers essential design services for the modernization of a significant federal facility. The geographic impact is concentrated in Portland, Oregon, contributing to local economic activity through construction and related services. The contract implies potential workforce implications in the architecture, engineering, and construction sectors in the Portland area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The construction phase is an unpriced option, creating uncertainty regarding the total project cost and potential future spending.
The long duration of the contract (over 4 years) increases the risk of scope creep or unforeseen challenges impacting cost and schedule.
The base award amount is substantial, requiring careful monitoring of the design phase to ensure it aligns with overall project goals and budget.

Positive Signals

The contract was awarded under full and open competition, suggesting a robust selection process.
The firm-fixed-price contract type for the base award shifts cost risk to the contractor for the design phase.
The project aims to modernize a critical federal building, indicating a commitment to improving federal infrastructure.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the U.S. economy. Federal building modernization projects are crucial for maintaining government infrastructure, often involving complex design and construction requirements. Spending in this sector is influenced by government infrastructure priorities, economic conditions, and the need for facility upgrades. Comparable spending benchmarks would typically involve analyzing other large-scale federal building renovation or construction contracts managed by agencies like GSA.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor is a joint venture, the implications for small business subcontracting would depend on the specific subcontracting plan developed for the project. Further analysis would be needed to determine if small businesses are being utilized effectively in the supply chain for this modernization effort.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs contract officers, project managers, and quality assurance specialists to monitor performance, adherence to specifications, and financial expenditures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Modernization Programs
GSA Capital Investments
Construction Services Contracts
Design Services Contracts

Risk Flags

Unpriced Option for Construction
Potential for Cost Overruns
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $137.8 million to HOWARD S WRIGHT COMPANIES OREGON JOINT VENTURE. RECOVERY TAS::47 4543::TAS CMC CONTRACT (MAINLY CONSTRUCTION SERVICES) FOR EDITH GREEN-WENDELL WYATT FEDERAL BUILDING MODERNIZATION, PORTLAND, OR. BASE AWARD IS DESIGN PHASE SERVICES. CONSTRUCTION PHASE SERVICES ARE AN UNPRICED OPTION.

Who is the contractor on this award?

The obligated recipient is HOWARD S WRIGHT COMPANIES OREGON 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 $137.8 million.

What is the period of performance?

Start: 2009-12-11. End: 2014-05-01.

What is the historical spending pattern for the Edith Green-Wendell Wyatt Federal Building modernization?

The provided data indicates a base award of $137,835,857 for the design phase of the Edith Green-Wendell Wyatt Federal Building modernization, awarded on December 11, 2009, with an estimated completion date of May 1, 2014. This represents a significant investment in the initial design stages. The construction phase is listed as an 'unpriced option,' meaning its cost is not yet determined or included in this base award. Therefore, the total historical spending is limited to the design phase services. Future spending will depend on the exercise and execution of the construction phase option. Without further data on prior phases or related contracts for this specific building, it's difficult to establish a broader historical spending pattern beyond this single, substantial award for the design.

How does the value of this contract compare to similar federal building modernization projects?

Comparing the $137.8 million base award for the design phase of the Edith Green-Wendell Wyatt Federal Building modernization requires context. Federal building modernization projects vary significantly in scope, complexity, and location, making direct comparisons challenging. However, this figure represents a substantial investment, particularly for the design phase alone. Large-scale federal building projects, especially those involving historic structures or extensive upgrades (like LEED certification requirements, which are common for GSA projects), can easily run into hundreds of millions or even billions of dollars for full construction. The 'unpriced option' for construction means the total project cost could be considerably higher. To benchmark effectively, one would need to analyze the square footage, type of modernization (e.g., structural, MEP, interior fit-out), and the specific services included in the design phase against other GSA or agency-specific modernization contracts of similar scale and complexity.

What are the key risks associated with this contract, particularly given the unpriced construction option?

The primary risk associated with this contract is the 'unpriced option' for the construction phase. This creates significant uncertainty regarding the total project cost, making budget forecasting and control difficult for the government. If the construction costs escalate significantly beyond initial expectations, it could lead to budget overruns or require re-scoping of the project. Other risks include potential delays in the design phase impacting the construction schedule, unforeseen site conditions during construction, contractor performance issues, and changes in federal requirements or funding availability over the contract's extended duration. The firm-fixed-price nature of the base award mitigates cost overrun risk for the design phase itself, but the overall project risk remains high due to the unpriced construction component.

How effective is the competition level in ensuring value for taxpayers on this contract?

The contract was awarded under 'full and open competition' with six bidders. This level of competition is generally considered healthy and is a positive indicator for ensuring value for taxpayers. A larger pool of bidders typically drives down prices as companies compete for the work. It also increases the likelihood that the government will select a contractor offering the best combination of technical capability and price. For this specific contract, the competition likely helped secure a reasonable price for the design phase services. However, the true test of value will be in the subsequent construction phase, especially if that phase is also competed or if the unpriced option is exercised at a price deemed competitive.

What is the track record of the contractor, Howard S. Wright Companies Oregon Joint Venture, on similar federal contracts?

Information regarding the specific track record of 'Howard S. Wright Companies Oregon Joint Venture' on similar federal contracts is not directly provided in the data. Howard S. Wright Companies has a history in heavy civil construction and industrial projects. As a joint venture, its performance would be a combination of its constituent entities' capabilities. To assess their track record thoroughly, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), review other federal contracts they have held, particularly those involving large-scale public building construction or modernization, and look for any history of disputes, claims, or performance issues. Without this detailed performance history, it's difficult to definitively gauge their reliability and effectiveness for this significant federal project.

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-09-LT-C-0052

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 EASTLAKE AVE E STE 100, SEATTLE, WA, 98109

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $137,835,857

Exercised Options: $137,835,857

Current Obligation: $137,835,857

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline