GSA's $74.5M warehouse redevelopment contract awarded to Sellen Construction for high-performance green building

Contract Overview

Contract Amount: $74,506,828 ($74.5M)

Contractor: Sellen Construction CO Inc

Awarding Agency: General Services Administration

Start Date: 2010-03-26

End Date: 2014-12-30

Contract Duration: 1,740 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERY - FEDERAL CENTER SOUTH (FCS) BUILDING 12021 REDEVELOPMENT. DESIGN AND CONSTRUCTION OF EXISTING WAREHOUSE WHICH INCORPORATES HIGH PERFORMANCE GREEN BUILDING AND ENERGY SAVINGS STRATEGIES.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98134

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $74.5 million to SELLEN CONSTRUCTION CO INC for work described as: RECOVERY - FEDERAL CENTER SOUTH (FCS) BUILDING 12021 REDEVELOPMENT. DESIGN AND CONSTRUCTION OF EXISTING WAREHOUSE WHICH INCORPORATES HIGH PERFORMANCE GREEN BUILDING AND ENERGY SAVINGS STRATEGIES. Key points: 1. Contract focused on incorporating green building and energy-saving strategies into warehouse redevelopment. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Firm Fixed Price contract type aims to control costs and manage financial risk. 4. Project duration of 1740 days indicates a significant, multi-year construction undertaking. 5. The contract value falls within a moderate range for large-scale federal construction projects. 6. Sellen Construction Co Inc has a track record with federal contracts, requiring further analysis of past performance.

Value Assessment

Rating: fair

Benchmarking the $74.5 million cost against similar federal warehouse redevelopment projects is challenging without more specific project scope details. However, the inclusion of high-performance green building and energy-saving strategies likely increased the overall cost compared to a standard renovation. The firm fixed-price nature of the contract suggests an attempt to lock in costs, but the final value should be assessed against the initial bid and any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. With 12 bids received, this suggests a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing the best value.

Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it drives down prices and encourages contractors to offer their most competitive terms.

Public Impact

The General Services Administration (GSA) benefits from the modernization of federal facilities. The project delivers construction services for a warehouse, likely supporting federal operations or storage. The geographic impact is localized to Washington state (ST, SN). The construction industry workforce in Washington will be engaged by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite the fixed-price contract.
Ensuring the 'high performance green building' and 'energy savings' goals are met requires diligent oversight.
The long duration of the project (1740 days) increases the risk of market fluctuations affecting material costs.

Positive Signals

Firm Fixed Price contract type helps mitigate cost uncertainty for the government.
Full and open competition with 12 bidders suggests a competitive pricing environment.
Focus on green building and energy savings aligns with federal sustainability goals.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses a wide range of non-residential construction, including government facilities. Federal spending in this area is substantial, driven by the need to maintain, modernize, and build infrastructure across various agencies. Comparable spending benchmarks would typically be assessed based on square footage, complexity of construction, and specific building system requirements.

Small Business Impact

The contract was not set aside for small businesses (SS: false, SB: false). While this specific contract did not directly involve a small business set-aside, large federal construction projects often have subcontracting requirements. It is important to analyze Sellen Construction's subcontracting plan to determine if and how small businesses will participate in this project, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this project would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. Mechanisms likely include regular site inspections, progress reporting, and contract management reviews. Accountability is ensured through the firm fixed-price contract terms and performance requirements. Transparency is typically managed through GSA's public contract databases and reporting requirements.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Projects
Green Building Initiatives
Energy Efficiency in Federal Facilities
Warehouse Construction and Redevelopment

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Risk of project delays impacting operational readiness.
Ensuring adherence to high-performance green building standards requires rigorous oversight.
Contractor performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $74.5 million to SELLEN CONSTRUCTION CO INC. RECOVERY - FEDERAL CENTER SOUTH (FCS) BUILDING 12021 REDEVELOPMENT. DESIGN AND CONSTRUCTION OF EXISTING WAREHOUSE WHICH INCORPORATES HIGH PERFORMANCE GREEN BUILDING AND ENERGY SAVINGS STRATEGIES.

Who is the contractor on this award?

The obligated recipient is SELLEN CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $74.5 million.

What is the period of performance?

Start: 2010-03-26. End: 2014-12-30.

What is Sellen Construction Co Inc's track record with federal contracts, particularly with the GSA?

Sellen Construction Co Inc has a history of federal contracting. A detailed review of their past performance with the GSA and other federal agencies would be necessary to assess their reliability, quality of work, and adherence to schedules and budgets on similar projects. This includes examining any past performance evaluations, disputes, or contract modifications. Understanding their experience with large-scale construction, especially those incorporating green building standards, is crucial for evaluating their suitability for this project.

How does the $74.5 million cost compare to similar federal warehouse redevelopment projects?

Direct comparison of the $74.5 million cost is difficult without granular data on project scope, size (square footage), and specific green building features implemented. However, for a large-scale redevelopment involving significant structural work and advanced energy-saving strategies, this figure is within a plausible range for federal projects. To benchmark effectively, one would need to analyze cost per square foot, complexity of systems (HVAC, electrical, sustainable features), and regional construction cost indices for similar projects awarded by GSA or other agencies over the past few years.

What are the primary risks associated with this firm fixed-price contract?

Despite the firm fixed-price (FFP) structure, risks remain. The primary risk is that unforeseen site conditions or design changes could lead to costly change orders, potentially eroding the initial cost certainty. Contractor performance risk is also present; if Sellen Construction underperforms or faces financial difficulties, project delays and quality issues could arise. Furthermore, the long project duration (1740 days) exposes the contract to potential fluctuations in material prices and labor availability, which could indirectly impact project feasibility or necessitate contract adjustments if not adequately managed within the FFP framework.

How effectively are the 'high performance green building' and 'energy savings' goals likely to be met?

Meeting these goals depends heavily on the detailed specifications within the contract, the contractor's expertise, and the GSA's oversight. The inclusion of these strategies suggests a commitment to sustainability. Success will be measured by post-occupancy performance data, such as energy consumption metrics and building certifications (e.g., LEED). Diligent project management, adherence to green building standards during construction, and thorough commissioning of systems are critical. The GSA's technical review and monitoring throughout the project lifecycle will be key determinants of success.

What is the historical spending pattern for similar GSA warehouse redevelopment projects?

Analyzing historical spending for similar GSA warehouse redevelopment projects would reveal trends in contract values, durations, and types of competition. This specific $74.5 million contract appears to be a significant investment. Understanding if this value is typical, higher, or lower than previous comparable projects can provide context on market rates and GSA's investment strategy. Examining data from the past 5-10 years could highlight shifts in project scope, the increasing emphasis on sustainable building practices, and the impact of economic conditions on construction costs for federal facilities.

What does the number of bids (12) suggest about the market for this type of federal construction?

Receiving 12 bids for this full and open competition contract indicates a robust and competitive market for large-scale federal commercial and institutional building construction in the relevant geographic area. This level of interest suggests that multiple firms possess the necessary qualifications and capacity to undertake such projects. A competitive bidding environment generally benefits the government by driving down prices and encouraging innovation, leading to better value for taxpayer dollars. It also implies that the project requirements were clearly defined and accessible to a wide range of potential contractors.

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: TWO STEP

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 227 WESTLAKE AVE N, SEATTLE, WA, 98109

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

Financial Breakdown

Contract Ceiling: $74,506,828

Exercised Options: $74,506,828

Current Obligation: $74,506,828

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline