GSA's $24.1M Plaza Restoration Contract Awarded to Berglund Construction for Chicago Federal Buildings

Contract Overview

Contract Amount: $24,112,314 ($24.1M)

Contractor: Berglund Construction CO

Awarding Agency: General Services Administration

Start Date: 2009-10-22

End Date: 2013-07-31

Contract Duration: 1,378 days

Daily Burn Rate: $17.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY- CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE CHICAGO FEDERAL CENTER: PLAZA RESTORATION: JOHN C. KLUCZYNSKI FEDERAL BUILDING (JCK), EVERETT M. DIRKSEN FEDERAL COURTHOUSE (EMD), U.S. POST OFFICE LOOP STATION (LPO) LOCATED IN CHICAGO, ILLINOIS 60604.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $24.1 million to BERGLUND CONSTRUCTION CO for work described as: TAS::47 4543::TAS RECOVERY- CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE CHICAGO FEDERAL CENTER: PLAZA RESTORATION: JOHN C. KLUCZYNSKI FEDERAL BUILDING (JCK), EVERETT M. DIRKSEN FEDERAL COURTHOUSE (EMD), U.S. POST OFFICE LOOP STATION (LPO) LOCATED IN CHICAGO, ILLINO… Key points: 1. Contract focused on essential infrastructure repair and modernization for key federal facilities. 2. Awarded competitively, suggesting a potentially favorable price outcome for taxpayers. 3. Duration of nearly four years indicates a substantial, long-term project. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. Project scope includes restoration of plazas for multiple high-profile Chicago federal buildings. 6. Contractor's performance and adherence to schedule will be key indicators of success.

Value Assessment

Rating: good

The contract value of $24.1 million for construction management services for plaza restoration appears reasonable given the scope and duration. Benchmarking against similar large-scale federal building restoration projects would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to control costs upfront, which is a positive sign for efficient use of funds. However, without detailed breakdowns of labor, materials, and overhead, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple firms likely had the opportunity to bid. The presence of 5 bidders (as indicated by 'no': 5) suggests a healthy level of competition for this project. Competitive bidding generally leads to better price discovery and ensures that the government receives proposals from a range of qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It demonstrates that taxpayer funds were used to solicit multiple offers, maximizing the potential for cost savings.

Public Impact

Federal employees and the public visiting the John C. Kluczynski Federal Building, Everett M. Dirksen Federal Courthouse, and U.S. Post Office Loop Station will benefit from improved and safer plaza areas. The project delivers essential infrastructure maintenance and restoration services, ensuring the longevity and functionality of critical federal assets. The geographic impact is concentrated in Chicago, Illinois, supporting local economic activity through construction jobs and material sourcing. The project will likely involve a significant number of construction workers, providing employment opportunities within the skilled trades sector in the Chicago area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if restoration needs exceed initial assessments.
Dependence on contractor's ability to manage complex site logistics in a dense urban environment.
Risk of unforeseen subsurface conditions impacting schedule and cost.
Ensuring compliance with historical preservation guidelines, if applicable to plaza elements.

Positive Signals

Fixed-price contract structure provides cost certainty.
Competitive award process suggests a strong initial proposal and pricing.
Contract duration allows for thorough planning and execution of restoration work.
Focus on essential infrastructure repair addresses critical needs for federal facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure repair and restoration. The General Services Administration (GSA) is a major federal entity that procures a vast array of construction and facility management services. The market for federal building construction and renovation is substantial, with agencies like GSA consistently investing in maintaining and upgrading their real property assets. This contract represents a typical investment in preserving the physical integrity and usability of federal properties.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale federal construction project, it is likely that the prime contractor, Berglund Construction Co., will engage subcontractors. The extent to which small businesses are included in subcontracting opportunities will be a key factor in assessing the contract's impact on the small business ecosystem. GSA often has goals for small business participation in its larger contracts, which would need to be monitored.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Mechanisms likely include regular progress meetings, site inspections, and review of payment requests. Accountability is ensured through the contract terms, including performance standards and the fixed-price structure. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities may not be fully public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance and Repair
GSA Capital Investments
Public Infrastructure Projects
Urban Redevelopment Construction

Risk Flags

Potential for unforeseen site conditions
Risk of schedule delays due to weather or complex logistics
Need for robust quality assurance to ensure lasting restoration
Coordination with ongoing building operations

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.1 million to BERGLUND CONSTRUCTION CO. TAS::47 4543::TAS RECOVERY- CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE CHICAGO FEDERAL CENTER: PLAZA RESTORATION: JOHN C. KLUCZYNSKI FEDERAL BUILDING (JCK), EVERETT M. DIRKSEN FEDERAL COURTHOUSE (EMD), U.S. POST OFFICE LOOP STATION (LPO) LOCATED IN CHICAGO, ILLINOIS 60604.

Who is the contractor on this award?

The obligated recipient is BERGLUND CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2009-10-22. End: 2013-07-31.

What is the track record of Berglund Construction Co. on similar federal contracts, particularly regarding performance and adherence to budget and schedule?

A comprehensive review of Berglund Construction Co.'s track record on similar federal contracts would involve analyzing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented disputes or claims, and their history of completing projects on time and within budget. While this specific contract award data does not provide this detail, a deeper dive into federal procurement databases and agency records would reveal their performance history. Examining their portfolio of work on large-scale institutional or public building projects would offer insights into their capabilities and reliability. Positive past performance on comparable projects would increase confidence in their ability to successfully execute this plaza restoration contract.

How does the awarded amount of $24.1 million compare to the estimated cost or benchmark for similar plaza restoration projects on federal buildings of comparable size and complexity?

To benchmark the $24.1 million award, one would need to compare it against the estimated costs provided during the bidding process, the average cost per square foot for similar federal plaza restorations, and potentially data from construction cost estimating services. Factors such as the specific materials used, the extent of structural repairs needed, landscaping, and integration of modern amenities (like accessibility features or lighting) significantly influence project costs. Without access to the detailed cost breakdown or specific project requirements beyond 'plaza restoration,' a precise comparison is difficult. However, the competitive nature of the award suggests the price was deemed fair and reasonable relative to the proposals received by the GSA.

What are the primary risks associated with this plaza restoration project, and what mitigation strategies are likely in place?

Key risks include unforeseen subsurface conditions (e.g., underground utilities, soil instability), weather delays impacting outdoor work, potential for material price fluctuations (though mitigated by fixed-price contract), and coordination challenges with ongoing building operations. Mitigation strategies likely involve thorough site investigations prior to and during construction, detailed scheduling with built-in contingencies, robust quality control processes, and clear communication protocols between the contractor, GSA, and building occupants. The fixed-price contract itself is a risk mitigation tool for the government, shifting cost overrun risk to the contractor, provided the scope is well-defined.

How effective are the GSA's oversight mechanisms in ensuring this project meets its objectives for structural integrity, aesthetics, and public safety?

GSA typically employs a multi-layered oversight approach for construction projects. This includes contract officers' representatives (CORs) who monitor day-to-day progress, conduct site inspections, and review deliverables. Quality assurance teams verify that work conforms to specifications and building codes. Performance metrics and regular progress reports are used to track adherence to schedule and budget. For a project like plaza restoration, ensuring structural integrity, compliance with accessibility standards (ADA), and aesthetic alignment with the surrounding architecture are critical objectives. The effectiveness hinges on the diligence of the COR, the adequacy of inspection protocols, and the contractor's commitment to quality.

What is the historical spending pattern for plaza restoration and similar infrastructure projects at the Chicago Federal Center complex managed by GSA?

Analyzing historical spending for plaza restoration and infrastructure projects at the Chicago Federal Center would require accessing GSA's historical contract databases and budget allocations for these specific buildings (JCK, EMD, LPO). This would reveal the frequency, scale, and cost trends of past capital improvement projects. Understanding this pattern helps contextualize the current $24.1 million award – is it a routine maintenance expenditure, a response to deferred maintenance, or part of a larger modernization initiative? It also provides a basis for comparing the current contract's cost-effectiveness against previous investments in the complex.

What are the implications of the 5-year duration (from award to estimated completion) for the long-term value and potential obsolescence of the restored plaza elements?

A duration of approximately five years from award to completion (Oct 2009 - Jul 2013 is ~3.75 years, but the 'dur' field shows 1378 days which is ~3.77 years, so the 'ed' date is likely the completion date) for a plaza restoration project is substantial. This extended timeline suggests a complex scope, potentially involving phased work to minimize disruption or significant structural components. For long-term value, it implies the restoration is intended to provide durable, lasting improvements. However, a longer project duration can also increase exposure to changing building codes, technological advancements, or evolving user needs. The key is whether the design and materials chosen remain relevant and functional for the intended lifespan of the plaza, typically decades, despite the multi-year construction period.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8410 S SOUTH CHICAGO AVE, CHICAGO, IL, 60617

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

Financial Breakdown

Contract Ceiling: $24,162,064

Exercised Options: $24,112,314

Current Obligation: $24,112,314

Parent Contract

Parent Award PIID: GS05P09GBD0034

IDV Type: IDC

Timeline