HHS awarded $79.4M for Chamblee Campus building and parking, a large construction project with a long duration

Contract Overview

Contract Amount: $79,352,542 ($79.4M)

Contractor: Beck International, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2009-06-30

End Date: 2017-01-31

Contract Duration: 2,772 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::75 0943::TAS BLDG 107&PARKING DECK, CHAMBLEE CAMPUS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $79.4 million to BECK INTERNATIONAL, LLC for work described as: TAS::75 0943::TAS BLDG 107&PARKING DECK, CHAMBLEE CAMPUS Key points: 1. The contract value of $79.4 million represents a significant investment in infrastructure for the CDC's Chamblee campus. 2. The project spanned nearly 8 years, indicating a complex and lengthy construction and development process. 3. Awarded as a firm-fixed-price contract, the pricing structure aimed to provide cost certainty for the government. 4. The contract was competed on a full and open basis, suggesting a broad range of potential bidders. 5. The project falls under the Commercial and Institutional Building Construction NAICS code, placing it within a specific sector of the construction industry. 6. The duration of the contract (2772 days) is notably long for a construction project, potentially reflecting phased development or extensive renovation. 7. The geographic location in Georgia is a key detail for understanding regional construction market dynamics.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work, such as square footage, type of construction, or specific renovations. However, a $79.4 million award for a building and parking deck project over nearly 8 years suggests a substantial undertaking. The firm-fixed-price nature of the award implies that the contractor assumed most of the cost risk, which can sometimes lead to higher initial bids but provides budget certainty. Without comparable projects with detailed cost breakdowns, a precise value-for-money assessment is difficult, but the scale and duration indicate a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that 16 bids were received (no=16) indicates a healthy level of interest and competition for this project, which is generally positive for price discovery and achieving a fair market price.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by driving down costs through competitive pressure and ensuring the government receives proposals from a wide range of qualified contractors.

Public Impact

The primary beneficiaries of this contract are the Centers for Disease Control and Prevention (CDC), which gains enhanced facilities at its Chamblee campus. The project delivered essential infrastructure, including a new building and a parking deck, supporting the CDC's operational needs. The geographic impact is localized to Chamblee, Georgia, where the construction activities took place. The workforce implications include employment opportunities for construction workers, engineers, architects, and project managers in the Georgia region during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of the contract (nearly 8 years) could indicate potential for cost overruns or scope creep if not managed effectively.
Long construction projects can be susceptible to market fluctuations in material costs and labor availability, impacting the final cost if not adequately accounted for in the fixed price.
The complexity of constructing both a building and a parking deck simultaneously may present logistical challenges and coordination risks.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
Full and open competition with 16 bids suggests a robust market response and potential for competitive pricing.
The award to Beck International, LLC, indicates a successful bidder capable of undertaking a large-scale construction project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as office buildings, educational facilities, healthcare centers, and public works. The market size for commercial construction is substantial, driven by demand for new facilities and upgrades. This specific contract for the CDC's Chamblee campus represents a large-scale public infrastructure project within this sector, likely involving significant planning, engineering, and execution capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and there is no explicit mention of small business subcontracting goals. Given the large dollar value and the nature of the project, it is likely that the prime contractor, Beck International, LLC, would engage various subcontractors, some of which could be small businesses. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize a network of smaller firms for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Centers for Disease Control and Prevention (CDC). As a large federal contract, it would likely be subject to internal agency audits and potentially oversight from the HHS Office of Inspector General (OIG), especially concerning financial management and performance. Transparency would be facilitated through contract award databases like FPDS-NG, which provide public access to contract details, though detailed project management documentation is usually internal.

Related Government Programs

Federal Buildings and Facilities Construction
Department of Health and Human Services Construction Contracts
Centers for Disease Control and Prevention Infrastructure Projects
Large Scale Commercial Construction Awards
Firm Fixed Price Construction Contracts

Risk Flags

Long Contract Duration
Potential for Cost Overruns on Long-Term Projects
Complexity of Multi-Component Construction (Building & Parking)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.4 million to BECK INTERNATIONAL, LLC. TAS::75 0943::TAS BLDG 107&PARKING DECK, CHAMBLEE CAMPUS

Who is the contractor on this award?

The obligated recipient is BECK INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $79.4 million.

What is the period of performance?

Start: 2009-06-30. End: 2017-01-31.

What was the specific scope of work for the TAS BLDG 107 & PARKING DECK project?

The provided data indicates the project involved the construction of 'TAS BLDG 107 & PARKING DECK' at the Chamblee Campus for the Department of Health and Human Services (HHS), awarded to Beck International, LLC. The total award amount was $79,352,542.06, with a contract duration of 2772 days (approximately 7.6 years), spanning from June 30, 2009, to January 31, 2017. While the data confirms the existence and scale of the project, it does not detail the specific architectural plans, square footage, number of floors, or the precise nature of the building (e.g., laboratory, administrative, support services) or parking deck capacity. Further details would typically be found in the contract's statement of work (SOW) or associated technical specifications, which are not included in the provided summary data.

How does the $79.4 million contract value compare to similar federal building and parking construction projects?

Comparing the $79.4 million contract value requires context regarding the project's scope, location, and duration. For large-scale federal construction projects involving new buildings and parking structures, this figure is substantial but not extraordinary. For instance, similar projects for agencies like the General Services Administration (GSA) or the Department of Defense (DoD) can range from tens to hundreds of millions of dollars depending on size, complexity, and location. The nearly 8-year duration of this HHS contract suggests a phased approach or extensive development, which can influence overall cost. Without specific benchmarks for comparable projects in Georgia or for similar types of facilities (e.g., research labs vs. administrative offices), a precise comparison is difficult. However, the value indicates a significant infrastructure investment.

What were the primary risks associated with this long-duration construction contract?

The primary risks associated with this long-duration (2772 days) construction contract include: 1. **Cost Escalation:** Despite being a firm-fixed-price contract, extended durations increase the risk of unforeseen cost increases for materials, labor, and subcontractors due to market volatility over nearly eight years. 2. **Scope Creep:** Prolonged projects are more susceptible to changes in requirements or scope creep, which can lead to disputes and cost overruns if not managed through strict change order processes. 3. **Technological Obsolescence:** For certain types of facilities, technology can evolve rapidly, potentially making initial designs or systems outdated before project completion. 4. **Contractor Performance and Financial Stability:** Maintaining contractor performance and financial stability over such a long period can be challenging. 5. **Environmental and Regulatory Changes:** Evolving environmental regulations or building codes during the construction phase could necessitate costly modifications. The firm-fixed-price nature shifts much of this risk to the contractor, but it can influence initial bid pricing and the contractor's ability to execute.

How effective was the full and open competition in achieving value for money?

The full and open competition, evidenced by 16 bids received, generally suggests a strong potential for achieving value for money. This level of competition typically drives down prices as contractors vie for the award. The firm-fixed-price (FFP) contract type further enhances value by providing budget certainty, as the contractor assumes the risk of cost overruns. While the data confirms the competitive process and pricing structure, assessing the ultimate value for money would require analyzing the final delivered product against its cost, considering factors like quality, timeliness (relative to the long duration), and adherence to specifications. A competitive FFP award is a strong indicator of an intent to secure value, but ongoing project management and performance are crucial for realizing it.

What is the historical spending pattern for similar construction projects at the CDC or HHS?

Historical spending patterns for similar construction projects at the CDC or HHS would likely show a range of contract values and durations, influenced by the specific needs for facility upgrades, new construction, or research infrastructure. Large-scale projects, such as the $79.4 million awarded for the Chamblee campus building and parking deck, are not uncommon for federal agencies requiring significant physical infrastructure. Spending can fluctuate based on agency priorities, budget appropriations, and the lifecycle of existing facilities. Analyzing past awards within the 'Commercial and Institutional Building Construction' NAICS code for HHS and its sub-agencies would reveal trends in project scale, contract types (FFP, cost-plus), and average durations. This specific contract's long duration might be an outlier or indicative of specific project phasing strategies employed by the agency.

What is the track record of Beck International, LLC, in handling large federal construction contracts?

The provided data identifies Beck International, LLC as the contractor for this $79.4 million project, awarded under full and open competition. To assess their track record, one would need to examine their performance history on this and other federal contracts. Key indicators include on-time and on-budget delivery, quality of work, compliance with contract terms, and any history of disputes or contract terminations. Information on past performance is often available through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS) or through agency-specific performance evaluations. Without access to such detailed performance data, it's difficult to definitively assess Beck International's track record beyond their successful bid for this substantial 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: 2009N11460

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1807 ROSS AVE STE 500, DALLAS, TX, 75201

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

Financial Breakdown

Contract Ceiling: $79,352,542

Exercised Options: $79,352,542

Current Obligation: $79,352,542

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline