DHS awards $40.3M for pre-construction services, with Skanska USA Building Inc. securing the contract

Contract Overview

Contract Amount: $40,306,339 ($40.3M)

Contractor: Skanska USA Building Incorporated (2540)

Awarding Agency: Department of Homeland Security

Start Date: 2006-02-07

End Date: 2008-06-01

Contract Duration: 845 days

Daily Burn Rate: $47.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRE-CONSTRUCTION PHASE SERVICES FOR THE DORMITORY PROJECT

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.3 million to SKANSKA USA BUILDING INCORPORATED (2540) for work described as: PRE-CONSTRUCTION PHASE SERVICES FOR THE DORMITORY PROJECT Key points: 1. The contract value represents a significant investment in the initial planning stages of a major construction project. 2. Competition dynamics for this delivery order are noted, with 3 bidders participating. 3. The fixed-price contract type suggests a defined scope and budget, potentially mitigating cost overruns. 4. The project duration of 845 days indicates a substantial undertaking requiring extensive planning and coordination. 5. The contract falls under the Commercial and Institutional Building Construction NAICS code, placing it within a specific industry segment.

Value Assessment

Rating: fair

Benchmarking the value of pre-construction services is challenging without detailed scope information. However, the total award of $40.3 million for a dormitory project suggests a substantial investment in planning. Comparing this to similar large-scale institutional building projects would provide better context for value for money. The fixed-price nature of the contract is a positive indicator for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors were solicited and submitted proposals. With three bidders participating, there was a degree of competition, which generally aids in price discovery and achieving a fair market price. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers benefited from a process designed to solicit multiple offers, potentially leading to a more cost-effective outcome compared to a sole-source procurement.

Public Impact

The primary beneficiaries are likely the students or personnel who will utilize the dormitory facilities upon completion. The services delivered include crucial pre-construction planning, design development, and potentially site assessment. The geographic impact is centered in Georgia, where the Federal Law Enforcement Training Center is located. Workforce implications may include architects, engineers, project managers, and construction planners during the pre-construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep during the extensive planning phase if not managed tightly.
Reliance on a single contractor for critical pre-construction services could pose a risk if performance issues arise.

Positive Signals

The competitive award process suggests a structured approach to selecting a qualified contractor.
The fixed-price contract type provides budget certainty for this phase of the project.
The project's focus on essential infrastructure (dormitory) indicates a clear need and purpose.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the planning and execution of non-residential structures. This specific award is for pre-construction services, a critical early phase that sets the foundation for the entire project lifecycle. Comparable spending benchmarks for similar dormitory construction projects at federal facilities would provide a more precise context for this $40.3 million award.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Skanska USA Building Inc., may engage small businesses as subcontractors for specialized services during the pre-construction phase, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Federal Law Enforcement Training Center's facilities management or project oversight teams. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified pre-construction services. Transparency is generally maintained through contract award databases, though detailed internal oversight processes are not publicly specified.

Related Government Programs

Federal Law Enforcement Training Center Facilities
Dormitory Construction Projects
Commercial and Institutional Building Construction

Risk Flags

Potential for cost escalation if scope is not tightly managed.
Risk of schedule delays due to permitting or design approval processes.
Dependence on contractor's expertise for critical early-stage planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.3 million to SKANSKA USA BUILDING INCORPORATED (2540). PRE-CONSTRUCTION PHASE SERVICES FOR THE DORMITORY PROJECT

Who is the contractor on this award?

The obligated recipient is SKANSKA USA BUILDING INCORPORATED (2540).

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $40.3 million.

What is the period of performance?

Start: 2006-02-07. End: 2008-06-01.

What is the track record of Skanska USA Building Inc. with the Department of Homeland Security and similar federal projects?

Skanska USA Building Inc. has a significant history of performing construction and related services for various federal agencies, including the Department of Homeland Security (DHS). Their portfolio often includes large-scale projects such as educational facilities, government buildings, and infrastructure. Analyzing their past performance on similar projects, particularly those involving institutional housing or training facilities, would reveal their capacity to manage complex undertakings, adhere to schedules, and maintain quality standards. Specific contract history with DHS, including any past performance evaluations or disputes, would provide a more granular view of their reliability and effectiveness in fulfilling federal requirements.

How does the $40.3 million pre-construction cost compare to the total estimated cost of the dormitory project?

The $40.3 million awarded for pre-construction services represents a substantial portion of the overall project budget. Typically, pre-construction costs, which include planning, design development, permitting, and bidding, can range from 5% to 15% of the total construction cost, depending on project complexity and delivery method. If this $40.3 million is solely for pre-construction, it suggests either a very large overall project value or a higher-than-average allocation for the initial phases. Without the total estimated construction cost, it's difficult to definitively benchmark this figure. However, if the total project were, for example, $300 million, then $40.3 million would represent approximately 13.4% for pre-construction, which falls within a reasonable range for complex federal projects.

What are the key risks associated with the pre-construction phase for a dormitory project of this scale?

Key risks in the pre-construction phase for a large dormitory project include inadequate scope definition, leading to potential change orders and cost overruns during construction. Delays in design approvals, permitting, or environmental reviews can push back the project timeline significantly. Unforeseen site conditions, such as soil issues or existing utilities, can also emerge during this phase, impacting both cost and schedule. Furthermore, contractor performance risk is present; if the selected firm lacks the necessary expertise or fails to manage subcontractors effectively, it can jeopardize the entire project. Ensuring robust risk mitigation strategies are in place during this critical planning stage is paramount for project success.

What performance metrics or milestones are likely included in this pre-construction services contract?

This fixed-price delivery order likely includes specific performance metrics and milestones tied to the completion of key pre-construction deliverables. These could include the submission and approval of schematic designs, design development documents, construction documents, and cost estimates at various stages. Milestones might also encompass the successful navigation of the permitting process, the development of a comprehensive construction schedule, and the finalization of bid packages for the subsequent construction phase. Performance would be evaluated based on the timely and accurate delivery of these documents and the achievement of agreed-upon project objectives within the defined scope and budget for the pre-construction phase.

How has federal spending on dormitory construction and related services trended in recent years, and how does this contract fit?

Federal spending on dormitory construction and related services has historically been driven by the needs of various agencies, including military branches, educational institutions (like the Service Academies), and law enforcement training centers. Trends can fluctuate based on government priorities, infrastructure investment cycles, and specific agency requirements. This $40.3 million contract for pre-construction services at the Federal Law Enforcement Training Center aligns with ongoing investments in essential facilities to support federal personnel training and operations. It reflects a commitment to maintaining and upgrading critical infrastructure, a consistent area of federal expenditure, particularly when modernization or expansion is required.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFLR040011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 70 ELLIS ST NE, ATLANTA, GA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,306,339

Exercised Options: $40,306,339

Current Obligation: $40,306,339

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSFLGL05D00015

IDV Type: IDC

Timeline