DoD's $105M Commercial Building Contract with Gilbane Building Company: A 10-Year Analysis
Contract Overview
Contract Amount: $105,477,433 ($105.5M)
Contractor: Gilbane Building Company
Awarding Agency: Department of Defense
Start Date: 2007-09-27
End Date: 2018-09-30
Contract Duration: 4,021 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: INITIAL TARGET COST
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78201
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $105.5 million to GILBANE BUILDING COMPANY for work described as: INITIAL TARGET COST Key points: 1. The contract, awarded in 2007, represents a significant investment in commercial and institutional building construction. 2. Gilbane Building Company, a large firm, secured this contract under full and open competition. 3. The long duration (4021 days) suggests a complex, multi-phase project with potential for cost escalation. 4. The absence of small business participation warrants further investigation into contracting strategies.
Value Assessment
Rating: fair
The initial target cost was over $105 million. Without data on the final cost or comparable projects, assessing value is difficult. The firm fixed price contract type offers some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. However, the long duration and firm fixed price nature may have limited ongoing price optimization.
Taxpayer Impact: Taxpayer funds were used for a large construction project. The long-term nature and fixed price suggest a predictable, albeit substantial, expenditure.
Public Impact
Significant federal investment in infrastructure development. Potential impact on local economies where construction projects are located. Long-term commitment of resources for a single contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may indicate scope creep or extended project timelines.
- Limited transparency on final cost vs. initial target cost.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending for infrastructure. Benchmarks for similar large-scale construction projects would be needed for precise comparison.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the project's scale or specific requirements may have favored larger firms, potentially limiting opportunities for smaller businesses.
Oversight & Accountability
The long duration of the contract (over 11 years) necessitates robust oversight to ensure adherence to scope, budget, and quality standards. The definitive contract award type implies a single, comprehensive agreement.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Extended contract duration.
- Potential for cost escalation over the contract's lifespan.
- Limited transparency on final cost vs. initial target.
Tags
commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.5 million to GILBANE BUILDING COMPANY. INITIAL TARGET COST
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $105.5 million.
What is the period of performance?
Start: 2007-09-27. End: 2018-09-30.
What was the final cost of the contract compared to the initial target cost, and how does this compare to industry benchmarks for similar projects?
The initial target cost was $105,477,433.21. Without the final cost data, a direct comparison is impossible. To assess value, this figure should be benchmarked against the cost per square foot or per unit of similar government or commercial construction projects completed during the same period.
What factors contributed to the contract's extended duration of over 4000 days, and what risks were associated with such a long-term commitment?
Extended durations can stem from complex project phasing, unforeseen site conditions, or scope adjustments. Risks include potential cost overruns due to inflation, material price volatility, and contractor performance degradation over time. Effective program management and change control are crucial.
How effectively did the full and open competition process ensure competitive pricing and optimal value for the taxpayer, given the contract's long lifespan?
Full and open competition is generally effective in establishing a competitive baseline. However, for long-duration contracts, the initial price may not reflect market changes. Ongoing monitoring and potential re-negotiation clauses, if applicable, would be key to ensuring sustained value.
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: W9126G07R0072
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 1331 LAMAR ST STE 1170, HOUSTON, TX, 77010
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $105,623,775
Exercised Options: $105,623,775
Current Obligation: $105,477,433
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-27
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-09-19
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