DOJ Awards $406.5M for FBI Tech Buildings 2 & 3 Construction in Alabama

Contract Overview

Contract Amount: $406,528,597 ($406.5M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: Department of Justice

Start Date: 2022-11-28

End Date: 2026-06-16

Contract Duration: 1,296 days

Daily Burn Rate: $313.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF THE TECHNOLOGY BUILDINGS 2 & 3 WITH PARKING GARAGES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $406.5 million to BRASFIELD & GORRIE LLC for work described as: DESIGN AND CONSTRUCTION OF THE TECHNOLOGY BUILDINGS 2 & 3 WITH PARKING GARAGES Key points: 1. Significant investment in critical infrastructure for the FBI. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the large scale and multi-year duration of the project. 4. Construction sector is experiencing high demand and material cost volatility.

Value Assessment

Rating: fair

The award amount of $406.5 million for the construction of two technology buildings and parking garages appears substantial. Benchmarking against similar large-scale federal construction projects is necessary to assess value, as specific cost breakdowns per square foot or per building are not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows a wide range of qualified contractors to bid. The use of a firm-fixed-price contract shifts risk to the contractor and provides cost certainty for the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for public funds. However, the overall cost is significant, reflecting the scale and complexity of the project.

Public Impact

Enhances FBI's technological capabilities and operational capacity. Supports job creation in the Alabama construction sector. Potential for long-term economic impact in the region. Ensures modern facilities for critical federal law enforcement functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to construction market volatility.
Project delays impacting FBI operational readiness.
Complexity of managing multiple construction elements (buildings and garages).

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides cost certainty.
Experienced contractor likely selected through competitive process.

Sector Analysis

This project falls within the commercial and institutional building construction sector. Federal spending in this area is often driven by infrastructure modernization needs and national security requirements. Benchmarks for similar large-scale federal construction projects would typically be in the hundreds of millions.

Small Business Impact

While the prime contractor is Brasfield & Gorrie LLC, a large entity, the contract details do not specify any small business subcontracting goals or participation. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Justice, specifically the FBI, is responsible for overseeing this contract. Standard federal procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and project success.

Related Government Programs

Commercial and Institutional Building Construction
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Large contract value.
Long project duration (over 3 years).
Construction sector volatility (material costs, labor shortages).
Complexity of multi-building and parking garage construction.
Potential for unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $406.5 million to BRASFIELD & GORRIE LLC. DESIGN AND CONSTRUCTION OF THE TECHNOLOGY BUILDINGS 2 & 3 WITH PARKING GARAGES

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $406.5 million.

What is the period of performance?

Start: 2022-11-28. End: 2026-06-16.

What is the estimated cost per square foot for the technology buildings and parking garages, and how does it compare to industry benchmarks for similar federal facilities?

The provided data does not include square footage or detailed cost breakdowns. To assess value, a comparison of the total award amount against the planned square footage and the cost per square foot for comparable federal technology buildings and parking structures would be necessary. This would reveal if the pricing is competitive or potentially inflated given market conditions.

What are the specific risks associated with the firm-fixed-price contract for a project of this magnitude and duration, particularly concerning potential material cost escalations?

A firm-fixed-price contract places the risk of cost overruns primarily on the contractor. However, for a project spanning over three years, significant material cost escalations or unforeseen site conditions could still strain the contractor, potentially leading to claims or disputes, impacting project timelines and final costs if not managed proactively by the government.

How will the successful completion of these technology buildings impact the FBI's operational effectiveness and its ability to adopt new technologies?

The new technology buildings are intended to enhance the FBI's operational capacity and provide modern infrastructure for advanced technological systems. Their successful and timely completion should enable the agency to better support its mission-critical functions, improve data processing, and facilitate the integration of emerging technologies, thereby boosting overall effectiveness.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233

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

Financial Breakdown

Contract Ceiling: $407,152,291

Exercised Options: $407,152,291

Current Obligation: $406,528,597

Actual Outlays: $390,619,191

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06719D0003691

IDV Type: IDC

Timeline