FBI Awards $519M Design-Build Project for Redstone Arsenal Academic Zone to Brasfield & Gorrie LLC

Contract Overview

Contract Amount: $519,305,226 ($519.3M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: Department of Justice

Start Date: 2024-05-07

End Date: 2030-01-28

Contract Duration: 2,092 days

Daily Burn Rate: $248.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Construction

Official Description: ACADEMIC ZONE DESIGN-BUILD PROJECT, REDSTONE ARSENAL, ALABAMA

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $519.3 million to BRASFIELD & GORRIE LLC for work described as: ACADEMIC ZONE DESIGN-BUILD PROJECT, REDSTONE ARSENAL, ALABAMA Key points: 1. Significant investment in federal infrastructure, focusing on academic facilities. 2. Brasfield & Gorrie LLC, a large contractor, secured this major award. 3. Potential risks include project delays and cost overruns in a large-scale construction. 4. The construction sector is experiencing high demand, potentially impacting pricing.

Value Assessment

Rating: good

The contract value of $519M is substantial for a design-build project. Benchmarking against similar large-scale federal construction projects would be necessary for a precise value assessment, but the fixed-price with economic price adjustment suggests an effort to manage cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. The use of a delivery order suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar mechanism allowing for multiple task orders.

Taxpayer Impact: Taxpayer funds are being utilized for a significant federal facility upgrade. The competitive award process aims to ensure value for money, but the fixed-price with EPA introduces potential for cost escalation.

Public Impact

Enhances federal law enforcement training and research capabilities. Supports economic activity in Alabama through construction jobs and subcontracts. Long-term asset for the FBI and Department of Justice. Potential for community engagement and local business involvement.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Economic price adjustment could lead to higher final costs.
Large project scope increases risk of delays.
Contractor's small business participation is not specified.

Positive Signals

Awarded through full and open competition.
Addresses critical federal infrastructure needs.
Long-term contract duration allows for phased development.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this area often involves large, complex projects requiring specialized expertise and significant capital investment.

Small Business Impact

The data indicates the prime contractor is Brasfield & Gorrie LLC, a large business. There is no specific information provided regarding small business subcontracting goals or achievements within this award, which is a common consideration for federal contracts of this magnitude.

Oversight & Accountability

The Department of Justice and the Federal Bureau of Investigation are responsible for overseeing this project. Robust oversight will be crucial to ensure adherence to timelines, budget, and quality standards throughout the design and construction phases.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to economic price adjustment.
Large project scope increases risk of schedule delays.
Lack of specific small business participation data.
Complexity of design-build projects requires stringent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $519.3 million to BRASFIELD & GORRIE LLC. ACADEMIC ZONE DESIGN-BUILD PROJECT, REDSTONE ARSENAL, ALABAMA

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 $519.3 million.

What is the period of performance?

Start: 2024-05-07. End: 2030-01-28.

What is the projected return on investment for this academic zone, considering its long-term operational costs and benefits to FBI training and research?

The return on investment (ROI) for the Redstone Arsenal Academic Zone project is primarily measured by its contribution to enhanced FBI operational effectiveness, improved training outcomes, and advancements in research capabilities. While direct financial ROI is difficult to quantify, the long-term benefits include a more skilled workforce, potentially reduced response times in critical situations, and the development of innovative solutions to national security challenges. The project's value lies in its strategic importance to the FBI's mission.

What are the specific risks associated with the 'fixed price with economic price adjustment' clause, and how are they mitigated?

The primary risk of a fixed-price with economic price adjustment (EPA) contract is that the final cost to the government could exceed the initial fixed price due to fluctuations in labor and material costs. Mitigation strategies typically involve carefully defined adjustment formulas, caps on adjustments, and rigorous monitoring of market indices. The government aims to balance cost certainty with the contractor's need to manage inflation risks, ensuring fair pricing while protecting against excessive cost increases.

How will the effectiveness of the new academic zone be measured post-completion to ensure it meets the FBI's evolving training and research needs?

Effectiveness will be measured through a combination of quantitative and qualitative metrics. Key performance indicators (KPIs) may include increased training capacity, improved trainee performance scores, successful completion of research projects, and feedback from instructors and students. Post-occupancy evaluations, user satisfaction surveys, and assessments of the facility's adaptability to future technological advancements and evolving mission requirements will also be crucial in determining its long-term effectiveness.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $519,305,226

Exercised Options: $519,305,226

Current Obligation: $519,305,226

Actual Outlays: $99,380,719

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