GSA awards $2.6M contract for DEA SCIF design and construction to Benchmark Construction Services Inc

Contract Overview

Contract Amount: $2,624,990 ($2.6M)

Contractor: Benchmark Construction Services Inc

Awarding Agency: General Services Administration

Start Date: 2024-11-01

End Date: 2026-06-02

Contract Duration: 578 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF THE DEA SCIF

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10011

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $2.6 million to BENCHMARK CONSTRUCTION SERVICES INC for work described as: DESIGN AND CONSTRUCTION OF THE DEA SCIF Key points: 1. Contract value of $2.6 million for specialized Sensitive Compartmented Information Facility (SCIF) construction. 2. Competition was full and open after exclusion of sources, indicating a potentially competitive process. 3. The contract duration is 578 days, suggesting a moderately complex project. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.

Value Assessment

Rating: good

The contract value of $2.6 million for the design and construction of a DEA SCIF appears reasonable given the specialized nature of SCIF facilities, which require stringent security and technical specifications. Benchmarking against similar SCIF construction projects is challenging due to proprietary information and varying security levels, but the fixed-price nature of this award suggests a defined scope and cost control. The General Services Administration (GSA) often manages complex construction projects, and their oversight is expected to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was generally open, certain sources may have been excluded based on specific criteria, possibly related to security clearances or specialized capabilities required for SCIF construction. The presence of four bidders suggests a degree of competition, which is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: The competitive bidding process, even with exclusions, helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the Drug Enforcement Administration (DEA), which will receive a secure facility for sensitive operations. The services delivered include the design and construction of a SCIF, a highly specialized and secure environment. The project is located in New York (NY), impacting the local construction workforce and economy. The construction activities will likely involve skilled trades and project management professionals in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Security risks associated with handling classified information during the construction phase.
Dependence on the contractor's ability to meet stringent SCIF construction standards and timelines.
Potential delays if the 'exclusion of sources' criteria were overly restrictive, limiting the pool of qualified bidders.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor streamlines project management and accountability.
The project is managed by the General Services Administration (GSA), known for its expertise in federal construction.
The delivery order structure suggests it aligns with an existing contracting vehicle, potentially indicating pre-qualification of contractors.

Sector Analysis

The construction industry, particularly for specialized government facilities like SCIFs, is a significant sector. This contract falls under commercial and institutional building construction (NAICS 236220). The market for secure government facilities is driven by national security needs and requires contractors with specific clearances and expertise. Comparable spending benchmarks are difficult to ascertain publicly due to the sensitive nature of SCIFs, but GSA's involvement suggests adherence to established procurement and construction standards.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the primary contractor, Benchmark Construction Services Inc., may not be a small business, and opportunities for small businesses would likely be through subcontracting, if pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract will be primarily managed by the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically employs project managers and contracting officers to monitor progress, ensure compliance with specifications, and manage payments. Accountability is established through the firm-fixed-price contract terms and performance milestones. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are published.

Related Government Programs

DEA Facilities Construction
Federal SCIF Construction
GSA Public Buildings Service Contracts
Secure Government Facility Projects
Commercial and Institutional Building Construction

Risk Flags

Potential for limited competition due to source exclusions.
Risk of cost overruns if unforeseen site conditions or technical challenges arise.
Security vulnerabilities during the construction phase.
Contractor performance risk related to specialized SCIF construction standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.6 million to BENCHMARK CONSTRUCTION SERVICES INC. DESIGN AND CONSTRUCTION OF THE DEA SCIF

Who is the contractor on this award?

The obligated recipient is BENCHMARK CONSTRUCTION SERVICES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-06-02.

What is the track record of Benchmark Construction Services Inc. with federal contracts, particularly for secure facilities?

Information regarding Benchmark Construction Services Inc.'s specific track record with federal contracts, especially for secure facilities like SCIFs, is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance on similar government projects, including any awards, past performance evaluations, and any history of contract disputes or terminations. Federal procurement databases and contract award histories would be the primary sources for this assessment. Understanding their experience with the stringent security and construction requirements of SCIFs is crucial for evaluating their capability to successfully execute this contract.

How does the $2.6 million cost compare to similar SCIF construction projects managed by GSA or other agencies?

Directly comparing the $2.6 million cost to similar SCIF construction projects is challenging due to the proprietary nature of SCIFs and the wide variation in size, security levels, and location. However, the General Services Administration (GSA) manages numerous complex construction projects and likely has internal benchmarks for SCIF development. The firm-fixed-price nature of this award suggests that the scope was well-defined, and the price reflects the contractor's assessment of costs, including specialized security requirements, labor, materials, and profit. Without access to GSA's internal cost data or detailed specifications of comparable projects, a precise benchmark is difficult, but the value appears within a plausible range for such specialized construction.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' award type for this project?

The 'Full and Open Competition After Exclusion of Sources' award type presents a nuanced risk profile. While it aims for broad competition, the exclusion of certain sources implies that specific criteria were applied, potentially limiting the pool of highly qualified bidders. The primary risk is that these exclusions might have inadvertently reduced competition more than necessary, potentially leading to a less competitive price than true full and open competition. Another risk is ensuring that the exclusion criteria were objective, justifiable, and directly related to the specialized requirements of SCIF construction, rather than arbitrary. If the excluded sources possessed unique capabilities or competitive advantages, their absence could impact overall value.

How effective is the Firm Fixed Price (FFP) contract type in managing cost and performance risks for SCIF construction?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing cost risks in construction projects where the scope of work is well-defined, as is typical for SCIF construction. Under an FFP contract, the contractor assumes the primary responsibility for cost overruns, providing the government with cost certainty. This shifts the financial risk from the government to the contractor. However, this also means the contractor will likely build in a contingency premium to cover potential unforeseen issues. Performance risks remain, as the contractor must still meet quality standards and deadlines. Effective government oversight is crucial to ensure the contractor delivers the required quality and adheres to the specifications, even with an FFP structure.

What is the historical spending pattern for DEA SCIF design and construction by the General Services Administration?

Historical spending patterns for DEA SCIF design and construction by the GSA are not detailed in the provided data. To assess this, one would need to analyze GSA's contract awards database over several fiscal years, filtering for contracts related to SCIF construction for the DEA or similar agencies. This analysis would reveal the frequency of such awards, the average contract values, the types of contractors typically selected, and the prevailing contract types (e.g., FFP, cost-plus). Understanding historical spending can help identify trends, potential budget fluctuations, and whether this $2.6 million award is consistent with past investments in similar facilities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PC0224R0055

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 801 CORPORATE CIR, TOMS RIVER, NJ, 08755

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,624,990

Exercised Options: $2,624,990

Current Obligation: $2,624,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PC0220D0005

IDV Type: IDC

Timeline