GSA awards $14M contract for VBA Consolidation Project in Newark, NJ

Contract Overview

Contract Amount: $14,001,830 ($14.0M)

Contractor: Sheela, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-08-24

End Date: 2026-05-08

Contract Duration: 988 days

Daily Burn Rate: $14.2K/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: THIS AWARD IS FOR THE VBA CONSOLIDATION PROJECT LOCATED AT FEDERAL OFFICE BUILDING 20 WASHINGTON PLACE, NEWARK, NJ 07102-2442

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $14.0 million to SHEELA, INC. for work described as: THIS AWARD IS FOR THE VBA CONSOLIDATION PROJECT LOCATED AT FEDERAL OFFICE BUILDING 20 WASHINGTON PLACE, NEWARK, NJ 07102-2442 Key points: 1. Contract awarded to SHEELA, INC. for construction services. 2. Project aims to consolidate VBA operations at a Federal Office Building. 3. Fixed-price contract type suggests defined scope and cost control. 4. Long duration of 988 days indicates a complex, multi-phase project. 5. Awarded under Full and Open Competition after Exclusion of Sources. 6. Geographic focus on Newark, New Jersey.

Value Assessment

Rating: fair

The contract value of $14,001,830.30 for construction services appears to be within a reasonable range for a project of this scale and duration. Benchmarking against similar federal building construction projects would provide a more definitive assessment of value for money. The firm fixed-price structure helps mitigate cost overruns for the government, assuming the initial scope was well-defined.

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,' indicating that while the competition was open, specific sources may have been excluded based on pre-defined criteria. The presence of 4 bidders suggests a moderate level of competition, which is generally positive for price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand its potential impact on the breadth of competition.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiary is the General Services Administration (GSA) and the Veterans Benefits Administration (VBA) through the consolidation of operations. The project will deliver construction and renovation services for a federal office building. The geographic impact is concentrated in Newark, New Jersey. The project will likely create or sustain jobs in the construction sector within the local New Jersey workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and construction nature.
Reliance on a single contractor for an extended period could pose performance risks.
The 'exclusion of sources' in the competition method needs clarification to ensure maximum fair opportunity.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Multiple bidders (4) indicate a degree of market interest and competition.
The project supports federal agency operational needs, contributing to government efficiency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal building construction and renovation projects are a consistent area of government spending, often managed by GSA. Market size for federal construction is substantial, with spending varying based on infrastructure needs and agency priorities. This contract represents a specific investment in federal real estate modernization.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, SHEELA, INC., may engage small businesses as subcontractors, which would depend on their own subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures are embedded in the firm fixed-price contract structure, requiring SHEELA, INC. to deliver the specified construction services within the agreed-upon price. Transparency is generally maintained through federal contract databases, though specific project progress reports may not be publicly detailed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Construction
Office Renovation Projects
GSA Public Buildings Service Contracts
Veterans Benefits Administration Facilities

Risk Flags

Potential for extended performance risk due to long contract duration.
Need for clarity on 'exclusion of sources' to ensure robust competition.
Construction projects are inherently subject to unforeseen site conditions and material cost fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.0 million to SHEELA, INC.. THIS AWARD IS FOR THE VBA CONSOLIDATION PROJECT LOCATED AT FEDERAL OFFICE BUILDING 20 WASHINGTON PLACE, NEWARK, NJ 07102-2442

Who is the contractor on this award?

The obligated recipient is SHEELA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2023-08-24. End: 2026-05-08.

What is the track record of SHEELA, INC. with federal contracts, particularly with GSA?

A review of federal procurement data would be necessary to fully assess SHEELA, INC.'s track record. Key metrics to examine include the number and value of previous federal awards, performance ratings on past contracts (if available), and any history of contract disputes or terminations. Understanding their experience with similar-sized construction projects and their performance history specifically with the General Services Administration would provide crucial context for evaluating their capability to successfully execute the VBA Consolidation Project.

How does the awarded price compare to similar federal building construction projects in the region?

To benchmark the value, one would compare the $14,001,830.30 award to similar federal building construction or renovation projects undertaken by GSA or other agencies in the New Jersey region over the past 2-3 years. Factors such as square footage, scope of work (e.g., structural, MEP, finishes), and project complexity would need to be normalized. Without specific comparable data, it is difficult to definitively state if this represents excellent or fair value, but the firm fixed-price nature suggests an attempt to control costs upfront.

What are the specific risks associated with a 988-day construction contract?

A contract duration of 988 days (approximately 32 months) for a construction project introduces several risks. These include potential for material cost escalation beyond initial estimates, labor availability and wage fluctuations, unforeseen site conditions requiring change orders, and potential delays due to weather or permitting issues. For the government, the risk lies in managing the project effectively over an extended period and ensuring the contractor maintains performance and quality throughout. The firm fixed-price nature mitigates direct cost overrun risk for the government, but scope management becomes critical.

What does 'Full and Open Competition after Exclusion of Sources' imply for this contract?

This procurement method signifies that the solicitation was initially intended for full and open competition, but specific sources were excluded from consideration. This exclusion must be justified by the agency, often based on factors like national security, specific technical requirements, or previous performance issues. While it allows for competition among the remaining eligible sources, it inherently limits the pool of potential bidders compared to unrestricted full and open competition. The justification for exclusion is key to understanding if it unduly restricted competition and potentially impacted price discovery.

What is the historical spending pattern for similar VBA consolidation or federal office building projects?

Analyzing historical spending for similar projects would involve examining past GSA or agency awards for office building construction, renovation, and consolidation efforts. This includes looking at contract values, durations, and the number of bidders over time. Trends in spending can reveal whether costs are increasing or decreasing, the typical number of bids received for such projects, and the prevalence of different contract types. Understanding this pattern helps contextualize the current $14M award and assess if it aligns with historical norms or represents a deviation.

Industry Classification

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

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 471 SYKESVILLE RD, WRIGHTSTOWN, NJ, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,001,830

Exercised Options: $14,001,830

Current Obligation: $14,001,830

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,937,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PC0220D0009

IDV Type: IDC

Timeline