GSA awards $5.8M for window replacement at Robert Roe Federal Building, impacting New Jersey's commercial construction sector

Contract Overview

Contract Amount: $5,800,000 ($5.8M)

Contractor: Sheela, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-09-23

End Date: 2027-01-25

Contract Duration: 854 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR THE DESIGN BUILD OF WINDOW REPLACEMENT OF THE ROBERT ROE FEDERAL BUILDING .

Place of Performance

Location: PATERSON, PASSAIC County, NEW JERSEY, 07505

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $5.8 million to SHEELA, INC. for work described as: AWARD FOR THE DESIGN BUILD OF WINDOW REPLACEMENT OF THE ROBERT ROE FEDERAL BUILDING . Key points: 1. Contract focuses on essential building infrastructure upgrades, ensuring long-term facility viability. 2. Competition was robust, suggesting a competitive market for similar construction services. 3. Fixed-price contract structure helps mitigate cost overrun risks for the government. 4. Project duration of 854 days indicates a significant scope of work. 5. Geographic focus on New Jersey highlights regional infrastructure investment. 6. The award falls within the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The award amount of $5.8 million for window replacement appears reasonable given the scope and duration of the project (854 days). Benchmarking against similar federal building renovation projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for the government in managing costs for well-defined scopes like window replacement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests an initial broad solicitation followed by a more targeted approach. While not fully open, it indicates more than a sole-source award. The presence of 5 bidders implies a degree of competition, which should have contributed to price discovery, though the exact level of competition's impact is difficult to ascertain without knowing the nature of the exclusion.

Taxpayer Impact: The competitive process, even with exclusions, likely resulted in a more favorable price for taxpayers than a sole-source award. However, the exclusion of certain sources might have limited the ultimate price reduction achievable through broader market engagement.

Public Impact

The primary beneficiary is the General Services Administration (GSA) through the modernization of a federal facility. The project will deliver essential window replacement services, improving energy efficiency and building aesthetics. The geographic impact is concentrated in New Jersey, supporting local economic activity. The contract supports jobs within the commercial and institutional building construction industry in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure no viable contractors were unfairly excluded.
The long project duration (854 days) could introduce risks related to material price fluctuations or labor availability if not managed proactively.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The award to SHEELA, INC. contributes to the federal government's utilization of commercial construction services.
The project addresses critical infrastructure needs for a federal building.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on renovation and upgrade work. The market for federal building maintenance and construction is substantial, with agencies like GSA managing vast portfolios of properties. This award represents a typical investment in maintaining the operational integrity and energy efficiency of federal assets, aligning with broader government efforts to modernize its infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While SHEELA, INC. could be a small business, the award process did not prioritize small business participation through set-asides. There is no explicit information on subcontracting plans, but larger construction projects often involve subcontracting opportunities, which could potentially benefit small businesses in specialized trades.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Public Buildings Service. Oversight mechanisms would include regular progress reviews, site inspections, and adherence to contract terms. Accountability is managed through the firm-fixed-price structure and performance requirements. Transparency is generally maintained through federal contract databases, though specific internal oversight details are not publicly available.

Related Government Programs

Federal Building Modernization Programs
GSA Capital Investments
Energy Efficiency Retrofits for Federal Facilities
Commercial Building Construction Contracts

Risk Flags

Competition Method Complexity
Potential for Schedule Delays
Need for Detailed Performance Benchmarking

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.8 million to SHEELA, INC.. AWARD FOR THE DESIGN BUILD OF WINDOW REPLACEMENT OF THE ROBERT ROE FEDERAL BUILDING .

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 $5.8 million.

What is the period of performance?

Start: 2024-09-23. End: 2027-01-25.

What is the track record of SHEELA, INC. in performing similar federal construction contracts?

Information regarding SHEELA, INC.'s specific track record on federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance ratings, contract history with federal agencies, and any reported issues or successes on similar projects. Federal procurement databases and contractor performance systems (like CPARS) would be the primary sources for this information. Understanding their experience with window replacement and federal building standards is crucial for evaluating their capability to successfully execute this award.

How does the $5.8 million award compare to the average cost of similar federal building window replacement projects?

Without specific data on comparable federal building window replacement projects, a direct cost comparison is challenging. However, the award amount of $5.8 million for a project spanning 854 days suggests a significant scope. Factors influencing cost include the size of the building, the type and quantity of windows, labor rates in New Jersey, and specific architectural or energy efficiency requirements. Benchmarking against projects with similar square footage, building age, and complexity would be necessary to determine if this award represents excellent, good, fair, or questionable value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns (though mitigated by the firm-fixed-price structure), schedule delays due to unforeseen site conditions or material/labor shortages, and performance issues related to the quality of work. Mitigation strategies likely involve detailed project planning, robust contract management by GSA, clear performance standards, and potentially contingency planning for unforeseen issues. The long duration also presents a risk of price escalation for materials if not adequately accounted for in the fixed price.

What is the expected impact of this contract on the energy efficiency and operational costs of the Robert Roe Federal Building?

Window replacement projects typically aim to improve a building's energy efficiency by installing modern, insulated windows that reduce heat transfer. This can lead to lower heating and cooling costs, reduced energy consumption, and a smaller carbon footprint for the facility. The specific impact will depend on the U-factor and Solar Heat Gain Coefficient of the new windows compared to the old ones, as well as the overall building envelope improvements. Quantifying the exact savings would require post-project analysis and energy audits.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply about the competition level and potential savings?

This procurement method suggests that the government initially sought offers from all responsible sources but later excluded certain ones before making the award. This could happen for various reasons, such as specific technical requirements, past performance issues with certain contractors, or a desire to focus on a subset of the market. While it implies more competition than a sole-source award, the exclusion of sources may have limited the overall competitive pressure and potentially reduced the price savings achievable compared to a truly unrestricted full and open competition. The fact that 5 bidders participated indicates a reasonable level of interest within the selected pool.

How does this $5.8 million award fit into the broader context of GSA's spending on facility maintenance and upgrades nationwide?

The General Services Administration manages a vast portfolio of federal buildings across the United States, requiring continuous investment in maintenance, repair, and modernization. A $5.8 million award for a specific project like window replacement is a component of GSA's overall capital budget for facility upgrades. This type of spending is crucial for ensuring the longevity, safety, and energy efficiency of federal properties. The scale of this award is moderate relative to major new construction projects but significant for a targeted renovation effort.

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

Offers Received: 5

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: $5,800,000

Exercised Options: $5,800,000

Current Obligation: $5,800,000

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