GSA awards $4M BPA Call for construction management services in Puerto Rico to Turner & Townsend Heery, LLC

Contract Overview

Contract Amount: $4,011,209 ($4.0M)

Contractor: Turner & Townsend Heery, LLC

Awarding Agency: General Services Administration

Start Date: 2024-11-15

End Date: 2029-02-24

Contract Duration: 1,562 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS BPA CALL IS TO ISSUE AWARD FOR CMA SERVICES FOR HATO REY ANNEX, SAN JUAN, PR.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00918

Plain-Language Summary

General Services Administration obligated $4.0 million to TURNER & TOWNSEND HEERY, LLC for work described as: THE PURPOSE OF THIS BPA CALL IS TO ISSUE AWARD FOR CMA SERVICES FOR HATO REY ANNEX, SAN JUAN, PR. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price call against a broader BPA, providing cost certainty. 3. Duration of over 4 years indicates a significant, long-term need for these services. 4. The services are for construction management at the Hato Rey Annex in San Juan, PR. 5. The awardee, Turner & Townsend Heery, LLC, has experience in construction management. 6. No small business set-aside was utilized for this specific call.

Value Assessment

Rating: good

The contract value of approximately $4 million for over four years of construction management services appears reasonable given the scope. Benchmarking against similar large-scale construction management contracts managed by GSA or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the ultimate value depends on the successful completion of the project within budget and schedule.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This BPA Call was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 4 bids were received, suggesting a healthy level of competition for this contract. A competitive process generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiaries are the General Services Administration (GSA) and the Public Buildings Service, who will receive construction management expertise. The services delivered will support the renovation or construction of the Hato Rey Annex in San Juan, Puerto Rico. The geographic impact is localized to San Juan, Puerto Rico, potentially supporting local economic activity through construction-related jobs. The contract may indirectly impact the local construction workforce by creating demand for skilled labor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Dependence on the performance and expertise of the selected contractor.
Risk of delays in project completion impacting facility availability.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive selection process.
Long-term contract duration allows for sustained project oversight and management.

Sector Analysis

This contract falls within the Construction and Engineering Services sector, specifically focusing on construction management. The federal government, through agencies like GSA, frequently procures these services for the maintenance, renovation, and construction of its vast real estate portfolio. Market size for construction management services is substantial, with significant federal spending allocated annually to infrastructure and building projects across various sectors.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means that opportunities for small businesses would likely arise through the prime contractor's procurement practices rather than a direct mandate within this specific BPA Call.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Public Buildings Service. As a BPA Call, it falls under the umbrella of the parent BPA, which would have its own oversight mechanisms. Transparency is generally maintained through contract award databases and reporting, and GSA has an Office of Inspector General that could investigate any potential issues.

Related Government Programs

General Services Administration (GSA) - Public Buildings Service
Construction Management Services
Federal Building and Facility Maintenance
Puerto Rico Infrastructure Projects

Risk Flags

Potential for cost overruns if scope is not well-defined.
Contractor performance risk.
Schedule delay risk.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.0 million to TURNER & TOWNSEND HEERY, LLC. THE PURPOSE OF THIS BPA CALL IS TO ISSUE AWARD FOR CMA SERVICES FOR HATO REY ANNEX, SAN JUAN, PR.

Who is the contractor on this award?

The obligated recipient is TURNER & TOWNSEND HEERY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2024-11-15. End: 2029-02-24.

What is the track record of Turner & Townsend Heery, LLC with federal construction management contracts?

Turner & Townsend Heery, LLC has a history of performing construction management services for various clients, including federal agencies. While specific details on past federal contracts are not provided in this data snippet, their experience in managing complex construction projects is a key factor in their selection. A deeper dive into their contract history with GSA or other departments would reveal their performance metrics, such as on-time and on-budget delivery rates, and any past performance issues or commendations. This information is crucial for assessing their reliability and capability to successfully execute the Hato Rey Annex project.

How does the awarded price compare to similar construction management contracts managed by GSA?

The awarded value of approximately $4 million for over 1500 days (roughly 4.3 years) of construction management services needs to be benchmarked against comparable GSA contracts. Factors such as project complexity, size of the facility, specific services required (e.g., design oversight, construction supervision, commissioning), and geographic location influence pricing. Without access to GSA's internal contract data or public databases detailing similar projects, a precise comparison is difficult. However, the firm-fixed-price nature suggests that GSA aimed for cost certainty, and the competitive bidding process implies the price is likely within a reasonable market range for the scope of work.

What are the primary risks associated with this construction management contract?

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost increases and schedule delays. Contractor performance is another significant risk; any deficiencies in Turner & Townsend Heery, LLC's management or oversight could jeopardize project success. Furthermore, unforeseen site conditions or challenges specific to the Hato Rey Annex location in Puerto Rico could introduce delays or unexpected costs. The firm-fixed-price contract mitigates some financial risk for the government, but effective oversight and proactive risk management by GSA are essential to address these potential issues.

How effective is the firm-fixed-price (FFP) contract type in managing construction management costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for well-defined projects, as it shifts the risk of cost overruns to the contractor. For construction management services, FFP provides a predictable budget for the government. However, the effectiveness hinges on the clarity and completeness of the contract's scope of work. If unforeseen issues arise that necessitate changes, the contract may need to be modified, potentially increasing costs. The success of FFP in this case will depend on the contractor's ability to manage the project efficiently within the agreed-upon price and GSA's diligence in defining the scope upfront and managing any necessary change orders.

What is the historical spending pattern for construction management services by GSA in Puerto Rico?

Analyzing historical spending patterns for construction management services by GSA in Puerto Rico would provide context for this $4 million award. This would involve examining past contracts awarded for similar projects, their values, durations, and the contractors involved. Understanding whether this award represents an increase, decrease, or stable level of spending can inform future budget allocations and procurement strategies. Without specific historical data, it's challenging to determine if this contract aligns with past trends or signifies a shift in GSA's investment in Puerto Rico's 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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PC0324R0013

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3550 LENOX RD NE STE 2300, ATLANTA, GA, 30326

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,878,704

Exercised Options: $4,011,209

Current Obligation: $4,011,209

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PD0224A0007

IDV Type: BPA

Timeline