GSA awards $20.4M construction contract for Weis Federal Courthouse in Pittsburgh, PA

Contract Overview

Contract Amount: $20,405,860 ($20.4M)

Contractor: Burchick Construction CO Inc

Awarding Agency: General Services Administration

Start Date: 2023-04-05

End Date: 2026-05-01

Contract Duration: 1,122 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS IS A CONSTRUCTION CONTRACT BEING PERFORMED AT THE WEIS FED COURTHOUSE IN PITTSBURGH, PA. THE PURPOSE OF THE CONTRACT IS TO CONSOLIDATE SPACE FOR USBC.

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15219

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $20.4 million to BURCHICK CONSTRUCTION CO INC for work described as: THIS IS A CONSTRUCTION CONTRACT BEING PERFORMED AT THE WEIS FED COURTHOUSE IN PITTSBURGH, PA. THE PURPOSE OF THE CONTRACT IS TO CONSOLIDATE SPACE FOR USBC. Key points: 1. Contract focuses on consolidating space for the U.S. Bankruptcy Court. 2. Performance period spans over three years, indicating a significant project. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Awarded by the General Services Administration, a key federal real estate manager. 5. The project is located in Pittsburgh, Pennsylvania, impacting local construction resources. 6. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $20.4 million for a courthouse construction project appears reasonable given the scope of consolidating space. Benchmarking against similar federal courthouse construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature suggests a defined cost structure, but potential for change orders exists in construction. The award to Burchick Construction Co Inc will be evaluated against their past performance and pricing on comparable projects.

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 a competitive process but with specific limitations. While not a sole-source award, the exclusion of certain sources implies a narrowed field of potential bidders. The number of bidders (7) indicates some level of competition, but the specific reasons for excluding other sources would need further investigation to fully understand the impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential sources were allowed to bid. Taxpayers benefit from competition, and any restrictions could potentially increase costs.

Public Impact

The primary beneficiaries are the U.S. Bankruptcy Court, which will gain consolidated operational space. The project delivers essential construction services to modernize federal judicial infrastructure. The geographic impact is concentrated in Pittsburgh, Pennsylvania, potentially creating local jobs and utilizing local suppliers. The construction workforce in the Pittsburgh area will be directly impacted by this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
The 'exclusion of sources' in the competition process warrants further scrutiny to ensure maximum taxpayer value.
Dependence on a single contractor for a multi-year construction project carries inherent performance risks.

Positive Signals

Firm Fixed Price contract structure helps control costs.
Awarded by the General Services Administration, an agency with significant experience in managing federal construction.
The project aims to improve operational efficiency for the U.S. Bankruptcy Court.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal construction spending, particularly by agencies like GSA, plays a crucial role in maintaining and upgrading public infrastructure. Comparable spending benchmarks for similar courthouse renovations or consolidations would be necessary for a detailed sector analysis, but projects of this scale are common within federal real estate portfolios.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best value through the competitive bidding process, rather than specifically targeting small business utilization. Further review of the contract details would be needed to confirm any indirect small business impacts.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction projects, including regular site inspections, progress reporting, and financial reviews. The Public Buildings Service (PBS) within GSA is responsible for managing such contracts. Accountability is maintained through the contract terms and performance metrics. Transparency is generally provided through contract award databases, though detailed project-specific oversight reports may not always be publicly available.

Related Government Programs

Federal Courthouse Construction
GSA Public Buildings Service Projects
U.S. Bankruptcy Court Facilities
Commercial Building Construction Contracts
Firm Fixed Price Construction Awards

Risk Flags

Limited Competition Justification
Potential for Change Orders in Construction
Contractor Performance Risk
Site Condition Unforeseen Issues

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.4 million to BURCHICK CONSTRUCTION CO INC. THIS IS A CONSTRUCTION CONTRACT BEING PERFORMED AT THE WEIS FED COURTHOUSE IN PITTSBURGH, PA. THE PURPOSE OF THE CONTRACT IS TO CONSOLIDATE SPACE FOR USBC.

Who is the contractor on this award?

The obligated recipient is BURCHICK CONSTRUCTION CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2023-04-05. End: 2026-05-01.

What is the track record of Burchick Construction Co Inc on similar federal construction projects?

Burchick Construction Co Inc has a history of performing federal construction projects. To assess their track record thoroughly, one would need to examine past performance evaluations, any documented disputes or claims, and the complexity and scale of their previous government contracts. Comparing their bid on this project to their historical pricing on comparable work would also be informative. A review of their contract history with the GSA and other federal agencies would reveal their experience with similar project types, such as institutional or commercial building construction, and their ability to meet deadlines and budget requirements.

How does the awarded price of $20.4 million compare to similar federal courthouse construction projects?

A direct comparison of the $20.4 million award to similar federal courthouse construction projects requires access to a database of comparable projects, including their scope, location, and award dates. Factors such as square footage, type of construction (new build vs. renovation/consolidation), specific security requirements, and prevailing labor and material costs in the Pittsburgh area would need to be considered. Without specific benchmark data for courthouse consolidation projects of similar size and complexity, it is difficult to definitively state whether this price represents excellent, good, or fair value. However, the GSA's procurement process aims to achieve competitive pricing.

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

The primary risks associated with this construction contract include potential cost overruns due to unforeseen site conditions (e.g., hazardous materials, structural issues), delays caused by weather or supply chain disruptions, and contractor performance issues. Given it's a firm fixed-price contract, the contractor bears most of the direct cost risk, but change orders can increase the total price. Scope creep, where the project requirements expand beyond the initial agreement, is another significant risk. Ensuring robust project management and contingency planning by the GSA is crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of broad competition with specific project needs. While it allows for more than one bidder, the exclusion of certain sources can limit the competitive pool. The effectiveness in ensuring value for taxpayers depends heavily on the justification for the exclusion and the number of remaining bidders. If the exclusion was necessary and a sufficient number of qualified bidders still competed, it can lead to competitive pricing. However, if the exclusion significantly reduces competition, it could potentially lead to higher costs for taxpayers compared to unrestricted full and open competition.

What are the historical spending patterns for courthouse construction and consolidation by the GSA?

Historical spending patterns for courthouse construction and consolidation by the GSA reveal a consistent investment in federal judicial infrastructure. The GSA manages a vast portfolio of federal buildings, and projects like this are part of its ongoing efforts to maintain, modernize, and optimize space utilization. Annual GSA budgets allocate significant funds towards construction, renovation, and repair projects. Analyzing past GSA spending on similar courthouse projects, including average contract values, project durations, and the number of bids received, would provide context for the current $20.4 million award and help identify trends in cost and competition.

What are the implications of a Firm Fixed Price (FFP) contract type for this project's budget?

A Firm Fixed Price (FFP) contract type for this construction project means the contractor agrees to perform the work for a predetermined price. This shifts the majority of the cost risk from the government to the contractor. For taxpayers, this generally offers greater budget certainty, as the final price is established upfront, barring any approved change orders. However, contractors may build in higher contingency amounts into their FFP bids to account for potential risks, which could result in a higher initial price compared to other contract types like cost-plus. Effective management is still required to control scope and prevent costly change orders.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PD0122R0044

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 LOWRIES RUN RD, PITTSBURGH, PA, 15237

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

Financial Breakdown

Contract Ceiling: $20,405,860

Exercised Options: $20,405,860

Current Obligation: $20,405,860

Actual Outlays: $15,482,822

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,624,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline