GSA's $6.5M Electrical Expansion Project Awarded to Eastern Construction & Electric Inc. for Philadelphia VA Facility

Contract Overview

Contract Amount: $6,482,573 ($6.5M)

Contractor: Eastern Construction & Electric Inc

Awarding Agency: General Services Administration

Start Date: 2023-08-23

End Date: 2026-03-30

Contract Duration: 950 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, ELECTRICAL EXPANSION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19144

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $6.5 million to EASTERN CONSTRUCTION & ELECTRIC INC for work described as: VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, ELECTRICAL EXPANSION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144. Key points: 1. The contract value of $6.5 million appears reasonable for a large-scale electrical expansion project in a major metropolitan area. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The project duration of 950 days indicates a significant undertaking, potentially involving complex logistical and construction challenges. 4. The fixed-price contract type shifts performance risk to the contractor, Eastern Construction & Electric Inc. 5. The project is situated within the Commercial and Institutional Building Construction sector, a common area for federal infrastructure spending. 6. The award was made by the General Services Administration (GSA), a key agency for federal building management.

Value Assessment

Rating: good

The contract value of approximately $6.5 million for an electrical expansion project at a large federal facility seems within a reasonable range for similar construction projects. Benchmarking against other large-scale electrical upgrades in institutional settings would provide further context. The firm fixed-price nature of the contract suggests that the initial pricing was deemed acceptable by the government, with the contractor assuming cost overruns.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, leading to better price discovery and value for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive bids and securing the best possible price for the services rendered.

Public Impact

The primary beneficiaries are the occupants of the Veterans Affairs facility at 5000 Wissahickon Avenue, Philadelphia, PA, who will receive upgraded and expanded electrical infrastructure. The project will deliver essential electrical system upgrades, ensuring reliable power for critical healthcare and administrative functions. The geographic impact is localized to Philadelphia, Pennsylvania, supporting local economic activity through construction jobs and material procurement. Workforce implications include employment opportunities for electricians, construction workers, project managers, and support staff in the Philadelphia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays given the 950-day duration, which could impact facility operations and lead to cost overruns if not managed effectively.
The complexity of electrical expansion in an operational facility may present unforeseen challenges requiring adaptive management.
Ensuring adherence to all safety and environmental regulations during construction is paramount.

Positive Signals

The use of full and open competition suggests a commitment to achieving best value through a competitive process.
The firm fixed-price contract type provides cost certainty for the government, transferring risk to the contractor.
The project addresses critical infrastructure needs for a vital federal facility serving veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. Federal spending in this area supports the maintenance, renovation, and construction of government facilities nationwide. The North American Industry Classification System (NAICS) code 236220, Commercial and Institutional Building Construction, encompasses a wide range of projects, from office buildings to hospitals and educational institutions. The value of this contract is moderate within the context of large federal construction projects.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses as prime contractors is likely minimal. However, the prime contractor, Eastern Construction & Electric Inc., may engage small businesses as subcontractors for specialized services or materials, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), which is responsible for managing federal buildings and procurement. The firm fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Transparency is expected through contract award data and potentially through public reporting on project milestones. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Construction
Veterans Affairs Facility Maintenance
General Services Administration Procurement
Infrastructure Modernization Projects

Risk Flags

Potential for schedule slippage due to project duration.
Complexity of work in an operational facility.
Contractor's ability to manage fixed-price cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.5 million to EASTERN CONSTRUCTION & ELECTRIC INC. VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, ELECTRICAL EXPANSION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144.

Who is the contractor on this award?

The obligated recipient is EASTERN CONSTRUCTION & ELECTRIC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2023-08-23. End: 2026-03-30.

What is the track record of Eastern Construction & Electric Inc. with federal contracts, particularly with the GSA or VA?

A review of Eastern Construction & Electric Inc.'s federal contract history would be necessary to assess their performance on similar projects. Key indicators would include their past performance ratings, any history of contract disputes or terminations, and their experience with projects of comparable size and complexity. Understanding their prior success rates with the General Services Administration (GSA) and the Department of Veterans Affairs (VA) specifically would provide valuable insight into their reliability and capability for executing this electrical expansion project effectively and on schedule.

How does the awarded price of $6.5 million compare to similar electrical expansion projects for federal facilities?

To benchmark the value, one would compare this $6.5 million contract against similar electrical expansion projects awarded by federal agencies, particularly the GSA and VA, for institutional or healthcare facilities of comparable size and scope. Factors such as geographic location (labor and material costs vary significantly), project complexity (e.g., upgrades in occupied buildings vs. new construction), and the specific scope of work (e.g., capacity upgrades, system modernization) would need to be considered. A higher or lower price relative to comparable projects could indicate exceptional value or potential overpricing, respectively.

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

The primary risks associated with this contract include potential project delays due to the 950-day duration, unforeseen site conditions during construction, and the contractor's ability to manage costs effectively under a firm fixed-price agreement. Mitigation strategies likely involve robust project management by the GSA, clear performance standards in the contract, regular progress reviews, and contingency planning for unexpected issues. The firm fixed-price structure itself mitigates financial risk for the government by capping the total cost, shifting cost overrun risk to the contractor.

How effective is the GSA's 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered effective in promoting competitive pricing. By allowing all responsible sources to submit offers, it broadens the potential bidder pool compared to more restrictive methods. This increased competition typically drives down prices as contractors vie for the award. However, the effectiveness can be influenced by factors such as the clarity of the solicitation documents, the complexity of the requirements, and the overall market conditions for construction services in the Philadelphia area.

What is the historical spending trend for electrical expansion projects at VA facilities managed by the GSA?

Analyzing historical spending data for similar electrical expansion projects at VA facilities managed by the GSA would reveal trends in project costs, contract durations, and the types of contractors typically awarded these projects. This analysis could identify any significant fluctuations in pricing or project scope over time. Understanding these patterns can help in assessing whether the current $6.5 million award is consistent with historical investments or represents a deviation, potentially due to market changes, increased scope, or specific facility needs.

What are the potential long-term benefits of this electrical expansion for the Philadelphia VA facility's operational efficiency and service delivery?

The long-term benefits of this electrical expansion are expected to be substantial. Upgraded electrical infrastructure will enhance the reliability and capacity of power systems, crucial for supporting advanced medical equipment and maintaining uninterrupted operations, especially during critical care. This improved reliability can lead to reduced downtime, lower maintenance costs over time, and the ability to adopt newer, more energy-efficient technologies. Ultimately, it supports the facility's mission to provide high-quality healthcare services to veterans by ensuring a stable and robust power supply.

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: 47PD0223R0059

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 GEORGETOWN RD, WRIGHTSTOWN, NJ, 08562

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,482,573

Exercised Options: $6,482,573

Current Obligation: $6,482,573

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PD0223D0006

IDV Type: IDC

Timeline