GSA's $25M courthouse construction contract awarded to HOAR CONSTRUCTION, LLC shows fair value with 3 bidders
Contract Overview
Contract Amount: $24,958,332 ($25.0M)
Contractor: Hoar Construction, LLC
Awarding Agency: General Services Administration
Start Date: 2017-09-29
End Date: 2021-06-15
Contract Duration: 1,355 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCTION OF NEW UNITED STATED FEDERAL COURTHOUSE, ANNEX BUILDING
Place of Performance
Location: SAVANNAH, CHATHAM County, GEORGIA, 31401
State: Georgia Government Spending
Plain-Language Summary
General Services Administration obligated $25.0 million to HOAR CONSTRUCTION, LLC for work described as: IGF::OT::IGF CONSTRUCTION OF NEW UNITED STATED FEDERAL COURTHOUSE, ANNEX BUILDING Key points: 1. The contract represents a significant investment in federal infrastructure, specifically courthouse construction. 2. Competition dynamics suggest a reasonably competitive bidding process for this project. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance duration of 1355 days indicates a substantial and complex construction undertaking. 5. The project falls within the broad category of commercial and institutional building construction. 6. The award was made under the General Services Administration's Public Buildings Service.
Value Assessment
Rating: good
The contract value of approximately $25 million for a federal courthouse annex appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar federal courthouse projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the initial pricing was deemed acceptable and aimed at controlling costs throughout the project lifecycle. Without specific per-unit cost data or detailed breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive award process lends some confidence.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy interest in the project, which typically aids in price discovery and can lead to more competitive pricing for the government. The presence of multiple bidders implies that the market has sufficient capacity and interest to undertake such federal construction projects.
Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are the judicial system and the public requiring access to federal court facilities in Georgia. The project delivers essential infrastructure for federal court operations, including an annex building. The geographic impact is localized to the specific federal courthouse location in Georgia. The construction project likely created numerous jobs in the construction trades and related support industries within the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large construction projects if not managed tightly.
- Reliance on a single prime contractor for a project of this magnitude carries inherent execution risks.
- Construction projects are susceptible to unforeseen site conditions or material price fluctuations.
Positive Signals
- Firm-fixed-price contract helps lock in costs and reduce budget uncertainty.
- Awarded under full and open competition, suggesting a competitive pricing environment.
- The project duration is clearly defined, allowing for structured planning and execution.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction, with NAICS code 236220. The federal government, through agencies like the General Services Administration (GSA), is a significant consumer of construction services for courthouses, federal buildings, and other public infrastructure. The market for federal construction is competitive, with many firms capable of undertaking large-scale projects. Benchmarks for similar federal courthouse construction projects would typically consider factors like square footage, complexity, and location.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, HOAR CONSTRUCTION, LLC, may still engage small businesses as subcontractors to fulfill project requirements, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA typically has project managers and contracting officers responsible for monitoring progress, ensuring compliance with contract terms, and managing payments. Transparency is generally maintained through contract award databases and reporting requirements. While no specific Inspector General (IG) is mentioned, the GSA Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Federal Courthouse Construction
- Public Building Construction
- General Services Administration Contracts
- Infrastructure Projects
Risk Flags
- Potential for cost overruns if unforeseen issues arise.
- Risk of project delays impacting operational readiness.
- Contractor performance variability.
Tags
construction, courthouse, general-services-administration, public-buildings-service, firm-fixed-price, full-and-open-competition, definitive-contract, georgia, commercial-institutional-building-construction, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $25.0 million to HOAR CONSTRUCTION, LLC. IGF::OT::IGF CONSTRUCTION OF NEW UNITED STATED FEDERAL COURTHOUSE, ANNEX BUILDING
Who is the contractor on this award?
The obligated recipient is HOAR CONSTRUCTION, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $25.0 million.
What is the period of performance?
Start: 2017-09-29. End: 2021-06-15.
What is the track record of HOAR CONSTRUCTION, LLC with federal contracts, particularly with the GSA?
HOAR CONSTRUCTION, LLC has a history of performing federal construction projects. While specific details on their GSA contract performance require deeper database analysis, their ability to win a significant contract like this federal courthouse annex suggests they meet federal contracting requirements and possess the necessary experience and capacity. Examining past performance reviews, any past performance issues, and the volume of their federal awards would provide a more comprehensive understanding of their track record. Their success in securing this contract indicates they were deemed a responsible source with a satisfactory performance history at the time of award.
How does the awarded price compare to similar federal courthouse construction projects in terms of cost per square foot or per project?
Direct comparison of the $25 million award to similar federal courthouse projects is challenging without specific project details such as square footage, complexity, and location-specific construction costs. However, the presence of three bidders under full and open competition suggests the price was competitive within the market for such projects. To perform a robust benchmark, one would need to gather data on recently awarded federal courthouse construction contracts of comparable size and scope, adjusting for regional economic factors and inflation. The firm-fixed-price nature implies the government sought to establish a definitive cost upfront, which aids in budget predictability.
What are the primary risks associated with this specific construction contract, and how are they mitigated?
The primary risks for this federal courthouse construction contract include potential construction delays due to unforeseen site conditions, weather, or labor issues; material cost escalation (though mitigated by firm-fixed-price); and contractor performance issues. Mitigation strategies likely employed by the GSA include thorough pre-award contractor vetting, detailed contract specifications, regular site inspections, performance bonds, and clear communication channels. The firm-fixed-price contract itself is a key risk mitigation tool, shifting much of the cost overrun risk to the contractor. The defined project duration also provides a framework for monitoring progress and identifying potential delays early.
How effective has the GSA's Public Buildings Service been in managing similar large-scale construction projects?
The GSA's Public Buildings Service (PBS) is responsible for a vast portfolio of federal buildings and has extensive experience managing large-scale construction projects. Their effectiveness can be assessed through various metrics, including project completion rates on time and within budget, the quality of completed facilities, and overall stakeholder satisfaction. While specific project successes and failures vary, PBS generally aims to deliver functional, secure, and cost-effective facilities. Oversight mechanisms, including contracting officer representatives and periodic audits, are in place to ensure project success. Analyzing historical data on PBS project performance would provide a clearer picture of their effectiveness.
What has been the historical spending trend for federal courthouse construction over the past five years?
Analyzing historical spending trends for federal courthouse construction requires accessing federal procurement data over the specified period. Generally, federal spending on infrastructure, including courthouses, can fluctuate based on congressional appropriations, national priorities, and the backlog of facility modernization or new construction needs. Factors such as economic conditions, interest rates, and the availability of suitable construction sites also influence spending. A detailed analysis would involve aggregating contract awards for courthouse construction across all relevant federal agencies, such as GSA and the Administrative Office of the U.S. Courts, to identify patterns and significant shifts in investment.
Were there any specific performance issues or disputes reported for HOAR CONSTRUCTION, LLC on previous federal contracts?
Determining specific performance issues or disputes for HOAR CONSTRUCTION, LLC on previous federal contracts necessitates a detailed review of contract performance databases and potentially Inspector General reports or litigation records. Federal agencies maintain performance records (e.g., Contractor Performance Assessment Reporting System - CPARS), which are used in source selection. Without direct access to these detailed performance records for this specific contractor, it's impossible to definitively state whether issues arose. However, the award of a new, significant contract suggests that their past performance, as evaluated by the government, was deemed satisfactory or better.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: GS-04-P-16-BV-C-7004
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2 METROPLEX DR STE 400, BIRMINGHAM, AL, 35209
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,958,332
Exercised Options: $24,958,332
Current Obligation: $24,958,332
Actual Outlays: $598,486
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-29
Current End Date: 2021-06-15
Potential End Date: 2022-07-30 00:00:00
Last Modified: 2022-08-30
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