GSA Awards $671K for Detroit Building Modernization Design; $75M Construction Phase Option Accepted

Contract Overview

Contract Amount: $116,790,128 ($116.8M)

Contractor: Christman Company, the

Awarding Agency: General Services Administration

Start Date: 2017-09-12

End Date: 2023-12-01

Contract Duration: 2,271 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF 47PF0017C0033 - 985 MICHIGAN AVENUE BUILDING MODERNIZATION AND BACKFILL PROJECT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES, DETROIT, MICHIGAN 48226 BASE AWARD FOR DESIGN PHASE SERVICES AT THE FIRM-FIXED PRICE OF $671,953.00. THE OPTION FOR CONSTRUCTION PHASE SERVICES, AT THE GUARANTEED MAXIMUM PRICE (GMP) OF $74,932,367.00 HAS BEEN ACCEPTED AND MAY BE AWARDED AT A LATER DATE.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $116.8 million to CHRISTMAN COMPANY, THE for work described as: IGF::OT::IGF 47PF0017C0033 - 985 MICHIGAN AVENUE BUILDING MODERNIZATION AND BACKFILL PROJECT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES, DETROIT, MICHIGAN 48226 BASE AWARD FOR DESIGN PHASE SERVICES AT THE FIRM-FIXED PRICE OF $671,953.00. THE OPTION FOR CONSTRUCTION PHAS… Key points: 1. The initial award covers design phase services for a building modernization project in Detroit. 2. A significant construction phase option, valued at $74.9 million, has been accepted and may be awarded later. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The base award for design services is a firm-fixed price, providing cost certainty for this phase. The construction phase has a Guaranteed Maximum Price (GMP), which is a common and effective method for managing costs in large construction projects while allowing for flexibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing for the services rendered.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the modernization of a federal building.

Public Impact

Modernization of a federal building in Detroit, potentially improving facilities and services. Job creation and economic activity in the construction sector in Michigan. Long-term impact on the usability and efficiency of the 985 Michigan Avenue building. Potential for improved accessibility and functionality for government operations housed in the building.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on the construction phase if the GMP is not well-managed.
Delays in awarding the construction phase could impact project timelines.
Scope creep in the construction phase could lead to increased costs beyond the GMP.

Positive Signals

Firm-fixed price for the design phase provides cost certainty.
Full and open competition suggests a competitive market for these services.
GMP structure for construction phase allows for cost control while accommodating project needs.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, which involves the construction and renovation of non-residential buildings. Spending in this sector can fluctuate based on government infrastructure needs and economic conditions.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the construction phase.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this project. The use of a GMP for the construction phase implies a level of oversight to ensure costs remain within the agreed-upon maximum.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Potential for cost escalation beyond GMP
Uncertainty regarding construction phase award timeline
Lack of detail on small business participation
Scope creep risk in construction phase

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $116.8 million to CHRISTMAN COMPANY, THE. IGF::OT::IGF 47PF0017C0033 - 985 MICHIGAN AVENUE BUILDING MODERNIZATION AND BACKFILL PROJECT CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES, DETROIT, MICHIGAN 48226 BASE AWARD FOR DESIGN PHASE SERVICES AT THE FIRM-FIXED PRICE OF $671,953.00. THE OPTION FOR CONSTRUCTION PHASE SERVICES, AT THE GUARANTEED MAXIMUM PRICE (GMP) OF $74,932,367.00 HAS BEEN ACCEPTED AND MAY BE AWARDED AT A LATER DATE.

Who is the contractor on this award?

The obligated recipient is CHRISTMAN COMPANY, THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $116.8 million.

What is the period of performance?

Start: 2017-09-12. End: 2023-12-01.

What is the projected timeline for the award of the construction phase services?

The provided data indicates that the option for construction phase services has been accepted and may be awarded at a later date. Specific details regarding the projected timeline for this award are not available in the provided information. Further inquiry with the General Services Administration would be necessary to ascertain the expected schedule for the construction phase award.

What specific factors contributed to the $74.9 million GMP for the construction phase?

The data does not provide a breakdown of the factors contributing to the Guaranteed Maximum Price (GMP) for the construction phase. Typically, GMPs are determined based on detailed cost estimates, including labor, materials, equipment, and contractor overhead and profit, often developed during the design phase. A thorough review of the contract documentation would be required to understand the specific cost drivers.

How will the effectiveness of the building modernization be measured post-completion?

The effectiveness of the building modernization will likely be measured through various metrics, such as improved energy efficiency, enhanced building functionality, increased occupant satisfaction, and reduced maintenance costs. Performance standards and post-occupancy evaluations are common methods used to assess the success of such projects. Specific metrics would typically be defined in the project scope and performance requirements.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS05P17GBC0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 208 N CAPITOL AVE FL 4, LANSING, MI, 48933

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

Financial Breakdown

Contract Ceiling: $116,790,128

Exercised Options: $116,790,128

Current Obligation: $116,790,128

Actual Outlays: $33,887,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline