GSA's $3.8M renovation contract for Cleveland's Celebrezze Federal Building awarded to MGA Partners LLC

Contract Overview

Contract Amount: $8,839,669 ($8.8M)

Contractor: MGA Partners LLC

Awarding Agency: General Services Administration

Start Date: 2019-07-03

End Date: 2026-02-02

Contract Duration: 2,406 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT 47PF0019C0064, CELEBREZZE FEDERAL BUILDING VBA RENOVATION AND BACKFILL PROJECT, FOR ARCHITECTURAL-ENGINEERING SERVICES IN CLEVELAND, OHIO. MGA PARTNERS LLC FFP OF $3,841,705.88. DESIGN COMPLETION 04/15/2021, ULTIMATE COMPLETION 11/14/2025.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $8.8 million to MGA PARTNERS LLC for work described as: CONTRACT 47PF0019C0064, CELEBREZZE FEDERAL BUILDING VBA RENOVATION AND BACKFILL PROJECT, FOR ARCHITECTURAL-ENGINEERING SERVICES IN CLEVELAND, OHIO. MGA PARTNERS LLC FFP OF $3,841,705.88. DESIGN COMPLETION 04/15/2021, ULTIMATE COMPLETION 11/14/2025. Key points: 1. The contract value of $3,841,705.88 appears reasonable for architectural-engineering services on a federal building renovation. 2. Full and open competition was utilized, suggesting a competitive bidding process that could lead to better pricing. 3. The contract duration of 2406 days (over 6 years) indicates a long-term project with potential for scope changes. 4. The project is categorized under Architectural Services, aligning with the specified North American Industry Classification System (NAICS) code. 5. The award was a Definitive Contract, typically used for projects with defined scopes and durations. 6. The contract was awarded by the General Services Administration (GSA), a major federal agency for real estate and procurement.

Value Assessment

Rating: good

The contract value of $3,841,705.88 for architectural-engineering services for the Celebrezze Federal Building renovation seems within a reasonable range for a project of this nature. Benchmarking against similar federal building renovation projects managed by GSA would provide a more precise value-for-money assessment. However, given the scope implied by a multi-year renovation and backfill project, the price appears to be a fair reflection of the services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 21 bids indicates a robust level of competition for this architectural-engineering services contract. A higher number of bidders generally suggests a more competitive environment, which can drive down prices and improve the quality of proposals received by the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are federal agencies requiring functional and updated office space within the Celebrezze Federal Building. The project delivers essential architectural and engineering services for the renovation and backfill of the building. The geographic impact is focused on Cleveland, Ohio, where the Celebrezze Federal Building is located. The project will likely involve architects, engineers, and construction-related professionals, impacting the local workforce in the design and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) increases the risk of cost overruns due to potential scope creep or unforeseen project complexities.
Reliance on a single contractor for a lengthy period may limit flexibility in adapting to evolving design or construction needs.
The specific details of the 'backfill project' component are not fully elaborated, which could introduce unknown risks or requirements.

Positive Signals

Awarded under full and open competition, indicating a thorough vetting process and potential for competitive pricing.
The contract is Firm Fixed Price (FFP), which shifts cost risk to the contractor and provides budget certainty for the government.
The project addresses necessary renovations and improvements to a federal facility, ensuring its continued utility and safety.

Sector Analysis

This contract falls within the Architectural Services sector, a key component of the broader Architecture, Engineering, and Construction (AEC) industry. The federal government, particularly agencies like GSA, is a significant client for these services, often engaging in large-scale renovation and new construction projects. Spending in this sector is influenced by infrastructure needs, federal building modernization initiatives, and overall economic conditions. Comparable spending benchmarks would involve analyzing other GSA contracts for similar building renovations or architectural design services across different federal facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary award went to a larger entity capable of handling the full scope of architectural-engineering services. Further investigation into the subcontracting plan would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight may be involved if specific concerns or allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Federal Building Renovations
Architectural and Engineering Services
GSA Public Buildings Service Contracts
Capital Investments in Federal Facilities

Risk Flags

Long contract duration may increase risk of scope creep and cost overruns.
Potential for unforeseen conditions in an existing federal building renovation.
Need for robust contract oversight due to extended project timeline.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8.8 million to MGA PARTNERS LLC. CONTRACT 47PF0019C0064, CELEBREZZE FEDERAL BUILDING VBA RENOVATION AND BACKFILL PROJECT, FOR ARCHITECTURAL-ENGINEERING SERVICES IN CLEVELAND, OHIO. MGA PARTNERS LLC FFP OF $3,841,705.88. DESIGN COMPLETION 04/15/2021, ULTIMATE COMPLETION 11/14/2025.

Who is the contractor on this award?

The obligated recipient is MGA PARTNERS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2019-07-03. End: 2026-02-02.

What is the track record of MGA Partners LLC in performing similar federal contracts, particularly those involving large-scale building renovations?

Assessing the track record of MGA Partners LLC requires a review of their past performance on federal contracts. This would involve examining contract databases to identify previous awards, their values, and performance ratings. Specifically, looking for experience with projects of similar scope, complexity, and duration as the Celebrezze Federal Building renovation is crucial. A history of successful project completion, adherence to schedules and budgets, and positive past performance reviews would indicate a lower risk. Conversely, a history of contract disputes, performance issues, or significant cost overruns would raise concerns about their capability to deliver on this current project. Without specific past performance data, it's difficult to definitively assess their reliability for this particular undertaking.

How does the awarded price of $3,841,705.88 compare to the average cost of similar architectural-engineering services for federal building renovations?

To benchmark the awarded price, one would typically compare it against data from similar federal building renovation projects managed by the General Services Administration (GSA) or other agencies. This involves analyzing the cost per square foot or cost as a percentage of total construction value for architectural and engineering services on projects of comparable size and complexity. Factors such as the age and condition of the building, the extent of the renovation (e.g., structural, MEP, interior fit-out), and the specific services required (e.g., design, construction administration, specialized consulting) influence these costs. While $3.8 million for architectural-engineering services on a significant renovation project appears reasonable on its face, a detailed comparison with historical GSA data or industry cost estimating guides would be necessary for a definitive value-for-money assessment. The fact that it was awarded under full and open competition suggests the price was deemed competitive.

What are the primary risks associated with the long duration (2406 days) of this contract, and how are they being mitigated?

The extended duration of this contract, spanning over six years, presents several inherent risks. These include potential scope creep, where project requirements may evolve or expand beyond the original agreement, leading to cost increases and schedule delays. Market fluctuations in material costs, labor availability, and regulatory changes over such a long period can also impact project feasibility and budget. Furthermore, maintaining consistent project oversight and contractor performance over an extended timeframe can be challenging. Mitigation strategies typically involve robust contract management, including clearly defined milestones, regular progress reviews, change order control processes, and performance metrics. The Firm Fixed Price (FFP) nature of the contract helps mitigate cost escalation risk for the government, placing more of that burden on the contractor, provided the scope is well-defined initially.

What is the expected impact of this renovation project on the operational efficiency and functionality of the Celebrezze Federal Building?

The renovation and backfill project is intended to modernize and improve the Celebrezze Federal Building, likely enhancing its operational efficiency and functionality. This could involve upgrades to building systems (HVAC, electrical, plumbing), improved space utilization through optimized layouts, enhanced accessibility, and updated technological infrastructure. Such improvements aim to create a more secure, comfortable, and productive environment for federal employees and visitors. The 'backfill' aspect suggests that the renovation may be preparing the building to accommodate new or consolidated federal agency operations, potentially leading to better space management and cost savings through consolidation. The ultimate impact on operational efficiency will depend on the specific scope of work and the successful implementation of the design.

How does this contract align with GSA's broader real estate portfolio management and modernization goals?

This contract aligns with GSA's mission to provide cost-effective, sustainable, and high-performing federal workplaces. Renovating and modernizing existing federal buildings like the Celebrezze Federal Building is a key strategy for GSA to ensure its portfolio meets current and future federal space needs. Such projects often focus on energy efficiency, sustainability, security enhancements, and adapting spaces for modern work environments. By investing in the renovation, GSA is likely extending the useful life of a federal asset, potentially reducing long-term leasing costs, and ensuring compliance with federal building standards. The project contributes to GSA's goal of optimizing its real estate footprint and providing functional, secure, and cost-efficient workspaces for federal agencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PF0018R0157

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 234 MARKET ST FL 2, PHILADELPHIA, PA, 19106

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,839,669

Exercised Options: $8,839,669

Current Obligation: $8,839,669

Actual Outlays: $4,830,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline