GSA awards $119M contract for Savannah Federal Building renovation, highlighting fixed-price incentive structure

Contract Overview

Contract Amount: $119,136,914 ($119.1M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: General Services Administration

Start Date: 2021-02-04

End Date: 2026-09-30

Contract Duration: 2,064 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Construction

Official Description: AWARD # 47PF0021C0017. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE ALTERATION OF THE TOMOCHICHI FEDERAL BUILDING AND U.S. COURTHOUSE, 125 BULL STREET, SAVANNAH, GEORGIA, 31401.

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31401

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $119.1 million to BRASFIELD & GORRIE LLC for work described as: AWARD # 47PF0021C0017. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE ALTERATION OF THE TOMOCHICHI FEDERAL BUILDING AND U.S. COURTHOUSE, 125 BULL STREET, SAVANNAH, GEORGIA, 31401. Key points: 1. The contract utilizes a fixed-price incentive (FPI) structure, aiming to balance cost control with contractor performance. 2. Competition was full and open, suggesting a robust market engagement for this significant construction project. 3. The project duration of 2064 days indicates a long-term commitment to the facility's modernization. 4. The award to Brasfield & Gorrie LLC, a large contractor, suggests capacity for complex, large-scale federal construction. 5. The project's focus on alteration implies significant renovation and modernization of existing federal infrastructure. 6. The contract's value places it among substantial federal construction awards, requiring careful performance monitoring.

Value Assessment

Rating: good

The $119.1 million award for the Tomochichi Federal Building and U.S. Courthouse alteration appears to be a significant investment in federal infrastructure. Benchmarking against similar large-scale federal building renovations is crucial for a precise value assessment. The fixed-price incentive (FPI) contract type suggests an effort to control costs while incentivizing performance, which can be a good value proposition if managed effectively. However, without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is challenging.

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. The presence of 4 bidders (no) suggests a competitive environment for this large construction project. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for its construction needs.

Public Impact

The primary beneficiaries are federal agencies housed within the Tomochichi Federal Building and U.S. Courthouse, who will gain modernized facilities. The project will deliver extensive alterations and renovations to the existing federal building, improving its functionality and safety. The geographic impact is concentrated in Savannah, Georgia, supporting local economic activity through construction jobs and material procurement. The construction workforce in the Savannah area will likely see implications, with potential for job creation and demand for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in large-scale, long-duration construction projects, even with FPI contracts.
Ensuring timely completion within the 2064-day timeframe is critical to avoid extended disruption to federal services.
Monitoring contractor performance and adherence to specifications throughout the extensive renovation process.

Positive Signals

The use of a fixed-price incentive contract aims to align contractor and government interests for cost efficiency.
Full and open competition suggests a strong market response and potentially competitive pricing.
The award to a known, large contractor like Brasfield & Gorrie LLC indicates a capacity for managing complex projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the construction industry focused on non-residential structures. Federal building renovations represent a substantial portion of government spending in this sector, aimed at maintaining and modernizing critical infrastructure. The market for large federal construction projects is often dominated by established firms capable of handling the scale and complexity, with competition driven by factors like past performance, technical expertise, and pricing.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false) and was awarded to a large contractor. There is no explicit information on subcontracting plans for small businesses within this award notice. Therefore, the direct impact on small businesses is likely limited unless Brasfield & Gorrie LLC voluntarily engages them, or if specific subcontracting goals are mandated elsewhere in the contract documentation.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically its Public Buildings Service. The fixed-price incentive structure implies performance monitoring and potential adjustments based on cost and schedule outcomes. Transparency is generally facilitated through contract award databases, but detailed oversight reports and inspector general involvement would depend on specific project milestones and any identified issues.

Related Government Programs

Federal Building Renovations
Public Infrastructure Projects
Construction Management Services
General Services Administration Contracts
Fixed-Price Incentive Contracts

Risk Flags

Potential for cost overruns
Schedule delays
Unforeseen site conditions
Scope creep
Contractor performance issues

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $119.1 million to BRASFIELD & GORRIE LLC. AWARD # 47PF0021C0017. CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) FOR THE ALTERATION OF THE TOMOCHICHI FEDERAL BUILDING AND U.S. COURTHOUSE, 125 BULL STREET, SAVANNAH, GEORGIA, 31401.

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $119.1 million.

What is the period of performance?

Start: 2021-02-04. End: 2026-09-30.

What is the historical spending pattern for alterations and renovations of federal buildings by the GSA?

The General Services Administration (GSA) is a major steward of federal real estate, consistently allocating significant funds towards the maintenance, alteration, and renovation of federal buildings. Historical spending patterns reveal a continuous investment in modernizing aging infrastructure to meet current security, accessibility, and energy efficiency standards. While specific annual figures fluctuate based on budget appropriations and project pipelines, GSA's spending in this category typically runs into billions of dollars annually across the nation. This particular $119 million award for the Tomochichi Federal Building represents a substantial, but not unprecedented, investment for a single major renovation project, reflecting the ongoing need to preserve and upgrade the federal building inventory.

How does the fixed-price incentive (FPI) contract structure compare to other contract types for large federal construction projects in terms of cost control and risk?

Fixed-Price Incentive (FPI) contracts are designed to share cost risks and benefits between the government and the contractor. Unlike a firm-fixed-price contract where the contractor bears all cost overruns, or a cost-plus contract where the government bears most of the risk, FPI establishes a target cost, a target profit, and a price ceiling. If the final cost is below the target, both parties share in the savings (sharing formula). If the final cost exceeds the target but remains below the ceiling, the profit is reduced according to the sharing formula. If the cost exceeds the ceiling, the contractor absorbs the excess. This structure incentivizes the contractor to control costs while providing the government with a ceiling to limit its exposure. For large, complex projects like the Tomochichi Federal Building renovation, FPI offers a balance, encouraging efficiency without the unlimited risk of cost-plus or the potential for contractor claims due to unforeseen issues inherent in firm-fixed-price contracts.

What is Brasfield & Gorrie LLC's track record with large federal construction contracts, particularly with GSA?

Brasfield & Gorrie LLC is a well-established, large-scale general contractor with a significant portfolio of complex construction projects across various sectors, including federal facilities. They have a history of undertaking substantial government contracts, often involving renovations, new construction, and infrastructure development. While specific details of their past performance with GSA on projects of this exact scale and type would require deeper database analysis, their general reputation and size suggest they possess the necessary experience, bonding capacity, and project management expertise to handle a $119 million federal building alteration. Federal agencies typically vet contractors thoroughly, considering past performance metrics, safety records, and financial stability before awarding major contracts.

What are the potential risks associated with a 2064-day (approx. 5.6 years) duration for a federal building renovation project?

A project duration of 2064 days for a federal building renovation presents several potential risks. Firstly, the extended timeline increases the likelihood of encountering unforeseen site conditions or material price escalations, even within an FPI framework, which could impact final costs. Secondly, prolonged construction can lead to extended disruption for the building's occupants, potentially affecting the continuity of federal services housed within. Thirdly, maintaining consistent project oversight and stakeholder engagement over such a long period can be challenging, requiring sustained commitment from both the GSA and the contractor. Finally, evolving building codes, security requirements, or technological advancements during the construction phase might necessitate design modifications, adding complexity and potential delays or cost increases.

How does the geographic location in Savannah, Georgia, influence the execution and cost of this federal construction project?

The project's location in Savannah, Georgia, influences its execution and cost in several ways. Savannah's status as a major port city and its growing economy can impact labor availability and material costs. Access to a skilled construction workforce is generally good in established metropolitan areas, but demand can drive up wages. Proximity to transportation networks (port, highways, rail) is advantageous for material delivery, potentially reducing logistics costs. However, local permitting processes, specific environmental regulations in coastal Georgia, and the potential for weather-related delays (e.g., hurricanes) are factors that need careful management. The cost of construction in Savannah would be benchmarked against regional cost indices for commercial and institutional building, which are generally competitive but reflect local market conditions.

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: 47PF0020R0071

Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE S, BIRMINGHAM, AL, 35233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $119,136,914

Exercised Options: $119,136,914

Current Obligation: $119,136,914

Actual Outlays: $87,591,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline