GSA awards $7.9M contract for construction management services to Alpha Construction and Engineering Corporation

Contract Overview

Contract Amount: $7,939,098 ($7.9M)

Contractor: Alpha Construction and Engineering Corporation

Awarding Agency: General Services Administration

Start Date: 2023-08-28

End Date: 2027-04-05

Contract Duration: 1,316 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 21351 RIDGETOP CIR STE 200, DULLES, VA. NEW CONTRACT FOR CMA SERVICES FOR PRECONSTRUCTION/ PROCUREMENT, CONSTRUCTION, & PROJECT CLOSE OUT PHASES. FUNDING SOURCES WILL BE BA55 & BA24 (IRA)POP : 8/28/2023-8/21/2026

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $7.9 million to ALPHA CONSTRUCTION AND ENGINEERING CORPORATION for work described as: 21351 RIDGETOP CIR STE 200, DULLES, VA. NEW CONTRACT FOR CMA SERVICES FOR PRECONSTRUCTION/ PROCUREMENT, CONSTRUCTION, & PROJECT CLOSE OUT PHASES. FUNDING SOURCES WILL BE BA55 & BA24 (IRA)POP : 8/28/2023-8/21/2026 Key points: 1. Contract focuses on comprehensive construction management across preconstruction, procurement, construction, and close-out phases. 2. Funding is allocated from Budget Activity 55 and Budget Activity 24 (IRA), indicating strategic investment priorities. 3. The contract duration of 1316 days suggests a significant, long-term project requirement. 4. Fixed-price contract type aims to control costs and provide predictability for the government. 5. The award was made through full and open competition, implying a robust selection process.

Value Assessment

Rating: good

The contract value of $7.9 million for a duration of over three years appears reasonable for comprehensive construction management services. Benchmarking against similar GSA contracts for large-scale public building projects would provide further insight into value for money. The firm fixed-price structure suggests an expectation of cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the selection of a capable contractor. The presence of a single award suggests that Alpha Construction and Engineering Corporation offered the best overall value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on public investment.

Public Impact

Federal agencies, particularly those managed by the General Services Administration, will benefit from efficient and effective construction project oversight. Services delivered include critical phases of construction management, from initial planning to final close-out. The contract is geographically focused on Virginia, supporting infrastructure development within the state. The project will likely involve a workforce of construction managers, engineers, and administrative staff, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the extensive construction phases.
Dependence on the contractor's ability to manage multiple stakeholders and timelines effectively.
Risk of schedule delays impacting the overall project completion and agency operational readiness.

Positive Signals

Clear definition of services across all project phases enhances predictability.
Firm fixed-price contract provides cost certainty for the government.
Award through full and open competition suggests a strong pool of qualified bidders and a competitive selection.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the construction industry. The market for construction management services is substantial, driven by government and private sector infrastructure development. This contract represents a specific instance of federal investment in managing public building projects, aligning with broader trends in government spending on facilities and infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most capable large business contractor for this complex service. Further analysis would be needed to determine if any small business subcontracting opportunities are mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight will likely be managed by the General Services Administration's Public Buildings Service, which is responsible for federal building management. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available.

Related Government Programs

Federal Buildings Fund
Public Buildings Service Construction Projects
Infrastructure Investment and Jobs Act (IRA) funded projects

Risk Flags

Contract duration exceeds typical project management timelines, requiring careful monitoring.
Funding from IRA suggests a project aligned with national strategic infrastructure goals.
Fixed-price contract requires robust contractor cost management to avoid overruns.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.9 million to ALPHA CONSTRUCTION AND ENGINEERING CORPORATION. 21351 RIDGETOP CIR STE 200, DULLES, VA. NEW CONTRACT FOR CMA SERVICES FOR PRECONSTRUCTION/ PROCUREMENT, CONSTRUCTION, & PROJECT CLOSE OUT PHASES. FUNDING SOURCES WILL BE BA55 & BA24 (IRA)POP : 8/28/2023-8/21/2026

Who is the contractor on this award?

The obligated recipient is ALPHA CONSTRUCTION AND ENGINEERING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2023-08-28. End: 2027-04-05.

What is the track record of Alpha Construction and Engineering Corporation with the GSA and similar federal agencies?

A thorough review of Alpha Construction and Engineering Corporation's past performance with the General Services Administration (GSA) and other federal agencies is crucial. This would involve examining their history of successfully completing similar construction management contracts, including project scope, duration, and value. Key performance indicators such as on-time delivery, adherence to budget, quality of work, and any past disputes or contract modifications should be assessed. Understanding their experience with projects funded by initiatives like the Infrastructure Investment and Jobs Act (IRA) would also provide valuable context for their suitability for this specific contract.

How does the awarded amount compare to similar construction management contracts managed by the GSA?

To benchmark the value of this $7.9 million contract, a comparison with similar construction management contracts awarded by the GSA's Public Buildings Service is necessary. This analysis should consider contracts with comparable scopes of work (preconstruction, procurement, construction, close-out), project durations (approximately 3.5 years), and geographical locations. Factors such as the complexity of the projects, the specific types of facilities managed, and the prevailing market rates for engineering and construction management services in Virginia should be taken into account. A higher or lower value relative to benchmarks could indicate exceptional value, potential overpricing, or unique project requirements.

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

The primary risks associated with this contract include potential cost overruns due to unforeseen construction complexities, schedule delays impacting project timelines, and contractor performance issues. Mitigation strategies are likely embedded within the contract's firm fixed-price structure, which incentivizes cost control. The GSA's oversight, coupled with the contractor's presumed experience and the competitive selection process, aims to reduce performance risks. Specific risk mitigation plans from the contractor, detailing how they will manage unforeseen issues, stakeholder coordination, and quality control throughout the project lifecycle, would provide further assurance.

How effective is the full and open competition process in ensuring optimal value for this type of service?

The full and open competition process is generally considered highly effective in ensuring optimal value for services like construction management. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The GSA's selection of Alpha Construction and Engineering Corporation suggests that they offered the best combination of technical capability, past performance, and price. The effectiveness is further enhanced when clear evaluation criteria are established and rigorously applied, ensuring that the contract is awarded not just on the lowest price, but on the best overall value proposition for the government and taxpayers.

What is the historical spending pattern for construction management services by the GSA in Virginia?

Analyzing historical spending patterns for construction management services by the GSA in Virginia would provide context for the $7.9 million award. This involves examining the frequency, value, and duration of similar contracts awarded over the past several years. Understanding the average cost per year for such services, the typical number of bidders, and the prevalence of different contract types (e.g., fixed-price vs. cost-plus) can reveal trends. Significant deviations from historical averages for this new contract might indicate unique project demands, changes in market conditions, or shifts in GSA's procurement strategies within the region.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PG0223R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21000 ATLANTIC BLVD STE 400, STERLING, VA, 20166

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

Financial Breakdown

Contract Ceiling: $7,939,098

Exercised Options: $7,939,098

Current Obligation: $7,939,098

Actual Outlays: $1,393,339

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $566,518

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA23D005W

IDV Type: FSS

Timeline