MARAD Renovation Project in New Orleans Awarded to SAR Development for $2.48M
Contract Overview
Contract Amount: $2,484,177 ($2.5M)
Contractor: SAR Development and Construction LLC
Awarding Agency: General Services Administration
Start Date: 2025-02-13
End Date: 2026-03-29
Contract Duration: 409 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RENOVATION PROJECT FOR MARAD 2 DEPARTMENT OF TRANSPORTATION NDRF WHARF, 38 POLAND STREET, NEW ORLEANS, LA
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70117
Plain-Language Summary
General Services Administration obligated $2.5 million to SAR DEVELOPMENT AND CONSTRUCTION LLC for work described as: RENOVATION PROJECT FOR MARAD 2 DEPARTMENT OF TRANSPORTATION NDRF WHARF, 38 POLAND STREET, NEW ORLEANS, LA Key points: 1. The project involves commercial and institutional building construction for MARAD. 2. SAR Development and Construction LLC is the awarded contractor. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. The project is located in New Orleans, Louisiana.
Value Assessment
Rating: fair
The contract value of $2.48M for a 409-day renovation project appears within a reasonable range for commercial construction. Benchmarking against similar GSA projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for this renovation, with the final cost influenced by the competitive process employed.
Public Impact
Enhances critical maritime infrastructure at the NDRF Wharf. Supports local economy through construction jobs in New Orleans. Ensures operational readiness of MARAD facilities.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Limited competition may have reduced cost savings.
- Potential for scope creep in renovation projects.
Positive Signals
- Clear project scope and fixed price contract.
- Award to a domestic small business.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs and facility upgrades across various government agencies.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The General Services Administration (GSA) oversees this contract through its Public Buildings Service, ensuring adherence to federal acquisition regulations and project standards.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Limited competition.
- Potential for cost overruns if unforeseen issues arise during renovation.
- Contract duration is substantial, increasing exposure to market fluctuations.
- Lack of small business award.
Tags
commercial-and-institutional-building-co, general-services-administration, la, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $2.5 million to SAR DEVELOPMENT AND CONSTRUCTION LLC. RENOVATION PROJECT FOR MARAD 2 DEPARTMENT OF TRANSPORTATION NDRF WHARF, 38 POLAND STREET, NEW ORLEANS, LA
Who is the contractor on this award?
The obligated recipient is SAR DEVELOPMENT AND 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 $2.5 million.
What is the period of performance?
Start: 2025-02-13. End: 2026-03-29.
What is the expected return on investment for this renovation in terms of improved operational efficiency or extended facility lifespan?
The return on investment is primarily measured by the extended lifespan and improved functionality of the MARAD NDRF Wharf. Enhanced operational efficiency is expected through modernized facilities, reducing maintenance downtime and improving workflow. Quantifying this ROI requires specific metrics on current operational bottlenecks and projected gains post-renovation.
What are the key risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for this project?
The primary risk is potentially limiting the pool of qualified bidders, which could lead to higher prices than if all sources were considered. It may also reduce the incentive for innovation from a broader market. Ensuring the exclusion criteria were justified and documented is crucial for accountability.
How effectively does this renovation address MARAD's long-term strategic infrastructure needs?
The effectiveness hinges on whether the renovation aligns with MARAD's strategic plan for its New Orleans facilities. If the upgrades address critical capacity, modernization, or resilience requirements, it is effective. A review of MARAD's infrastructure master plan would clarify the strategic alignment and long-term impact.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 47PH0524R0093
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 501 J F SMITH AVE, SLIDELL, LA, 70460
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $2,484,177
Exercised Options: $2,484,177
Current Obligation: $2,484,177
Actual Outlays: $1,118,435
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-13
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 00:00:00
Last Modified: 2026-02-04
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