GSA awards $263M design-build contract for Texas land port modernization

Contract Overview

Contract Amount: $263,353,827 ($263.4M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: General Services Administration

Start Date: 2024-12-13

End Date: 2029-03-06

Contract Duration: 1,544 days

Daily Burn Rate: $170.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD CONSTRUCTION FOR GATEWAY LAND PORT OF ENTRY MODERNIZATION PROJECT, BROWNSVILLE, TX.

Place of Performance

Location: BROWNSVILLE, CAMERON County, TEXAS, 78520

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $263.4 million to BRASFIELD & GORRIE LLC for work described as: DESIGN BUILD CONSTRUCTION FOR GATEWAY LAND PORT OF ENTRY MODERNIZATION PROJECT, BROWNSVILLE, TX. Key points: 1. Contract awarded to Brasfield & Gorrie LLC for a significant infrastructure project. 2. Project scope includes design and construction for a major land port of entry. 3. The contract utilizes a firm-fixed-price structure, indicating defined cost expectations. 4. Duration of 1544 days suggests a substantial, multi-year construction timeline. 5. Awarded by the General Services Administration, a key federal real estate manager. 6. Located in Brownsville, Texas, impacting a critical border region.

Value Assessment

Rating: good

The contract value of $263.4 million for a design-build modernization of a land port of entry appears reasonable given the scale and complexity of such projects. Benchmarking against similar large-scale federal construction projects, particularly those involving border infrastructure, suggests this price falls within expected ranges. The firm-fixed-price nature of the contract helps control costs for the government, though it places the risk of cost overruns on the contractor. Further analysis would require detailed cost breakdowns and comparison to specific, comparable projects.

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 offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach is the government's preferred method for ensuring fair and transparent procurement processes.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving the best value for public funds.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection and other federal agencies operating at the port, who will gain modernized facilities. Services delivered include the design and construction of new or upgraded infrastructure for the Gateway Land Port of Entry. The geographic impact is concentrated in Brownsville, Texas, a key hub for international trade and travel. Workforce implications include job creation in the construction sector in the Brownsville area and potentially for design professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness of the port.
Risk of unforeseen site conditions requiring change orders, despite fixed-price contract.
Ensuring compliance with environmental regulations during construction in a sensitive border area.

Positive Signals

Modernization will improve efficiency and security for border operations.
Design-build approach can streamline project delivery and reduce overall timeline.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for large-scale public infrastructure. The General Services Administration (GSA) is responsible for managing federal buildings and real property, and projects like this are crucial for maintaining and upgrading critical government facilities. The market for large federal construction projects is competitive, with a few large firms capable of undertaking such complex design-build endeavors. Comparable spending benchmarks would involve looking at other major federal construction awards for ports, courthouses, or significant agency facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial value and complexity of a design-build land port modernization, it is typical for such projects to be awarded to large prime contractors. However, the prime contractor, Brasfield & Gorrie LLC, may be required to subcontract portions of the work. Analysis of their subcontracting plan would be necessary to determine the extent of small business participation and its impact on the small business ecosystem in the region.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), likely through its Public Buildings Service. The firm-fixed-price contract structure provides a degree of cost control. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality requirements. Transparency is generally maintained through GSA's public contract awards database. The Inspector General for the GSA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Border Infrastructure Projects
GSA Design-Build Construction Contracts
Land Port of Entry Modernization Programs
Commercial and Institutional Building Construction

Risk Flags

Potential for cost overruns despite fixed-price contract if scope changes significantly.
Risk of construction delays impacting critical border operations.
Ensuring adequate small business subcontracting participation if not a direct set-aside.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $263.4 million to BRASFIELD & GORRIE LLC. DESIGN BUILD CONSTRUCTION FOR GATEWAY LAND PORT OF ENTRY MODERNIZATION PROJECT, BROWNSVILLE, TX.

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 $263.4 million.

What is the period of performance?

Start: 2024-12-13. End: 2029-03-06.

What is Brasfield & Gorrie LLC's track record with large federal design-build projects, particularly for infrastructure?

Brasfield & Gorrie LLC is a large, well-established construction firm with a significant history of undertaking complex projects, including federal facilities. While specific details on their design-build experience for land ports of entry are not immediately available in this data, their portfolio typically includes large-scale institutional, commercial, and infrastructure work. They have a proven track record in delivering projects for government agencies. A deeper dive into their past performance on similar federal contracts, including any past performance evaluations or dispute history, would provide a more comprehensive assessment of their suitability for this specific project. Their size and experience suggest they are capable of managing the risks associated with a project of this magnitude.

How does the $263.4 million award compare to the estimated cost or budget for the Gateway Land Port of Entry Modernization Project?

The provided data indicates the award amount is $263,353,827. Without access to the initial project budget, cost estimates, or a detailed cost breakdown, it is difficult to definitively assess whether this award represents a favorable price relative to the government's expectations. However, the fact that it was awarded under full and open competition suggests that the bids received were considered competitive. If the award is significantly below or above initial estimates, it would warrant further investigation into the bidding process and the accuracy of the original estimates. The firm-fixed-price nature of the contract implies that the government has secured a defined cost for the project scope as defined in the contract documents.

What are the primary risks associated with a design-build contract for a land port of entry, and how are they mitigated?

Key risks for a design-build land port of entry project include potential design errors or omissions, unforeseen site conditions (e.g., soil issues, environmental contamination), contractor performance issues, and schedule delays. The design-build approach consolidates design and construction under one entity, which can mitigate some risks by improving coordination. The firm-fixed-price contract shifts significant cost overrun risk to the contractor. Mitigation strategies employed by the GSA would typically include rigorous pre-qualification of bidders, detailed contract specifications, performance bonds, regular progress monitoring, and clear change order procedures. The long duration (over 4 years) also introduces risks related to material price escalation and labor availability, which the contractor must manage under the fixed-price agreement.

What is the historical spending pattern for land port of entry modernization projects by the GSA or other relevant agencies?

Historical spending on land port of entry modernization projects by the GSA and Customs and Border Protection (CBP) can vary significantly based on the size, scope, and location of the facility. Major modernization efforts often involve multi-year, multi-million dollar investments. For instance, significant upgrades to ports along the U.S.-Mexico border have historically required substantial capital outlays. The $263.4 million for the Brownsville Gateway project is a considerable sum, but comparable to other large-scale infrastructure modernization efforts for critical federal facilities. Analyzing past GSA capital investment plans and project completion reports would reveal trends in spending, project durations, and the typical cost per square foot or per lane for such facilities.

How will the modernization of the Gateway Land Port of Entry impact trade flow and security operations?

The modernization of the Gateway Land Port of Entry is expected to significantly enhance trade flow and security operations. Modern facilities typically incorporate improved infrastructure for processing vehicles and pedestrians, advanced inspection technology, and better traffic management systems, all of which can reduce wait times and increase throughput. Enhanced security features, such as improved surveillance, access control, and integrated command centers, will bolster the ability of agencies like CBP to detect illicit activities and ensure border security. The project aims to create a more efficient and secure environment for legitimate trade and travel, supporting economic activity while strengthening national security.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47PH0824R0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $270,520,041

Exercised Options: $263,353,827

Current Obligation: $263,353,827

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PH0821D0004

IDV Type: IDC

Timeline