GSA Awards $15.1M Contract for Salt Lake City Seismic Upgrade, Lacking Small Business Participation

Contract Overview

Contract Amount: $15,099,161 ($15.1M)

Contractor: Hellmuth, Obata & Kassabaum, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-08-05

End Date: 2026-08-03

Contract Duration: 2,189 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECT-ENGINEER SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL AND MODERNIZATION PROJECT LOCATED AT 350 SOUTH MAIN STREET, SALT LAKE CITY, UT 84101

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63102

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $15.1 million to HELLMUTH, OBATA & KASSABAUM, INC. for work described as: ARCHITECT-ENGINEER SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL AND MODERNIZATION PROJECT LOCATED AT 350 SOUTH MAIN STREET, SALT LAKE CITY, UT 84101 Key points: 1. Significant investment in critical infrastructure modernization. 2. Sole large firm awarded, raising questions about broader industry engagement. 3. Long contract duration suggests complex, multi-year project execution. 4. Firm Fixed Price contract aims to control costs, but scope creep is a risk.

Value Assessment

Rating: fair

The $15.1 million contract for architectural services appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale federal building modernization projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating an effort to solicit bids from a wide range of qualified firms. However, the award to a single large entity may limit the diversity of approaches and potentially impact price discovery if fewer bids were submitted.

Taxpayer Impact: Taxpayers are funding a critical infrastructure upgrade, with the firm fixed price contract intended to provide cost certainty. The lack of small business involvement means potential economic benefits are not being distributed to smaller enterprises.

Public Impact

Modernizes a key federal building, enhancing safety and functionality. Potential for job creation within the winning firm and its subcontractors. Ensures continued availability of federal services in Salt Lake City. Highlights the need for federal agencies to actively promote small business participation in large contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration may lead to cost overruns if not managed tightly
Potential for scope creep in a multi-year modernization project

Positive Signals

Awarded under full and open competition
Firm Fixed Price contract provides cost certainty
Addresses critical seismic upgrade needs

Sector Analysis

Architectural services for federal buildings fall under the professional services sector. Spending benchmarks for similar seismic upgrade and modernization projects vary widely based on building size, age, and specific structural requirements. This contract appears substantial for a single building.

Small Business Impact

The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to support small businesses and potentially leverage their specialized expertise or competitive pricing.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal buildings. Oversight will be crucial to ensure the project stays on schedule, within budget, and meets all seismic and modernization requirements, especially given the long duration.

Related Government Programs

Architectural Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of small business participation
Long contract duration (2189 days)
Potential for cost overruns due to project complexity and duration
Risk of scope creep impacting budget and timeline
Dependence on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.1 million to HELLMUTH, OBATA & KASSABAUM, INC.. ARCHITECT-ENGINEER SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL AND MODERNIZATION PROJECT LOCATED AT 350 SOUTH MAIN STREET, SALT LAKE CITY, UT 84101

Who is the contractor on this award?

The obligated recipient is HELLMUTH, OBATA & KASSABAUM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2020-08-05. End: 2026-08-03.

What specific factors led to the exclusion of small businesses from this large contract, despite the 'full and open' competition designation?

The exclusion of small businesses could stem from several factors, including the specialized nature of seismic retrofitting requiring specific certifications or experience, the sheer scale of the project demanding significant bonding capacity, or the firm fixed price structure potentially favoring larger entities with greater risk absorption capabilities. Further analysis of the solicitation's requirements and bidder pool is needed.

How will the GSA ensure cost control and prevent scope creep over the nearly seven-year duration of this contract?

The GSA will likely employ rigorous project management practices, including detailed milestone tracking, regular progress reviews, and strict change order controls. A dedicated contracting officer's representative (COR) will be essential for day-to-day oversight. Clear performance metrics and defined deliverables within the firm fixed price contract provide a baseline, but proactive risk management is key.

What is the projected impact of this seismic upgrade on the long-term operational efficiency and safety of the Frank E. Moss Courthouse?

The seismic upgrade is expected to significantly enhance the structural integrity of the courthouse, protecting occupants and sensitive government operations during seismic events. Modernization efforts should also improve energy efficiency, accessibility, and overall functionality, leading to reduced long-term maintenance costs and a safer, more effective working environment for federal personnel.

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: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 47PJ0020R0035

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 S BROADWAY STE 200, SAINT LOUIS, MO, 63102

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

Financial Breakdown

Contract Ceiling: $15,099,161

Exercised Options: $15,099,161

Current Obligation: $15,099,161

Actual Outlays: $9,760,766

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline