GSA awards $52.7M contract for Denver Federal Center building modernization to Centrerre Construction

Contract Overview

Contract Amount: $52,706,694 ($52.7M)

Contractor: Centerre Construction, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-08-10

End Date: 2023-12-05

Contract Duration: 1,212 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 48 MODERNIZATION LOCATED AT THE DENVER FEDERAL CENTER IN LAKEWOOD, CO.

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $52.7 million to CENTERRE CONSTRUCTION, INC. for work described as: BUILDING 48 MODERNIZATION LOCATED AT THE DENVER FEDERAL CENTER IN LAKEWOOD, CO. Key points: 1. Contract value of $52.7M for building modernization. 2. Competition was full and open after exclusion of sources. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. Project duration spans over 3 years. 5. Located in Lakewood, Colorado, impacting local workforce. 6. Focus on commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $52.7 million for the modernization of Building 48 at the Denver Federal Center appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale federal building modernization projects suggests that costs can vary significantly based on location, complexity, and specific upgrades required. Without detailed cost breakdowns or comparisons to private sector projects of equivalent scale and complexity in the Denver area, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While this indicates an intention to compete broadly, the 'exclusion of sources' clause suggests specific circumstances or pre-qualifications may have limited the pool of eligible bidders. The presence of two bidders indicates some level of competition, but the exact impact on price discovery is unclear without knowing the number of initially solicited or qualified entities.

Taxpayer Impact: The full and open competition, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple bids. However, the specifics of the exclusion could potentially limit the competitive pressure if it narrowed the field significantly.

Public Impact

Federal employees and agencies operating out of Building 48 at the Denver Federal Center will benefit from modernized facilities. The project delivers essential construction services for government infrastructure. The geographic impact is concentrated in Lakewood, Colorado, potentially creating local construction jobs. The contract supports the commercial and institutional building construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during modernization.
Dependence on contractor's ability to meet project timelines and quality standards.
Risk associated with the 'exclusion of sources' clause potentially limiting competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Project addresses critical infrastructure needs for federal operations.
Award to a single contractor streamlines management and accountability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often focuses on maintaining and upgrading government-owned facilities. The market size for federal construction projects is substantial, with agencies like GSA consistently investing in infrastructure. This specific contract represents a notable investment in a single building modernization, contributing to the overall federal real property portfolio.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary contractor, Centrerre Construction, Inc., will determine its own subcontracting strategy, which may or may not involve small businesses. The impact on the small business ecosystem is therefore indirect and dependent on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Modernization Projects
GSA Public Buildings Service Contracts
Commercial and Institutional Construction Contracts
Denver Federal Center Operations

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Contract duration and complexity may pose performance risks.
Dependence on contractor's financial stability and capacity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $52.7 million to CENTERRE CONSTRUCTION, INC.. BUILDING 48 MODERNIZATION LOCATED AT THE DENVER FEDERAL CENTER IN LAKEWOOD, CO.

Who is the contractor on this award?

The obligated recipient is CENTERRE CONSTRUCTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52.7 million.

What is the period of performance?

Start: 2020-08-10. End: 2023-12-05.

What is the track record of Centrerre Construction, Inc. with federal contracts, particularly with the GSA?

Centrerre Construction, Inc. has a history of federal contracting, including work with the General Services Administration. Analyzing their past performance on similar projects, such as building renovations, infrastructure upgrades, or construction of institutional facilities, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Specific details on past GSA contracts, including their value, scope, and any performance reviews or disputes, would be crucial for a comprehensive assessment of their track record. Without access to a detailed contract history database or performance reports, it is difficult to definitively assess their experience level and success rate on federal projects.

How does the awarded amount of $52.7 million compare to similar federal building modernization projects?

Comparing the $52.7 million award for Building 48 modernization requires context regarding the project's scope, size, and specific requirements. Large-scale federal building modernizations can range widely in cost. Factors such as the age and condition of the building, the extent of structural, mechanical, electrical, and plumbing upgrades, energy efficiency improvements, and interior renovations all influence the total cost. Benchmarking against projects of similar square footage, complexity, and geographic location would be necessary. For instance, a comprehensive gut renovation of a historic federal building might cost significantly more per square foot than an upgrade focused on HVAC and IT infrastructure in a more modern structure. Without these specific comparative details, the $52.7 million figure is difficult to definitively benchmark.

What are the primary risks associated with this specific building modernization contract?

The primary risks associated with this contract include potential scope creep, where unforeseen issues discovered during the modernization process necessitate additional work and costs, despite the firm fixed-price structure. Contractor performance risk is also present, relating to Centrerre Construction's ability to deliver the project on time, within budget, and to the required quality standards. Given the 'full and open competition after exclusion of sources' clause, there's a potential risk that the exclusion criteria may have inadvertently limited the competitive pool, possibly impacting the final price or the range of innovative solutions considered. Furthermore, site-specific risks, such as hazardous materials abatement or complex structural challenges, could emerge during construction.

What is the expected effectiveness of the modernization in terms of improving building functionality and energy efficiency?

The effectiveness of the modernization in improving building functionality and energy efficiency is directly tied to the specific scope of work outlined in the contract. Modernization projects typically aim to upgrade outdated systems (HVAC, electrical, plumbing), enhance accessibility, improve interior layouts for better space utilization, and incorporate energy-efficient technologies like LED lighting, improved insulation, and high-performance windows. The extent to which these improvements are implemented will determine the gains in functionality and energy efficiency. A detailed review of the contract's technical specifications and performance requirements would be needed to quantify expected improvements, such as projected energy savings or enhanced operational capabilities for the building's occupants.

How has federal spending on building modernization in the Denver Federal Center area trended over the past five years?

Analyzing historical spending trends for building modernization specifically at the Denver Federal Center requires access to detailed federal procurement data. General trends in federal building modernization spending nationally have often focused on deferred maintenance, energy efficiency upgrades, and adapting facilities to current security and technological standards. The Denver Federal Center, being a significant federal hub, likely sees consistent investment. To understand specific trends for this location, one would need to examine GSA or other relevant agency spending records for projects within the Denver Federal Center campus over the last five years, looking for patterns in the types of projects undertaken and their associated costs.

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: 47PJ0020R0066

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4100 E MISSISSIPPI AVE STE 900, DENVER, CO, 80246

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

Financial Breakdown

Contract Ceiling: $52,706,694

Exercised Options: $52,706,694

Current Obligation: $52,706,694

Actual Outlays: $46,441,129

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $47,995,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline