GSA awards $132.7M seismic upgrade contract to Big-D Construction Corp for Salt Lake City facility

Contract Overview

Contract Amount: $132,708,368 ($132.7M)

Contractor: Big-D Construction Corp

Awarding Agency: General Services Administration

Start Date: 2021-07-14

End Date: 2026-06-04

Contract Duration: 1,786 days

Daily Burn Rate: $74.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CMC CONSTRUCTION SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL, AND RENOVATION PROJECT LOCATED IN SALT LAKE CITY, UTAH.

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84101

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $132.7 million to BIG-D CONSTRUCTION CORP for work described as: CMC CONSTRUCTION SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL, AND RENOVATION PROJECT LOCATED IN SALT LAKE CITY, UTAH. Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. Project duration of 1786 days indicates a significant, long-term construction undertaking. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract is not set aside for small businesses, indicating a focus on large-scale capabilities. 6. The award is for a seismic upgrade, backfill, and renovation, addressing critical infrastructure needs.

Value Assessment

Rating: fair

Benchmarking the value of this $132.7 million contract is challenging without specific cost breakdowns for seismic upgrades, backfill, and renovations. However, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively. The duration of the contract (nearly 5 years) implies a substantial scope of work, and the price should be evaluated against the complexity and scale of the seismic retrofitting and renovation.

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 a bid. With 3 bidders, the competition level appears moderate, which can lead to competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this significant project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiary is the General Services Administration (GSA) and the occupants of the Frank E. Moss facility in Salt Lake City, Utah. The project will deliver essential seismic upgrades, backfill, and renovations to a federal building, enhancing its safety and functionality. The geographic impact is localized to Salt Lake City, Utah, supporting the federal infrastructure in that region. The contract will likely have implications for the construction workforce in Utah, creating jobs and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during renovation, despite the fixed-price nature.
Delays in project completion could impact the facility's operational readiness.
Ensuring compliance with seismic safety standards throughout the extensive renovation process.

Positive Signals

Firm-fixed-price contract provides budget certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
Long-term contract duration allows for comprehensive project execution.
Seismic upgrade addresses critical safety and resilience needs for a federal facility.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. The project's focus on seismic upgrades and renovations for a federal building highlights the critical role of specialized construction services in maintaining and modernizing public infrastructure. Comparable spending benchmarks for large-scale federal building renovations and seismic retrofitting projects would be necessary for a more precise assessment of value.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses in the provided data. This suggests that the primary contractor, Big-D Construction Corp, is expected to handle the majority of the work with its own resources or through larger subcontractors. The absence of a small business set-aside may limit direct opportunities for small businesses on this specific project, though they might participate indirectly through the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures will be embedded in the contract's terms and conditions, including performance milestones and quality control. Transparency will be facilitated through GSA's public contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Seismic Retrofit Programs
Public Infrastructure Renovation Contracts
General Services Administration Construction Projects
Seismic Safety Standards Compliance

Risk Flags

Moderate competition level (3 bidders) warrants scrutiny for price reasonableness.
Long project duration (1786 days) increases exposure to potential scope creep or unforeseen issues.
Firm-fixed-price contracts can sometimes lead to less contractor flexibility in addressing unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $132.7 million to BIG-D CONSTRUCTION CORP. CMC CONSTRUCTION SERVICES FOR THE FRANK E. MOSS SEISMIC UPGRADE, BACKFILL, AND RENOVATION PROJECT LOCATED IN SALT LAKE CITY, UTAH.

Who is the contractor on this award?

The obligated recipient is BIG-D CONSTRUCTION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $132.7 million.

What is the period of performance?

Start: 2021-07-14. End: 2026-06-04.

What is the historical spending pattern for seismic upgrades and renovations by the GSA in Utah?

Analyzing historical spending patterns for seismic upgrades and renovations by the GSA in Utah requires access to detailed GSA procurement data over several fiscal years. Without specific historical data, it's difficult to provide a precise comparison. However, federal agencies like GSA are increasingly investing in infrastructure resilience, particularly in seismically active regions like Utah. This contract's value of $132.7 million suggests a significant investment, potentially aligning with a broader trend of modernizing federal facilities to meet updated safety codes and environmental standards. A deeper dive would involve examining past GSA contracts for similar projects in the region, looking at contract values, durations, and the types of upgrades performed to establish a baseline for current spending.

How does the number of bidders (3) compare to similar large-scale federal construction projects?

For large-scale federal construction projects, particularly those valued in the tens or hundreds of millions of dollars, a range of 3 to 7 bidders is often considered moderate competition. A higher number of bidders (e.g., 8+) typically indicates a more robustly competed contract, potentially leading to more aggressive pricing. Conversely, fewer than 3 bidders might raise concerns about market capacity or the attractiveness of the contract terms. In this case, 3 bidders for a $132.7 million project suggests that while there was competition, it was not exceptionally broad. This level of competition is not necessarily a red flag but warrants scrutiny to ensure the pricing reflects fair market value and that the selection process was rigorous.

What are the key performance indicators (KPIs) likely to be used to measure the success of this contract?

Key performance indicators (KPIs) for this seismic upgrade and renovation contract would likely focus on several critical areas. Schedule adherence is paramount, measuring the project's progress against the planned milestones and the final completion date (June 4, 2026). Quality of work is another crucial KPI, assessed through inspections, adherence to building codes, seismic standards, and the absence of defects. Cost control, while mitigated by the firm-fixed-price structure, would still involve monitoring for any change orders and ensuring they are justified and within budget. Safety performance, measured by incident rates (e.g., lost time injuries), is vital for any construction project. Finally, stakeholder satisfaction, including feedback from facility occupants and GSA representatives, would contribute to the overall performance assessment.

What is the track record of Big-D Construction Corp on similar federal contracts?

Big-D Construction Corp has a significant track record in large-scale construction projects, including work for federal agencies. While specific details on their past federal seismic upgrade contracts are not provided here, their portfolio generally includes complex commercial, institutional, and industrial facilities. Evaluating their track record would involve reviewing past federal contract performance ratings (e.g., CPARS), examining the complexity and scale of previously completed government projects, and assessing their history of on-time and on-budget delivery. A positive history on similar projects would increase confidence in their ability to execute this Salt Lake City facility upgrade successfully. Conversely, any past performance issues would be a point of concern.

Are there any specific risks associated with seismic upgrades in the Salt Lake City region that this contract addresses?

Yes, the Salt Lake City region is located in a seismically active zone, part of the Intermountain Seismic Belt. Risks associated with seismic activity include potential structural damage, collapse, and disruption of essential services during and after an earthquake. This contract specifically addresses these risks by undertaking a seismic upgrade, which likely involves reinforcing the building's structure, foundation, and critical systems to withstand seismic forces. The 'backfill' component might relate to foundation work or site preparation, and 'renovation' implies modernizing the facility while incorporating these safety enhancements. The success of the contract hinges on effectively mitigating these inherent seismic risks through robust engineering and construction practices.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PJ0020R0183

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 404 WEST 400 SOUTH, SALT LAKE CITY, UT, 84101

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

Financial Breakdown

Contract Ceiling: $132,708,368

Exercised Options: $132,708,368

Current Obligation: $132,708,368

Actual Outlays: $85,344,747

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $900,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline