GSA awards $5.9M contract for Denver Federal Center fire loop replacement, highlighting construction sector activity

Contract Overview

Contract Amount: $5,912,414 ($5.9M)

Contractor: Gilmore Construction Corporation

Awarding Agency: General Services Administration

Start Date: 2023-06-16

End Date: 2024-12-30

Contract Duration: 563 days

Daily Burn Rate: $10.5K/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: FIRE LOOP REPLACEMENT PROJECT AT BUILDING 810 AT THAT DENVER FEDERAL CENTER IN LAKEWOOD, COLORADO

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $5.9 million to GILMORE CONSTRUCTION CORPORATION for work described as: FIRE LOOP REPLACEMENT PROJECT AT BUILDING 810 AT THAT DENVER FEDERAL CENTER IN LAKEWOOD, COLORADO Key points: 1. The contract value of $5.9 million for a critical infrastructure upgrade suggests a significant investment in facility maintenance. 2. The use of 'Full and Open Competition after Exclusion of Sources' indicates a competitive bidding process, potentially leading to better pricing. 3. The project duration of 563 days points to a complex undertaking requiring substantial planning and execution. 4. The award to Gilmore Construction Corporation, a single entity, focuses the performance risk and reward. 5. This project falls within the broader context of federal building modernization and safety compliance efforts. 6. The fixed-price contract type provides cost certainty for the government, shifting cost overrun risks to the contractor.

Value Assessment

Rating: good

The contract value of $5.9 million for a fire loop replacement project appears reasonable for a federal facility of this nature. Benchmarking against similar large-scale construction projects for federal buildings suggests that pricing is likely competitive, especially given the full and open competition. The firm fixed-price nature of the contract further supports value for money by capping the government's expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources may have been excluded based on predefined criteria. The fact that there were two bidders suggests a moderate level of competition, which is generally sufficient to drive competitive pricing, though not as robust as a completely unrestricted full and open competition.

Taxpayer Impact: The moderate competition level is likely to have resulted in a fair price for taxpayers, balancing the need for specialized construction services with cost efficiency.

Public Impact

Federal employees and visitors at the Denver Federal Center will benefit from enhanced fire safety measures. The project delivers essential infrastructure maintenance, ensuring the operational integrity of Building 810. The geographic impact is localized to Lakewood, Colorado, supporting the federal presence in the region. The contract supports the construction workforce, likely employing skilled tradespeople in the Denver metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the project's duration and complexity.
Ensuring adherence to strict federal building codes and safety standards throughout the project lifecycle.
Managing the impact of construction activities on ongoing operations within Building 810.

Positive Signals

Clear project scope for fire loop replacement.
Firm fixed-price contract provides cost predictability.
Award to an established construction firm with relevant experience.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The federal government is a significant consumer of construction services, undertaking projects ranging from minor repairs to major new builds. The market for federal construction is competitive, with numerous firms vying for contracts. This project's value of $5.9 million is moderate within the spectrum of federal construction spending, indicative of a substantial but not mega-project scale.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements specifically for small businesses. This suggests that the primary contractor, Gilmore Construction Corporation, will likely manage the project with its own resources or through larger subcontractors. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), likely through its Public Buildings Service. The firm fixed-price contract type provides a degree of financial oversight by limiting the government's exposure to cost overruns. Accountability measures will be tied to project milestones and final delivery, with potential for performance reviews and inspections. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

Federal Building Maintenance
Infrastructure Modernization Projects
Public Safety Systems Upgrades
Construction Services for Government Facilities

Risk Flags

Potential for construction delays
Ensuring compliance with federal building codes
Minimizing operational disruption during construction

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.9 million to GILMORE CONSTRUCTION CORPORATION. FIRE LOOP REPLACEMENT PROJECT AT BUILDING 810 AT THAT DENVER FEDERAL CENTER IN LAKEWOOD, COLORADO

Who is the contractor on this award?

The obligated recipient is GILMORE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2023-06-16. End: 2024-12-30.

What is the track record of Gilmore Construction Corporation with federal contracts?

Gilmore Construction Corporation has a history of performing construction work for federal agencies. While specific details on past federal projects are not provided in this data snippet, their selection for this significant fire loop replacement project suggests they possess the necessary qualifications and experience. A deeper dive into their contract history with the GSA and other federal entities would reveal their performance trends, including on-time delivery, budget adherence, and quality of work on similar infrastructure projects. Examining past performance evaluations and any reported disputes or claims would offer a more comprehensive view of their reliability as a federal contractor.

How does the cost of this fire loop replacement compare to similar federal projects?

Benchmarking the $5.9 million cost requires comparing it to similar fire loop replacement or critical infrastructure upgrade projects within federal buildings of comparable size and complexity. Factors such as geographic location (labor and material costs vary significantly by region), the specific age and condition of the existing infrastructure, and the scope of work (e.g., extent of disruption, need for specialized materials) heavily influence project costs. Given the 'Full and Open Competition after Exclusion of Sources' with two bidders, the price is likely competitive. However, without access to a database of comparable federal construction projects, a precise cost-per-square-foot or cost-per-linear-foot comparison is difficult. The firm fixed-price nature suggests the government has secured a defined cost.

What are the primary risks associated with this fire loop replacement project?

The primary risks associated with this fire loop replacement project include potential construction delays due to unforeseen site conditions, weather impacts, or contractor performance issues. Given that the project involves critical life safety systems, any disruption or failure during the replacement process poses a significant risk. There's also the risk of cost overruns if the fixed-price contract doesn't adequately account for all potential challenges, although this risk is largely borne by the contractor. Ensuring compliance with stringent federal safety and building codes throughout the project is another critical risk area. Finally, minimizing disruption to the ongoing operations within Building 810 is a logistical risk that needs careful management.

How effective is the 'Full and Open Competition after Exclusion of Sources' method for this type of project?

The 'Full and Open Competition after Exclusion of Sources' method aims to balance broad competition with specific requirements. For a specialized project like a fire loop replacement, it allows the agency (GSA) to set technical qualifications or other criteria that potential bidders must meet, thereby excluding unqualified firms. This can lead to a more manageable and relevant pool of bidders. While it's more competitive than a sole-source award, it's less competitive than unrestricted full and open competition. The presence of two bidders suggests it achieved a moderate level of competition, likely sufficient to ensure a fair price and identify a capable contractor for this specific infrastructure need.

What is the historical spending pattern for fire safety systems at the Denver Federal Center?

The provided data does not include historical spending patterns for fire safety systems at the Denver Federal Center. To assess this, one would need to analyze past GSA contracts related to fire suppression, alarm systems, and related infrastructure maintenance for this specific facility or similar federal buildings managed by the GSA. Understanding historical spending would help determine if this $5.9 million project represents a routine upgrade, a response to a specific identified deficiency, or an unusually large investment compared to previous expenditures on fire safety. It would also inform whether spending has been consistent or sporadic.

What are the implications of the firm fixed-price contract type for project management?

A firm fixed-price (FFP) contract type means the contractor, Gilmore Construction Corporation, agrees to perform the specified work for a predetermined price. This shifts the primary risk of cost overruns to the contractor. For GSA, this offers significant budget certainty, as the total cost is known upfront, barring any contract modifications. Effective project management from GSA's perspective involves clearly defining the scope of work, closely monitoring progress against the defined milestones, and ensuring the quality of deliverables. While FFP reduces financial risk for the government, it necessitates rigorous oversight to ensure the contractor meets all contractual requirements and quality standards within the agreed-upon price.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4949 IRONTON ST, DENVER, CO, 80239

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,912,414

Exercised Options: $5,912,414

Current Obligation: $5,912,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PJ0021D0019

IDV Type: IDC

Timeline