GSA Awards $12.6M Elevator Modernization Contract to AHTNA Design-Build Inc. for Ronald Reagan Building

Contract Overview

Contract Amount: $12,620,134 ($12.6M)

Contractor: Ahtna Design-Build Inc

Awarding Agency: General Services Administration

Start Date: 2023-06-22

End Date: 2026-08-30

Contract Duration: 1,165 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RRCH ELEVATOR MODERNIZATION, RONALD REAGAN FB AND CH, SANTA ANA, CA

Place of Performance

Location: SANTA ANA, ORANGE County, CALIFORNIA, 92701

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $12.6 million to AHTNA DESIGN-BUILD INC for work described as: RRCH ELEVATOR MODERNIZATION, RONALD REAGAN FB AND CH, SANTA ANA, CA Key points: 1. Contract awarded for elevator modernization at a federal building. 2. AHTNA Design-Build Inc. is the contractor. 3. The contract is a definitive contract with a firm fixed price. 4. The project is located in Santa Ana, CA.

Value Assessment

Rating: questionable

The contract value of $12.6 million for elevator modernization appears high for a single building project. Benchmarking against similar elevator modernization contracts for federal buildings is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This lack of open competition may have impacted price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: The absence of full and open competition raises concerns about whether the government secured the best possible price for this significant investment.

Public Impact

Modernization of critical building infrastructure ensures continued accessibility and functionality. The project supports federal operations at the Ronald Reagan Federal Building. Investment in construction services stimulates economic activity in the local California region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
High contract value for scope

Positive Signals

Definitive contract awarded
Firm fixed price structure

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining federal facilities. Benchmarks for similar elevator modernization projects are essential for evaluating cost-effectiveness.

Small Business Impact

The contract was not awarded to a small business. Further analysis is needed to determine if small business participation was considered or if opportunities were missed.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Robust oversight is necessary to ensure project milestones are met and costs remain within budget, especially given the limited competition.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Limited competition procurement method
High contract value for elevator modernization
Lack of small business participation noted
Potential for inflated pricing due to limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.6 million to AHTNA DESIGN-BUILD INC. RRCH ELEVATOR MODERNIZATION, RONALD REAGAN FB AND CH, SANTA ANA, CA

Who is the contractor on this award?

The obligated recipient is AHTNA DESIGN-BUILD INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2023-06-22. End: 2026-08-30.

What is the justification for awarding this contract on a limited competition basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by federal acquisition regulations, outlining reasons such as urgent and compelling needs, or unique capabilities of the sole or limited source. Without this justification, it's difficult to assess the necessity of this procurement approach.

How does the $12.6 million cost compare to industry benchmarks for similar elevator modernization projects?

Benchmarking this $12.6 million contract against similar elevator modernization projects in federal buildings is crucial. Factors like the number of elevators, complexity of the system, and building size influence costs. Without comparative data, it's challenging to determine if this represents a fair and reasonable price or if taxpayers are overpaying due to limited competition.

What are the potential risks associated with a firm fixed-price contract awarded under limited competition?

A firm fixed-price contract aims to control costs, but when awarded under limited competition, the risk shifts. The contractor may have less incentive to offer the lowest possible price if competition is restricted. This could lead to the government paying a premium. Additionally, scope creep or unforeseen issues could still impact the overall value if not managed meticulously.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PK1723R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ahtna, Incorporated

Address: 3200 EL CAMINO REAL, IRVINE, CA, 92602

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,620,134

Exercised Options: $12,620,134

Current Obligation: $12,620,134

Actual Outlays: $8,590,085

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $10,083,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline