GSA awards $2.6M design-build contract for border facility pavement replacement to B3 Construction

Contract Overview

Contract Amount: $2,626,909 ($2.6M)

Contractor: B3 Construction, Inc

Awarding Agency: General Services Administration

Start Date: 2024-12-12

End Date: 2026-07-21

Contract Duration: 586 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GSA SDFO-CALEXICO WEST HISTORIC CUSTOM HOUSE AND CALEXICO EAST IMPORT COMMERCIAL BUILDING PAVEMENT REPLACEMENT IRA DESIGN BUILD SERVICES - CALEXICO, CA 92231

Place of Performance

Location: CALEXICO, IMPERIAL County, CALIFORNIA, 92231

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $2.6 million to B3 CONSTRUCTION, INC for work described as: GSA SDFO-CALEXICO WEST HISTORIC CUSTOM HOUSE AND CALEXICO EAST IMPORT COMMERCIAL BUILDING PAVEMENT REPLACEMENT IRA DESIGN BUILD SERVICES - CALEXICO, CA 92231 Key points: 1. Contract awarded for pavement replacement at Calexico West and East border facilities. 2. B3 Construction, Inc. selected for design-build services. 3. Contract duration is 586 days, ending July 2026. 4. Firm Fixed Price contract type indicates defined scope and cost. 5. Project located in Calexico, California, near the US-Mexico border. 6. This project falls under commercial and institutional building construction NAICS code 236220.

Value Assessment

Rating: fair

The contract value of $2.63 million for pavement replacement services at a federal border facility appears within a reasonable range for design-build projects of this nature. However, without specific details on the scope of work (e.g., square footage of pavement, complexity of design, specific materials required), a precise value-for-money assessment is challenging. Benchmarking against similar federal or large-scale commercial pavement projects would provide a clearer picture of cost-effectiveness. The firm fixed-price nature suggests cost certainty for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reason for this determination is not provided in the available data. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. It is important to understand the justification for not pursuing a competitive bidding process to ensure fair pricing and optimal use of taxpayer funds.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a bidding process. This award mechanism warrants scrutiny to ensure the government obtained the best possible value.

Public Impact

The primary beneficiaries are federal agencies operating at the Calexico border crossings, ensuring functional infrastructure for customs and border protection operations. The services delivered include design and construction of new pavement, improving the operational capacity and safety of the facilities. The geographic impact is localized to Calexico, California, specifically at the Calexico West Historic Custom House and Calexico East Import Commercial Building. Workforce implications include employment opportunities for construction workers, engineers, and project managers involved in the design and build phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and reduced value for taxpayer money.
Limited transparency regarding the justification for a sole-source award.
Potential for scope creep or change orders in design-build projects if not managed tightly.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Project aims to improve critical infrastructure at a key border crossing.
Design-build approach can potentially expedite project delivery compared to traditional design-bid-build.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls under the broader umbrella of infrastructure development and maintenance. The General Services Administration (GSA) is responsible for managing a vast portfolio of federal buildings and facilities, making projects like this essential for maintaining operational readiness. Comparable spending benchmarks for pavement replacement projects vary widely based on scale, location, and specific requirements, but federal agencies often engage in such contracts to ensure the longevity and functionality of their physical assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this particular award appears minimal. Without a small business set-aside or explicit subcontracting requirements, larger firms are typically the primary recipients of such contracts, potentially limiting opportunities for smaller construction companies unless they are part of a larger subcontracting team.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Public Buildings Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Accountability measures would include adherence to the firm fixed-price agreement, project milestones, and quality standards outlined in the contract. Transparency is generally maintained through contract award databases, though detailed justifications for sole-source awards may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Federal Buildings Fund
Border Infrastructure Projects
Design-Build Construction Contracts
Federal Facility Maintenance and Repair

Risk Flags

Sole-source award justification unclear
Potential for non-competitive pricing
Limited public information on contractor past performance

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.6 million to B3 CONSTRUCTION, INC. GSA SDFO-CALEXICO WEST HISTORIC CUSTOM HOUSE AND CALEXICO EAST IMPORT COMMERCIAL BUILDING PAVEMENT REPLACEMENT IRA DESIGN BUILD SERVICES - CALEXICO, CA 92231

Who is the contractor on this award?

The obligated recipient is B3 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 $2.6 million.

What is the period of performance?

Start: 2024-12-12. End: 2026-07-21.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source justification. Common reasons for sole-source awards include unique capabilities of a specific contractor, urgent and compelling needs where only one source can fulfill the requirement, or when a competitive process has failed to yield adequate proposals. Without further documentation from the General Services Administration (GSA), the precise rationale remains unknown. Understanding this justification is crucial for assessing whether the government secured the best possible value and if competitive processes were appropriately bypassed.

How does the awarded amount compare to similar pavement replacement projects at federal facilities?

Benchmarking the $2.63 million contract value for pavement replacement requires detailed comparison points such as the total square footage of pavement to be replaced, the complexity of the design, the specific materials and sub-base requirements, and the geographic location's labor and material costs. Federal pavement projects can range significantly in cost per square foot. For instance, simple resurfacing might cost $5-$15 per square foot, while full depth reconstruction with drainage improvements could exceed $50-$100 per square foot. Given this is a design-build contract, it likely includes more than just basic paving. A precise comparison would necessitate access to the contract's detailed scope of work and cost breakdown, which is not publicly available in the provided data.

What are the potential risks associated with a sole-source design-build contract for infrastructure?

Sole-source contracts inherently carry risks, primarily the potential for higher costs due to the absence of competitive pricing pressure. Taxpayers may not receive the best value if alternative contractors could have offered lower prices or superior solutions. For design-build contracts, risks include potential scope creep if the initial requirements are not meticulously defined, leading to cost overruns. There's also a risk that the single chosen contractor might lack the necessary innovation or efficiency that competition could foster. Effective oversight and stringent contract management are critical to mitigate these risks, ensuring the project stays on time, within budget, and meets all specified requirements.

What is the track record of B3 CONSTRUCTION, INC. with federal contracts, particularly with GSA?

Information regarding the specific track record of B3 CONSTRUCTION, INC. with federal contracts, especially with the General Services Administration (GSA), is not detailed in the provided data snippet. A comprehensive assessment would require reviewing federal procurement databases (like SAM.gov or FPDS) for past performance, contract history, past performance evaluations, and any reported disputes or issues. Understanding their experience with similar-sized projects, design-build delivery methods, and infrastructure work would provide insight into their capability to successfully execute this pavement replacement project. Without this historical data, evaluating their reliability and past performance is speculative.

What are the historical spending patterns for pavement replacement at GSA facilities, and how does this contract fit?

Historical spending patterns for pavement replacement at GSA facilities are likely substantial, given the vast inventory of federal buildings and the ongoing need for infrastructure maintenance. GSA manages millions of square feet of pavement across the country. This $2.63 million contract represents a specific investment in critical border infrastructure. Analyzing GSA's broader budget allocation for facility maintenance and repair, and specifically for pavement projects over the last several fiscal years, would provide context. This contract appears to be a targeted expenditure addressing a specific need at the Calexico border stations, rather than a broad, recurring program, though it aligns with GSA's mandate to maintain federal property.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PK1724R0049

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2454 EDDING DR, LEMON GROVE, CA, 91945

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,626,909

Exercised Options: $2,626,909

Current Obligation: $2,626,909

Actual Outlays: $279,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline