GSA awards $2.26M contract for seismic retrofitting in Portland, OR, to RJS Construction, Inc

Contract Overview

Contract Amount: $2,261,137 ($2.3M)

Contractor: RJS Construction, Inc

Awarding Agency: General Services Administration

Start Date: 2024-11-08

End Date: 2026-01-30

Contract Duration: 448 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 911 FB SEISMIC AFTERCARE PLACE OF PERFORMANCE: 911 NE 11TH AVE PORTLAND, OR 97232-4128

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97232

State: Oregon Government Spending

Plain-Language Summary

General Services Administration obligated $2.3 million to RJS CONSTRUCTION, INC for work described as: 911 FB SEISMIC AFTERCARE PLACE OF PERFORMANCE: 911 NE 11TH AVE PORTLAND, OR 97232-4128 Key points: 1. Contract value appears reasonable for seismic aftercare services in a major metropolitan area. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of over a year allows for thorough execution of seismic aftercare. 5. This contract aligns with GSA's mission to provide safe and sustainable federal facilities. 6. The award to RJS Construction, Inc. indicates their capability in commercial building construction.

Value Assessment

Rating: good

The contract value of $2.26 million for seismic aftercare services in Portland, Oregon, seems within a reasonable range for a project of this nature. Benchmarking against similar seismic retrofitting or building construction projects managed by the General Services Administration (GSA) would provide a more precise value-for-money assessment. However, given the specialized nature of seismic aftercare and the location, the price appears to reflect market conditions and the scope of work.

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 bids. The presence of four bidders suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and ensures that the government receives services at a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government secures the best value for its investment in facility upgrades.

Public Impact

The primary beneficiaries are federal agencies and employees housed in the facility at 911 NE 11th Ave, Portland, OR, who will experience enhanced safety and structural integrity. The services delivered will involve critical seismic aftercare, likely including inspections, repairs, and reinforcement to ensure the building's resilience against seismic events. The geographic impact is localized to Portland, Oregon, specifically addressing the structural needs of a federal building in that region. The contract supports the construction industry workforce in Oregon, providing employment opportunities for skilled laborers and construction professionals employed by RJS Construction, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen structural issues discovered during aftercare that could increase costs beyond the firm fixed price.
Dependence on RJS Construction's specialized expertise and timely execution to meet project deadlines.
Geographic concentration of the project in Portland may limit broader application of lessons learned to other regions.

Positive Signals

Firm fixed-price contract structure provides cost certainty and limits the government's financial risk.
Full and open competition indicates a robust selection process, likely resulting in a qualified contractor.
The project addresses critical safety and infrastructure needs, aligning with public safety and government facility management priorities.

Sector Analysis

The Commercial and Institutional Building Construction sector (NAICS 236220) encompasses a wide range of construction projects for non-residential buildings. Seismic retrofitting and aftercare are specialized services within this sector, crucial for regions prone to seismic activity like the Pacific Northwest. The GSA, as a major owner and manager of federal buildings, frequently engages in such construction and renovation projects to ensure the safety and longevity of its portfolio. Comparable spending benchmarks would involve analyzing other GSA or federal agency contracts for similar seismic upgrades or major building renovations in comparable urban areas.

Small Business Impact

This contract was awarded under full and open competition and is not a small business set-aside. There is no explicit indication of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem will depend on whether RJS Construction, Inc. voluntarily engages small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for construction contracts, including regular site inspections, progress reviews, and contract closeout procedures. Accountability is maintained through the firm fixed-price contract terms, which obligate the contractor to deliver the specified work within the agreed-upon budget. Transparency is generally facilitated through contract award databases and public reporting, although specific project-level oversight details may not be publicly disseminated.

Related Government Programs

Federal Building Seismic Safety Programs
GSA Public Buildings Service Construction Contracts
Disaster Preparedness and Infrastructure Resilience Initiatives
Commercial Building Renovation and Repair

Risk Flags

Potential for scope creep if unforeseen structural issues arise.
Contractor performance risk on specialized construction tasks.
Dependence on specific regional expertise for seismic aftercare.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.3 million to RJS CONSTRUCTION, INC. 911 FB SEISMIC AFTERCARE PLACE OF PERFORMANCE: 911 NE 11TH AVE PORTLAND, OR 97232-4128

Who is the contractor on this award?

The obligated recipient is RJS 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 $2.3 million.

What is the period of performance?

Start: 2024-11-08. End: 2026-01-30.

What is the track record of RJS Construction, Inc. with the federal government, particularly on similar seismic or construction projects?

A review of federal contract databases indicates that RJS Construction, Inc. has received multiple federal awards, primarily from the General Services Administration. While specific details on seismic retrofitting projects are not immediately apparent from summary data, their contract history suggests experience in commercial and institutional building construction. Further analysis would involve examining past performance evaluations and project completion records for any prior seismic-related work or large-scale structural projects to assess their suitability and reliability for this specific contract. Understanding their past performance on similar projects is crucial for evaluating the risk associated with this award.

How does the awarded amount of $2.26 million compare to similar seismic aftercare projects managed by the GSA or other federal agencies?

Benchmarking the $2.26 million award requires comparing it to similar seismic aftercare or retrofitting projects within the General Services Administration's portfolio or those undertaken by other federal agencies in comparable geographic locations and building types. Factors such as building size, complexity of seismic issues, and local construction costs significantly influence project pricing. Without access to a detailed breakdown of the scope of work and specific cost drivers for this contract, a precise comparison is challenging. However, the amount appears to be within a plausible range for specialized structural work on a federal facility in a seismically active region like Oregon.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential unforeseen structural issues discovered during the seismic aftercare process that could lead to cost increases, despite the firm fixed-price structure. There's also a risk related to the contractor's performance, schedule adherence, and the quality of work. Mitigation strategies include the firm fixed-price contract, which shifts cost overrun risk to the contractor. The GSA's oversight, including regular inspections and progress monitoring, aims to ensure quality and timely completion. The selection process through full and open competition also helps mitigate the risk of awarding the contract to an unqualified bidder.

How effective is the firm fixed-price contract type in ensuring value for money for this seismic aftercare project?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for projects with well-defined scopes, such as seismic aftercare where the scope of work is anticipated. FFP shifts the majority of cost risk to the contractor, incentivizing them to manage costs efficiently and complete the work within the agreed-upon price. This provides the government with cost certainty, preventing unexpected budget overruns. For this contract, it means the GSA knows the maximum expenditure, and RJS Construction is motivated to perform the work cost-effectively to maximize their profit margin, thereby aligning contractor incentives with government objectives for a predictable expenditure.

What is the historical spending pattern for seismic aftercare or similar construction services by the General Services Administration in Oregon?

Analyzing historical spending patterns for seismic aftercare or similar construction services by the GSA in Oregon would provide context for the $2.26 million award. This would involve examining past GSA contracts awarded in the state for building retrofitting, structural repairs, and seismic upgrades. Understanding the frequency, average contract values, and types of contractors engaged in such work in Oregon would help determine if this award is consistent with past GSA investment in facility resilience in the region. Such analysis could reveal trends in GSA's commitment to infrastructure safety and identify any significant shifts in spending levels or project scope over time.

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

Solicitation ID: 47PL0124R0042

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9013 NE HIGHWAY 99, VANCOUVER, WA, 98665

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,261,137

Exercised Options: $2,261,137

Current Obligation: $2,261,137

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $290,614

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PL0124D0010

IDV Type: IDC

Timeline