GSA Awards $414,714 Contract to Citadel Development LLC for IRS HQ Cornice Repair

Contract Overview

Contract Amount: $4,147,141 ($4.1M)

Contractor: Citadel Development LLC

Awarding Agency: General Services Administration

Start Date: 2025-07-25

End Date: 2026-06-22

Contract Duration: 332 days

Daily Burn Rate: $12.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THE PROJECT IS TO MITIGATE FURTHER CORNICE STONE DEGRADATION AT THE IRS MAIN HQTRS., LOCATED AT 1111CONSTITUTION AVE., NW WASH DC AND, REPAIR KNOWN STONE ISSUES, AND TO MITIGATE POTENTIAL PUBLIC SAFETY ISSUES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $4.1 million to CITADEL DEVELOPMENT LLC for work described as: THE PURPOSE OF THE PROJECT IS TO MITIGATE FURTHER CORNICE STONE DEGRADATION AT THE IRS MAIN HQTRS., LOCATED AT 1111CONSTITUTION AVE., NW WASH DC AND, REPAIR KNOWN STONE ISSUES, AND TO MITIGATE POTENTIAL PUBLIC SAFETY ISSUES. Key points: 1. The contract aims to prevent further degradation and repair existing damage to the IRS HQ cornice. 2. This is a sole-source award, limiting competitive options and potentially impacting price discovery. 3. Public safety is a key driver, addressing potential risks from falling stone. 4. The construction sector is characterized by significant project variability and specialized labor needs.

Value Assessment

Rating: fair

The contract value of $414,714 for cornice repair appears moderate for a federal building of this scale. Benchmarking against similar historical projects for facade restoration on large government buildings would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, indicating no competition was sought. This method bypasses the typical price discovery mechanisms of competitive bidding, potentially leading to higher costs than if multiple contractors had competed.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition. However, the project addresses critical safety concerns, which is a necessary public expenditure.

Public Impact

Ensures the structural integrity of a prominent federal building, safeguarding a national landmark. Mitigates public safety risks associated with potential falling debris from the building's facade. Supports the operational continuity of the IRS by maintaining its headquarters' safety and appearance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price transparency.
Lack of small business participation noted.
Contract duration is relatively short for a complex repair project.

Positive Signals

Addresses critical public safety and infrastructure preservation.
Clear project scope focused on specific degradation mitigation.
Utilizes a firm-fixed-price contract type, providing cost certainty.

Sector Analysis

This project falls within the commercial and institutional building construction sector, which often involves specialized trades for historic preservation and structural repairs. Federal building maintenance contracts can vary widely in cost depending on the scope and complexity of the work.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). There is no specific information provided on efforts made to subcontract portions of the work to small businesses.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for the maintenance and repair of federal buildings. Oversight would typically involve contract management and quality assurance to ensure the repairs meet federal standards.

Related Government Programs

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

Risk Flags

Lack of competition may lead to inflated costs.
Potential for inadequate oversight on sole-source contracts.
No clear indication of small business utilization.
Risk of unforeseen issues during repair of historic structures.
Dependence on a single contractor for critical infrastructure repair.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.1 million to CITADEL DEVELOPMENT LLC. THE PURPOSE OF THE PROJECT IS TO MITIGATE FURTHER CORNICE STONE DEGRADATION AT THE IRS MAIN HQTRS., LOCATED AT 1111CONSTITUTION AVE., NW WASH DC AND, REPAIR KNOWN STONE ISSUES, AND TO MITIGATE POTENTIAL PUBLIC SAFETY ISSUES.

Who is the contractor on this award?

The obligated recipient is CITADEL DEVELOPMENT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-07-25. End: 2026-06-22.

What is the justification for the sole-source award, and were alternative procurement methods considered?

The justification for a sole-source award typically involves specific circumstances, such as the unique capabilities of a contractor or an emergency situation. Without further details, it's unclear why competition was bypassed. Agencies should document and justify sole-source awards thoroughly to ensure they are in the government's best interest and comply with procurement regulations.

How does the awarded price compare to industry benchmarks for similar cornice repair projects on large federal buildings?

Benchmarking the $414,714 award against similar projects is crucial for assessing value. Factors like building age, material type, extent of damage, and specific repair techniques influence costs. A comprehensive review of historical GSA contracts for facade restoration and consultation with industry experts would provide a clearer picture of whether this price represents fair market value.

What measures are in place to ensure the long-term effectiveness of the repairs and prevent future degradation?

Effective oversight should include detailed specifications for materials and methods, regular site inspections during the repair period, and a post-completion warranty. The contract should also outline requirements for preventative maintenance strategies to ensure the longevity of the repairs and the building's facade, addressing the root causes of degradation.

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: 47PM0324R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1212 PENNSYLVANIA AVE SE, WASHINGTON, DC, 20003

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,147,141

Exercised Options: $4,147,141

Current Obligation: $4,147,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline