GSA awards $6.15M renovation contract to Jade Creek Construction LLC for OIG 5th Floor

Contract Overview

Contract Amount: $6,152,017 ($6.2M)

Contractor: Jade Creek Construction LLC

Awarding Agency: General Services Administration

Start Date: 2023-08-24

End Date: 2026-02-20

Contract Duration: 911 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OIG 5TH FLOOR RENOVATIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $6.2 million to JADE CREEK CONSTRUCTION LLC for work described as: OIG 5TH FLOOR RENOVATIONS Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 911 days suggests a complex project scope. 3. Fixed-price contract type aims to control costs, but sole-source nature raises concerns. 4. Project is located in Washington D.C., impacting local construction workforce. 5. The award falls under commercial building construction, a common federal spending category.

Value Assessment

Rating: questionable

Benchmarking the value of this renovation is challenging due to the sole-source award and lack of comparable contract data. The fixed-price nature provides some cost certainty, but without competition, it's difficult to ascertain if the $6.15 million represents a fair market price. Further analysis would require understanding the specific scope of work and comparing it to similar renovation projects in the D.C. area, considering the size and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The General Services Administration (GSA) likely justified this approach based on specific circumstances, such as the need for specialized expertise or an urgent requirement. The lack of competition means that potential savings from a bidding process were not realized, and the government may not have received the most advantageous pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the contractor did not have to compete on price to win the award.

Public Impact

The primary beneficiary is the General Services Administration (GSA) and its Office of Inspector General (OIG), who will gain modernized office space. The contract delivers renovation services for the 5th floor of a federal building. The geographic impact is concentrated in the District of Columbia. The project will likely involve a local construction workforce, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source award.
Long contract duration (911 days) could indicate potential for cost overruns if not managed effectively.

Positive Signals

Fixed-price contract type provides cost certainty for the awarded amount.
Contract awarded to a specific entity (Jade Creek Construction LLC) for a defined project.
Project aims to improve federal office infrastructure.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS code 236220). The federal government is a significant consumer of construction services, with spending often concentrated in major metropolitan areas like Washington D.C. The market for federal building construction is competitive, but specific projects can sometimes be awarded non-competitively due to unique requirements or circumstances. The $6.15 million award is a moderate-sized contract within this sector.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small business participation in this specific project are not guaranteed and would depend on Jade Creek Construction LLC's own subcontracting decisions. The absence of a small business set-aside means that larger firms were not precluded from bidding, and the potential for small business engagement is limited to the prime contractor's discretion.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA). As a definitive contract, it is subject to standard federal procurement regulations and oversight. The GSA's Public Buildings Service is responsible for managing federal building projects. Transparency regarding the specific justification for the sole-source award and ongoing project progress would be key areas for oversight. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Building Renovations
GSA Office Space Modernization
Construction Contracts in Washington D.C.
Sole-Source Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in justification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.2 million to JADE CREEK CONSTRUCTION LLC. OIG 5TH FLOOR RENOVATIONS

Who is the contractor on this award?

The obligated recipient is JADE CREEK CONSTRUCTION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2023-08-24. End: 2026-02-20.

What specific factors justified the sole-source award to Jade Creek Construction LLC for the OIG 5th Floor Renovation?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or specific statutory authority. Without further documentation from the GSA, the precise reasons remain unclear. This lack of transparency is a common concern with sole-source procurements, as it limits the ability to verify that competition was indeed not feasible or advantageous.

How does the $6.15 million contract value compare to similar federal building renovation projects?

Direct comparison of the $6.15 million contract value to similar federal building renovations is difficult without more specific project details and a broader dataset of comparable contracts. However, for a significant interior renovation of a federal office floor, especially in a high-cost area like Washington D.C., this amount is within a plausible range. Factors influencing cost include the scope of work (e.g., structural changes, MEP upgrades, finishes), the size of the floor space, and the specific requirements of the OIG. The sole-source nature of this award, however, prevents a definitive assessment of whether this represents optimal value compared to a competitively bid project.

What are the primary risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. Another risk is reduced transparency in the procurement process, making it harder to ensure accountability and fairness. Furthermore, if the sole-source justification was not robust, it could indicate a missed opportunity to engage a wider pool of qualified contractors, potentially leading to suboptimal outcomes in terms of cost, quality, or innovation. The long duration also presents risks of scope creep or unforeseen issues not adequately addressed in the initial sole-source justification.

What is the expected impact of this renovation on the OIG's operational efficiency and workspace?

While the specific details of the renovation are not provided, the primary impact is expected to be an improvement in the OIG's operational efficiency and workspace environment. Modernizing office spaces typically involves updating layouts for better workflow, incorporating modern technology infrastructure, improving lighting and ergonomics, and enhancing security features. This can lead to increased employee productivity, better collaboration, and a more functional and comfortable working environment. The renovation aims to provide the OIG with a contemporary and effective space to carry out its oversight functions.

What is the historical spending pattern for building renovations by the GSA in Washington D.C.?

Historical spending patterns for building renovations by the GSA in Washington D.C. are substantial, reflecting the agency's role in managing federal real estate in the nation's capital. The GSA oversees a vast portfolio of buildings, necessitating ongoing maintenance, repair, and modernization projects. While specific aggregate data for 'renovations' can be broad, GSA's annual spending on construction, alteration, and repair contracts in D.C. typically runs into hundreds of millions, if not billions, of dollars. This includes projects ranging from minor upgrades to major overhauls of historic and modern federal facilities. The $6.15 million for the OIG 5th floor is a single component within this larger spending picture.

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: 47PM0423R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.,

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $6,152,017

Exercised Options: $6,152,017

Current Obligation: $6,152,017

Actual Outlays: $4,709,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline