GSA awards $2.3M contract for Ronald Reagan Building refresh, highlighting construction needs in DC

Contract Overview

Contract Amount: $2,329,059 ($2.3M)

Contractor: Cfm/Severn Associates Joint Venture

Awarding Agency: General Services Administration

Start Date: 2024-01-31

End Date: 2026-03-30

Contract Duration: 789 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OFFICE OF THE COMMISSIONER REFRESH AT THE RONALD REAGAN BUILDING LOCATED AT 1300 PENNSYLVANIA AVE. N.W. WASHINGTON D.C

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $2.3 million to CFM/SEVERN ASSOCIATES JOINT VENTURE for work described as: OFFICE OF THE COMMISSIONER REFRESH AT THE RONALD REAGAN BUILDING LOCATED AT 1300 PENNSYLVANIA AVE. N.W. WASHINGTON D.C Key points: 1. Contract awarded to CFM/SEVERN ASSOCIATES JOINT VENTURE for building refresh services. 2. Project duration is 789 days, indicating a significant scope of work. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The project is located in Washington D.C., a key federal hub. 6. This award falls under Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $2.3 million for a building refresh over approximately two years appears reasonable for a project of this scope in a high-cost area like Washington D.C. Benchmarking against similar GSA projects for facility upgrades and renovations would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost overruns, but the final value will depend on the execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. This method generally promotes a competitive environment, allowing the government to solicit proposals from a wide range of qualified contractors. The presence of a joint venture as the awardee suggests collaboration among firms to meet the contract requirements, potentially indicating a robust competition.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

Federal employees and visitors to the Ronald Reagan Building will benefit from an updated and potentially more functional workspace. The contract supports the maintenance and modernization of a significant federal property. The project's geographic impact is concentrated in Washington D.C. The construction services will likely involve a workforce skilled in commercial building renovation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in renovation projects, which could increase costs beyond the initial fixed price.
Ensuring timely completion within the 789-day duration is critical to avoid disruption of building operations.
Quality of materials and workmanship will be key to the long-term success of the refresh.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Award to a joint venture may indicate a strong capability to handle the project's complexity.
The project addresses the upkeep of a prominent federal building, ensuring its continued utility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building, alteration, or repairing of nonresidential structures. Spending in this area is often driven by the need to maintain and upgrade existing government facilities, as well as construct new ones. Comparable spending benchmarks would involve looking at other GSA contracts for similar renovation and construction projects across the country.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include contract performance monitoring, regular progress reports from the contractor, and site inspections. Transparency is generally facilitated through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

Federal Building Maintenance Contracts
GSA Public Buildings Service Projects
Commercial Renovation Contracts
Washington D.C. Federal Construction

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting building operations.
Ensuring contractor performance meets quality standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.3 million to CFM/SEVERN ASSOCIATES JOINT VENTURE. OFFICE OF THE COMMISSIONER REFRESH AT THE RONALD REAGAN BUILDING LOCATED AT 1300 PENNSYLVANIA AVE. N.W. WASHINGTON D.C

Who is the contractor on this award?

The obligated recipient is CFM/SEVERN ASSOCIATES JOINT VENTURE.

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: 2024-01-31. End: 2026-03-30.

What is the track record of CFM/SEVERN ASSOCIATES JOINT VENTURE on similar federal contracts?

A detailed review of the contractor's past performance on federal contracts, particularly those involving building renovations and refreshes for agencies like GSA, would be necessary. This would involve examining contract histories for on-time delivery, adherence to budget, quality of work, and any instances of disputes or corrective actions. Without specific contract history data for CFM/SEVERN ASSOCIATES JOINT VENTURE, it's difficult to assess their reliability and expertise for this specific project. However, the award through full and open competition suggests they met the initial qualifications set forth by the GSA.

How does the $2.3 million value compare to similar GSA building refresh projects in major metropolitan areas?

Benchmarking this $2.3 million contract against similar GSA building refresh projects in major metropolitan areas like Washington D.C. is crucial for assessing value for money. Factors such as the square footage being renovated, the extent of the refresh (e.g., cosmetic vs. structural), and the specific systems being upgraded (HVAC, electrical, plumbing) significantly influence cost. Generally, projects in high-cost-of-labor areas like D.C. tend to be more expensive. A comparative analysis would involve identifying contracts with similar scope and location, adjusting for inflation and project scale, to determine if this award represents a fair market price.

What are the primary risks associated with this specific contract, and how are they being mitigated?

Key risks for this contract include potential delays in project completion, cost overruns (despite the firm fixed price, change orders can occur), and unforeseen site conditions discovered during renovation. Mitigation strategies typically involve robust project management by the GSA, clear contract terms, performance bonds from the contractor, and regular progress reviews. The firm fixed price structure itself is a risk mitigation tool, shifting some cost overrun risk to the contractor. The joint venture structure might also mitigate risk by pooling resources and expertise.

How effective is the 'full and open competition' process in ensuring competitive pricing for GSA construction projects?

The 'full and open competition' process is generally considered the most effective method for ensuring competitive pricing in federal contracting, including for GSA construction projects. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This process encourages contractors to offer their best prices and terms to win the contract. While it requires more administrative effort upfront, it typically leads to better value for taxpayers compared to less competitive methods.

What is the historical spending trend for building maintenance and renovation by the GSA in Washington D.C.?

Analyzing historical spending trends for building maintenance and renovation by the GSA in Washington D.C. would provide context for this $2.3 million award. GSA's budget for facilities management and modernization in the capital region is substantial, reflecting the large inventory of federal buildings. Spending typically fluctuates based on infrastructure age, deferred maintenance backlogs, and specific modernization initiatives. Understanding these trends can help assess whether current spending levels are consistent, increasing, or decreasing, and identify potential patterns in contract awards and project types.

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: 47PM0424Q0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1131 BENFIELD BLVD STE J, MILLERSVILLE, MD, 21108

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,329,059

Exercised Options: $2,329,059

Current Obligation: $2,329,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PM0518D0001

IDV Type: IDC

Timeline