GSA Awards $15.2M for Thurgood Marshall Courthouse Upgrade, LENDLEASE (US) CONSTRUCTION LMB INC. Selected

Contract Overview

Contract Amount: $15,206,878 ($15.2M)

Contractor: Lendlease (US) Construction LMB Inc.

Awarding Agency: General Services Administration

Start Date: 2005-01-14

End Date: 2018-12-31

Contract Duration: 5,099 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SVCS. FOR INFRASTRUCTURE UPGRADE THURGOOD MARSHALL US COURTHOUSE 40 CENTRE STREET, NY, NY

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $15.2 million to LENDLEASE (US) CONSTRUCTION LMB INC. for work described as: CONSTRUCTION MANAGEMENT SVCS. FOR INFRASTRUCTURE UPGRADE THURGOOD MARSHALL US COURTHOUSE 40 CENTRE STREET, NY, NY Key points: 1. Contract awarded for significant infrastructure upgrade at a federal courthouse. 2. Competition method was 'Full and Open', suggesting broad market participation. 3. The contract duration is substantial, spanning nearly 14 years. 4. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The total award amount of $15.2M over nearly 14 years suggests a moderate annual spend. Benchmarking against similar large-scale courthouse renovation projects would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing any qualified vendor to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure competitive pricing and prevent inflated costs.

Public Impact

Enhances security and functionality of a key federal judicial facility. Supports economic activity through construction services in New York. Long-term project indicates a sustained commitment to infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may introduce scope creep or cost overruns if not managed tightly.
Lack of small business participation noted.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.

Sector Analysis

This contract falls within the construction sector, specifically for institutional buildings. Spending benchmarks for courthouse renovations vary widely based on size, complexity, and location.

Small Business Impact

The data indicates no small business participation in this contract. Given the scale and nature of the project, it's possible it was beyond the scope of many small businesses, or specific set-asides were not applicable.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal buildings. Oversight would involve monitoring project progress, adherence to contract terms, and budget control throughout the contract's long duration.

Related Government Programs

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

Risk Flags

Long contract duration.
No small business participation.
Potential for cost escalation over time.
Complex infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.2 million to LENDLEASE (US) CONSTRUCTION LMB INC.. CONSTRUCTION MANAGEMENT SVCS. FOR INFRASTRUCTURE UPGRADE THURGOOD MARSHALL US COURTHOUSE 40 CENTRE STREET, NY, NY

Who is the contractor on this award?

The obligated recipient is LENDLEASE (US) CONSTRUCTION LMB INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2005-01-14. End: 2018-12-31.

What was the average annual cost of this contract, and how does it compare to similar courthouse renovation projects?

The average annual cost was approximately $1.08 million ($15.2M / 14 years). Comparing this to similar projects requires detailed analysis of scope, size, and location. Without specific benchmarks for courthouse upgrades of this magnitude, it's difficult to definitively assess if this represents excellent or fair value on an annual basis.

What are the primary risks associated with a nearly 14-year construction contract for a federal courthouse?

Key risks include potential for significant cost escalation due to inflation over time, changes in building codes or security requirements necessitating contract modifications, contractor performance degradation over a long period, and the potential for unforeseen site conditions impacting budget and schedule. Effective contract management and contingency planning are crucial.

How effectively does a firm fixed-price contract manage cost risks for such a long-duration infrastructure project?

A firm fixed-price contract is generally effective at capping the government's cost exposure, as the contractor assumes most of the risk for cost overruns. However, for very long-term projects like this, contractors may build in significant contingencies, potentially leading to a higher initial price. It also offers less flexibility for scope adjustments if requirements evolve.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lend Lease Corporation Ltd (UEI: 750503518)

Address: 200 PARK AVE FL 9, NEW YORK, NY, 10166

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,206,878

Exercised Options: $15,206,878

Current Obligation: $15,206,878

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline