GSA awards $10.6M for Peter Rodino Federal Building modernization, completed in 2017

Contract Overview

Contract Amount: $10,559,563 ($10.6M)

Contractor: Lendlease (US) Construction Inc.

Awarding Agency: General Services Administration

Start Date: 2005-10-05

End Date: 2017-09-30

Contract Duration: 4,378 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES FOR THE MODERNIZATION OF THE PETER RODINO FEDERAL BUILDING, NEWARK, NJ

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $10.6 million to LENDLEASE (US) CONSTRUCTION INC. for work described as: CONSTRUCTION MANAGEMENT SERVICES FOR THE MODERNIZATION OF THE PETER RODINO FEDERAL BUILDING, NEWARK, NJ Key points: 1. Contract value represents a significant investment in federal infrastructure. 2. The project involved extensive construction management services. 3. Completion occurred nearly two years after the initial award date. 4. The contract was awarded through full and open competition. 5. The firm-fixed-price structure aimed to control costs. 6. The General Services Administration (GSA) oversaw this modernization effort.

Value Assessment

Rating: fair

The total contract value of $10.6 million for construction management services for a federal building modernization is difficult to benchmark without specific details on the scope of work and the building's size and condition. However, the duration of the contract (over 12 years from award to completion) suggests a complex and potentially lengthy project. The firm-fixed-price contract type indicates an attempt to establish a clear cost ceiling, but the final cost relative to initial estimates would be a key indicator of value for money. Without comparable projects or detailed cost breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a reasonably competitive environment for this type of construction management service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive bidding process, which typically drives down prices and encourages efficiency among contractors.

Public Impact

Federal employees and the public will benefit from a modernized and functional Peter Rodino Federal Building. The project delivered essential construction management services for a significant federal facility. The geographic impact is localized to Newark, New Jersey. The project likely supported jobs in the construction management and related trades sectors in the New Jersey area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration raises questions about initial planning and potential scope creep.
Lack of specific performance metrics makes it difficult to assess the quality of construction management services provided.
The final cost relative to the initial bid or estimated cost is not readily available for value assessment.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors.
Firm-fixed-price contract type provides cost certainty for the government.
The project aimed to modernize a critical federal building, ensuring its long-term utility.

Sector Analysis

The construction industry is a significant sector for federal spending, particularly for the modernization and maintenance of federal buildings. This contract falls under the Commercial and Institutional Building Construction NAICS code. Federal building modernization projects are crucial for ensuring the safety, efficiency, and sustainability of government facilities. Spending in this area is often driven by aging infrastructure and the need to meet current building codes and environmental standards. Comparable spending benchmarks would depend on the size and complexity of the building and the specific services required.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Without this data, it's difficult to assess the extent to which small businesses may have participated in this project, either as prime contractors or subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing federal building projects. Oversight mechanisms would typically include contract administration, site inspections, and performance reviews. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project performance data may not always be publicly accessible.

Related Government Programs

Federal Building Modernization Programs
GSA Construction Contracts
Public Infrastructure Projects

Risk Flags

Potential for cost overruns due to extended project duration.
Lack of detailed performance metrics hinders value assessment.
Unclear initial cost estimates compared to final award.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.6 million to LENDLEASE (US) CONSTRUCTION INC.. CONSTRUCTION MANAGEMENT SERVICES FOR THE MODERNIZATION OF THE PETER RODINO FEDERAL BUILDING, NEWARK, NJ

Who is the contractor on this award?

The obligated recipient is LENDLEASE (US) 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 $10.6 million.

What is the period of performance?

Start: 2005-10-05. End: 2017-09-30.

What was the initial estimated cost for this construction management contract, and how did the final award amount compare?

The provided data indicates a final award amount of $10,559,563.14. However, information regarding the initial estimated cost or the value of the winning bid prior to the final award is not available in the provided data. To assess the value for money and understand potential cost escalations, a comparison between the initial estimate or bid and the final contract value would be essential. This comparison would help determine if the project remained within budget or experienced significant cost overruns, which could be attributed to scope changes, unforeseen issues, or market fluctuations.

What specific construction management services were included in this contract?

The contract is for 'CONSTRUCTION MANAGEMENT SERVICES FOR THE MODERNIZATION OF THE PETER RODINO FEDERAL BUILDING, NEWARK, NJ.' While the general purpose is clear, the specific services encompassed within 'construction management' are not detailed. Typically, these services can include project planning, scheduling, cost control, quality assurance, safety management, contractor coordination, site supervision, and closeout. Understanding the granular breakdown of these services would allow for a more precise comparison with industry standards and the assessment of the value delivered relative to the contract's cost.

How did the final completion date (2017-09-30) compare to the originally planned completion date?

The contract was awarded on 2005-10-05 with a duration of 4378 days. This duration, when calculated from the award date, extends well beyond the stated completion date of 2017-09-30. Specifically, 4378 days from October 5, 2005, would theoretically end around October 2017. However, the 'dur' field likely represents the intended duration in days from award to completion. The discrepancy between the 'ed' (end date) and the 'dur' field, if 'dur' represents planned duration, suggests a potential delay or a complex phasing of the project. Without explicit information on the planned end date at the time of award, it's difficult to definitively state if there was a delay, but the long contract period indicates a substantial project.

What is the significance of the NAICS code 236220 for this contract?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' signifies that the primary activity under this contract involves the construction of buildings intended for commercial or institutional use, rather than residential or industrial purposes. For the modernization of the Peter Rodino Federal Building, this code accurately reflects the nature of the work, which likely included structural, mechanical, electrical, and finishing upgrades to a public-facing government facility. This classification helps in comparing this contract's spending and scope with other similar federal construction projects.

What does the 'br' value of 2412 represent in the context of this contract?

The 'br' value of 2412 is not a standard or commonly recognized field in federal contract data for construction management services. It is possible that 'br' refers to a specific internal metric or data point used by the awarding agency (GSA) or a data aggregator. Without further context or a data dictionary, its precise meaning and relevance to the analysis of this contract remain unclear. It does not appear to directly relate to cost, duration, competition, or performance metrics typically analyzed.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-02P-04-DTC-0048

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 200 PARK AVENUE 9TH FLOOR, NEW YORK, NY, 10166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,559,563

Exercised Options: $10,559,563

Current Obligation: $10,559,563

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline