GSA awards $61.2M for MLK Federal Building Renovation, a follow-on to a competed action

Contract Overview

Contract Amount: $61,228,392 ($61.2M)

Contractor: Hcbeck Limited

Awarding Agency: General Services Administration

Start Date: 2005-08-19

End Date: 2012-11-30

Contract Duration: 2,660 days

Daily Burn Rate: $23.0K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Construction

Official Description: RENOVATION AND ALTERATION OF MLK JR. FEDERAL BUILDING ATLANTA,GA

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $61.2 million to HCBECK LIMITED for work described as: RENOVATION AND ALTERATION OF MLK JR. FEDERAL BUILDING ATLANTA,GA Key points: 1. Significant investment in federal building infrastructure. 2. Follow-on action suggests prior successful competition. 3. Construction sector, subject to market fluctuations and material costs. 4. Potential for cost overruns in large-scale renovation projects.

Value Assessment

Rating: fair

The award amount of $61.2M for a renovation project is substantial. Without specific benchmarks for similar federal building renovations, it's difficult to definitively assess value. The 'FIXED PRICE AWARD FEE' contract type aims to control costs but can still see variations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract is a 'FOLLOW ON TO COMPETED ACTION', indicating that the initial award was competed. This suggests a competitive process was used, which generally leads to better price discovery. However, follow-on actions can sometimes have less competitive pressure.

Taxpayer Impact: Taxpayer funds are being used for the renovation of a federal building, aiming to maintain and improve government infrastructure. The efficiency of the spending will determine the ultimate taxpayer benefit.

Public Impact

Ensures continued functionality and modernization of a key federal facility. Supports the construction industry and associated jobs. Potential impact on local businesses and services during renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in renovation projects.
Risk of unforeseen structural issues impacting budget and timeline.
Contract type complexity (Award Fee) can lead to disputes.

Positive Signals

Follow-on to a competed action suggests a structured procurement.
Fixed Price component provides some cost certainty.
Project aims to improve long-term asset value.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be influenced by economic cycles, material availability, and labor costs. Federal building renovations are a significant component of government infrastructure spending.

Small Business Impact

The data indicates the prime contractor is HCBECK LIMITED and the award was not set-aside for small businesses (ss: false, sb: false). Therefore, direct small business participation is not evident from this record, though subcontractors may be involved.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal buildings. Oversight would involve monitoring project progress, adherence to contract terms, and financial expenditures to ensure accountability and value for taxpayer money.

Related Government Programs

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

Risk Flags

Potential for cost overruns in large-scale renovations.
Complexity of Award Fee structure.
Lack of direct small business participation noted.
Follow-on actions can sometimes reduce competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $61.2 million to HCBECK LIMITED. RENOVATION AND ALTERATION OF MLK JR. FEDERAL BUILDING ATLANTA,GA

Who is the contractor on this award?

The obligated recipient is HCBECK LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $61.2 million.

What is the period of performance?

Start: 2005-08-19. End: 2012-11-30.

What was the original scope and cost of the initial competed action that this is a follow-on to?

Understanding the original scope and cost of the initial competed action is crucial for assessing the value and necessity of this follow-on award. It helps determine if the project has expanded significantly or if this represents a logical continuation of planned work. Without this context, it's difficult to evaluate if the $61.2M is justified relative to the initial investment and objectives.

What specific metrics are used to determine the 'Award Fee' component of the contract?

The 'Award Fee' component suggests that contractor performance is evaluated against specific criteria, and a bonus or additional fee is awarded based on exceeding expectations. Understanding these metrics is vital for assessing how contractor performance is incentivized and whether the fee structure effectively drives desired outcomes, such as quality, timeliness, and cost control, beyond the fixed price elements.

How does the final cost compare to the initial estimated cost for this renovation project?

Comparing the final award amount of $61.2M to the initial estimated cost is essential for evaluating the project's financial performance. Significant deviations could indicate issues with initial budgeting, unforeseen complexities, or effective cost management. This comparison directly impacts the assessment of value for money and the effectiveness of the contract's pricing structure.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-04P-01-EXC-0058

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 1807 ROSS AVENUE, DALLAS, TX, 90

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

Financial Breakdown

Contract Ceiling: $61,228,392

Exercised Options: $61,228,392

Current Obligation: $61,228,392

Timeline