GSA's $14.5M design-build contract for water intrusion repair at Tampa facility awarded without competition

Contract Overview

Contract Amount: $14,496,180 ($14.5M)

Contractor: American Restoration, Inc.

Awarding Agency: General Services Administration

Start Date: 2009-07-28

End Date: 2013-10-01

Contract Duration: 1,526 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS. DESIGN-BUILD FOR WATER INTRUSION AT SAM M. GIBBONS IN TAMPA, FLORIDA

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33602

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $14.5 million to AMERICAN RESTORATION, INC. for work described as: TAS::47 4543::TAS. DESIGN-BUILD FOR WATER INTRUSION AT SAM M. GIBBONS IN TAMPA, FLORIDA Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings from competition. 2. The fixed-price contract was awarded to American Restoration, Inc. for design-build services. 3. Project duration of 1526 days (over 4 years) suggests a complex or lengthy undertaking. 4. The contract falls under Commercial and Institutional Building Construction NAICS code. 5. Awarded by the General Services Administration (GSA), Public Buildings Service. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: questionable

Benchmarking the value of this specific design-build contract is challenging without comparable sole-source projects. However, the absence of competition inherently limits the government's ability to secure the most competitive pricing. The fixed-price nature of the contract shifts some risk to the contractor, but the lack of competitive bids means the government may not have achieved the best possible price for the services rendered. Further analysis would require understanding the scope of work and market rates for similar design-build projects in the Tampa area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not competed among multiple potential bidders. This approach is typically used when only one responsible source is available or when the public exigency, urgency, or other factors do not permit a competitive solicitation. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a higher price than necessary due to the absence of competitive pressure. Without multiple bids, there is less assurance that the awarded price represents the best value achievable in the market.

Public Impact

The primary beneficiary is the General Services Administration, ensuring the structural integrity and functionality of the Sam M. Gibbons facility in Tampa, Florida. The contract delivers essential design and construction services to address water intrusion issues, preventing further damage and maintaining the building's condition. The geographic impact is localized to Tampa, Florida, specifically at the Sam M. Gibbons facility. The project likely involved a construction workforce, contributing to local employment in the skilled trades during the contract's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Long contract duration (over 4 years) could indicate potential for cost overruns or scope creep if not managed tightly.
Lack of transparency in the justification for sole-source award.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Design-build approach can streamline project delivery by integrating design and construction.
Contract addresses critical infrastructure maintenance needs, preventing further deterioration.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The General Services Administration, as a major federal real estate owner, frequently procures construction and renovation services. Benchmarking this specific contract's value is difficult without more data on the scope of work and prevailing market rates for design-build services for water intrusion remediation in similar facilities. However, federal spending in construction is substantial, and contracts of this nature are common for maintaining the vast federal building portfolio.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. Consequently, there is no direct analysis of subcontracting opportunities specifically for small businesses mandated by this award. The prime contractor, American Restoration, Inc., is not explicitly identified as a small business in the provided data. The absence of a set-aside means the opportunity was open to all eligible contractors, potentially limiting direct participation for small businesses unless they were part of a larger subcontracting team.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. As a sole-source award, the justification and procurement process would be subject to GSA's internal policies and federal acquisition regulations. Transparency regarding the specific reasons for the sole-source designation and the oversight mechanisms employed to ensure project success and cost control would be crucial. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
GSA Design-Build Projects
Water Damage Restoration Services
Commercial Construction Services
Public Infrastructure Repair

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.5 million to AMERICAN RESTORATION, INC.. TAS::47 4543::TAS. DESIGN-BUILD FOR WATER INTRUSION AT SAM M. GIBBONS IN TAMPA, FLORIDA

Who is the contractor on this award?

The obligated recipient is AMERICAN RESTORATION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2009-07-28. End: 2013-10-01.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and was a 'sole-source' award. Federal Acquisition Regulation (FAR) 6.302 outlines circumstances permitting other than full and open competition, such as when only one responsible source is available or when the agency's need is based upon urgency. Without further documentation from the GSA, the precise justification (e.g., unique capabilities of American Restoration, Inc., urgent need to prevent further damage, or specific site conditions) remains unknown. This lack of transparency is a common concern with sole-source awards, as it limits the public's ability to verify the necessity of avoiding competition.

How does the contract value of $14.5 million compare to similar design-build projects for water intrusion repair?

Directly comparing the $14.5 million value is difficult without detailed scope of work, facility size, and specific remediation techniques. However, design-build contracts for significant building envelope repairs, especially those involving water intrusion, can be substantial. The duration of over four years suggests a complex, multi-phased project. To benchmark effectively, one would need to analyze similar GSA or other federal agency projects addressing comparable issues in similar climates and facility types, considering factors like square footage, severity of damage, and required materials. The sole-source nature complicates direct value-for-money comparisons against potentially lower bids from a competitive process.

What are the potential risks associated with a sole-source award for a construction project of this magnitude?

The primary risk of a sole-source award is the potential for paying a non-competitive price, meaning the government may not achieve the best possible value. Without competition, there's less incentive for the contractor to offer the lowest possible price. Additionally, there's a risk that the chosen contractor may not possess the most innovative or cost-effective solutions compared to what might have emerged from a competitive bidding process. Oversight becomes even more critical to ensure the contractor performs diligently and the project stays within budget and scope, as there's no competitive pressure to drive efficiency.

What is the significance of the 'Commercial and Institutional Building Construction' NAICS code (236220)?

NAICS code 236220, 'Commercial and Institutional Building Construction,' signifies that the contract was for the construction or renovation of non-residential buildings. This includes a wide range of structures such as office buildings, government facilities, schools, hospitals, and other commercial establishments. For this specific contract, it indicates the work performed at the Sam M. Gibbons facility falls under the general category of constructing or improving such buildings, encompassing activities like structural repairs, system installations, and finishing work, as required by the design-build scope for water intrusion remediation.

What does the contract duration of 1526 days imply for project management and potential cost implications?

A contract duration of 1526 days, approximately 4.18 years, suggests a project of considerable complexity, scale, or one that may involve phased execution. Such a long duration increases the potential for various risks, including escalation of material and labor costs (though a fixed-price contract aims to mitigate this for the government), potential for scope creep if not managed tightly, and the need for sustained oversight. It could also indicate that the project involves intricate design elements, extensive remediation work, or requires careful scheduling around the facility's ongoing operations. Effective project management and diligent oversight are crucial to ensure timely completion and prevent cost overruns.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2002 W KIRBY ST, WYLIE, TX, 03

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

Financial Breakdown

Contract Ceiling: $14,496,180

Exercised Options: $14,496,180

Current Obligation: $14,496,180

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline