GSA Awards $21.1M Construction Management Contract for Detroit Customs Facility Expansion

Contract Overview

Contract Amount: $21,106,197 ($21.1M)

Contractor: Concentric Management Group, Inc

Awarding Agency: General Services Administration

Start Date: 2003-12-17

End Date: 2009-09-30

Contract Duration: 2,114 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGER AS CONSTRUCTOR CMC SERVICES RENOVATION & EXPANSION OF THE U.S. CUSTOMS CARGO INSPECTION FACILITY, DETROIT MICHIGAN. SERVICES TO BE PROVIDED: THE CMC WILL PROVIDE PROFESSIONAL, TECHNICAL ADMINISTRATIVE AND CLERICAL PERSONNEL AS NEEDED TO PERFORM ANY AND ALL REQUIRED SERVICES INCLUDING, BUT NOT LIMITED TO, THOSE DESCRIBED IN THIS REQUEST FOR PROPOSALS. THE SERVICES DESCRIBED OR SPECIFIED SHALL NOT BE DEEMED TO CONSTITUTE A COMPREHENSIVE SPECIFICATION HAVING THE EFFECT OF EXCLUDING SERVICES NOT SPECIFICALLY MENTIONED. BASE CONTRACT FOR PRE-CONSTRUCTION SVCS.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48216

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $21.1 million to CONCENTRIC MANAGEMENT GROUP, INC for work described as: CONSTRUCTION MANAGER AS CONSTRUCTOR CMC SERVICES RENOVATION & EXPANSION OF THE U.S. CUSTOMS CARGO INSPECTION FACILITY, DETROIT MICHIGAN. SERVICES TO BE PROVIDED: THE CMC WILL PROVIDE PROFESSIONAL, TECHNICAL ADMINISTRATIVE AND CLERICAL PERSONNEL AS NEEDED TO PERFORM ANY AND ALL RE… Key points: 1. The contract focuses on pre-construction services for a significant expansion of a critical U.S. Customs cargo inspection facility. 2. CONCENTRIC MANAGEMENT GROUP, INC. secured the contract through full and open competition. 3. The project duration is substantial, spanning over 6 years, indicating a long-term need for these services. 4. The sector is Commercial and Institutional Building Construction, a vital area for infrastructure development.

Value Assessment

Rating: good

The contract value of $21.1 million for a 6-year duration suggests a reasonable annual cost for construction management services. Benchmarking against similar large-scale facility expansions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple firms vie for the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives value for its investment.

Public Impact

Enhances border security and trade efficiency by expanding cargo inspection capabilities. Supports economic activity by facilitating smoother import/export processes. Creates jobs in the construction management and related trades sector. Modernizes critical federal infrastructure in Detroit, Michigan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or cost overruns if not managed tightly.
Potential for increased costs if unforeseen complexities arise during the expansion.
Reliance on a single firm for extensive management services over many years.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on pre-construction services allows for detailed planning and risk mitigation.
Expansion of a key federal facility addresses a clear governmental need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is essential for developing and maintaining government facilities. Spending in this sector can fluctuate based on infrastructure needs and federal budget allocations.

Small Business Impact

The data indicates that the award was not made to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The General Services Administration (GSA), specifically the Public Buildings Service, is responsible for overseeing this contract. Robust oversight is crucial given the contract's value and duration to ensure adherence to scope and budget.

Related Government Programs

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

Risk Flags

Long contract duration (over 6 years)
Potential for cost escalation
Reliance on a single prime contractor for extended period
No small business award noted

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.1 million to CONCENTRIC MANAGEMENT GROUP, INC. CONSTRUCTION MANAGER AS CONSTRUCTOR CMC SERVICES RENOVATION & EXPANSION OF THE U.S. CUSTOMS CARGO INSPECTION FACILITY, DETROIT MICHIGAN. SERVICES TO BE PROVIDED: THE CMC WILL PROVIDE PROFESSIONAL, TECHNICAL ADMINISTRATIVE AND CLERICAL PERSONNEL AS NEEDED TO PERFORM ANY AND ALL REQUIRED SERVICES INCLUDING, BUT NOT LIMITED TO, THOSE DESCRIBED IN THIS REQUEST FOR PROPOSALS. THE SERVICES DESCRIBED OR SPECIFIED SHALL NOT BE DEEMED TO CONSTITUTE A COMPREHENSIVE SPECIFICATION HAVING THE EFFECT OF EXCL

Who is the contractor on this award?

The obligated recipient is CONCENTRIC MANAGEMENT GROUP, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2003-12-17. End: 2009-09-30.

What specific pre-construction services are included, and how do they contribute to overall project cost-effectiveness?

Pre-construction services typically encompass design review, constructability analysis, value engineering, scheduling, and cost estimating. By identifying potential issues early and optimizing the design and construction plan, these services aim to prevent costly changes and delays during the actual construction phase, ultimately contributing to the project's overall cost-effectiveness and timely completion.

What are the primary risks associated with a 6-year construction management contract for a facility expansion?

Key risks include potential for significant cost escalation due to market fluctuations in labor and materials over the long term, scope creep if project requirements evolve, contractor performance degradation over time, and the challenge of maintaining consistent oversight. Additionally, unforeseen site conditions or changes in regulatory requirements could impact the project's timeline and budget, requiring adaptive management strategies.

How effectively will the expanded cargo inspection facility improve operational efficiency and border security?

The effectiveness hinges on the design's ability to incorporate modern inspection technologies, optimize workflow for customs personnel, and increase throughput capacity. A well-executed expansion should reduce wait times for cargo processing, enhance the ability to detect illicit goods, and improve the overall security posture at the port of entry, thereby supporting trade and national security objectives.

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: FULL AND OPEN COMPETITION

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 6112 MONT RICHER AVE, KNOXVILLE, TN, 02

Business Categories: Category Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $21,106,197

Exercised Options: $21,106,197

Current Obligation: $21,106,197

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline