GSA Awards $217K for Chicago Federal Building Fire Alarm & Mechanical Upgrades Preconstruction

Contract Overview

Contract Amount: $97,342,589 ($97.3M)

Contractor: Pepper Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2009-11-19

End Date: 2014-12-31

Contract Duration: 1,868 days

Daily Burn Rate: $52.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE FIRE ALARMS AND MECHANICAL UPGRADES PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING AND LOOP POST OFFICE FACILITY IN CHICAGO, ILLINOIS, TO PEPPER CONSTRUCTION GROUP IN THE AMOUNT OF $217,000.00 FOR THE BASE CONTRACT COVERING THE PRECONSTRUCTION PHASE SERVICES. THE FOLLOWING OPTION WAS ACCEPTED AND MAY BE AWARDED AT A LATER TIME: OPTION 1 FOR CONSTRUCTION PHASE SERVICES IN THE AMOUNT OF $68,121.625.00.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $97.3 million to PEPPER CONSTRUCTION GROUP LLC for work described as: TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE FIRE ALARMS AND MECHANICAL UPGRADES PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING AND LOOP POST OFFICE FACILITY IN CHICAGO, ILLINOIS, TO PEPPER CONSTRUCTION GROUP IN THE AMOUNT OF $217,0… Key points: 1. Contract awarded to Pepper Construction Group for preconstruction services. 2. Significant option for construction phase services ($68.1M) may be exercised later. 3. Project aims to upgrade fire alarms and mechanical systems at a federal building. 4. Full and open competition was utilized for this award.

Value Assessment

Rating: fair

The base contract of $217,000 for preconstruction services appears reasonable for the initial phase of a large federal building upgrade. However, the potential for a $68.1 million construction phase requires careful monitoring of future pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The initial award is a small investment for essential building upgrades. The ultimate taxpayer impact will depend on the cost-effectiveness of the full construction phase.

Public Impact

Enhances safety and operational efficiency of a key federal facility. Potential for significant job creation during the construction phase. Modernizes critical infrastructure, ensuring long-term reliability and compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Uncertainty regarding the exercise and final cost of the large construction phase option.
Potential for cost overruns during the extensive construction phase.

Positive Signals

Addresses critical infrastructure needs for safety and functionality.
Awarded through full and open competition, indicating market responsiveness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area often involves large-scale renovations and new construction, with costs influenced by project complexity, location, and material prices.

Small Business Impact

While the base contract is relatively small, the potential for a large construction phase could offer subcontracting opportunities for small businesses. However, the primary awardee is a large firm, and specific small business set-asides were not indicated.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal building projects. Oversight will be crucial, particularly in managing the transition from preconstruction to the potentially much larger construction phase and ensuring adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for significant cost increase with construction phase option.
Long project duration increases risk of scope creep and unforeseen issues.
Dependence on a single contractor for both preconstruction and potential construction.
Complexity of integrating new systems with existing building infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $97.3 million to PEPPER CONSTRUCTION GROUP LLC. TAS::47 4543::TAS RECOVERY - CONSTRUCTION MANAGER AS CONSTRUCTOR (CMC) SERVICES FOR THE FIRE ALARMS AND MECHANICAL UPGRADES PROJECT AT THE JOHN C. KLUCZYNSKI FEDERAL BUILDING AND LOOP POST OFFICE FACILITY IN CHICAGO, ILLINOIS, TO PEPPER CONSTRUCTION GROUP IN THE AMOUNT OF $217,000.00 FOR THE BASE CONTRACT COVERING THE PRECONSTRUCTION PHASE SERVICES. THE FOLLOWING OPTION WAS ACCEPTED AND MAY BE AWARDED AT A LATER TIME: OPTION 1 FOR CONSTRUCTION PHASE SERVICES IN THE AMOUNT OF $68,121.625.00.

Who is the contractor on this award?

The obligated recipient is PEPPER CONSTRUCTION GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $97.3 million.

What is the period of performance?

Start: 2009-11-19. End: 2014-12-31.

What is the projected timeline and detailed scope for the $68.1 million construction phase option?

The provided data indicates the construction phase option could be awarded later, with a duration of 1868 days (approximately 5 years) from the base contract start. A detailed scope would typically be defined in subsequent contract modifications or task orders, outlining specific upgrades to fire alarm and mechanical systems, including equipment, installation, and testing procedures.

How will the government ensure cost-effectiveness and prevent overruns during the substantial construction phase?

Cost-effectiveness will be managed through rigorous oversight of the construction phase, including regular progress reviews, independent cost estimates, and strict change order management. The government may employ construction management techniques and performance metrics to ensure the contractor meets quality standards and budget constraints.

What are the key performance indicators (KPIs) for the preconstruction phase and how will they be measured?

Key performance indicators for the preconstruction phase likely include timely completion of design documents, accurate cost estimations, development of a comprehensive project schedule, and successful coordination with stakeholders. Performance will be measured against contract milestones and deliverables, with potential for incentive or disincentive clauses tied to performance.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Pepper Companies Inc

Address: 643 N ORLEANS ST, CHICAGO, IL, 60654

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

Financial Breakdown

Contract Ceiling: $97,342,589

Exercised Options: $97,342,589

Current Obligation: $97,342,589

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline