Del Rio Construction awarded $24M contract by GSA for commercial building construction in Texas

Contract Overview

Contract Amount: $24,001,076 ($24.0M)

Contractor: Templeton Construction CO.

Awarding Agency: General Services Administration

Start Date: 2006-07-21

End Date: 2010-11-23

Contract Duration: 1,586 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEL RIO CONSTRUCTION

Place of Performance

Location: DEL RIO, VAL VERDE County, TEXAS, 78840

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $24.0 million to TEMPLETON CONSTRUCTION CO. for work described as: DEL RIO CONSTRUCTION Key points: 1. Contract value appears reasonable for the scope of commercial building construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over 4 years indicates a significant project. 4. Fixed-price contract type shifts risk to the contractor. 5. Texas location aligns with regional construction needs. 6. NAICS code 236220 points to a focus on non-residential construction.

Value Assessment

Rating: good

The contract value of approximately $24 million for commercial and institutional building construction seems within a reasonable range for a project of this duration and scope. Benchmarking against similar GSA projects for building construction in Texas would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this project. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely federal agencies requiring office or institutional space within Texas. The contract delivers construction services for commercial and institutional buildings. The geographic impact is focused on Texas. The contract supports the construction workforce in Texas, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring timely completion within the 1586-day duration could be a challenge.
Quality control and adherence to building codes require diligent oversight.

Positive Signals

Firm fixed-price contract transfers cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Contract awarded to a specific construction company (Del Rio Construction) implies a focused execution plan.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector is a significant part of the broader construction industry, encompassing the building of non-residential structures like offices, retail spaces, and public facilities. Federal spending in this area is often driven by the need for new facilities or upgrades to existing government-owned or leased properties. Benchmarks for similar projects would typically consider regional labor costs, material prices, and project complexity.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is not explicitly detailed. However, the prime contractor may engage small businesses as subcontractors, contributing indirectly to their opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures would include adherence to contract terms, performance standards, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Contracts
Commercial Construction Projects
Institutional Building Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns impacting contractor profit
Ensuring quality of construction
Site condition unforeseen risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.0 million to TEMPLETON CONSTRUCTION CO.. DEL RIO CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is TEMPLETON CONSTRUCTION CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2006-07-21. End: 2010-11-23.

What is the track record of Del Rio Construction with federal contracts, particularly with the GSA?

Information on Del Rio Construction's specific track record with federal contracts, especially with the General Services Administration (GSA), is not detailed in the provided data snippet. A comprehensive analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal projects. Understanding their experience with similar-sized projects and contract types (like firm fixed-price) would be crucial for assessing their reliability and capability in executing this current $24 million contract.

How does the awarded price of $24 million compare to similar GSA building construction contracts in Texas?

Without specific data on comparable GSA building construction contracts in Texas during the period of 2006-2010, a direct price comparison is difficult. However, the value of $24 million for a project spanning over 1500 days suggests a substantial undertaking. Factors influencing price include project size, complexity, materials, labor costs, and market conditions at the time of award. A detailed benchmark analysis would involve identifying projects with similar square footage, construction types, and geographic locations to assess if the price was competitive and represented good value for the government.

What are the primary risks associated with a firm fixed-price contract for a large construction project?

The primary risk with a firm fixed-price contract for a large construction project like this is that the contractor, Del Rio Construction, assumes the financial burden of any cost overruns. If material prices increase unexpectedly, labor costs rise, or unforeseen site conditions are encountered, the contractor's profit margin will shrink, or they could incur a loss. Conversely, if costs are managed efficiently and come in under budget, the contractor benefits. For the government, the main risk is that the contractor might cut corners on quality or scope to protect their profit if costs escalate, necessitating robust oversight to ensure contract compliance.

How effective is the 'full and open competition' process in ensuring optimal value for taxpayer dollars in construction contracts?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer dollars in construction contracts. By allowing all responsible sources to bid, it creates a competitive environment that incentivizes contractors to offer their best pricing and most efficient solutions. The presence of multiple bidders, like the 3 in this case, increases the likelihood of receiving competitive bids. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals to select the best value, not just the lowest price.

What are the potential long-term implications of this contract on federal real estate in Texas?

This contract, awarded in 2006 and ending in 2010, likely resulted in the construction or significant renovation of a federal building or facility in Texas. The long-term implications could include providing modern, efficient workspace for federal employees, potentially reducing leasing costs for the government if it replaces leased space. The quality of construction will determine the long-term maintenance needs and operational costs. Furthermore, the completed facility could serve federal operations in the region for decades, impacting the government's physical footprint and operational capacity in Texas.

Given the contract duration of 1586 days, what are the key performance indicators (KPIs) likely monitored by the GSA?

For a construction contract spanning 1586 days (approximately 4.3 years), the General Services Administration (GSA) would likely monitor several Key Performance Indicators (KPIs). These would include adherence to the project schedule and milestones, quality of workmanship and materials used (ensuring compliance with building codes and specifications), safety performance on-site, budget management (tracking expenditures against the fixed price), and overall project completion within the defined scope. Regular site inspections, progress reports, and potentially third-party quality assurance reviews would be employed to track these KPIs.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-07P-06-UFC-0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 521 W BEAUREGARD AVE, SAN ANGELO, TX, 11

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,001,076

Exercised Options: $24,001,076

Current Obligation: $24,001,076

Timeline