G.E. Johnson Construction awarded $47.2M for Cesar E. Chavez Memorial Building modernization

Contract Overview

Contract Amount: $47,230,117 ($47.2M)

Contractor: G. E. Johnson Construction CO, Inc

Awarding Agency: General Services Administration

Start Date: 2010-03-23

End Date: 2014-08-29

Contract Duration: 1,620 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERY - DESIGN BUILD SERVICES FOR CESAR E. CHAVEZ MEMORIAL BUILDING MODERNIZATION PROJECT.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80294, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $47.2 million to G. E. JOHNSON CONSTRUCTION CO, INC for work described as: RECOVERY - DESIGN BUILD SERVICES FOR CESAR E. CHAVEZ MEMORIAL BUILDING MODERNIZATION PROJECT. Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 3. The project duration of 1620 days (approximately 4.4 years) suggests a significant, long-term undertaking. 4. The contract falls under the Commercial and Institutional Building Construction NAICS code, placing it within the construction sector. 5. The award was made by the General Services Administration (GSA), a major federal agency for procurement and property management. 6. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable modernization projects from the same period and region. The total award amount of $47.2 million for a memorial building modernization suggests a substantial investment. However, without detailed cost breakdowns or performance metrics, it's difficult to definitively assess value for money. The firm-fixed-price nature shifts cost risk to the contractor, which can be beneficial for the government if managed well.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of 12 bidders indicates a healthy level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are federal agencies and employees who will utilize the modernized Cesar E. Chavez Memorial Building. The project delivers modernized facilities, potentially improving operational efficiency and employee working conditions. The geographic impact is concentrated in Colorado, where the memorial building is located. The construction workforce in Colorado will benefit from employment opportunities during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a long-term construction project, which could impact final costs if not managed tightly.
Ensuring adherence to modernization standards and historical preservation requirements for a memorial building.
Managing contractor performance over a multi-year duration to ensure quality and timely completion.

Positive Signals

Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
Full and open competition with 12 bidders suggests a competitive award process.
Award by GSA indicates adherence to established federal procurement standards.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal building modernization projects are crucial for maintaining government infrastructure. Comparable spending benchmarks would typically involve other large-scale federal building renovations or new constructions managed by GSA or other agencies like the Department of Defense or Department of Veterans Affairs. The market for such services is competitive, with established construction firms vying for government contracts.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and the 'sb' flag is false. This suggests that small businesses were not specifically targeted for this award. While G.E. Johnson Construction Co., Inc. may be a large business, there could be subcontracting opportunities for small businesses within the project, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent of subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA has established oversight mechanisms for construction projects, including site inspections, progress reviews, and financial audits. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through federal procurement databases and reporting requirements. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Modernization Programs
GSA Public Buildings Service Contracts
Large-Scale Construction Projects
Infrastructure Modernization

Risk Flags

Long project duration increases risk of cost escalation and scope creep.
Potential for quality control issues in large-scale, multi-year construction.
Dependence on contractor's financial stability over extended period.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.2 million to G. E. JOHNSON CONSTRUCTION CO, INC. RECOVERY - DESIGN BUILD SERVICES FOR CESAR E. CHAVEZ MEMORIAL BUILDING MODERNIZATION PROJECT.

Who is the contractor on this award?

The obligated recipient is G. E. JOHNSON CONSTRUCTION CO, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.2 million.

What is the period of performance?

Start: 2010-03-23. End: 2014-08-29.

What is the track record of G.E. Johnson Construction Co., Inc. with federal contracts, particularly with the GSA?

G.E. Johnson Construction Co., Inc. has a history of performing federal contracts, including work with the General Services Administration. Analyzing their past performance on similar projects, such as building renovations, modernizations, or new construction, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. Federal procurement data, such as contract award histories and past performance reviews (if publicly available), can offer a more detailed picture. A review of their contract close-out data and any reported disputes or claims would also be relevant to assessing their track record.

How does the awarded amount of $47.2 million compare to similar federal building modernization projects managed by GSA?

Comparing the $47.2 million award requires identifying similar projects in terms of scope, size, and complexity undertaken by GSA during the same timeframe (around 2010-2014). Factors such as the square footage of the building, the extent of modernization (e.g., HVAC, electrical, structural, interior), and the specific location's cost of living and construction labor rates are crucial for a fair comparison. Without access to a database of comparable GSA projects with detailed cost breakdowns, a precise benchmark is difficult. However, for a significant modernization of a memorial building, this amount appears substantial, suggesting a comprehensive scope of work.

What are the key risk indicators associated with a firm-fixed-price contract for a multi-year construction project?

For a firm-fixed-price (FFP) contract, the primary risk for the government is that the contractor may cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns. Key indicators to monitor include the contractor's financial stability, the complexity and uniqueness of the project (which can lead to unforeseen issues), the contractor's experience with similar projects, and the robustness of the government's oversight and inspection processes. For a multi-year project like this, risks also include potential changes in material costs, labor availability, and regulatory requirements over the project's lifespan.

How effective are GSA's oversight mechanisms in ensuring the successful completion of large-scale construction projects like this modernization?

GSA generally employs a range of oversight mechanisms for large construction projects, including project managers, on-site inspectors, regular progress meetings, and financial reviews. The effectiveness of these mechanisms depends on adequate staffing, clear communication channels, and the contractor's willingness to collaborate. For the Cesar E. Chavez Memorial Building modernization, GSA's Public Buildings Service would be responsible for ensuring adherence to specifications, quality standards, and the project schedule. Success is often measured by project completion within budget and schedule, meeting all functional and aesthetic requirements, and minimizing disputes. Past performance data and close-out reports for similar GSA projects can offer insights into their general effectiveness.

What has been the historical spending pattern for building modernization projects by the General Services Administration?

The General Services Administration (GSA) consistently allocates significant funds towards the modernization and maintenance of federal buildings. Historical spending patterns reveal a continuous need for upgrades to aging infrastructure, energy efficiency improvements, and adaptation to modern workplace standards. GSA's budget typically includes substantial line items for capital investments and major repairs. Analyzing GSA's annual reports and budget justifications over several years would show trends in spending on modernization projects, including the average cost per project, the types of buildings prioritized, and the geographical distribution of investments. This specific contract represents one component of GSA's broader portfolio of building modernization efforts.

What are the implications of the 12 bidders on price discovery and potential cost savings for this contract?

A competition involving 12 bidders is generally considered robust and is highly conducive to effective price discovery. With a larger pool of potential contractors vying for the work, the market price for the services required becomes more apparent. This heightened competition incentivizes each bidder to submit their most competitive offer to win the contract. Consequently, taxpayers are more likely to benefit from lower prices, better value, and potentially innovative solutions as contractors strive to differentiate themselves. The significant number of bidders suggests that the market conditions were favorable for attracting multiple qualified firms, reducing the risk of artificially inflated pricing.

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: TWO STEP

Solicitation ID: GS-08P-10-JB-C-0005

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25 N CASCADE AVE #400, COLORADO SPRINGS, CO, 80903

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

Financial Breakdown

Contract Ceiling: $47,230,117

Exercised Options: $47,230,117

Current Obligation: $47,230,117

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline