GSA's $29.7M Building Consolidation Project Awarded to Gilmore Construction Corporation

Contract Overview

Contract Amount: $29,708,283 ($29.7M)

Contractor: Gilmore Construction Corporation

Awarding Agency: General Services Administration

Start Date: 2017-03-30

End Date: 2019-10-31

Contract Duration: 945 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DENVER FEDERAL CENTER BUILDING 67 CONSOLIDATION PROJECT

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $29.7 million to GILMORE CONSTRUCTION CORPORATION for work described as: IGF::OT::IGF DENVER FEDERAL CENTER BUILDING 67 CONSOLIDATION PROJECT Key points: 1. The contract was awarded under 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 945 days (approximately 2.6 years) suggests a significant construction undertaking. 4. The contract was awarded to Gilmore Construction Corporation, a company with experience in commercial and institutional building construction. 5. The project is located in Colorado, potentially impacting the local construction workforce and economy. 6. The absence of small business set-aside flags warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar federal building consolidation projects. The total award amount of $29.7 million for a 945-day project appears within a reasonable range for large-scale construction, but without specific cost-per-square-foot or per-unit metrics, a definitive value assessment is challenging. The firm-fixed-price nature shifts cost risk to the contractor, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, specific sources may have been excluded prior to the final award. The presence of 4 bidders (no=4) suggests a moderate level of competition. This level of competition is generally positive for price discovery, but the exclusion of sources could potentially limit the most competitive bids.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally leads to better pricing for taxpayers compared to sole-source awards. The inclusion of multiple bidders helps ensure that the government receives a fair market price.

Public Impact

The primary beneficiaries are likely the General Services Administration (GSA) and the federal agencies that will occupy the consolidated Building 67 at the Denver Federal Center. The project delivers consolidation of federal operations, potentially leading to increased efficiency and reduced operational costs for the government. The geographic impact is concentrated in Colorado, specifically at the Denver Federal Center. The project will likely have implications for the local construction workforce, creating jobs and demand for skilled labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'exclusion of sources' limited the most competitive bids.
Lack of explicit small business set-aside information raises questions about subcontracting opportunities for smaller firms.
The firm-fixed-price contract places the burden of cost management on the contractor, which could lead to quality compromises if not adequately overseen.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Firm-fixed-price contract shifts cost risk to the contractor, potentially protecting the government from budget overruns.
The project addresses a clear need for consolidation, which can lead to operational efficiencies.

Sector Analysis

This 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. Federal spending in this area is often driven by the need to modernize facilities, consolidate operations, or meet specific agency requirements. Comparable spending benchmarks would involve analyzing other large-scale federal construction projects managed by GSA or other agencies for similar types of facilities.

Small Business Impact

The contract details indicate that small business set-asides were not utilized (sb=false, ss=false). This suggests that the procurement was not specifically targeted towards small businesses. While this doesn't preclude small businesses from subcontracting, it means there was no primary requirement for the prime contractor to be a small business or to allocate a specific percentage of the work to them. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. As a large construction project, it is likely subject to regular progress reviews, site inspections, and financial audits. The firm-fixed-price nature necessitates close monitoring of performance and quality to ensure compliance with contract terms. Inspector General jurisdiction would apply for any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Construction
GSA Facility Management
Denver Federal Center Operations
Public Buildings Service Projects
Commercial Construction Contracts

Risk Flags

Potential for limited competition due to source exclusion
Lack of explicit small business subcontracting goals
Risk of quality compromise in FFP contracts if not well-managed

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $29.7 million to GILMORE CONSTRUCTION CORPORATION. IGF::OT::IGF DENVER FEDERAL CENTER BUILDING 67 CONSOLIDATION PROJECT

Who is the contractor on this award?

The obligated recipient is GILMORE CONSTRUCTION CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2017-03-30. End: 2019-10-31.

What is the track record of Gilmore Construction Corporation with federal contracts, particularly with the GSA?

Gilmore Construction Corporation has a history of performing federal construction projects. While specific details on their GSA contract performance require deeper database analysis, their award on this $29.7 million project suggests they met the qualifications and experience requirements set forth by the General Services Administration. Federal contractors are typically evaluated on past performance, technical capabilities, and price. A review of their contract history would reveal the types and scale of projects they have completed, their performance ratings on those projects, and any instances of disputes or contract modifications. This information is crucial for understanding their reliability and suitability for large federal undertakings.

How does the $29.7 million award compare to similar federal building consolidation projects in terms of cost and scope?

Comparing the $29.7 million award for the Denver Federal Center Building 67 consolidation project requires access to a database of similar federal construction projects, including their total cost, square footage, duration, and specific scope of work. Without such a comparative dataset, it's difficult to definitively benchmark this contract. However, for a project spanning approximately 2.6 years (945 days) and involving the consolidation of facilities, $29.7 million appears to be a substantial but potentially reasonable investment. Factors like the complexity of the consolidation, the condition of the existing building, and regional construction cost indices in Colorado would influence the final price. A detailed cost-per-square-foot analysis against comparable projects would provide a more precise value-for-money assessment.

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

The primary risk associated with a firm-fixed-price (FFP) contract for a large construction project is that the contractor, Gilmore Construction Corporation, assumes the majority of the financial risk. If costs exceed the fixed price due to unforeseen issues, poor management, or market fluctuations, the contractor absorbs the loss. Conversely, the government benefits from cost certainty. However, risks for the government include potential compromises in quality if the contractor seeks to cut costs to maintain profitability, or contractor default if they miscalculate costs significantly. Effective oversight by the GSA is critical to mitigate these risks by ensuring quality standards are met and progress is maintained.

What is the expected impact of this consolidation project on the operational efficiency of the federal agencies involved?

The primary goal of consolidating federal operations into Building 67 at the Denver Federal Center is to enhance operational efficiency. This typically involves bringing together disparate offices or functions into a single, modernized facility. Benefits can include improved inter-agency communication and collaboration, reduced travel time between departments, streamlined administrative processes, and potentially lower facility management costs through economies of scale. By centralizing resources and personnel, agencies can often achieve better synergy and responsiveness. The success of this efficiency gain will depend on the effective design and execution of the consolidated space and the subsequent adoption of new workflows by the occupying agencies.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method affect the competitive landscape and potential pricing?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) method is a variation of full and open competition. It means that the solicitation was initially intended for all responsible sources, but specific sources were excluded before the final solicitation was issued. This exclusion could be due to various reasons, such as past performance issues, inability to meet specific technical requirements, or other pre-determined criteria. While it aims to maintain a broad competitive base, the exclusion of certain potential bidders could theoretically limit the number of highly competitive offers received, potentially impacting the final price. The fact that 4 bidders submitted offers suggests that the exclusion did not entirely stifle competition, but it warrants scrutiny to ensure the most advantageous pricing was secured for the government.

What are the potential long-term implications for the Denver Federal Center campus resulting from this consolidation project?

This consolidation project, involving Building 67, suggests a strategic effort by the GSA to optimize the use of the Denver Federal Center campus. Long-term implications could include the repurposing or decommissioning of other underutilized facilities on the campus, leading to reduced maintenance costs and a smaller physical footprint. It may also signal a trend towards modernizing infrastructure to support evolving federal workplace needs, potentially attracting more federal agencies or consolidating existing ones more effectively. The project could also influence future development plans for the campus, focusing on efficiency, sustainability, and enhanced security measures for the consolidated operations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-08P-16-JE-C-7003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4949 IRONTON ST, DENVER, CO, 80239

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,708,283

Exercised Options: $29,708,283

Current Obligation: $29,708,283

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline