GSA Awards $182M for San Ysidro Port of Entry Design, Lacking Small Business Participation

Contract Overview

Contract Amount: $182,370,357 ($182.4M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: General Services Administration

Start Date: 2010-06-24

End Date: 2015-07-22

Contract Duration: 1,854 days

Daily Burn Rate: $98.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN PHASE SERVICES FOR PHASE 1B FOR THE RENOVATION AND RECONFIURATION OF SAN YSIDRO LAND PORT OF ENTRY PROJECT IN SAN DIEGO, CALIFORNIA

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $182.4 million to HENSEL PHELPS CONSTRUCTION CO for work described as: DESIGN PHASE SERVICES FOR PHASE 1B FOR THE RENOVATION AND RECONFIURATION OF SAN YSIDRO LAND PORT OF ENTRY PROJECT IN SAN DIEGO, CALIFORNIA Key points: 1. Significant investment in critical infrastructure for border security and trade. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Lack of small business subcontracting raises concerns about broader economic impact. 4. Project duration of 1854 days indicates a long-term commitment and potential for cost escalation.

Value Assessment

Rating: fair

The award amount of $182,370,357 for design services appears substantial, but without specific benchmarks for similar large-scale port of entry renovations, a precise value assessment is difficult. The firm-fixed-price contract type aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the absence of small business subcontracting goals may limit the breadth of economic participation and potentially impact price discovery through diverse vendor input.

Taxpayer Impact: Taxpayer funds are being used for a significant infrastructure project. While competition is present, the lack of small business involvement means a portion of the economic benefit may not be distributed to smaller enterprises.

Public Impact

Enhances border security and facilitates trade at a key U.S.-Mexico crossing. Modernizes aging infrastructure, improving efficiency and capacity. Potential for job creation during the construction phase, though small business involvement is unclear. Impacts local San Diego economy through project execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Long project duration (1854 days).
High contract value ($182M).

Positive Signals

Full and open competition.
Firm fixed price contract.
Critical infrastructure investment.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for large-scale federal building renovations vary widely, but $182 million for design services on a major port of entry suggests a complex and extensive undertaking.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to leverage the capabilities of small businesses and ensure broader economic inclusion in federal contracting.

Oversight & Accountability

The General Services Administration (GSA), specifically the Public Buildings Service, is responsible for this project. Oversight will be crucial to ensure the project stays on schedule and within budget, given its scale and duration.

Related Government Programs

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

Risk Flags

Lack of small business participation.
Extended project duration.
High contract value.
Potential for scope creep.
Dependency on federal appropriations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $182.4 million to HENSEL PHELPS CONSTRUCTION CO. DESIGN PHASE SERVICES FOR PHASE 1B FOR THE RENOVATION AND RECONFIURATION OF SAN YSIDRO LAND PORT OF ENTRY PROJECT IN SAN DIEGO, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS 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 $182.4 million.

What is the period of performance?

Start: 2010-06-24. End: 2015-07-22.

What specific design elements are driving the $182 million cost for the San Ysidro Port of Entry renovation?

The high cost is likely driven by the complexity of modernizing a major international port of entry, including advanced security features, expanded processing capabilities, and integration of new technologies. Detailed design specifications for structural, mechanical, electrical, and IT systems, along with extensive site work and environmental considerations, contribute significantly to the overall design phase expenditure.

What are the potential risks associated with the 1854-day duration for this design and subsequent construction phase?

A long project duration increases the risk of cost overruns due to inflation, material price fluctuations, and potential changes in regulatory requirements over time. Delays in design completion or unforeseen site conditions could further extend the timeline. Additionally, prolonged construction can lead to extended disruption for border operations and the local community.

How will the GSA ensure effective project management and accountability for such a large-scale, long-term infrastructure project?

The GSA will likely employ a multi-faceted approach including rigorous project management protocols, regular progress reviews, independent cost estimations, and stringent quality assurance measures. Establishing clear communication channels with contractors, stakeholders, and oversight bodies, alongside proactive risk management strategies, will be essential for accountability and successful project delivery.

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

Solicitation ID: GS-09P-10-KT-C-0027

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18850 VON KARMAN AVE STE 100, IRVINE, CA, 47

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

Financial Breakdown

Contract Ceiling: $182,370,357

Exercised Options: $182,370,357

Current Obligation: $182,370,357

Contract Characteristics

Multi-Year Contract: Yes

Timeline