GSA awarded $22.3M for structural steel testing and inspection, with 6 bidders competing

Contract Overview

Contract Amount: $22,343,208 ($22.3M)

Contractor: Hunt Construction Incorporated

Awarding Agency: General Services Administration

Start Date: 2006-03-24

End Date: 2012-12-31

Contract Duration: 2,474 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO PROVIDE STRUCTURAL STEEL TESTING AND INSPECTION SERVICES.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94102

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $22.3 million to HUNT CONSTRUCTION INCORPORATED for work described as: TO PROVIDE STRUCTURAL STEEL TESTING AND INSPECTION SERVICES. Key points: 1. The contract value of $22.3 million over approximately 6.8 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially robust market for these specialized services. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction, a relevant sector for structural integrity services. 5. The contract was awarded by the General Services Administration (GSA), a major federal agency. 6. The contract duration of nearly 7 years suggests a long-term need for these services.

Value Assessment

Rating: good

The contract's total value of $22.3 million spread over nearly 7 years results in an average annual spend of approximately $3.3 million. Benchmarking this against similar structural steel testing and inspection contracts is difficult without more specific data on the scope and location. However, the competitive nature of the award suggests that pricing was likely scrutinized. The firm fixed-price structure also implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the contractor performs as expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders vying for the opportunity. The presence of multiple bidders suggests a healthy level of market interest and the availability of qualified contractors. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as bidders were incentivized to offer competitive pricing to secure the award.

Public Impact

Federal construction projects requiring structural steel integrity assurance benefit from these services. The General Services Administration's Public Buildings Service is the primary beneficiary, ensuring the safety and compliance of federal facilities. Projects located in California are likely to have seen direct impact from this contract. The construction industry workforce, including specialized inspectors and testers, may have been engaged through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term testing and inspection contracts if not managed tightly.
Reliance on a single contractor for an extended period could lead to complacency or reduced innovation.
Ensuring consistent quality across all inspection activities over the contract's duration requires diligent oversight.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a strong market and likely competitive pricing.
The contract duration suggests a sustained need and commitment to quality assurance for federal infrastructure.

Sector Analysis

The structural steel testing and inspection services fall within the broader construction and engineering services sector. This sector is critical for ensuring the safety, durability, and compliance of buildings and infrastructure. The market for such specialized services is often driven by regulatory requirements and the need for independent verification of materials and workmanship. Comparable spending benchmarks would depend on the specific types of structures and the intensity of testing required, but federal agencies like GSA are significant consumers of these services to maintain their vast real estate portfolios.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. The data does not provide information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is not clear from this award alone, though larger prime contractors may engage small businesses for specialized testing or inspection roles.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including quality assurance surveillance plans and contract administration. The firm fixed-price nature of the award places performance risk on the contractor, Hunt Construction Incorporated. Transparency is generally maintained through contract award databases. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract performance period.

Related Government Programs

Federal Building Construction
Infrastructure Inspection Services
Construction Materials Testing
GSA Real Estate Management
Public Buildings Service Contracts

Risk Flags

Long contract duration may require enhanced performance monitoring.
Fixed-price contract requires careful scope definition to prevent disputes.
Need to ensure consistent quality of inspection services over time.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.3 million to HUNT CONSTRUCTION INCORPORATED. TO PROVIDE STRUCTURAL STEEL TESTING AND INSPECTION SERVICES.

Who is the contractor on this award?

The obligated recipient is HUNT CONSTRUCTION INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2006-03-24. End: 2012-12-31.

What was the specific scope of work for the structural steel testing and inspection services?

The provided data indicates the contract was for 'STRUCTURAL STEEL TESTING AND INSPECTION SERVICES.' While the exact scope is not detailed, this typically involves verifying the quality and integrity of structural steel components used in construction. This can include non-destructive testing (NDT) methods like ultrasonic testing, magnetic particle testing, and visual inspections to detect flaws, ensure proper welding, and confirm compliance with design specifications and industry standards. The services are crucial for ensuring the safety and longevity of buildings and infrastructure.

How does the $22.3 million contract value compare to similar GSA contracts for structural steel services?

Without access to a comprehensive database of GSA's historical contracts for structural steel testing and inspection, a direct comparison is challenging. However, $22.3 million spread over nearly seven years (2006-2012) averages around $3.3 million annually. This figure appears moderate for a large federal agency like GSA, which manages a vast portfolio of buildings. The number of bidders (6) suggests a competitive market, which could imply that the pricing achieved was reasonable relative to market rates for such specialized services during that period.

What are the potential risks associated with a nearly 7-year firm fixed-price contract for inspection services?

A significant risk with a long-term firm fixed-price contract for inspection services is the potential for the contractor to become complacent, leading to a decline in the quality or thoroughness of inspections over time. Another risk is that unforeseen market changes or inflation could make the fixed price less favorable for the contractor, potentially leading to disputes or attempts to cut corners. Conversely, if the contractor is highly efficient, the government might be overpaying if costs decrease significantly over the contract's life. Diligent government oversight and performance monitoring are critical to mitigate these risks.

What does the 'Commercial and Institutional Building Construction' NAICS code imply about the projects this contract supported?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' indicates that the structural steel testing and inspection services were likely provided for the construction or major renovation of buildings intended for commercial or institutional use. This could include office buildings, government facilities, hospitals, educational institutions, or other public or private sector structures. This classification suggests the contract supported projects that are part of the built environment, where structural integrity is paramount for safety and functionality.

How did the 'full and open competition' impact the pricing and availability of services?

Full and open competition generally leads to more competitive pricing because multiple companies are encouraged to bid, driving down costs as they vie for the contract. It also increases the likelihood that the government will find a contractor with the specific expertise required. With six bidders, the General Services Administration likely received a range of proposals, allowing them to select the best value offer. This process helps ensure that taxpayer money is used efficiently and that the government has access to a broad pool of qualified service providers.

What is the significance of the contract being awarded by the General Services Administration (GSA)?

The General Services Administration (GSA) is the primary administrative arm of the U.S. federal government, responsible for managing and supporting the basic functioning of federal agencies. When GSA awards a contract, it signifies that the services are needed for federal operations, often related to real estate, technology, or procurement. GSA's involvement suggests a standardized procurement process and adherence to federal regulations. The Public Buildings Service (PBS), a component of GSA, specifically manages federal government buildings, making this contract directly relevant to maintaining and ensuring the integrity of federal property.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2128 MIRAMONTE DR, PRESCOTT

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

Financial Breakdown

Contract Ceiling: $22,343,208

Exercised Options: $22,343,208

Current Obligation: $22,343,208

Timeline