GSA Awards $10.6M for DC Building Modernization to Turner & Townsend Heery, LLC

Contract Overview

Contract Amount: $10,630,684 ($10.6M)

Contractor: Turner & Townsend Heery, LLC

Awarding Agency: General Services Administration

Start Date: 2004-09-01

End Date: 2015-03-31

Contract Duration: 3,863 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES FOR MODERNIZATION OF 1800 F ST, WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $10.6 million to TURNER & TOWNSEND HEERY, LLC for work described as: CONSTRUCTION MANAGEMENT SERVICES FOR MODERNIZATION OF 1800 F ST, WASHINGTON, DC Key points: 1. Contract awarded for construction management services for a significant federal building modernization project. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The project duration was substantial, spanning over 10 years, which may impact cost and efficiency. 4. The award value of $10.6 million indicates a significant investment in federal infrastructure.

Value Assessment

Rating: fair

The contract value of $10.6 million for over 10 years of construction management services appears reasonable given the scope of modernizing a federal building. Benchmarking against similar large-scale federal construction management contracts would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of qualified contractors to bid. This method is generally expected to yield fair market prices.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by leveraging market forces to achieve competitive pricing for essential government services.

Public Impact

Modernization of a federal building in Washington D.C. will improve workspace for federal employees. The project's long duration suggests a complex and extensive renovation, potentially impacting local traffic and businesses. Improved federal facilities can lead to better government services and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may lead to cost overruns or scope creep.
Lack of small business participation noted.
Firm Fixed Price contract may not fully account for unforeseen construction challenges over a decade.

Positive Signals

Awarded under full and open competition, promoting fairness and potentially competitive pricing.
Project aims to modernize critical federal infrastructure.
Located in the nation's capital, ensuring visibility and importance.

Sector Analysis

This contract falls within the construction management sector, specifically for institutional buildings. Federal spending in this area is crucial for maintaining and upgrading government facilities. Benchmarks for similar projects would depend heavily on the building's size, age, and the complexity of the modernization required.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract (ss: false, sb: false). This suggests that the prime contractor is likely a large firm, and there may have been missed opportunities for small business subcontracting.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing federal building management and modernization. Oversight would involve monitoring project progress, adherence to budget, and quality of work throughout the contract's extensive duration.

Related Government Programs

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

Risk Flags

Extended contract duration increases risk of cost overruns and scope creep.
No small business participation noted.
Potential for contractor performance issues over a long project lifecycle.
Firm Fixed Price may not adequately cover unforeseen construction challenges over a decade.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.6 million to TURNER & TOWNSEND HEERY, LLC. CONSTRUCTION MANAGEMENT SERVICES FOR MODERNIZATION OF 1800 F ST, WASHINGTON, DC

Who is the contractor on this award?

The obligated recipient is TURNER & TOWNSEND HEERY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2004-09-01. End: 2015-03-31.

What was the specific scope of the modernization, and how did it justify the 10+ year duration and $10.6M cost?

The provided data does not detail the specific scope of modernization for 1800 F St. However, a 10+ year duration and $10.6M cost for construction management services suggest a highly complex, multi-phase renovation of a substantial federal building. This could include structural upgrades, system modernizations (HVAC, electrical, plumbing), interior redesigns, and potentially historical preservation elements, all requiring extensive planning, oversight, and execution over an extended period.

Given the long contract duration, what mechanisms were in place to manage potential cost increases and ensure continued value?

While the contract is Firm Fixed Price (FFP), the extended duration (over 10 years) presents inherent risks for cost escalation due to inflation, material price fluctuations, and unforeseen site conditions. The GSA likely employed phased funding, regular performance reviews, and strict change order management protocols. However, without specific contract clauses detailing escalation adjustments or contingency plans, the long-term value proposition remains subject to the initial pricing accuracy and effective project management.

How did the full and open competition process ensure the best value was achieved for this extensive modernization project?

Full and open competition theoretically maximizes the pool of potential bidders, driving down prices through rivalry. For this $10.6M, 10+ year contract, the GSA likely evaluated bids based not only on price but also on technical expertise, past performance, and proposed management approach. The success in achieving best value hinges on the thoroughness of the evaluation criteria and the government's ability to accurately assess the long-term capabilities and cost-effectiveness of the competing firms.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS11P04MKC0013

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 999 PEACHTREE STREET, NE, ATLANTA, GA, 90

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

Financial Breakdown

Contract Ceiling: $10,630,684

Exercised Options: $10,630,684

Current Obligation: $10,630,684

Timeline