GSA awards $93.8M for FDA building construction, highlighting long-term infrastructure investment

Contract Overview

Contract Amount: $93,827,660 ($93.8M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: General Services Administration

Start Date: 2006-09-29

End Date: 2010-09-30

Contract Duration: 1,462 days

Daily Burn Rate: $64.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF CDRH OFFICE BUILDING, FDA - WHITE OAK, SILVER SPRING, MD

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 $93.8 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: CONSTRUCTION OF CDRH OFFICE BUILDING, FDA - WHITE OAK, SILVER SPRING, MD Key points: 1. The contract value represents a significant investment in federal infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for price discovery. 3. The fixed-firm price contract type suggests a defined scope and cost control measures. 4. Project duration of over four years indicates a complex and lengthy undertaking. 5. The project's location in Silver Spring, MD, points to regional economic impact. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $93.8 million for the construction of the CDRH office building is substantial. Benchmarking this against similar large-scale federal building projects would provide better context for value for money. The firm-fixed-price structure aims to control costs, but the final value depends on the initial bid and any subsequent change orders. Without detailed cost breakdowns or comparisons to private sector construction of similar facilities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With 64 bids received, this suggests a robust competitive environment for this significant construction project. A high number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

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

Public Impact

The primary beneficiaries are the Food and Drug Administration (FDA) personnel who will occupy the new CDRH office building. The project delivers a new, modern office facility essential for the FDA's operations. The geographic impact is concentrated in Silver Spring, Maryland, potentially creating local jobs and stimulating the regional economy. Construction activities would have involved a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Long project duration increases exposure to market fluctuations in material and labor costs.
Ensuring quality of construction meets federal standards requires diligent oversight.
Limited information on sustainability or green building practices employed.

Positive Signals

Full and open competition suggests a strong likelihood of selecting a qualified and cost-effective contractor.
Firm-fixed-price contract provides cost certainty for the government.
The project addresses a clear need for expanded FDA facilities.
The large number of bids indicates significant market interest and contractor capability.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. The General Services Administration (GSA) is a major player in federal building construction and management. The market for large-scale government construction projects is competitive, with numerous firms capable of undertaking such endeavors. Benchmarks for similar federal office building constructions would typically consider factors like square footage, complexity, and location.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation goals were met directly through the prime contract award (ss: false, sb: false). While the prime contractor, Balfour Beatty Construction, LLC, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The government's overall strategy for small business utilization would need to be assessed to understand the broader impact on the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction projects, including project management teams, quality assurance inspections, and contract close-out procedures. The firm-fixed-price contract structure itself imposes a degree of cost accountability on the contractor. Transparency is generally maintained through GSA's public contract databases, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

FDA Facilities Management
GSA Public Buildings Service Projects
Federal Office Building Construction
Large-Scale Infrastructure Projects

Risk Flags

Long project duration may increase risk of cost escalation or delays.
Lack of explicit small business subcontracting goals noted.
Need for detailed cost benchmarking against similar projects.
Potential for scope creep despite fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $93.8 million to BALFOUR BEATTY CONSTRUCTION, LLC. CONSTRUCTION OF CDRH OFFICE BUILDING, FDA - WHITE OAK, SILVER SPRING, MD

Who is the contractor on this award?

The obligated recipient is BALFOUR BEATTY CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $93.8 million.

What is the period of performance?

Start: 2006-09-29. End: 2010-09-30.

What was the initial estimated cost for this project, and how did the final award amount compare?

The provided data does not include the initial estimated cost for the construction of the CDRH office building. The final award amount was $93,827,660. Without the initial estimate, it is impossible to determine if the final award represented an increase or decrease from the government's projected budget. Understanding the bidding process and the range of bids received would also shed light on the cost-effectiveness of the final award.

How does the per-square-foot cost of this project compare to similar federal or private sector office building constructions?

The provided data does not include the square footage of the CDRH office building, making a per-square-foot cost comparison impossible. To conduct such an analysis, one would need the total building area. Additionally, comparing costs requires access to data on similar projects, considering factors like building complexity, materials used, and regional labor costs. Federal construction costs can sometimes differ from private sector projects due to specific regulatory requirements and procurement processes.

What is Balfour Beatty Construction, LLC's track record with large federal construction projects, particularly with the GSA or FDA?

Balfour Beatty Construction, LLC has a significant track record in large-scale construction projects, including many for government agencies. While specific details on their past projects with the GSA or FDA are not provided in this data snippet, their status as a major construction firm suggests experience with complex federal contracts. A deeper dive into their contract history, including past performance evaluations and any disputes or claims on similar projects, would be necessary for a comprehensive assessment of their suitability and reliability for this specific contract.

Were there any significant change orders or contract modifications during the project's execution that impacted the final cost?

The provided data summarizes the contract award and does not detail any modifications or change orders that may have occurred during the project's execution from 2006 to 2010. A firm-fixed-price contract aims to limit cost increases, but unforeseen issues can lead to modifications. To determine if the final cost deviated significantly from the initial award due to changes, one would need to review the contract's modification history and associated documentation.

What were the key performance indicators (KPIs) for this construction project, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement criteria used for this construction contract. Typically, for large construction projects, KPIs would include adherence to schedule, budget compliance, quality of workmanship, safety performance, and meeting design specifications. Performance would likely be monitored by GSA project managers through regular site inspections, progress reports, and milestone reviews.

How does the duration of this project (1462 days) compare to the average duration for similar federal office building constructions?

A duration of 1462 days (approximately 4 years) for a project of this scale is not uncommon for major federal building construction. The complexity of design, site preparation, construction phases, and final fit-out for a government facility can be extensive. Comparing this duration would require data on the average project timelines for similar-sized and complex federal office buildings, considering factors like location and specific functional requirements of the building occupants (in this case, the FDA).

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-11P-06-MK-C-0045

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3924 PENDER DR, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $93,827,660

Exercised Options: $93,827,660

Current Obligation: $93,827,660

Contract Characteristics

Cost or Pricing Data: NO

Timeline