GSA awards $67.9M for security gate construction at St. Elizabeth West Campus, Washington D.C

Contract Overview

Contract Amount: $67,908,476 ($67.9M)

Contractor: Balfour Beatty Construction, LLC

Awarding Agency: General Services Administration

Start Date: 2010-09-10

End Date: 2016-08-31

Contract Duration: 2,182 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543 001::TAS RECOVERY: CONSTRUCT SECURITY GATES AND FENCES, DHS CONSOLIDATION PROGRAM, ST. ELIZABETH WEST CAMPUS, SE, WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $67.9 million to BALFOUR BEATTY CONSTRUCTION, LLC for work described as: TAS::47 4543 001::TAS RECOVERY: CONSTRUCT SECURITY GATES AND FENCES, DHS CONSOLIDATION PROGRAM, ST. ELIZABETH WEST CAMPUS, SE, WASHINGTON, D.C. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2182 days indicates a long-term project with sustained contractor involvement. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing project expenses. 4. The project involves construction of security gates and fences, a critical infrastructure enhancement. 5. The award is part of the DHS Consolidation Program, aligning with broader federal security initiatives. 6. The contractor, Balfour Beatty Construction, LLC, has a significant presence in large-scale construction projects.

Value Assessment

Rating: good

The contract value of $67.9 million for constructing security gates and fences appears reasonable for a project of this scale and duration, especially considering it's a definitive contract. Benchmarking against similar large-scale construction projects for federal facilities suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders, as suggested by the 'no' field, points to a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this security infrastructure project likely resulted in a more favorable price for taxpayers compared to a sole-source award. The multiple bids suggest that the government secured a fair market price.

Public Impact

The primary beneficiaries are federal agencies housed at the St. Elizabeth West Campus, gaining enhanced security. The project delivers physical security infrastructure, including gates and fences, to protect federal assets and personnel. The geographic impact is concentrated in Washington, D.C., specifically at the St. Elizabeth West Campus. The project likely involves a significant construction workforce, contributing to employment in the D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Long project duration could lead to scope creep or changes in security requirements over time.
Dependence on a single contractor for an extended period might limit flexibility.
Ensuring quality of construction for critical security infrastructure requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive pricing environment.
Project aligns with broader federal security consolidation efforts.
Award to an experienced construction firm like Balfour Beatty suggests a lower risk of execution issues.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The federal government is a significant consumer of construction services, particularly for infrastructure, security, and facility upgrades. The market for large-scale federal construction is competitive, with major players like Balfour Beatty often winning substantial contracts. This specific award contributes to the overall federal spending in infrastructure and security enhancements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by a set-aside. However, the prime contractor, Balfour Beatty Construction, LLC, may engage small businesses as subcontractors to fulfill parts of the project, depending on their internal policies and the nature of the work required. The absence of a set-aside means the primary competition was open to all eligible firms, potentially limiting direct opportunities for small businesses to act as prime contractors on this specific award.

Oversight & Accountability

The General Services Administration (GSA), through its Public Buildings Service, is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance checks to ensure the construction meets specifications and timelines. Accountability is maintained through contractual terms and performance metrics. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS Consolidation Program
Federal Building Security Enhancements
General Services Administration Construction Contracts
Public Buildings Service Projects

Risk Flags

Long contract duration may increase risk of scope creep and cost escalation through change orders.
Firm-fixed-price contract requires careful contractor management to ensure quality and adherence to specifications.
Dependence on a single contractor for an extended period could impact flexibility and responsiveness.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $67.9 million to BALFOUR BEATTY CONSTRUCTION, LLC. TAS::47 4543 001::TAS RECOVERY: CONSTRUCT SECURITY GATES AND FENCES, DHS CONSOLIDATION PROGRAM, ST. ELIZABETH WEST CAMPUS, SE, WASHINGTON, D.C.

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 $67.9 million.

What is the period of performance?

Start: 2010-09-10. End: 2016-08-31.

What is the track record of Balfour Beatty Construction, LLC on similar federal construction contracts?

Balfour Beatty Construction, LLC is a well-established entity with a significant history of undertaking large-scale construction projects for both government and private sector clients. Their federal contract portfolio includes numerous awards for infrastructure, facilities, and specialized construction. Analyzing their past performance on similar definitive contracts, particularly those involving security infrastructure or large institutional buildings, would provide insight into their ability to manage complex projects, adhere to budgets, and meet delivery schedules. A review of their contract history would reveal their experience with firm-fixed-price contracts and their success rate in meeting government requirements, helping to assess their reliability for this specific security gate and fence project.

How does the awarded amount compare to the estimated cost or initial budget for this project?

The provided data does not include the estimated cost or initial budget for this project, making a direct comparison impossible. However, the fact that the contract was awarded through full and open competition with 8 bidders suggests that the final awarded price of $67.9 million was likely competitive and potentially aligned with or below the government's expectations. In the absence of budget data, assessing value relies on comparing the awarded price to market rates for similar construction services and evaluating the contractor's performance and the project's outcome against the contract terms. Future analysis could benefit from access to the original solicitation's cost estimates or budget allocations.

What are the key risks associated with the long duration (2182 days) of this construction contract?

The extended duration of 2182 days (approximately 6 years) for this construction contract presents several potential risks. Firstly, there is an increased likelihood of scope creep, where project requirements may evolve due to changing security needs or facility plans over such a long period, potentially leading to change orders and cost increases. Secondly, material costs and labor rates can fluctuate significantly over six years, which, despite the firm-fixed-price nature, could strain the contractor's margins if not adequately accounted for in the initial bid, potentially impacting quality or leading to disputes. Thirdly, long-term projects can experience contractor performance degradation or personnel turnover, affecting project momentum and quality. Finally, the extended timeline increases the risk of unforeseen site conditions or regulatory changes impacting the project's feasibility or cost.

How effective are security gate and fence constructions in enhancing overall facility security?

The effectiveness of security gates and fences in enhancing overall facility security is multifaceted. As a physical barrier, they serve as a primary deterrent against unauthorized access, intrusion, and vandalism, controlling entry points and channeling movement. When integrated with other security measures such as surveillance systems (CCTV), access control systems (card readers, biometrics), and trained security personnel, they form a layered security approach. The effectiveness is maximized when the design, materials, and placement are appropriate for the specific threat environment and the asset being protected. For federal facilities, robust perimeter security is a critical component of protecting personnel, information, and infrastructure from a range of threats, from petty crime to more sophisticated attacks.

What is the historical spending trend for similar security infrastructure projects by the GSA?

Historical spending trends for similar security infrastructure projects by the GSA would likely show a consistent investment in perimeter security and access control measures for federal buildings. The GSA manages a vast portfolio of federal properties, and maintaining and upgrading their security is an ongoing priority, often influenced by evolving threat assessments and federal mandates. Spending in this category can fluctuate based on specific program initiatives, such as consolidation efforts like the DHS Consolidation Program, or as a response to security incidents. Analyzing past GSA contracts for gates, fences, and related security installations would reveal patterns in contract values, durations, and the types of competition utilized, providing context for the $67.9 million award.

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-10-MK-C-0058

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Balfour Beatty PLC (UEI: 210042081)

Address: 3924 PENDER DRIVE STE 100, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $67,908,476

Exercised Options: $67,908,476

Current Obligation: $67,908,476

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $45,357,353

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline