GSA Awards $27.5M for John W. Peck Federal Building Renovation to Pepper Construction Group LLC

Contract Overview

Contract Amount: $27,511,991 ($27.5M)

Contractor: Pepper Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2009-09-09

End Date: 2014-05-30

Contract Duration: 1,724 days

Daily Burn Rate: $16.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY CMC SERVICES TO MODERNIZE THE JOHN W. PECK FEDERAL BUILDING, CINCINNATI, OHIO. THE PROJECT INCLUDES EXTERIOR RENOVATION, INCLUDING WINDOW AND GLAZING REPLACEMENT, TUCK-POINTING AND CLEANING, REPLACEMENT OF THE MAIN ROOF, AND PENTHOUSE SURFACE REPAIRS.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45202

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $27.5 million to PEPPER CONSTRUCTION GROUP LLC for work described as: TAS::47 4543::TAS RECOVERY CMC SERVICES TO MODERNIZE THE JOHN W. PECK FEDERAL BUILDING, CINCINNATI, OHIO. THE PROJECT INCLUDES EXTERIOR RENOVATION, INCLUDING WINDOW AND GLAZING REPLACEMENT, TUCK-POINTING AND CLEANING, REPLACEMENT OF THE MAIN ROOF, AND PENTHOUSE SURFACE REPAIRS. Key points: 1. Project scope includes significant exterior renovations and roof replacement. 2. Awarded via competitive delivery order, suggesting a competitive bidding process. 3. Firm fixed price contract type aims to control costs. 4. Project duration of 1724 days indicates a substantial, long-term undertaking.

Value Assessment

Rating: good

The contract value of $27.5 million for a comprehensive federal building renovation appears reasonable given the scope of work. Benchmarking against similar large-scale public building modernization projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a competitive delivery order, implying competition existed, but the specific details of the competition are not fully detailed. This method can lead to price discovery, but the extent depends on the number and quality of bids received.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure modernization, which can lead to long-term cost savings through improved efficiency and reduced maintenance.

Public Impact

Modernization of a federal building enhances its functionality and lifespan. Improved building envelope and roof will reduce energy consumption and maintenance costs. Project supports local construction jobs and economic activity in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation.
Scope creep could extend project timeline and increase final cost.
Dependency on a single contractor for a large project.

Positive Signals

Competitive award process likely secured a reasonable price.
Firm fixed price contract provides cost certainty.
Project addresses critical infrastructure needs.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Federal building renovations are common, with costs varying widely based on size, age, and scope of modernization. This project's value is significant but not extraordinary for a major federal facility.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The General Services Administration (GSA) oversees public building projects. Oversight would typically involve project management, quality assurance, and financial monitoring to ensure adherence to contract terms and budget.

Related Government Programs

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

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Contractor performance risk over a long project duration.
Dependency on GSA's oversight for quality control.
Risk of scope creep through change orders.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.5 million to PEPPER CONSTRUCTION GROUP LLC. TAS::47 4543::TAS RECOVERY CMC SERVICES TO MODERNIZE THE JOHN W. PECK FEDERAL BUILDING, CINCINNATI, OHIO. THE PROJECT INCLUDES EXTERIOR RENOVATION, INCLUDING WINDOW AND GLAZING REPLACEMENT, TUCK-POINTING AND CLEANING, REPLACEMENT OF THE MAIN ROOF, AND PENTHOUSE SURFACE REPAIRS.

Who is the contractor on this award?

The obligated recipient is PEPPER CONSTRUCTION GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2009-09-09. End: 2014-05-30.

What specific factors contributed to the $27.5 million cost for this renovation?

The cost is attributed to the comprehensive nature of the renovation, including extensive exterior work like window and roof replacement, tuck-pointing, and penthouse repairs. The firm fixed price contract suggests these costs were estimated and agreed upon upfront. Factors like material costs, labor rates in Cincinnati, and the building's specific structural needs would have influenced the final price.

What are the primary risks associated with this project's firm fixed price contract?

While a firm fixed price contract offers cost certainty, risks include potential for contractor to cut corners on quality to maintain profit margins if unforeseen issues increase costs significantly. Conversely, if the contractor underestimated costs, they might seek change orders, leading to scope creep and potential budget increases. The long duration also increases exposure to market fluctuations.

How effectively does this renovation address the long-term needs of the John W. Peck Federal Building?

The renovation directly addresses critical structural and exterior integrity issues, including roof and window replacement, which are essential for the building's longevity and operational efficiency. By modernizing these components, the project aims to reduce future maintenance burdens and improve energy performance, thereby contributing to the building's long-term viability and reducing lifecycle costs.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Pepper Companies Inc

Address: 643 N ORLEANS ST, CHICAGO, IL, 60654

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

Financial Breakdown

Contract Ceiling: $27,511,991

Exercised Options: $27,511,991

Current Obligation: $27,511,991

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS05P09GBD0015

IDV Type: IDC

Timeline