GSA's $19.19M contract for building construction in DC awarded to Ameresco Select, Inc

Contract Overview

Contract Amount: $19,187,341 ($19.2M)

Contractor: Ameresco Select, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-09-23

End Date: 2019-05-31

Contract Duration: 4,998 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ESC SUITLAND 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 $19.2 million to AMERESCO SELECT, INC. for work described as: ESC SUITLAND MD Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of nearly 5000 days (over 13 years) indicates a long-term need for services. 3. Fixed-price contract type generally shifts risk to the contractor, potentially stabilizing costs. 4. The contract was awarded to a single entity, Ameresco Select, Inc. 5. No small business set-aside was utilized for this procurement. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or scope details. However, the total award amount of $19.19 million over a period of approximately 13.7 years suggests an average annual expenditure of roughly $1.4 million. This figure needs to be compared against the scale and complexity of the construction projects undertaken. The firm fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the price was competitive at the outset. Without comparable project data or detailed cost breakdowns, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of four bids suggests a reasonable level of competition for this procurement. A competitive bidding process is generally expected to drive down prices and encourage the submission of innovative solutions. The fact that multiple companies vied for this contract implies that the market had sufficient capacity and interest in providing the required construction services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors compete on price and quality, leading to potentially lower overall costs for government projects.

Public Impact

The primary beneficiaries are likely federal agencies or facilities managed by the General Services Administration (GSA) in the Washington D.C. area that require construction or renovation services. The contract supports the delivery of commercial and institutional building construction, which could include new builds, renovations, or upgrades to federal properties. The geographic impact is concentrated in the District of Columbia, supporting local economic activity and employment within the construction sector. Workforce implications include job creation for construction workers, project managers, engineers, and other related trades within the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 14 years) could lead to potential cost escalations if not managed effectively.
Lack of specific performance metrics or detailed scope in the provided data makes it difficult to assess the quality of work or value delivered.
Reliance on a single contractor for an extended period might limit flexibility in adapting to changing needs or incorporating new technologies.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Awarded through full and open competition, suggesting a competitive initial pricing.
Contract duration indicates a sustained need and potential for long-term relationship building with a capable contractor.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, schools, hospitals, and government facilities. The General Services Administration (GSA) is a major procurer of construction services for federal buildings. Spending in this area is influenced by federal infrastructure needs, agency space requirements, and government-wide modernization initiatives. Comparable spending benchmarks would typically involve analyzing other GSA construction contracts or large-scale public works projects within the region.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This means that the primary contract was open to all responsible bidders, regardless of size. While this ensures maximum competition among all market participants, it may limit direct opportunities for small businesses to participate as prime contractors on this specific award. However, larger prime contractors may still engage small businesses for subcontracting work, depending on their own business practices and project needs.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its construction contracts, including project management, site inspections, and quality assurance processes. As a firm fixed-price contract, the government's primary financial oversight focuses on ensuring the contractor meets the defined scope and schedule. Accountability is managed through contract clauses, performance reviews, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and public reporting, although detailed project-specific information might be limited.

Related Government Programs

GSA Federal Buildings Fund
Public Buildings Service Construction Programs
Department of Defense Construction Contracts
Federal Capital Asset Realignment Process (CAR)

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep if not managed meticulously.
Limited data on specific deliverables makes it hard to assess performance and value for money.
No indication of small business subcontracting goals could limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.2 million to AMERESCO SELECT, INC.. ESC SUITLAND MD

Who is the contractor on this award?

The obligated recipient is AMERESCO SELECT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2005-09-23. End: 2019-05-31.

What specific types of construction projects were undertaken under this contract?

The provided data indicates the contract falls under NAICS code 236220 (Commercial and Institutional Building Construction). However, it does not specify the exact nature of the projects. This could range from new construction of federal buildings, major renovations and upgrades to existing facilities, or specialized construction work within government-occupied spaces in the District of Columbia. Without access to the contract's statement of work or task orders, the precise scope of construction activities remains undefined. Further investigation into GSA's project portfolio or specific task orders issued against this contract would be necessary to detail the types of construction undertaken.

How does the $19.19 million award compare to similar GSA construction contracts in the DC area?

Comparing the $19.19 million award requires context regarding the duration and scope. This contract spans nearly 14 years, making a direct comparison to shorter-term projects difficult. For similar long-term, comprehensive building construction or major renovation contracts managed by GSA in the DC metropolitan area, award values can vary significantly based on project scale, complexity, and market conditions. Generally, large-scale federal construction projects in high-cost areas like DC can easily reach tens or hundreds of millions of dollars. The $1.4 million average annual spend suggested by this contract appears moderate for a long-term construction vehicle, implying either a steady stream of smaller projects or a phased approach to larger ones.

What is the track record of Ameresco Select, Inc. with GSA contracts?

Ameresco Select, Inc. has a history of contracting with the General Services Administration. The provided data shows this specific contract (ID: 236220) was awarded in 2005 and completed in 2019. To fully assess their track record, one would need to examine other contracts awarded to Ameresco Select, Inc. by GSA, looking at performance history, any reported issues, and the types of services they have provided. Information from contract performance reports (CPARS) or GSA's contract databases would offer deeper insights into their reliability, quality of work, and adherence to schedules and budgets on past projects.

What are the potential risks associated with a firm fixed-price contract of this duration?

While firm fixed-price (FFP) contracts are generally favored for cost certainty, a duration of nearly 14 years introduces specific risks. The primary risk is that the initial price may not adequately account for inflation, material cost fluctuations, or unforeseen site conditions that emerge over such an extended period. If the contractor underestimated these factors, they could face financial losses, potentially impacting their ability or willingness to complete the work satisfactorily. Conversely, if the government secured an exceptionally low price initially, the contractor might be incentivized to cut corners on quality or scope to maintain profitability. Effective contract management and monitoring by GSA are crucial to mitigate these risks.

How has federal spending on commercial and institutional building construction evolved over the life of this contract?

This contract was active from September 2005 to May 2019. During this period, federal spending on construction, including commercial and institutional buildings, experienced fluctuations influenced by economic cycles, infrastructure initiatives, and budget appropriations. Post-2008 recession, there was often a push for infrastructure investment. GSA's spending, in particular, is tied to its mission of providing workspace for federal agencies. Analyzing historical GSA budget data and construction spending reports from agencies like the Congressional Budget Office (CBO) or the Department of Commerce would reveal trends in this sector during the contract's lifespan, showing periods of increased or decreased federal investment in building construction.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameresco Inc (UEI: 603439428)

Address: 111 SPEEN ST STE 410, FRAMINGHAM, MA, 01701

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

Financial Breakdown

Contract Ceiling: $19,187,341

Exercised Options: $19,187,341

Current Obligation: $19,187,341

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline