Y -- Construction of a Vehicle Maintenance Facility and Storage Building

Notice to Suppliers Request for Information The USPS is considering negotiating a Two Phased Construction Cost Reimbursable contract to build a Vehicle Maintenance Facility (VMF) and a Storage Facility in Philadelphia, PA, to JE Dunn Construction. The estimated cost of this project is $10,000,000. As part of this consideration, the USPS is seeking comments from contractors, subcontractors, suppliers and other interested parties regarding the proposed action. Background: After a significant planning and design effort, The USPS awarded in 2003 a contract to JE Dunn for the construction of the Philadelphia Processing and Distribution Plant. (P&DC) This is a 910,000 square foot facility designed to deal with existing space deficiencies and to improve mail processing in the Philadelphia area. The original plan called for having a VMF on the site of the P&DC but due to operational changes that affected the building footprint and parking, the VMF was removed from the project prior to contract award. Subsequently, the USPS acquired a new site adjacent to the P&DC site and it is now prepared to build this facility. Proposed Action: The USPS is considering foregoing prequalification and the competitive award process and negotiating a contract to build this project with JE Dunn Construction for the following reasons: 1-JE Dunn is highly qualified to complete this project. JE Dunn was originally prequalified and won the contract for the P&DC facility competitively when it included the VMF. 2-Because JE Dunn has and advantage due to his superior knowledge of this project and because of having resources on an adjacent site (personnel that can be use to support both the P&DC and VMF project) it is most likely that they would succeed in getting this project in a competitive process. 3- Because the proposed contract is a cost reimbursable construction contract where all subcontractor bids over $50,000 are subject to competition, the USPS estimates that over 85% of the contract value will be subject this competition. Even with a negotiated contract the USPS will derive the benefit of competitive pricing for most of the cost of the project. 4- Negotiating the VMF contract will save the USPS the time and costs associated with the normal prequalification process, Request for Proposals solicitation, and award of this contract. 5- Because the VMF and P&DC must be completed concurrently and because they are operationally related, having the same company complete both projects will help with coordinating the completion, acceptance and move in of postal operations. 6- The USPS is reluctant to submit the contracting community to all the considerable expenses associated with a competitive process (prequalification, solicitation, oral presentations, etc) when one of the suppliers has an apparent and distinct competitive advantage by virtue of previous experience with this project and when a competitive process is not likely to yield appreciable benefits to the USPS Accordingly, it appears it is in the best interest to negotiate a contract with JE Dunn for the construction of the Philadelphia VMF. The USPS is seeking comments from the building contracting community and other interested parties regarding this approach before making a final decision to contract with JE Dunn. Comments should be sent to the USPS not later than March 18, 2004. All comments should be directed to: Bill Powell US Postal Service Supply Management Facilities Portfolio 4301 Wilson Blvd. Suite 300 Arlington, VA. 22203-1840 Ref: Philadelphia VMF Project