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BREAKING: Feds cancel $38M contract for FBI office

August 15, 2007

The federal government has canceled a contract with a Missouri developer chosen to build a new FBI field office in Castleton.

The U.S. General Services Administration awarded the $38-million contract to Kansas City-based BC Development Co. on March 23, but the company failed to obtain control of the 12-acre property in time to meet a 120-day deadline.

The government has reopened bidding to the other finalists for the project, including locally based Duke Realty Corp. and Lauth Property Group, both of which had brought proposals for their own sites.

"Obviously we want to try to make up for lost time," GSA Regional Administrator J. David Hood said in a statement.

"One thing is in our favor, it's not as though we'll be starting from scratch."

BC Development, which was founded by a 12-year veteran of the GSA who previously awarded such contracts, will not be allowed to bid this time around.

The firm had proposed a 110,000-square-foot complex, including a three-story office building, an enclosed parking garage and a separate maintenance building for a tract of land north of 86th Street and east of Allisonville Road behind a Costco store.

The FBI had planned to lease the property for $54.2 million over 15 years.

For discussion of this story, visit IBJ 's real estate blog, Property Lines.

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