USDA Awards $3.35M for BARC Elevator Modernization to Nichols Contracting, Inc

Contract Overview

Contract Amount: $3,352,000 ($3.4M)

Contractor: Nichols Contracting, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-10-07

End Date: 2026-07-31

Contract Duration: 662 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: B001, B003, B004 AND B010A ELEVATORS MODERNIZATION AT BARC

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.4 million to NICHOLS CONTRACTING, INC. for work described as: B001, B003, B004 AND B010A ELEVATORS MODERNIZATION AT BARC Key points: 1. The contract value of $3.35M is for elevator modernization at BARC. 2. Nichols Contracting, Inc. secured the award. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project falls under the Commercial and Institutional Building Construction sector. 5. The contract duration is 662 days.

Value Assessment

Rating: fair

The contract value of $3.35M for elevator modernization appears reasonable given the scope and duration. Benchmarking against similar large-scale building construction projects would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests an initial broad solicitation followed by a narrowing of eligible bidders. This approach can impact price discovery by potentially limiting the number of competitive bids received.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades at a federal research facility, aiming for improved safety and functionality.

Public Impact

Modernization of elevators at BARC will improve accessibility and safety for researchers and staff. The project supports the operational efficiency of the Agricultural Research Service. Investment in federal building infrastructure contributes to long-term asset preservation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may impact price competitiveness.
Contract duration is substantial, requiring close monitoring.

Positive Signals

Awarded under full and open competition principles.
Clear scope for elevator modernization.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar elevator modernization projects in government facilities would be relevant for a detailed cost analysis.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small business engagement in this construction project.

Oversight & Accountability

The award was made by the Department of Agriculture for the Agricultural Research Service. Oversight will be crucial to ensure the project stays on schedule and within budget, given the contract's duration and value.

Related Government Programs

Commercial and Institutional Building Construction
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Limited competition may reduce price competitiveness.
Potential for cost overruns if scope creep occurs.
Long contract duration increases risk of unforeseen issues.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.4 million to NICHOLS CONTRACTING, INC.. B001, B003, B004 AND B010A ELEVATORS MODERNIZATION AT BARC

Who is the contractor on this award?

The obligated recipient is NICHOLS CONTRACTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-10-07. End: 2026-07-31.

What specific criteria led to the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. This can reduce the pool of potential bidders, potentially leading to less aggressive pricing compared to a truly open competition. A detailed review of the solicitation documents and award justification would be necessary to understand the specific reasons for exclusion and their pricing implications.

How does the $3.35 million cost compare to industry benchmarks for elevator modernization in similar-sized federal research facilities?

Without specific details on the scope of modernization (e.g., number of elevators, complexity of upgrades, building age), a precise benchmark comparison is difficult. However, $3.35 million for a multi-year project involving multiple elevators suggests a significant undertaking. Comparing this to publicly available data on similar government contracts or private sector projects of comparable scale would be essential to assess cost-effectiveness and identify potential overspending or savings.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure project effectiveness?

Key performance indicators for elevator modernization contracts typically include adherence to safety standards, operational reliability post-modernization, timely completion of milestones, and minimal disruption to facility operations. The contract likely specifies performance standards and inspection protocols. Regular progress reports, site inspections by government representatives, and post-completion testing will be crucial for measuring effectiveness and ensuring the contractor meets all contractual obligations.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12305B24R0033

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9190 RED BRANCH RD, COLUMBIA, MD, 21045

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

Financial Breakdown

Contract Ceiling: $4,581,000

Exercised Options: $3,352,000

Current Obligation: $3,352,000

Actual Outlays: $1,098,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline