Commerce Awards $45.1M for NIST Building Construction to Hensel Phelps
Contract Overview
Contract Amount: $45,173,465 ($45.2M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Commerce
Start Date: 2018-09-18
End Date: 2022-11-30
Contract Duration: 1,534 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TO #3 FOR BLDG. 245
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $45.2 million to HENSEL PHELPS CONSTRUCTION CO for work described as: TO #3 FOR BLDG. 245 Key points: 1. Significant contract value for a single delivery order. 2. Hensel Phelps is a major player in large-scale construction. 3. Risk of cost overruns on long-duration projects. 4. Construction sector is subject to material and labor fluctuations.
Value Assessment
Rating: fair
The award amount of $45.1M for a single delivery order is substantial. Benchmarking against similar large-scale institutional building projects would be necessary to assess value, but the duration and scope suggest a complex undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes competitive pricing. The fixed-price contract type aims to control costs, but the long duration could still present challenges.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure development at NIST, with competition aiming for cost-effectiveness.
Public Impact
Supports critical research infrastructure at the National Institute of Standards and Technology. Project duration of over 4 years indicates a significant construction undertaking. Potential for job creation within the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration increases risk of cost escalation.
- Reliance on a single contractor for a large project.
- Potential for unforeseen site conditions.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be cyclical and influenced by government infrastructure priorities and economic conditions.
Small Business Impact
The contract was awarded to Hensel Phelps Construction Co., a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation.
Oversight & Accountability
The use of full and open competition and a firm fixed-price contract suggests a degree of oversight. However, the long duration necessitates ongoing monitoring to ensure project milestones and budget adherence.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Long contract duration (1534 days).
- Large contract value for a single delivery order.
- Potential for cost escalation due to fixed-price nature over extended period.
- Lack of explicit small business subcontracting information.
Tags
commercial-and-institutional-building-co, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $45.2 million to HENSEL PHELPS CONSTRUCTION CO. TO #3 FOR BLDG. 245
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $45.2 million.
What is the period of performance?
Start: 2018-09-18. End: 2022-11-30.
What is the estimated cost per square foot for this building project compared to similar NIST or government facilities?
Without detailed project specifications (e.g., square footage, building type, specific functionalities), a precise cost per square foot benchmark is difficult. However, for large institutional buildings, costs can range significantly, often from $300 to $800+ per square foot depending on complexity, materials, and location. Further analysis would require access to the project's scope and design documents to compare against industry standards for similar government facilities.
What are the specific risks associated with the 1534-day duration of this contract, and what mitigation strategies are in place?
The extended duration (over 4 years) exposes the project to risks such as inflation impacting material and labor costs, potential design changes, and contractor performance degradation. Mitigation strategies likely include contract clauses addressing escalation, change order management processes, and performance incentives/penalties. Regular progress reviews and proactive risk management by NIST are crucial.
How effectively did the full and open competition process ensure the best value was achieved for this significant construction award?
Full and open competition is designed to maximize value by encouraging multiple bids. Its effectiveness here depends on the clarity of the solicitation, the competitiveness of the bids received, and the evaluation criteria used. While competition is a positive indicator, a thorough review of the bidding process and the final award justification would confirm if the best value, considering both price and technical merit, was indeed secured.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,173,465
Exercised Options: $45,173,465
Current Obligation: $45,173,465
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DOCSB134116CQ0026
IDV Type: IDC
Timeline
Start Date: 2018-09-18
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2022-08-01
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