Commerce Awards $59.8M for NIST Building Modernization to Hensel Phelps
Contract Overview
Contract Amount: $59,847,770 ($59.8M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Commerce
Start Date: 2019-09-12
End Date: 2023-11-30
Contract Duration: 1,540 days
Daily Burn Rate: $38.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MODERNIZATION BUILDING 245 B&C WING
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $59.8 million to HENSEL PHELPS CONSTRUCTION CO for work described as: MODERNIZATION BUILDING 245 B&C WING Key points: 1. Significant investment in institutional building construction. 2. Hensel Phelps is a major player in large-scale construction. 3. Potential for cost overruns in long-term, complex projects. 4. Construction sector is subject to material and labor volatility.
Value Assessment
Rating: good
The award amount of $59.8M appears reasonable for a large-scale building modernization project of this duration. Benchmarking against similar NIST or GSA construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages multiple bids and drives down costs.
Public Impact
Modernization of critical research facilities enhances scientific capabilities. Project completion impacts NIST's operational efficiency and research output. Job creation and economic activity in the Maryland region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration exceeds 4 years, increasing risk of delays and cost escalation.
- Firm Fixed Price contract may not fully account for unforeseen material cost increases.
- Lack of small business participation noted.
Positive Signals
- Full and open competition likely secured a competitive price.
- Project aims to improve critical infrastructure for a key federal agency.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on federal infrastructure needs and economic conditions. Benchmarks vary widely based on project scope and location.
Small Business Impact
The data indicates no reported small business participation in this large contract. Efforts should be made to ensure subcontracting opportunities are available to small businesses on future projects of this scale.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting existing oversight mechanisms. However, the long duration necessitates continuous monitoring for performance and cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Extended project duration increases risk.
- Firm Fixed Price contract may not cover inflation.
- Lack of small business participation.
- Potential for scope creep in modernization projects.
- Dependency on specialized construction labor.
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 $59.8 million to HENSEL PHELPS CONSTRUCTION CO. MODERNIZATION BUILDING 245 B&C WING
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 $59.8 million.
What is the period of performance?
Start: 2019-09-12. End: 2023-11-30.
What is the projected impact of this modernization on NIST's research output and efficiency?
The modernization of Buildings 245 B&C Wing is expected to significantly enhance NIST's research capabilities by providing updated laboratory spaces, improved infrastructure, and more efficient operational environments. This upgrade should facilitate cutting-edge scientific endeavors and streamline research processes, ultimately boosting the institute's overall productivity and its ability to meet evolving scientific demands.
What are the primary risks associated with the extended project duration and firm fixed price contract?
The primary risks include potential cost overruns due to unforeseen inflation in material and labor costs, as the firm fixed price may not adequately cover market fluctuations over the 1540-day period. Schedule delays are also a significant risk, which could stem from supply chain disruptions, weather impacts, or unforeseen site conditions, potentially leading to increased indirect costs and delayed benefits from the modernized facilities.
How does this investment align with broader federal infrastructure modernization goals?
This investment directly aligns with federal goals to modernize critical infrastructure, particularly for scientific research and development agencies like NIST. By upgrading aging facilities, the project ensures the US maintains a competitive edge in scientific innovation and provides researchers with state-of-the-art tools. It supports the long-term strategic objective of maintaining and advancing national scientific leadership.
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: TWO STEP
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps - Shimizu JV
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: $59,847,770
Exercised Options: $59,847,770
Current Obligation: $59,847,770
Actual Outlays: $313,829
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: 2019-09-12
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2024-02-14
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