Commerce Department awards $7.4M construction contract to Olgoonik Enterprises for NIST utility project

Contract Overview

Contract Amount: $7,445,538 ($7.4M)

Contractor: Olgoonik Enterprises, LLC

Awarding Agency: Department of Commerce

Start Date: 2021-09-15

End Date: 2026-08-26

Contract Duration: 1,806 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLDG 1 WING 2 UTILITY PROJECT

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $7.4 million to OLGOONIK ENTERPRISES, LLC for work described as: BLDG 1 WING 2 UTILITY PROJECT Key points: 1. Contract value appears reasonable for a multi-year utility infrastructure project. 2. Limited competition may have impacted final pricing. 3. Project duration suggests a complex scope of work. 4. Firm Fixed Price contract type offers cost certainty. 5. Contract awarded to a Service-Disabled Veteran-Owned Small Business (SDVOSB) is a positive signal. 6. Geographic concentration in Colorado noted.

Value Assessment

Rating: good

The contract value of $7.45 million for a 5-year utility project at NIST appears within a reasonable range for construction and infrastructure work of this nature. Benchmarking against similar federal building construction contracts of comparable scope and duration would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicating a limited competition scenario. The specific reasons for this limitation (e.g., sole-source justification, specific set-aside) are not detailed in the provided data. A limited competition environment can sometimes lead to higher prices compared to full and open competition due to fewer bidders vying for the contract.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process.

Public Impact

The National Institute of Standards and Technology (NIST) will benefit from upgraded utility infrastructure. The project will ensure the continued operational efficiency and safety of NIST facilities. The primary services delivered are construction and utility system upgrades. The geographic impact is concentrated in Boulder, Colorado, where NIST facilities are located. The project will likely create jobs in the construction sector within the Colorado region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in suboptimal pricing for taxpayers.
The long project duration (over 4 years) increases the risk of scope creep or unforeseen issues.
Reliance on a single contractor for a critical utility project raises concerns about continuity if issues arise.

Positive Signals

Award to Olgoonik Enterprises, LLC, a Service-Disabled Veteran-Owned Small Business (SDVOSB), aligns with federal small business goals.
Firm Fixed Price contract provides budget predictability.
The project addresses essential infrastructure needs for a key research institution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. Federal spending in construction is driven by the need to maintain and upgrade government facilities, research centers, and infrastructure. Comparable spending benchmarks would involve analyzing other large-scale utility or building renovation projects awarded by agencies like GSA, DOD, or DOE.

Small Business Impact

The contract was awarded to Olgoonik Enterprises, LLC, which is identified as a Service-Disabled Veteran-Owned Small Business (SDVOSB). This suggests a potential small business set-aside or a conscious effort to award to a small business. Further analysis would be needed to confirm if this was a formal set-aside or if subcontracting opportunities were mandated for other small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institute of Standards and Technology (NIST) and the Department of Commerce. Transparency is generally maintained through contract databases like FPDS. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

NIST Facility Upgrades
Federal Building Construction
Utility Infrastructure Projects
Small Business Contracting
Service-Disabled Veteran-Owned Small Business (SDVOSB) Awards

Risk Flags

Limited Competition
Long Project Duration
Potential for Cost Overruns
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $7.4 million to OLGOONIK ENTERPRISES, LLC. BLDG 1 WING 2 UTILITY PROJECT

Who is the contractor on this award?

The obligated recipient is OLGOONIK ENTERPRISES, LLC.

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 $7.4 million.

What is the period of performance?

Start: 2021-09-15. End: 2026-08-26.

What is the track record of Olgoonik Enterprises, LLC in performing federal construction contracts, particularly those of similar size and scope?

A review of federal contract databases would be necessary to assess Olgoonik Enterprises, LLC's past performance. Key metrics to examine include the number and value of previously awarded federal contracts, performance ratings (if available), and any history of contract disputes or terminations. Understanding their experience with utility projects and institutional facilities would be particularly relevant for this BLDG 1 WING 2 UTILITY PROJECT. Without specific past performance data, it is difficult to definitively assess their capability for this $7.45 million contract.

How does the awarded price of $7.45 million compare to similar NIST or other federal agency utility construction projects?

To benchmark the value, we would compare this $7.45 million contract against similar federal projects for utility upgrades or building construction at research institutions or government facilities. Factors such as project duration (1806 days), scope of work (utility systems), and location would be considered. If comparable projects of similar complexity and duration were awarded at a significantly lower cost, it might indicate potential overpricing. Conversely, if similar projects incurred higher costs, this award could represent good value. Data on the number of bids received in similar competitions would also inform this comparison.

What are the specific risks associated with the 'NOT AVAILABLE FOR COMPETITION' status and the long project duration?

The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about whether the government secured the best possible price and solution, as a limited or sole-source award bypasses the competitive pressure that typically drives down costs. The long duration of 1806 days (approximately 5 years) increases the risk of cost escalation due to inflation, potential changes in requirements, contractor performance issues over an extended period, and the possibility of unforeseen site conditions or technological obsolescence impacting the utility systems. Managing such a long-term project requires robust oversight to ensure continued value and adherence to original objectives.

What is the expected impact of this utility project on NIST's research capabilities and operational continuity?

Upgraded utility infrastructure is crucial for the reliable operation of sensitive research equipment and facilities at NIST. This project is expected to enhance operational continuity by ensuring a stable and efficient supply of power, water, HVAC, or other essential utilities. Improved infrastructure can reduce the risk of disruptions caused by aging systems, thereby safeguarding ongoing research projects and ensuring the safety of personnel and equipment. The project's success is directly linked to maintaining NIST's high standards for scientific research and development.

How has federal spending on commercial and institutional building construction, particularly for utility projects, trended in recent years?

Federal spending on commercial and institutional building construction has generally seen fluctuations based on infrastructure priorities and budget allocations. Utility projects, being critical for facility operation, often receive consistent funding, though the scale can vary. Recent years may show an increased focus on modernizing aging federal infrastructure, including utility systems, to improve energy efficiency and resilience. Analyzing historical spending data for the '236220' NAICS code (Commercial and Institutional Building Construction) and specifically for utility-related construction contracts would reveal trends in investment and project types.

What are the implications of awarding this contract to a Service-Disabled Veteran-Owned Small Business (SDVOSB) for federal contracting goals?

Awarding this $7.45 million contract to Olgoonik Enterprises, LLC, an SDVOSB, directly contributes to the government's statutory goals for contracting with small businesses, particularly those owned by service-disabled veterans. These set-asides are designed to provide opportunities for veteran entrepreneurs and ensure a portion of federal spending supports these businesses. Such awards can foster economic growth within the veteran community and demonstrate the government's commitment to supporting businesses that have served the nation. It also signifies the capability of SDVOSBs to handle significant infrastructure projects.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1333ND21RNB190009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 S TEJON ST STE G, COLORADO SPRINGS, CO, 80903

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,445,538

Exercised Options: $7,445,538

Current Obligation: $7,445,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline