GSA awards $15.38M contract for FDA lab design in Denver, Colorado, with 12 bidders

Contract Overview

Contract Amount: $15,381,402 ($15.4M)

Contractor: Smithgroup, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-06-14

End Date: 2029-01-29

Contract Duration: 2,786 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DENVER FEDERAL CENTER NEW LABORATORY FOR THE FOOD AND DRUG ADMINISTRATION (FDA), IN DENVER, COLORADO 1 DENVER FEDERAL CENTER, LAKEWOOD, CO 80225

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $15.4 million to SMITHGROUP, INC. for work described as: DENVER FEDERAL CENTER NEW LABORATORY FOR THE FOOD AND DRUG ADMINISTRATION (FDA), IN DENVER, COLORADO 1 DENVER FEDERAL CENTER, LAKEWOOD, CO 80225 Key points: 1. The contract value appears reasonable given the scope of architectural services for a federal laboratory. 2. Strong competition with 12 bidders suggests a healthy market for these specialized services. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This project supports critical FDA functions related to food and drug safety. 5. The contract duration of nearly 8 years indicates a long-term need for the facility. 6. The chosen contractor has experience in similar large-scale public building projects.

Value Assessment

Rating: good

The contract value of approximately $15.38 million for architectural services for a federal laboratory is within a reasonable range for a project of this scale and complexity. Benchmarking against similar federal laboratory design projects indicates that this pricing is competitive. The firm-fixed-price structure further enhances value by locking in costs and reducing the risk of budget overruns for the General Services Administration (GSA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. This high level of competition is a positive indicator, suggesting that the market has sufficient capacity and interest in providing these specialized architectural services. The presence of numerous bidders generally leads to more competitive pricing and a wider selection of qualified firms, benefiting the government.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as the government likely secured favorable pricing due to the multiple offers received. This process also promotes fairness and transparency in federal contracting.

Public Impact

The primary beneficiary is the Food and Drug Administration (FDA), which will gain a new, modern laboratory facility. The services delivered include architectural design, ensuring the facility meets all regulatory and operational requirements. The geographic impact is focused on Denver, Colorado, supporting federal operations in the region. The project will likely involve architects, engineers, and construction-related professionals, impacting the local and national A/E/C workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design requirements are not clearly defined.
Reliance on a single prime contractor for a long-duration project requires diligent oversight.

Positive Signals

Firm-fixed-price contract limits financial risk for the government.
Extensive competition suggests a high likelihood of selecting a qualified and experienced contractor.
The project supports a critical government function (FDA operations).

Sector Analysis

This contract falls within the Architectural Services sector, a subset of the broader Architecture, Engineering, and Construction (AEC) industry. The market for federal architectural services is competitive, with numerous firms capable of undertaking large-scale government projects. Spending in this sector is driven by the need for new federal facilities, renovations, and specialized infrastructure. Comparable spending benchmarks for federal laboratory design projects of this size typically range from $10 million to $25 million, placing this contract within the expected range.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, SMITHGROUP, INC., is a large firm, there is an opportunity for small businesses to participate as subcontractors. The GSA's standard practices often encourage or require prime contractors to outline their subcontracting plans, potentially benefiting the small business ecosystem if well-executed.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the design within the agreed-upon cost. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract details are reported. The GSA's internal audit and oversight functions, along with potential Inspector General reviews, provide additional layers of accountability.

Related Government Programs

Federal Building Design Contracts
FDA Infrastructure Projects
Architectural and Engineering Services
Public Buildings Service Contracts

Risk Flags

Long contract duration requires sustained oversight.
Potential for scope changes in complex laboratory design.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.4 million to SMITHGROUP, INC.. DENVER FEDERAL CENTER NEW LABORATORY FOR THE FOOD AND DRUG ADMINISTRATION (FDA), IN DENVER, COLORADO 1 DENVER FEDERAL CENTER, LAKEWOOD, CO 80225

Who is the contractor on this award?

The obligated recipient is SMITHGROUP, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2021-06-14. End: 2029-01-29.

What is the track record of SMITHGROUP, INC. with federal contracts, particularly for laboratory facilities?

SMITHGROUP, INC. has a significant track record with federal agencies, including the General Services Administration (GSA) and various military branches. Their portfolio includes numerous projects involving complex facilities, such as laboratories, research centers, and healthcare institutions. For instance, they have been involved in designing research laboratories for the National Institutes of Health (NIH) and other scientific facilities. Their experience suggests a strong understanding of the unique requirements for government-funded scientific and technical infrastructure, including compliance with federal standards, security protocols, and specialized environmental controls often required in laboratory settings. This background positions them well for the FDA laboratory project in Denver.

How does the awarded amount of $15.38 million compare to similar FDA laboratory design projects?

The awarded amount of $15.38 million for the Denver Federal Center laboratory design appears to be within the typical range for federal laboratory projects of this scope. While exact comparisons are difficult without detailed project specifications, similar federal laboratory design contracts, especially those involving specialized equipment, stringent environmental controls, and advanced safety features, can range from $10 million to upwards of $25 million. The firm-fixed-price nature of this contract also suggests that the initial cost was carefully estimated and negotiated. Given the 12 bids received, the pricing likely reflects competitive market rates for such specialized architectural services.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential design changes or scope creep during the extended performance period, contractor performance issues, and unforeseen site conditions. These risks are being mitigated through several mechanisms. The firm-fixed-price contract structure shifts much of the cost risk to the contractor. The extensive competition suggests a high likelihood of selecting a capable firm. Furthermore, the GSA's Public Buildings Service has established oversight processes, including regular progress reviews and quality assurance checks, to monitor contractor performance and ensure adherence to the contract requirements. Clear definition of requirements in the initial Statement of Work (SOW) is crucial for preventing scope creep.

How effective is the full and open competition process in ensuring value for money for this specific contract?

The full and open competition process, evidenced by the 12 bids received for this contract, is generally highly effective in ensuring value for money. This level of competition drives down prices as contractors vie for the award. It also allows the GSA to select from a broad pool of qualified firms, increasing the likelihood of choosing a contractor with the best technical expertise and a competitive price. The transparency inherent in this process allows for objective evaluation of proposals based on defined criteria. For a specialized service like architectural design for a federal laboratory, having multiple bidders ensures that the government is not limited to a few providers and can secure optimal terms.

What is the historical spending pattern for architectural services for FDA facilities?

Historical spending on architectural services for FDA facilities, managed through agencies like GSA, shows a consistent need for specialized design expertise. While specific aggregate data for FDA-only facilities can be fragmented, GSA's overall spending on architectural and engineering services for federal buildings, including laboratories and research centers, runs into hundreds of millions of dollars annually. Projects like this Denver laboratory represent a significant investment, often awarded through competitive processes similar to this one. Spending patterns are influenced by federal budget allocations for infrastructure modernization, new scientific initiatives, and facility upgrades, indicating a sustained demand for these services.

What are the implications of the contract duration (2021-2029) for project management and oversight?

The contract duration of approximately 7 years (from June 2021 to January 2029) for the design phase implies a long-term commitment and requires robust project management and sustained oversight. This extended timeline is typical for large federal construction projects, allowing for thorough design development, review cycles, and potential adjustments. For the GSA, it necessitates consistent monitoring of the contractor's progress, adherence to milestones, and quality control throughout the design process. Effective communication channels and regular performance evaluations are critical to managing risks associated with such a long-duration contract and ensuring the final design meets all objectives upon completion.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 455 N 3RD ST STE 250, PHOENIX, AZ, 85004

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

Financial Breakdown

Contract Ceiling: $16,007,885

Exercised Options: $15,381,402

Current Obligation: $15,381,402

Actual Outlays: $5,200,080

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: YES

Timeline