Department of Energy awards $4.86M contract for construction services, highlighting a competitive bidding process
Contract Overview
Contract Amount: $4,862,822 ($4.9M)
Contractor: Hitt Contracting, Inc.
Awarding Agency: Department of Energy
Start Date: 2023-07-17
End Date: 2026-02-01
Contract Duration: 930 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GA-242
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $4.9 million to HITT CONTRACTING, INC. for work described as: GA-242 Key points: 1. The contract was awarded using full and open competition, suggesting a robust market response. 2. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 3. The duration of 930 days indicates a significant, long-term project. 4. The award to HITT CONTRACTING, INC. represents a substantial investment in infrastructure. 5. The project is located in Washington D.C., potentially impacting local employment and businesses.
Value Assessment
Rating: good
Benchmarking the value of this specific construction contract is challenging without detailed project scope and comparable market data. However, the firm-fixed-price award suggests a defined cost expectation. The award amount of approximately $4.86 million for a nearly 2.5-year project duration appears reasonable within the context of commercial and institutional building construction, assuming the scope aligns with typical projects of this nature. Further analysis would require comparing the cost per square foot or per unit of work against similar government or private sector projects in the Washington D.C. area.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment. This approach is designed to ensure that the government receives the best possible value by encouraging multiple companies to offer their services, potentially leading to lower prices and higher quality outcomes.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of securing services at the most competitive price, preventing potential overspending that could occur with less competitive methods.
Public Impact
The primary beneficiaries are likely the Department of Energy, which will receive the completed construction services. The contract will deliver commercial and institutional building construction, likely involving upgrades, repairs, or new facilities. The geographic impact is concentrated in Washington D.C., potentially creating local job opportunities in the construction sector. The project will likely involve a skilled construction workforce, including tradespeople, project managers, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the construction scope makes it difficult to fully assess value for money.
- Potential for cost overruns if unforeseen issues arise, despite the firm-fixed-price structure.
- Dependence on a single contractor for the duration of the project could pose risks if performance issues emerge.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Firm-fixed-price contract type helps control costs and manage budget.
- Contractor has a significant award amount, suggesting capacity and experience.
- Project duration is substantial, allowing for thorough execution.
Sector Analysis
The commercial and institutional building construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to public facilities. Federal spending in this sector supports infrastructure development and maintenance across various agencies. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per project type for similar government construction projects awarded by agencies like GSA or other departments with significant real estate holdings. The market size for federal construction is substantial, with numerous firms competing for these contracts.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, HITT CONTRACTING, INC., may engage small businesses as subcontractors, which would indirectly benefit them. Further investigation into the contractor's subcontracting plan would be necessary to fully assess the impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases like SAM.gov. The Inspector General for the Department of Energy would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Energy Facilities Management
- Federal Building Construction Contracts
- Commercial Construction Services
- Public Works Projects
Risk Flags
- Potential for scope creep if not managed tightly.
- Risk of unforeseen site conditions impacting schedule and cost.
- Contractor performance variability is always a consideration.
Tags
construction, department-of-energy, washington-dc, firm-fixed-price, large-contract, full-and-open-competition, commercial-building, institutional-building, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.9 million to HITT CONTRACTING, INC.. GA-242
Who is the contractor on this award?
The obligated recipient is HITT CONTRACTING, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $4.9 million.
What is the period of performance?
Start: 2023-07-17. End: 2026-02-01.
What is the specific scope of work for this construction contract?
The provided data indicates the contract is for 'Commercial and Institutional Building Construction' (NAICS code 236220) awarded to HITT CONTRACTING, INC. by the Department of Energy. However, the specific details of the scope of work, such as whether it involves new construction, renovation, repair, or specific types of facilities (e.g., laboratories, administrative offices, power infrastructure support buildings), are not detailed in the summary data. A comprehensive understanding of the project's objectives, deliverables, and technical specifications would require accessing the full contract documentation or associated statements of work. This information is crucial for a thorough value assessment and risk analysis.
How does the awarded amount compare to similar construction projects by the Department of Energy or other federal agencies?
Direct comparison of the $4.86 million award to similar projects is difficult without knowing the precise scope, size (e.g., square footage), and complexity of the work. However, for a project spanning approximately 2.5 years (930 days), this amount suggests a significant undertaking. Federal construction projects vary widely in cost based on location, materials, labor, and specific requirements. To benchmark effectively, one would need to identify comparable projects within the Department of Energy or other agencies (like GSA or DoD) that involve similar types of commercial or institutional building construction in the Washington D.C. metropolitan area. Analyzing cost per square foot or cost per specific deliverable (e.g., per office space, per lab module) would provide a more robust comparison.
What is HITT CONTRACTING, INC.'s track record with federal construction contracts, particularly with the Department of Energy?
HITT CONTRACTING, INC. is a large, established construction firm with a significant presence in the federal contracting space. While the provided data confirms this specific award, a deeper dive into their contract history would reveal their experience with similar projects, their performance ratings on past federal contracts (e.g., CPARS scores), and their history of working with the Department of Energy. Examining past performance can indicate their reliability, quality of work, and ability to manage complex projects within budget and schedule. Information on their past federal awards, including value and scope, can often be found in public databases like SAM.gov or FPDS.
What are the potential risks associated with this firm-fixed-price construction contract?
While firm-fixed-price (FFP) contracts are designed to provide cost certainty, risks can still emerge. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit if unforeseen challenges arise, especially if the initial pricing was overly optimistic or if the scope was not perfectly defined. For the contractor, the risk lies in underestimating costs, encountering unexpected site conditions, or facing material price escalations that erode profit margins. Given the project duration, changes in regulations or unforeseen technical requirements could also introduce complexities. Effective project management, clear communication, and robust oversight by the Department of Energy are crucial to mitigate these risks.
How has federal spending on commercial and institutional building construction evolved over the past five years?
Federal spending on commercial and institutional building construction has generally remained robust, driven by the need to maintain, upgrade, and expand government facilities across various agencies. While specific year-over-year fluctuations occur due to budget cycles, infrastructure initiatives, and national priorities, the overall trend reflects a consistent demand for construction services. Agencies like the General Services Administration (GSA), Department of Defense (DoD), and Department of Veterans Affairs (VA) are major contributors to this spending category, alongside departments like Energy. Analyzing historical spending data from sources like the Congressional Budget Office (CBO) or federal procurement databases can provide insights into trends, dominant sectors, and the impact of economic conditions or policy changes on this segment of federal contracting.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2900 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,862,822
Exercised Options: $4,862,822
Current Obligation: $4,862,822
Actual Outlays: $4,646,096
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303020DMA000018
IDV Type: IDC
Timeline
Start Date: 2023-07-17
Current End Date: 2026-02-01
Potential End Date: 2026-04-09 00:00:00
Last Modified: 2026-03-30
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