Department of Energy awards $13.86M contract for construction services to HITT Contracting, Inc
Contract Overview
Contract Amount: $13,864,241 ($13.9M)
Contractor: Hitt Contracting, Inc.
Awarding Agency: Department of Energy
Start Date: 2024-08-19
End Date: 2026-08-31
Contract Duration: 742 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SECURE - BG-056 PROJECT PERIOD OF PERFORMANCE 08/01/24 TO 05/31/26
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $13.9 million to HITT CONTRACTING, INC. for work described as: SECURE - BG-056 PROJECT PERIOD OF PERFORMANCE 08/01/24 TO 05/31/26 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for commercial and institutional building construction, a common service for federal agencies. 3. The period of performance spans two years, indicating a medium-term project. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award amount is substantial, requiring careful monitoring of performance and value. 6. The contractor, HITT Contracting, Inc., is a known entity in the construction sector.
Value Assessment
Rating: good
The contract value of $13.86 million for a two-year period appears reasonable for commercial and institutional building construction services. Benchmarking against similar projects would provide a more precise assessment of value for money. The firm fixed-price structure helps control costs, but the overall value is contingent on the quality and timely completion of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The agency's commitment to this procurement approach suggests a desire for the best value obtainable.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and increase the likelihood of selecting a contractor offering the best value.
Public Impact
The Department of Energy will benefit from improved or new facilities, enhancing its operational capabilities. Services delivered include commercial and institutional building construction, likely involving renovation, repair, or new construction. The geographic impact is focused on the District of Columbia, where the project is located. Workforce implications include job creation for construction trades and related support personnel in the D.C. area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
- Risk of schedule delays impacting the Department of Energy's operational timelines.
- Ensuring compliance with all federal building codes and environmental regulations.
Positive Signals
- Firm fixed-price contract structure mitigates budget uncertainty for the government.
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- The contractor's experience in commercial and institutional construction is a positive indicator.
Sector Analysis
The commercial and institutional building construction sector is a significant part of the broader construction industry. Federal agencies frequently procure these services to maintain and upgrade their facilities. Spending in this sector can fluctuate based on infrastructure needs and government budget allocations. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by federal agencies for similar types of facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, HITT Contracting, Inc., may choose to subcontract portions of the work to small businesses as part of their own business strategy or to meet broader industry diversity goals.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures will be tied to the contract's performance requirements and milestones. Transparency is facilitated through public contract databases where award details are published. Inspector General jurisdiction may apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Federal Building Construction Contracts
- Department of Energy Facilities Management
- Commercial Construction Services
- Institutional Building Projects
Risk Flags
- Potential for cost overruns due to unforeseen site conditions.
- Risk of schedule delays impacting agency operations.
- Ensuring contractor compliance with all federal regulations and building codes.
Tags
construction, department-of-energy, district-of-columbia, firm-fixed-price, large-contract, full-and-open-competition, commercial-building, institutional-building, hitt-contracting-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.9 million to HITT CONTRACTING, INC.. SECURE - BG-056 PROJECT PERIOD OF PERFORMANCE 08/01/24 TO 05/31/26
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 $13.9 million.
What is the period of performance?
Start: 2024-08-19. End: 2026-08-31.
What is HITT Contracting, Inc.'s track record with the federal government, particularly with the Department of Energy?
HITT Contracting, Inc. has a significant history of federal contracting. While specific details for this contract are limited, a review of federal procurement data would reveal their past performance ratings, previous contract values, and the types of services they have provided to various agencies, including the Department of Energy. Their experience with similar-sized projects and their performance on past federal contracts are key indicators of their capability to execute this current award successfully. Analyzing their past performance metrics, such as on-time delivery and adherence to budget, would provide further insight into their reliability as a federal contractor.
How does the awarded amount of $13.86 million compare to similar construction projects for federal agencies?
To benchmark the $13.86 million award, one would need to compare it against the contract values of similar commercial and institutional building construction projects undertaken by federal agencies of comparable size and scope. Factors such as project complexity, location (which influences labor and material costs), and the specific services included (e.g., new construction vs. renovation) are critical for a fair comparison. Without access to a detailed database of comparable federal construction contracts, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, the firm fixed-price nature suggests an effort to contain costs.
What are the primary risks associated with this firm fixed-price construction contract?
The primary risks associated with this firm fixed-price construction contract, despite shifting cost risk to the contractor, include potential for scope creep if contract modifications are not managed carefully, and the risk of contractor default or substandard performance if the fixed price is too low to be profitable or if the contractor lacks sufficient resources. Unforeseen site conditions (e.g., hazardous materials, unexpected subsurface issues) can lead to significant change orders, potentially increasing the overall cost to the government if not contractually managed. Schedule delays are also a risk, which can impact the agency's operations and potentially incur penalties or require contract adjustments.
How effective is the full and open competition process in ensuring value for money for this type of construction contract?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for construction projects. It allows a wide range of qualified contractors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The Department of Energy's choice of this method suggests a commitment to obtaining the best possible price and quality. However, the effectiveness is contingent on the clarity of the solicitation requirements, the rigor of the evaluation process, and the actual number and capability of the bidders who participate. A well-executed full and open competition should yield a contractor that offers a strong balance of cost and performance.
What are the historical spending patterns of the Department of Energy on construction services?
Analyzing historical spending patterns of the Department of Energy (DOE) on construction services would involve examining their budget allocations and contract awards over several fiscal years. This would reveal trends in the types of construction projects undertaken (e.g., laboratory upgrades, administrative facilities, infrastructure), the average contract values, and the primary contracting mechanisms used (e.g., full and open, sole source). Understanding these patterns can help contextualize the current $13.86 million award, indicating whether it is within the typical range of DOE's construction expenditures or represents a significant deviation. It also helps identify potential areas of consistent investment or emerging needs within the agency.
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
Solicitation ID: 89303024RMA000057
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: $13,864,241
Exercised Options: $13,864,241
Current Obligation: $13,864,241
Actual Outlays: $9,695,418
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303020DMA000018
IDV Type: IDC
Timeline
Start Date: 2024-08-19
Current End Date: 2026-08-31
Potential End Date: 2026-12-15 00:00:00
Last Modified: 2026-04-09
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