Department of Energy awards $7.99M contract for Germantown building renovations, highlighting construction sector activity
Contract Overview
Contract Amount: $7,993,724 ($8.0M)
Contractor: THE Matthews Group Inc
Awarding Agency: Department of Energy
Start Date: 2024-09-30
End Date: 2026-10-31
Contract Duration: 761 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REQUISITION 24MA000619 WAS ISSUED FOR A NEW TASK ORDER TO PROVIDE ALL LABOR, MATERIALS, EQUIPMENT AND SUPERVISION FOR THE RENOVATION OF THE GERMANTOWN BATHROOMS, PART 2, AT THE DEPARTMENT OF ENERGY HQS GERMANTOWN BUILDING FOR THE FIRM FIXED PRICE OF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $8.0 million to THE MATTHEWS GROUP INC for work described as: REQUISITION 24MA000619 WAS ISSUED FOR A NEW TASK ORDER TO PROVIDE ALL LABOR, MATERIALS, EQUIPMENT AND SUPERVISION FOR THE RENOVATION OF THE GERMANTOWN BATHROOMS, PART 2, AT THE DEPARTMENT OF ENERGY HQS GERMANTOWN BUILDING FOR THE FIRM FIXED PRICE OF Key points: 1. The contract focuses on essential building infrastructure, indicating a need for facility upkeep. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially encouraging efficiency. 3. Competition dynamics will be assessed to understand pricing effectiveness for this renovation. 4. Performance will be monitored against the defined scope for quality and timeliness. 5. This project falls within the broader context of federal building maintenance and modernization. 6. The award signifies ongoing investment in government facilities.
Value Assessment
Rating: good
The contract value of approximately $7.99 million for bathroom renovations appears reasonable for a project of this scope within a federal building. Benchmarking against similar commercial and institutional building construction projects of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price contract type suggests that the contractor has assessed the risks and costs associated with the renovation, and the price reflects this assessment. Without specific cost breakdowns or comparable project data, a definitive value-for-money judgment is challenging, but the price seems within a typical range for such work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to propose their best pricing and technical solutions. The number of bidders is not specified, but the use of full and open competition suggests a robust process aimed at achieving the best value for the government. This method is preferred for ensuring fair market access and maximizing potential cost savings.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, ultimately leading to more efficient use of public funds.
Public Impact
The primary beneficiaries are the employees and visitors of the Department of Energy's Germantown headquarters, who will experience improved restroom facilities. The services delivered include comprehensive labor, materials, equipment, and supervision for the renovation. The geographic impact is localized to the Department of Energy's Germantown, Maryland facility. The project will likely involve local construction workforce, supporting employment in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if unforeseen issues arise during renovation, impacting final cost and timeline.
- Ensuring timely completion within the 26-month duration is critical to minimize disruption.
- Quality control during construction is essential to meet federal building standards.
Positive Signals
- Firm-fixed-price contract mitigates cost overruns for the government.
- Full and open competition suggests a competitive pricing environment.
- Clear scope of work for renovation of bathrooms, Part 2, provides defined deliverables.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often focuses on maintaining and upgrading existing government facilities. Comparable spending benchmarks would involve analyzing other renovation projects for federal buildings of similar size and complexity, as well as general market rates for commercial construction services in the Washington D.C. metropolitan area. The Department of Energy's investment reflects a commitment to ensuring functional and modern workspaces.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of a small business set-aside for this particular award. However, the prime contractor, The Matthews Group Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements. An analysis of subcontracting plans would be necessary to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and project managers, ensuring adherence to the contract terms, specifications, and schedule. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and public reporting, although specific oversight reports or inspector general involvement would depend on the nature and scale of any issues that may arise during performance.
Related Government Programs
- Federal Building Maintenance and Repair
- Department of Energy Facilities Management
- Commercial and Institutional Construction Projects
- Government Building Renovations
Risk Flags
- Potential for cost overruns if unforeseen issues arise during renovation.
- Risk of project delays impacting facility availability.
- Ensuring compliance with all federal building codes and accessibility standards.
Tags
construction, department-of-energy, germantown, firm-fixed-price, full-and-open-competition, renovation, commercial-and-institutional-building-construction, district-of-columbia, federal-building, facility-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $8.0 million to THE MATTHEWS GROUP INC. REQUISITION 24MA000619 WAS ISSUED FOR A NEW TASK ORDER TO PROVIDE ALL LABOR, MATERIALS, EQUIPMENT AND SUPERVISION FOR THE RENOVATION OF THE GERMANTOWN BATHROOMS, PART 2, AT THE DEPARTMENT OF ENERGY HQS GERMANTOWN BUILDING FOR THE FIRM FIXED PRICE OF
Who is the contractor on this award?
The obligated recipient is THE MATTHEWS GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $8.0 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-10-31.
What is the track record of The Matthews Group Inc. in performing similar federal renovation contracts?
A review of The Matthews Group Inc.'s past performance on federal contracts would be necessary to assess their track record. This would involve examining their history with the General Services Administration (GSA) or other agencies for similar projects, including the types of renovations undertaken, their success in meeting deadlines and budget constraints, and any past performance evaluations or disputes. Without specific contract history data, it is difficult to definitively assess their suitability for this particular project beyond the fact that they were selected through a competitive process.
How does the awarded price compare to industry benchmarks for similar bathroom renovation projects in the Washington D.C. area?
To benchmark the awarded price of approximately $7.99 million, one would need to compare it against recent commercial and institutional building construction projects, specifically focusing on bathroom renovations of similar scale and complexity within the Washington D.C. metropolitan area. This comparison would involve analyzing cost per square foot, cost per fixture, and overall project management fees. Factors such as the age and condition of the existing facilities, the extent of upgrades required (e.g., plumbing, electrical, accessibility features), and material choices would influence the benchmark. A preliminary assessment suggests the price is within a reasonable range for a federal facility renovation, but detailed market analysis is required for a definitive conclusion.
What are the primary risks associated with this renovation project, and how are they being mitigated?
Key risks for this renovation project include potential unforeseen structural or system issues discovered during demolition, delays caused by material shortages or labor availability, and scope creep if additional requirements emerge. The firm-fixed-price contract inherently shifts some financial risk to the contractor. Mitigation strategies likely include thorough pre-construction surveys, detailed project planning, contingency allowances within the contractor's bid, and robust project management by the Department of Energy to monitor progress and address issues promptly. Clear communication channels between the government and the contractor are also crucial for managing risks.
What is the expected impact of these renovations on the operational efficiency and employee morale at the Department of Energy's Germantown headquarters?
The renovation of bathrooms is expected to have a positive impact on both operational efficiency and employee morale. Modern, functional, and well-maintained facilities contribute to a more comfortable and productive work environment, potentially boosting employee satisfaction and reducing minor disruptions related to facility issues. Improved infrastructure, such as updated plumbing and ventilation, can also enhance the overall operational reliability of the building. While the direct impact on operational efficiency might be subtle, the enhancement of the work environment is a tangible benefit.
What has been the historical spending pattern for building renovations at the Department of Energy's Germantown headquarters?
Analyzing historical spending patterns for building renovations at the Department of Energy's Germantown headquarters would require access to past contract data and budget allocations. This would involve identifying previous renovation projects, their scope, cost, and duration, as well as the frequency of such investments. Understanding this history can provide context for the current $7.99 million award, indicating whether it represents a typical investment, a significant upgrade, or a response to deferred maintenance. Without specific historical data, it's challenging to establish a trend or benchmark the current spending against past expenditures.
Are there any specific sustainability or energy efficiency requirements included in this renovation contract?
The provided data does not explicitly mention specific sustainability or energy efficiency requirements for this bathroom renovation contract. Typically, federal construction projects are encouraged or mandated to incorporate sustainable building practices and energy-efficient technologies. To determine the extent of these requirements, one would need to review the detailed contract specifications and statement of work. These might include requirements for low-flow fixtures, energy-efficient lighting, or the use of sustainable building materials, aligning with broader federal goals for environmental stewardship.
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: 89303024QMA000110
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 18915 LINCOLN RD, PURCELLVILLE, VA, 20132
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $7,993,724
Exercised Options: $7,993,724
Current Obligation: $7,993,724
Actual Outlays: $3,205,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303020DMA000020
IDV Type: IDC
Timeline
Start Date: 2024-09-30
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-02-19
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