NASA awards $22.4M contract to Bechtel National, Inc. for construction services
Contract Overview
Contract Amount: $22,433,753 ($22.4M)
Contractor: Bechtel National, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-04-13
End Date: 2002-03-30
Contract Duration: 716 days
Daily Burn Rate: $31.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Place of Performance
Location: MOUNTAIN VIEW, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.4 million to BECHTEL NATIONAL, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of 716 days indicates a medium-term project. 4. The award was made by NASA, a major federal agency with significant procurement needs. 5. The contract was awarded in California, a state with a large federal contracting presence.
Value Assessment
Rating: fair
The contract value of $22.4 million for a 716-day duration appears moderate for a federal construction project of this nature. Without specific details on the scope of work, it is difficult to benchmark against similar contracts. The Cost Plus Award Fee structure allows for flexibility but requires careful monitoring to ensure cost control and value for money. The number of bids received (6) suggests some level of competition, which can help in achieving a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Six offers were received, indicating a reasonable level of interest and competition for this procurement. The open competition process is generally expected to lead to a more competitive pricing environment and a wider range of potential solutions.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing by allowing multiple companies to vie for the contract.
Public Impact
The primary beneficiary is NASA, which will receive construction services to support its missions. The services delivered are construction-related, likely involving infrastructure development or maintenance. The geographic impact is concentrated in California, where the contract was awarded and likely performed. Workforce implications may include employment opportunities for construction workers and related professionals in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed rigorously, as the government pays costs plus a fee that can be adjusted based on performance.
- The lack of specific details on the project scope makes it challenging to assess if the $22.4 million is an appropriate investment for the expected outcomes.
Positive Signals
- Awarded under full and open competition, which typically fosters competitive pricing.
- The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
- The contract was awarded to Bechtel National, Inc., a large and experienced government contractor.
Sector Analysis
This contract falls within the broader federal construction and engineering services sector. This sector is characterized by large, complex projects often requiring specialized expertise and significant capital investment. NASA, as a major federal agency, frequently procures construction and engineering services for its facilities, research centers, and launch sites. Benchmarking this contract's value would require comparing it to similar construction projects awarded by federal agencies, considering factors like project scope, duration, and location.
Small Business Impact
This contract was not specifically set aside for small businesses, and the awardee, Bechtel National, Inc., is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Bechtel actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers. The Cost Plus Award Fee structure implies performance metrics that would be monitored to determine the award fee. Transparency would be enhanced through contract award databases and potentially through NASA's Inspector General if any issues arise. Specific oversight mechanisms would be detailed within the contract's terms and conditions.
Related Government Programs
- NASA Facilities Construction
- Federal Construction Contracts
- Department of Defense Construction
- General Services Administration (GSA) Construction
Risk Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts.
- Lack of specific scope details makes value assessment challenging.
- Contract duration is relatively long, increasing exposure to market fluctuations.
Tags
nasa, construction, cost-plus-award-fee, full-and-open-competition, bechtel-national-inc, california, large-contract, engineering-services, federal-contracting
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.4 million to BECHTEL NATIONAL, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $22.4 million.
What is the period of performance?
Start: 2000-04-13. End: 2002-03-30.
What specific construction services were procured under this contract?
The provided data does not specify the exact nature of the construction services. However, given the awardee (Bechtel National, Inc.) and the awarding agency (NASA), it is likely related to infrastructure development, facility upgrades, or construction at one of NASA's research centers or launch facilities. Bechtel is a major engineering and construction firm with extensive experience in large-scale projects, including those for government agencies. Further details would be found in the contract's statement of work.
How does the $22.4 million value compare to similar NASA construction contracts?
Benchmarking this $22.4 million contract requires comparing it to similar NASA construction projects awarded over comparable timeframes and with similar scopes of work. Without the specific scope, a direct comparison is difficult. However, for a 716-day project, $22.4 million is a substantial but not extraordinary amount for federal construction. NASA undertakes a variety of construction projects, from small facility upgrades to large-scale infrastructure, with values ranging significantly. A detailed analysis would involve reviewing NASA's historical procurement data for construction services in California or similar regions.
What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract?
The primary risk with CPAF contracts is the potential for cost overruns if not managed effectively. Since the contractor is reimbursed for allowable costs plus a fee that is subject to adjustment based on performance, there can be less incentive for strict cost control compared to fixed-price contracts. However, the 'award' component of the fee is designed to incentivize meeting or exceeding performance targets. Risks also include the potential for scope creep and the administrative burden of monitoring performance to determine the award fee accurately. Robust oversight by the government is crucial to mitigate these risks.
What is Bechtel National, Inc.'s track record with NASA and federal construction contracts?
Bechtel National, Inc. is a well-established and large government contractor with a significant history of performing complex engineering and construction projects for various federal agencies, including NASA and the Department of Defense. They have a proven track record in large-scale infrastructure, energy, and defense-related construction. While specific past performance details for this exact contract are not provided, Bechtel's general reputation suggests they are capable of handling substantial federal projects. A deeper dive into their past performance ratings and any past issues on similar contracts would provide more specific insights.
What does the '6' in the 'no' field signify in relation to this contract?
The 'no' field with a value of '6' likely signifies the number of bids or proposals received by NASA for this particular contract opportunity. In the context of 'full and open competition,' receiving six offers indicates a healthy level of competition. This suggests that multiple companies were interested and capable of undertaking the work, which generally leads to better price discovery and potentially a more favorable outcome for the government and taxpayers compared to procurements with very few bidders.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: RFP2-36844(RLG)
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 50 BEALE ST, SAN FRANCISCO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,433,753
Exercised Options: $22,433,753
Current Obligation: $22,433,753
Timeline
Start Date: 2000-04-13
Current End Date: 2002-03-30
Potential End Date: 2002-03-30 00:00:00
Last Modified: 2010-09-20
More Contracts from Bechtel National, Inc.
- Federal Contract — $17.0B (Department of Energy)
- Restructured Contract to Facilitate a Contractual Vehicle for the Life of the Daaa09-02-D-0025 Contract From Systemization Through Closure. This IS Seen AS an Administrative Change to Daaa09-02-D-0025 — $4.5B (Department of Defense)
- Design and Construction of the Nasa Space Launch System (SLS) Mobile Launcher 2 (ML2) — $1.6B (National Aeronautics and Space Administration)
- 200412!001576!2100!w52p1j!u.s. Army Industrial Operations !daaa0902d0025 !A!N! !N!0005 ! !20040913!20101231!089176176!094878998!094878980!n!bechtel National, Inc !50 Beale Street !SAN Francisco !ca!94105!67000!075!06!san Francisco !SAN Francisco !california!+000002005000!n!n!000000000000!f108!hazardous Substance Removal/Cleanup/Disposal Svcs !c9e!all Other Supplies and Equipment !000 !* !562211!E! !5!B!S! ! ! !99990909!B! ! !A! !a!n!v!2!002!a! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $915.7M (Department of Defense)
- Environmental Restoration Management Contract Award Phase in — $746.5M (Department of Energy)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →