NOAA's $57.9M La Jolla Lab Construction Contract Awarded to Rudolph & Sletten, Inc

Contract Overview

Contract Amount: $57,926,890 ($57.9M)

Contractor: Rudolph & Sletten, Inc.

Awarding Agency: Department of Commerce

Start Date: 2010-05-03

End Date: 2011-11-23

Contract Duration: 569 days

Daily Burn Rate: $101.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARRA-RECOVERY--CONSTRUCTION OF LA JOLLA LABORATORY REPLACEMENT

Place of Performance

Location: LAKELAND, POLK County, FLORIDA, 33811

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $57.9 million to RUDOLPH & SLETTEN, INC. for work described as: ARRA-RECOVERY--CONSTRUCTION OF LA JOLLA LABORATORY REPLACEMENT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The project involves the construction of a laboratory replacement, indicating a significant infrastructure investment. 4. The duration of 569 days suggests a substantial construction timeline. 5. The award was made by the Department of Commerce via the National Oceanic and Atmospheric Administration. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction contract is challenging without detailed cost breakdowns and comparable project data. However, the firm-fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can sometimes lead to higher initial bids. Further analysis would require comparing the final cost against similar laboratory construction projects of comparable size and complexity, considering regional labor and material costs at the time of award.

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 a bid. The presence of 7 bidders suggests a reasonably competitive environment for this type of construction project. A higher number of bidders generally leads to more competitive pricing as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are NOAA and its scientific research personnel, who will gain a new, modern laboratory facility. The project delivers essential infrastructure for scientific research and development in areas relevant to NOAA's mission. The geographic impact is localized to La Jolla, California, where the new laboratory will be situated. The construction phase will likely create temporary jobs in the local construction industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Risk of construction delays impacting NOAA's research timelines.
Ensuring the final construction meets all specified quality and safety standards for a laboratory environment.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition with multiple bidders, indicating competitive pricing.
Construction of a new facility addresses potential aging infrastructure issues for NOAA.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for large-scale federal construction projects is often dominated by a few large, experienced firms. The value of this contract, approximately $57.9 million, places it as a significant project within the federal construction landscape. Comparable spending benchmarks would involve analyzing other federal laboratory or research facility construction projects awarded around the same period.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The primary contractor, Rudolph & Sletten, Inc., is a large firm, suggesting that any small business participation would likely be through their general supply chain or as subcontractors to the prime, rather than through a direct set-aside program for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by NOAA contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

NOAA Research Facilities
Federal Laboratory Construction
Department of Commerce Infrastructure Projects
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost escalation in construction projects.
Risk of project delays impacting agency operations.
Ensuring compliance with environmental and safety regulations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $57.9 million to RUDOLPH & SLETTEN, INC.. ARRA-RECOVERY--CONSTRUCTION OF LA JOLLA LABORATORY REPLACEMENT

Who is the contractor on this award?

The obligated recipient is RUDOLPH & SLETTEN, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2010-05-03. End: 2011-11-23.

What was the track record of Rudolph & Sletten, Inc. with federal contracts prior to this award?

Rudolph & Sletten, Inc. has a history of performing large-scale construction projects for various federal agencies. While specific details of their prior federal contract performance would require a deeper dive into contract databases, their ability to win a $57.9 million definitive contract through full and open competition suggests a demonstrated capacity and experience relevant to such projects. Analyzing their past performance on similar federal construction contracts, including any reported issues or successes, would provide further context on their reliability and expertise in executing complex government building projects.

How does the final cost of this project compare to similar NOAA laboratory construction projects?

Direct comparison of the final cost of this $57.9 million La Jolla laboratory replacement project to similar NOAA laboratory constructions is difficult without access to a comprehensive database of comparable projects, including their scope, size, location, and construction timelines. Factors such as inflation, regional material and labor costs at the time of award (May 2010), and specific technological requirements for the laboratory would significantly influence cost. A detailed benchmark analysis would involve identifying projects with similar square footage, intended use (e.g., wet labs, dry labs), and construction complexity, and adjusting for economic variables to assess if the awarded price was competitive.

What were the primary risk indicators identified during the bidding process for this contract?

The primary risk indicators for a large construction project like this typically revolve around potential cost overruns, schedule delays, and technical performance. Given the firm-fixed-price contract type, the risk of cost overruns is largely borne by the contractor, Rudolph & Sletten, Inc. However, risks related to unforeseen site conditions, complex permitting processes, or supply chain disruptions could still impact the project. Schedule delays are also a common risk in construction, potentially affecting NOAA's operational timelines. Technical performance risks would focus on ensuring the laboratory is built to exact specifications required for sensitive scientific research.

How effective was the competition in driving down the price for this laboratory construction?

The presence of 7 bidders in a full and open competition for this $57.9 million construction contract suggests a healthy level of market interest and potential for competitive pricing. While the exact impact on price reduction cannot be quantified without knowing the initial independent government cost estimate or the bids of non-selected contractors, having multiple bidders generally pressures contractors to submit more competitive offers to win the award. The firm-fixed-price contract structure further incentivizes the winning contractor to manage costs effectively to maintain profitability.

What is the historical spending pattern for NOAA laboratory construction projects of this magnitude?

Analyzing historical spending patterns for NOAA laboratory construction projects of similar magnitude requires access to historical contract data. Generally, federal construction projects, especially those involving specialized facilities like laboratories, represent significant capital investments. Spending patterns can fluctuate based on agency budget appropriations, infrastructure modernization priorities, and the availability of suitable construction sites. Projects of this scale are typically awarded infrequently, often tied to specific modernization or expansion initiatives rather than routine operational needs.

What are the implications of the 7 bidders on the final price and quality of the construction?

Having 7 bidders for this $57.9 million construction contract suggests a competitive marketplace for this type of project. From a pricing perspective, a larger number of bidders generally leads to more competitive bids as companies vie for the contract. This increased competition can help ensure that the government secures a fair market price. Regarding quality, while competition primarily drives price, reputable contractors are motivated to submit bids that accurately reflect their ability to deliver high-quality work to secure future contracts and maintain their reputation. The government's evaluation process would also include technical proposals to ensure quality standards are met, regardless of the number of bidders.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AB1330-10-RP-0005

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tutor Perini Corporation (UEI: 006954432)

Address: 1600 SEAPORT BOULEVARD #350, REDWOOD CITY, CA, 94063

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

Financial Breakdown

Contract Ceiling: $80,197,600

Exercised Options: $57,926,890

Current Obligation: $57,926,890

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline