Commerce awards $4.6M for Hatfield Marine Science Center O&M to Oregon State University

Contract Overview

Contract Amount: $4,675,709 ($4.7M)

Contractor: Oregon State University

Awarding Agency: Department of Commerce

Start Date: 2017-08-31

End Date: 2023-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS OPERATIONS AND MAINTENANCE SERVICES FOR HATFIELD MARINE SCIENCE CENTER

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98112

State: Washington Government Spending

Plain-Language Summary

Department of Commerce obligated $4.7 million to OREGON STATE UNIVERSITY for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS OPERATIONS AND MAINTENANCE SERVICES FOR HATFIELD MARINE SCIENCE CENTER Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Long-term contract duration (2017-2023) suggests a stable, ongoing need for services. 3. Focus on facilities support services indicates critical infrastructure maintenance. 4. Award to a university may leverage specialized knowledge but limits broader market competition. 5. Lack of competition raises concerns about price discovery and potential overpayment. 6. Geographic concentration in Washington state for services at the Oregon facility.

Value Assessment

Rating: fair

The contract value of $4.6 million over its duration appears reasonable for facilities support services at a large research center. However, without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition means there's less assurance of achieving the best possible value. Further analysis would require comparing the scope of services to other university-affiliated research facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of providing the required services, or in specific circumstances like research collaborations. The lack of competition means there were no other bidders to compare against, potentially limiting price negotiation and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to ensure it is receiving the best possible value for its investment.

Public Impact

The Hatfield Marine Science Center benefits from continuous operational support, ensuring its research and educational functions are uninterrupted. Researchers and staff at the center have a reliable environment for their work. The contract supports the ongoing operations of a key federal research facility. Local workforce in the vicinity of the Hatfield Marine Science Center may benefit from employment opportunities related to facility maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Long contract duration without re-competition may not reflect current market pricing.
Geographic discrepancy between awardee location (Oregon State University) and service location (Hatfield Marine Science Center, Oregon) requires clarification on operational logistics.

Positive Signals

Award to a known entity (Oregon State University) likely ensures familiarity with the facility's specific needs.
Firm-fixed-price contract provides budget certainty for the agency.
Long-term award suggests a stable and reliable service provider for critical infrastructure.

Sector Analysis

Facilities support services, including maintenance and operations, are a critical component of government infrastructure management. This contract falls within the broader facilities support services sector, which encompasses a wide range of activities from janitorial services to complex building systems maintenance. The market for these services is diverse, with many providers ranging from large corporations to specialized local firms. Benchmarking this contract's value is challenging without competitive data, but it represents a significant investment in maintaining a specialized scientific research facility.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature of the award, there is no indication of subcontracting opportunities for small businesses being mandated or actively pursued through a competitive process. The impact on the small business ecosystem is likely minimal, as the award was made directly to Oregon State University.

Oversight & Accountability

Oversight for this contract would typically fall under the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. As a sole-source award, the agency's contracting officers and program managers would be responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is limited due to the lack of public competition. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Facilities Maintenance Contracts
University Research Facility Support
NOAA Operations and Maintenance

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.7 million to OREGON STATE UNIVERSITY. IGF::OT::IGF FOR OTHER FUNCTIONS OPERATIONS AND MAINTENANCE SERVICES FOR HATFIELD MARINE SCIENCE CENTER

Who is the contractor on this award?

The obligated recipient is OREGON STATE UNIVERSITY.

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 $4.7 million.

What is the period of performance?

Start: 2017-08-31. End: 2023-02-28.

What is the track record of Oregon State University in providing facilities support services to federal agencies?

Oregon State University (OSU) has a long-standing relationship with the National Oceanic and Atmospheric Administration (NOAA), particularly concerning the Hatfield Marine Science Center (HMSC). OSU manages and operates the HMSC under various agreements, which inherently include significant facilities support and maintenance responsibilities. While specific details of past federal contracts solely for O&M services might be limited in public databases, OSU's role as the managing institution for HMSC implies extensive experience in maintaining the complex infrastructure, laboratories, and support systems required for a leading marine science research facility. Their experience is likely specialized and tailored to the unique needs of the HMSC, given their direct operational involvement.

How does the value of this contract compare to similar facilities support contracts for research centers?

Direct comparison of this $4.6 million contract to similar facilities support contracts for research centers is challenging due to its sole-source nature and the specific context of a university managing a federal facility. Typically, competitive contracts allow for benchmarking against multiple bids and market rates. However, considering the duration (approximately 5.5 years) and the specialized nature of a marine science center, the annual cost of roughly $850,000 for comprehensive facilities support (operations, maintenance, utilities, etc.) may be within a reasonable range. Comparable contracts for large, complex federal facilities often run into millions of dollars annually, but the specific scope and competitive landscape are crucial differentiators. Without competitive data, it's difficult to definitively assess if this represents excellent or questionable value.

What are the primary risks associated with a sole-source award for facilities support services?

The primary risks associated with a sole-source award for facilities support services include potential overpayment due to the lack of competitive pricing pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Additionally, there's a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making future transitions difficult or costly. For facilities support, which is critical for ongoing operations, ensuring robust performance standards and oversight becomes even more important when competition is absent.

How effective is the firm-fixed-price contract type in managing costs for facilities support?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for facilities support services by shifting the risk of cost overruns to the contractor. This means the government knows the total price upfront, providing budget certainty. For routine maintenance and operations where the scope of work is well-defined, FFP can be highly advantageous. However, for facilities support, unforeseen issues or emergencies can arise. In a sole-source FFP contract, the government might pay a premium if the initial price was set too high due to lack of competition, or conversely, the contractor might face losses if unexpected major repairs are needed and the contract doesn't adequately account for contingencies. Effective management requires clear performance standards and robust oversight.

What is the historical spending pattern for facilities support at the Hatfield Marine Science Center?

Historical spending data specifically for facilities support at the Hatfield Marine Science Center (HMSC) prior to this $4.6 million contract (2017-2023) is not directly available in the provided data. However, the duration of this contract (2007 total duration, with the award starting in 2017) suggests a long-term, continuous need for these services. The fact that it was awarded as a sole-source contract implies that previous arrangements may also have been non-competitive or that Oregon State University has been the incumbent provider for an extended period. Understanding the precise historical spending would require accessing prior contract awards or internal NOAA budget documents related to HMSC operations.

What are the implications of awarding facilities support to a university versus a private sector company?

Awarding facilities support to a university like Oregon State University (OSU) for the Hatfield Marine Science Center (HMSC) can have several implications. Positively, it leverages the institution's deep understanding of the facility's specific research needs and existing infrastructure, potentially leading to more integrated and knowledgeable support. OSU may also have specialized personnel or equipment already on-site. However, a key implication is the potential for higher costs compared to a competitive private sector bid, as universities may not operate with the same cost-efficiency drivers. Furthermore, the procurement process might be less standardized than typical government contracting, and oversight may need to be tailored to the university's operational structure. The lack of competition is a significant factor here.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: AB133F17RP0089

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 SW JEFFERSON ST, CORVALLIS, OR, 97331

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, School of Forestry, Veterinary College

Financial Breakdown

Contract Ceiling: $4,675,709

Exercised Options: $4,675,709

Current Obligation: $4,675,709

Actual Outlays: $72,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline