Commerce awarded $18.7M for NIST tunnel construction, a sole-source contract with a 5-year duration

Contract Overview

Contract Amount: $18,719,238 ($18.7M)

Contractor: ST Andrews/Alliance JV

Awarding Agency: Department of Commerce

Start Date: 2005-06-13

End Date: 2010-08-30

Contract Duration: 1,904 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 2 CONSTRUCTION, SITE UTILITY DISTRIBUTION SYSTEM AND SOUTH UNDERGROUND TUNNEL FROM CENTRAL UTILITY PLANT TO BUILDING ONE

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $18.7 million to ST ANDREWS/ALLIANCE JV for work described as: PHASE 2 CONSTRUCTION, SITE UTILITY DISTRIBUTION SYSTEM AND SOUTH UNDERGROUND TUNNEL FROM CENTRAL UTILITY PLANT TO BUILDING ONE Key points: 1. The contract's firm-fixed-price structure suggests predictable costs, but the sole-source nature limits competitive pressure. 2. A 5-year performance period indicates a complex, long-term project requiring significant contractor commitment. 3. The project's focus on utility distribution and underground tunnels points to critical infrastructure development. 4. The absence of small business set-asides may limit opportunities for smaller firms in this large-scale project. 5. The contract's value of $18.7 million places it in the mid-to-large range for construction projects of this type.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its sole-source nature and specific scope. The firm-fixed-price contract type provides cost certainty for the government. However, without competitive bids, it's difficult to definitively assess if the $18.7 million represents optimal value for money. The duration of 5 years for construction also suggests a potentially complex project where cost overruns could be a risk if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means there was no opportunity for multiple bidders to offer proposals, potentially leading to higher prices than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not benefit from price reductions that often result from a competitive procurement process.

Public Impact

The primary beneficiary is the National Institute of Standards and Technology (NIST), which will receive upgraded utility infrastructure. The project delivers essential site utility distribution systems and an underground tunnel, crucial for facility operations. The geographic impact is localized to the NIST campus in Colorado. The workforce implications include employment for construction laborers, engineers, and project managers involved in the tunnel and utility system construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Long performance period (5 years) increases risk of cost escalation or scope creep without strong oversight.
Lack of small business participation may not fully leverage the broader construction market.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on critical infrastructure (utility distribution, tunnel) supports long-term facility resilience.
Awarded to a joint venture (ST ANDREWS/ALLIANCE JV) suggesting capacity for a significant project.

Sector Analysis

The construction sector, particularly commercial and institutional building, involves significant infrastructure development. Projects like this, focusing on utility systems and underground construction, are specialized and require specific expertise. The market size for such projects can be substantial, but competition is often driven by project complexity, location, and the need for specialized engineering capabilities. Benchmarking is difficult without comparable sole-source tunnel projects.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there an indication of subcontracting goals for small businesses. The award to a joint venture suggests a larger entity undertaking the work. This means that opportunities for small businesses to participate directly in this specific contract are likely limited, potentially impacting the small business ecosystem in the region for this type of specialized construction.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's contracting officers and the National Institute of Standards and Technology (NIST). As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction
Utility Infrastructure Projects
NIST Capital Investments
Department of Commerce Facilities Management

Risk Flags

Sole-source award
Long contract duration
Potential for cost overruns in underground construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $18.7 million to ST ANDREWS/ALLIANCE JV. PHASE 2 CONSTRUCTION, SITE UTILITY DISTRIBUTION SYSTEM AND SOUTH UNDERGROUND TUNNEL FROM CENTRAL UTILITY PLANT TO BUILDING ONE

Who is the contractor on this award?

The obligated recipient is ST ANDREWS/ALLIANCE JV.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2005-06-13. End: 2010-08-30.

What is the track record of ST ANDREWS/ALLIANCE JV in performing similar federal construction contracts?

Information on the specific track record of the joint venture ST ANDREWS/ALLIANCE JV for federal construction contracts of this magnitude and type is not readily available in the provided data. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess their past performance, including any history of cost overruns, schedule delays, or quality issues on similar projects. Understanding their experience with underground utility construction and tunnel projects specifically would be crucial for evaluating their capability to successfully execute this contract.

How does the $18.7 million contract value compare to similar NIST infrastructure projects?

Comparing the $18.7 million contract value requires identifying similar NIST infrastructure projects, particularly those involving utility distribution systems and underground tunnel construction. Without specific comparable projects within NIST's recent history, a direct benchmark is difficult. However, the duration of 5 years and the nature of the work suggest a significant capital investment. If similar, competitively procured projects of comparable scope and complexity have been awarded at lower total costs or with more favorable terms, it would indicate potential value concerns for this sole-source award.

What are the primary risks associated with a 5-year firm-fixed-price contract for underground tunnel construction?

A 5-year firm-fixed-price contract for underground tunnel construction carries several risks. For the contractor, unforeseen geological conditions, material price fluctuations, or labor shortages could significantly impact profitability. For the government, the primary risk is that the fixed price may not reflect the true cost if conditions are unexpectedly difficult, potentially leading to contractor claims for changes or disputes. Additionally, the long duration increases the risk of scope creep or the need for contract modifications if project requirements evolve. Robust project management and contingency planning are essential to mitigate these risks.

What specific NIST facilities or research activities will benefit from this tunnel and utility system upgrade?

The provided data indicates the tunnel is from the Central Utility Plant to Building One, suggesting it is a critical component of the NIST campus's core infrastructure. The utility distribution system likely supports power, water, HVAC, or data services to various buildings. While specific research activities aren't detailed, reliable and robust utility systems are fundamental to the operation of any scientific research facility like NIST. This upgrade would ensure the continued, uninterrupted operation of laboratories and equipment, supporting ongoing research and development efforts across the institute.

What is the historical spending pattern for construction and infrastructure at NIST over the last decade?

Historical spending patterns for construction and infrastructure at NIST over the last decade would require analyzing aggregate federal spending data. This specific contract award in 2005 for $18.7 million represents a single data point. To understand broader trends, one would need to examine annual appropriations for NIST's facilities, major construction projects, and infrastructure maintenance. Factors such as aging infrastructure, new research initiatives requiring specialized facilities, and overall federal budget priorities would influence these spending patterns over time.

Were there any justifications provided for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a common indicator for sole-source awards. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions. Justifications for other than full and open competition (sole-source) typically fall under FAR 6.302, citing reasons such as only one responsible source, urgent and compelling needs, or specific national defense requirements. Without access to the contract file or justification document, the precise reason for this sole-source award remains unknown, but it implies a determination that competition was not feasible or practical.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5045 LIST DR, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Emerging Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,881,615

Exercised Options: $30,881,615

Current Obligation: $18,719,238

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline