Commerce Awards $30.9M for NIST Building Extension to PCL Construction Services

Contract Overview

Contract Amount: $30,910,063 ($30.9M)

Contractor: PCL Construction Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2008-09-16

End Date: 2008-09-30

Contract Duration: 14 days

Daily Burn Rate: $2.2M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 1 EXTENSION

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $30.9 million to PCL CONSTRUCTION SERVICES, INC. for work described as: BUILDING 1 EXTENSION Key points: 1. The contract value of $30.9 million falls within the typical range for large-scale commercial construction projects. 2. PCL Construction Services, Inc. secured this award through full and open competition, indicating a competitive bidding process. 3. The project's duration of 14 days seems unusually short for a building extension, raising questions about the scope or definition of 'extension'. 4. The awarded amount is $2.2 million above the reported benchmark, suggesting potential overspending or unique project requirements.

Value Assessment

Rating: questionable

The awarded amount of $30.9 million is approximately $2.2 million higher than the benchmark for similar contracts. This variance warrants further investigation into the specific scope and complexity of the 'BUILDING 1 EXTENSION' to justify the premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids. However, the final award exceeding the benchmark by a significant margin may indicate that the lowest bid did not fully align with the government's needs or that the bidding process did not result in the most cost-effective outcome.

Taxpayer Impact: The $2.2 million difference between the awarded amount and the benchmark represents a potential increase in taxpayer cost for this project.

Public Impact

Taxpayers may be paying a premium for this construction project, as the award exceeded the benchmark by over $2 million. The short project duration of 14 days for a building extension is unusual and could indicate a misunderstanding of the project's scope or a highly efficient, albeit potentially rushed, execution. The National Institute of Standards and Technology (NIST) is the beneficiary of this construction, potentially impacting its research or operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Award amount significantly exceeds benchmark.
Unusually short project duration for a building extension.
Potential for cost overruns or scope creep given the price variance.

Positive Signals

Awarded through full and open competition.
Contract awarded to a known entity (PCL Construction Services, Inc.).

Sector Analysis

The Commercial and Institutional Building Construction sector involves significant capital investment. Benchmarks are crucial for ensuring cost-effectiveness, and deviations like the one seen here require scrutiny to understand if they are justified by project specifics or represent potential inefficiencies.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Standard oversight mechanisms for construction contracts would apply, including monitoring progress, quality, and adherence to the contract terms. The significant variance from the benchmark suggests that oversight should pay close attention to cost justification and scope management.

Related Government Programs

Commercial and Institutional Building Construction
Department of Commerce Contracting
National Institute of Standards and Technology Programs

Risk Flags

Award amount exceeds benchmark.
Unusually short project duration.
Potential for cost justification issues.
Lack of clarity on project scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $30.9 million to PCL CONSTRUCTION SERVICES, INC.. BUILDING 1 EXTENSION

Who is the contractor on this award?

The obligated recipient is PCL CONSTRUCTION SERVICES, INC..

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 $30.9 million.

What is the period of performance?

Start: 2008-09-16. End: 2008-09-30.

What specific factors contributed to the awarded amount exceeding the benchmark by $2.2 million, and were these factors adequately justified during the procurement process?

The variance could stem from unforeseen site conditions, specialized materials or labor requirements, or a less competitive bidding environment than anticipated. A thorough review of the contract documentation, including any change orders or justifications provided by the contractor, would be necessary to determine the precise reasons for the cost difference and assess whether the procurement process adequately vetted these justifications.

How can the unusually short 14-day duration for a building extension be reconciled with typical construction timelines, and what are the implications for project quality and completeness?

A 14-day duration for a building extension is highly atypical and suggests the 'extension' might refer to a very specific, limited scope, such as a modular addition or a rapid fit-out. It's crucial to verify the exact nature of the work. If it was indeed a substantial structural extension, such a short timeline raises concerns about potential compromises in quality control, safety protocols, or thoroughness of the construction.

Given the cost variance and short duration, what is the overall value proposition of this contract for the government and taxpayers?

The value proposition is currently questionable. While full and open competition suggests an attempt at achieving good value, the significant cost premium over the benchmark and the unusually short timeline raise red flags. Without further clarification on the scope and justification for the higher cost, it's difficult to ascertain if the project delivered optimal value or if taxpayer funds were used efficiently.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PCL U.S. Holdings Inc (UEI: 245222591)

Address: 2000 S COLORADO BLVD #2-500, DENVER, CO, 80222

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,910,063

Exercised Options: $30,910,063

Current Obligation: $30,910,063

Timeline