Commerce Department's NIST awarded $89.7M for building construction, with 4 bids received

Contract Overview

Contract Amount: $89,746,653 ($89.7M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Commerce

Start Date: 2010-04-08

End Date: 2012-09-01

Contract Duration: 877 days

Daily Burn Rate: $102.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARRA FUNDED BUILDING 1 EXTENSION INTERIORS PROJECT

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $89.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: ARRA FUNDED BUILDING 1 EXTENSION INTERIORS PROJECT Key points: 1. The contract's value appears reasonable given the scope of a building extension project. 2. Full and open competition suggests a healthy market for construction services. 3. The firm-fixed-price structure transfers risk to the contractor. 4. Project duration of 877 days indicates a significant construction undertaking. 5. The project falls within the broader category of institutional building construction.

Value Assessment

Rating: good

The $89.7 million award for the NIST building extension interiors project is substantial. Benchmarking against similar large-scale federal construction projects of this nature, the price appears to be within expected ranges. The firm-fixed-price contract type suggests that the contractor assumed the primary risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. Further analysis would require detailed cost breakdowns and comparisons to private sector construction costs for comparable facilities.

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 bids. Four bids were received, suggesting a competitive environment for this project. A higher number of bidders generally leads to more competitive pricing and better value for the government. The presence of multiple bidders implies that the market has sufficient capacity and interest in undertaking such federal construction projects.

Taxpayer Impact: The full and open competition process, with four bids, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. This competitive pressure helps ensure that taxpayer funds are used efficiently.

Public Impact

The National Institute of Standards and Technology (NIST) benefits from expanded facilities to support its research and development activities. The project delivers enhanced interior spaces for scientific and administrative functions. The geographic impact is concentrated in Colorado, where the NIST facility is located. The construction project likely created numerous jobs in the construction trades and related industries in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting NIST's operational timelines.
Risk of unforeseen site conditions requiring change orders and increased costs.
Ensuring compliance with stringent federal building codes and environmental regulations.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
Experienced contractor likely selected through a competitive process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports infrastructure development and modernization. Comparable spending benchmarks would involve analyzing other large federal building projects, such as those for research labs, administrative offices, or educational facilities, to assess cost-effectiveness relative to project scope and complexity.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large contractor. While this may not directly benefit small businesses through set-asides, large prime contractors often engage small businesses as subcontractors, potentially creating opportunities within the broader construction ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Commerce's National Institute of Standards and Technology. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified interior construction. Transparency is generally maintained through federal contract databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction
Research Facility Construction
National Institute of Standards and Technology Operations
General Services Administration (GSA) Construction Projects

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of construction delays impacting project timelines.
Ensuring compliance with all federal building codes and environmental standards.
Coordination challenges with ongoing NIST operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $89.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. ARRA FUNDED BUILDING 1 EXTENSION INTERIORS PROJECT

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

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 $89.7 million.

What is the period of performance?

Start: 2010-04-08. End: 2012-09-01.

What is the track record of Whiting-Turner Contracting Company on federal projects?

Whiting-Turner Contracting Company has a significant history of performing federal construction projects. A review of federal procurement data would reveal numerous awards to this contractor across various agencies and project types, including institutional, research, and commercial buildings. Their extensive experience suggests a strong understanding of federal contracting requirements, regulations, and construction best practices. Analyzing their past performance ratings, any past performance issues, and the types of projects they have successfully completed would provide further insight into their reliability and capability for projects of this scale and complexity.

How does the per-square-foot cost of this project compare to similar NIST facility constructions?

To compare the per-square-foot cost, detailed architectural plans and final square footage of the building extension interiors would be needed. Assuming the $89.7 million award covers a specific interior build-out area, dividing the total award by the total square footage would yield a preliminary cost per square foot. This figure could then be benchmarked against other NIST projects or similar federal laboratory/institutional interior construction projects completed around the same time. Factors like specialized equipment installation, unique laboratory requirements, and high-security features can significantly influence per-square-foot costs in research facilities, making direct comparisons challenging without granular data.

What are the primary risks associated with a large-scale interior construction project of this nature?

Primary risks for a large-scale interior construction project include unforeseen site conditions (e.g., structural issues, hazardous materials), potential for design changes or scope creep requested by the agency, contractor performance issues (delays, quality control), labor shortages or disputes, and material price volatility. For a federal project like this, compliance with stringent federal regulations, security requirements, and environmental standards adds another layer of complexity. The firm-fixed-price contract helps mitigate financial risk for the government regarding cost overruns, but delays and performance issues can still impact the agency's mission.

How effective is the firm-fixed-price contract type in ensuring value for this construction project?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value in construction projects where the scope of work is well-defined and risks can be reasonably anticipated. By fixing the price, the contractor assumes the primary responsibility for cost overruns, incentivizing efficient project management and cost control. This shifts the financial risk away from the government, protecting taxpayers from unexpected price increases. However, for FFP contracts to be truly effective, the initial scope must be clearly articulated, and change orders should be minimized. If the scope is poorly defined or significant changes occur, the FFP structure might lead to disputes or a less-than-optimal outcome.

What is the historical spending trend for NIST building construction and renovations?

Historical spending data for NIST building construction and renovations would reveal trends in investment in their physical infrastructure. Analyzing past contracts awarded by NIST for similar projects (new construction, extensions, major renovations) over several fiscal years would indicate whether this $89.7 million award represents a typical investment, an increase, or a decrease in capital spending. Factors influencing these trends could include agency budget allocations, specific research initiatives requiring new facilities, aging infrastructure needing upgrades, and the overall federal focus on scientific research and development infrastructure.

What is the potential impact of the 877-day duration on NIST's operational continuity?

A project duration of 877 days (approximately 2.4 years) for a building extension interiors project is substantial and necessitates careful planning to minimize disruption to NIST's ongoing operations. The impact depends heavily on the project's location relative to active research areas and administrative functions. Phased construction, temporary relocations, and strict scheduling coordination would be crucial to maintain operational continuity. NIST would need robust internal project management and communication protocols to ensure that research, testing, and administrative activities are not unduly hampered by construction noise, access limitations, or utility interruptions.

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

Address: 300 E JOPPA RD, BALTIMORE, MD, 21286

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

Financial Breakdown

Contract Ceiling: $89,746,653

Exercised Options: $89,746,653

Current Obligation: $89,746,653

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline