GSA awards $341M contract for FDA's Central Utility Plant Phase 3, extending to 2034

Contract Overview

Contract Amount: $341,484,112 ($341.5M)

Contractor: Honeywell International, Inc

Awarding Agency: General Services Administration

Start Date: 2010-12-23

End Date: 2034-12-31

Contract Duration: 8,774 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR TO BUILD PHASE 3 OF CENTRAL UTILITY PLANT AT THE FDA WHITE OAK CONSOLIDATION CAMPUS IN SILVER SPRING, MD

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $341.5 million to HONEYWELL INTERNATIONAL, INC for work described as: CONTRACTOR TO BUILD PHASE 3 OF CENTRAL UTILITY PLANT AT THE FDA WHITE OAK CONSOLIDATION CAMPUS IN SILVER SPRING, MD Key points: 1. Contract value of $341.48M for a critical infrastructure project. 2. Long contract duration of 15 years suggests a need for sustained services. 3. Awarded via full and open competition, indicating a broad market solicitation. 4. Engineering services (NAICS 541330) are central to this significant federal investment. 5. The project supports the FDA's White Oak Consolidation Campus, a key federal facility. 6. Firm Fixed Price contract type aims to control costs over the project lifecycle.

Value Assessment

Rating: good

The contract value of $341.48M for the FDA's Central Utility Plant Phase 3 appears reasonable given the project's scope and long duration. While direct comparisons are difficult without detailed project specifications, large-scale federal infrastructure projects of this nature often involve substantial investment. The firm fixed-price structure suggests an effort to manage cost predictability. Benchmarking against similar utility plant construction and modernization projects within federal facilities would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 2 bids indicates a competitive process, though the exact number of potential bidders is unknown. A competitive environment generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing for essential services.

Public Impact

The primary beneficiary is the Food and Drug Administration (FDA), which will operate from a modernized and reliable facility. The contract delivers essential utility plant services, crucial for the operational continuity of the FDA's White Oak campus. The geographic impact is concentrated in Silver Spring, Maryland, supporting federal infrastructure in the region. This project likely involves a significant number of engineers, construction workers, and specialized technicians, impacting the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration (15 years) could lead to vendor lock-in if not managed carefully.
Potential for cost overruns if unforeseen technical challenges arise in Phase 3 construction.
Reliance on a single contractor for a critical utility plant could pose risks if performance issues emerge.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a robust selection process.
The project supports a vital federal agency (FDA) and its critical infrastructure needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to large-scale federal infrastructure development. The market for such services is characterized by a few large, established firms capable of handling complex, multi-year projects. Federal spending in this area is often driven by the need to maintain, modernize, or consolidate critical government facilities. Comparable spending benchmarks would involve other major federal building construction or renovation projects, particularly those involving utility infrastructure.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor, Honeywell International, Inc., is a large corporation, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Honeywell's procurement practices and the specific needs of Phase 3 construction.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is generally maintained through federal contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FDA White Oak Campus Development
Federal Utility Plant Modernization
GSA Public Buildings Service Contracts
Engineering Services for Federal Facilities

Risk Flags

Long contract duration
Critical infrastructure dependency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $341.5 million to HONEYWELL INTERNATIONAL, INC. CONTRACTOR TO BUILD PHASE 3 OF CENTRAL UTILITY PLANT AT THE FDA WHITE OAK CONSOLIDATION CAMPUS IN SILVER SPRING, MD

Who is the contractor on this award?

The obligated recipient is HONEYWELL INTERNATIONAL, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $341.5 million.

What is the period of performance?

Start: 2010-12-23. End: 2034-12-31.

What is the historical spending pattern for the FDA's White Oak Consolidation Campus utility plant projects?

Detailed historical spending for specific phases of the FDA's White Oak Consolidation Campus utility plant is not directly available in the provided data. However, this contract for Phase 3 represents a significant investment of $341.48 million, awarded in late 2010 with an extended completion date of December 2034. This long duration and substantial value suggest that previous phases likely also involved considerable funding and long-term planning. To understand the full historical context, one would need to examine GSA and FDA budget allocations and contract awards related to the campus's infrastructure development over the years, potentially identifying earlier phases or related projects that contributed to the overall utility plant's construction and maintenance.

How does the per-unit cost of this contract compare to similar federal utility plant projects?

A direct per-unit cost comparison for this contract is challenging without specific metrics defining 'units' (e.g., capacity, square footage, energy output). The total contract value is $341.48 million for Phase 3 of the Central Utility Plant. Benchmarking would require identifying comparable federal utility plant projects, noting their scale, complexity, and the specific services provided. Factors such as geographic location, labor costs, and technological requirements significantly influence project costs. Given the long duration and the critical nature of supporting the FDA, the investment appears substantial, but a definitive 'value for money' assessment requires detailed comparative analysis against projects with similar scope and objectives.

What are the key performance indicators (KPIs) and risk mitigation strategies for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for such infrastructure projects would likely include reliability of utility services (e.g., uptime for power, cooling, heating), adherence to safety standards, environmental compliance, and timely completion of construction milestones. Risk mitigation strategies are partially indicated by the 'Firm Fixed Price' contract type, which shifts cost overrun risk to the contractor. Additional strategies would likely involve detailed project management plans, regular progress reviews, contingency planning for unforeseen issues, and robust quality assurance processes managed by the GSA.

What is the track record of Honeywell International, Inc. in managing large federal infrastructure projects of this scale?

Honeywell International, Inc. has a well-established track record in managing large-scale federal contracts, including those involving complex infrastructure, building systems, and technology integration. While specific details on their performance for this particular FDA utility plant project are not provided, Honeywell is a major defense and aerospace contractor with significant experience in government projects. Their expertise often spans areas like energy efficiency, automation, and facility management. The award of this substantial contract by the GSA suggests that Honeywell met the government's requirements and demonstrated the necessary capabilities and past performance to undertake such a critical and long-term infrastructure development.

What are the potential long-term implications of this contract for federal facility management and energy efficiency?

This contract, focused on a Central Utility Plant, has significant long-term implications for the FDA's facility management and energy efficiency at the White Oak campus. A modern, well-designed utility plant is crucial for ensuring reliable and efficient provision of essential services like power, heating, and cooling. Depending on the technologies implemented in Phase 3, it could lead to substantial energy savings and reduced environmental impact compared to older systems. The long duration of the contract (extending to 2034) implies a focus on sustained operational performance and potentially incorporates provisions for future upgrades or maintenance that enhance efficiency over time, aligning with broader federal goals for sustainable infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell Safety Products USA, Inc.

Address: 1985 DOUGLAS DRIVE, GOLDEN VALLEY, MN, 55422

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

Financial Breakdown

Contract Ceiling: $2,489,947,553

Exercised Options: $1,546,663,596

Current Obligation: $341,484,112

Actual Outlays: $-4,647,497

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,729,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29035

IDV Type: IDC

Timeline