NSF's $155M Arctic Research Support Contract Awarded to CH2M HILL for Facilities Support

Contract Overview

Contract Amount: $154,639,802 ($154.6M)

Contractor: CH2M Hill Constructors Inc

Awarding Agency: National Science Foundation

Start Date: 2005-02-01

End Date: 2012-06-30

Contract Duration: 2,706 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ARCTIC RESEARCH SUPPORT AND LOGISTICS SERVICES

Place of Performance

Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80122

State: Colorado Government Spending

Plain-Language Summary

National Science Foundation obligated $154.6 million to CH2M HILL CONSTRUCTORS INC for work described as: ARCTIC RESEARCH SUPPORT AND LOGISTICS SERVICES Key points: 1. The contract's value of $155 million over its life suggests a significant investment in Arctic research infrastructure. 2. Awarded under full and open competition, the contract likely benefited from competitive pricing and a broad range of potential bidders. 3. The definitive contract type indicates a long-term agreement for services, potentially leading to stable operations but also requiring careful performance monitoring. 4. Facilities Support Services (NAICS 561210) is a broad category, and the specific services rendered under this contract warrant detailed examination for value. 5. The contract duration of 2706 days (approximately 7.4 years) points to a substantial commitment and the need for sustained performance. 6. The absence of small business set-aside flags suggests the primary contractor may not have significant subcontracting obligations to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. The total award of $155 million over nearly 7.5 years averages to approximately $20.7 million annually. This figure needs to be assessed against the scope of services provided, such as facility maintenance, logistics, and support for remote research stations. Without more granular data on the specific deliverables and market rates for specialized Arctic support services, a definitive value-for-money assessment is difficult. However, the scale of the award suggests a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that there were 5 bidders suggests a reasonable level of interest in this specialized service area. The competition likely allowed the National Science Foundation (NSF) to select a contractor based on a combination of technical capability, past performance, and price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider pool of contractors to vie for government work.

Public Impact

Researchers and scientists conducting Arctic studies benefit from the logistical and facility support provided, enabling critical fieldwork. The contract supports the operational infrastructure necessary for maintaining a presence and conducting research in challenging Arctic environments. Geographic impact is concentrated in the Arctic regions where NSF maintains research stations and facilities. Workforce implications include employment opportunities for personnel involved in facility management, logistics, and support services, potentially including specialized roles for remote operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a remote and challenging environment like the Arctic.
Risk of service disruptions due to weather, logistical complexities, or contractor performance issues.
Dependence on a single contractor for critical support services over an extended period.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration may indicate successful performance and stability in service provision.
The scale of the contract suggests a significant commitment to supporting vital Arctic research.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services including building operation and maintenance, groundskeeping, and other support activities. The Arctic environment presents unique challenges, making specialized logistics and support services critical for research operations. Comparable spending benchmarks would likely be found within contracts supporting remote operations or specialized scientific infrastructure, though direct comparisons are difficult due to the unique geographic and operational context of Arctic research.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The primary contractor, CH2M HILL CONSTRUCTORS INC, is a large entity. This suggests that small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors to CH2M HILL, depending on the company's subcontracting plan and the nature of the services required. The impact on the small business ecosystem would depend on the extent to which subcontracting opportunities are made available.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Science Foundation (NSF). As a definitive contract, performance standards and deliverables would be outlined, subject to regular review and acceptance. Accountability measures would be tied to the terms and conditions of the contract, including payment schedules contingent on satisfactory performance. Transparency would be facilitated through contract award databases and potentially through NSF's reporting requirements on research support activities. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Arctic Research Program Support
Logistics and Transportation Services
Facilities Operations and Maintenance
Scientific Research Infrastructure Support

Risk Flags

High-risk operating environment (Arctic)
Long contract duration
Potential for cost overruns due to remote logistics

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $154.6 million to CH2M HILL CONSTRUCTORS INC. ARCTIC RESEARCH SUPPORT AND LOGISTICS SERVICES

Who is the contractor on this award?

The obligated recipient is CH2M HILL CONSTRUCTORS INC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $154.6 million.

What is the period of performance?

Start: 2005-02-01. End: 2012-06-30.

What specific facilities and logistical support services were included under this contract?

While the NAICS code 561210 denotes 'Facilities Support Services,' the specific scope for this NSF contract likely encompassed a broad range of critical functions for Arctic research stations. This could include maintenance and repair of buildings and infrastructure (e.g., power generation, heating, water systems), waste management, groundskeeping in harsh conditions, and potentially transportation and logistics coordination for personnel and supplies to and from remote research sites. Given the extreme environment, specialized services related to cold-weather operations, emergency preparedness, and communication systems maintenance would also be probable components. The contract's value and duration suggest these services were comprehensive and essential for sustained scientific operations in the challenging Arctic.

How does the $155 million award compare to historical NSF spending on Arctic research support?

Comparing the $155 million award to historical NSF spending requires analyzing aggregate data over the contract's period (2005-2012) and potentially looking at prior or subsequent contracts for similar services. Without direct historical spending figures for Arctic support, we can infer that this represents a significant, long-term investment. If NSF's overall Arctic research budget remained relatively stable or increased during this period, this contract would represent a substantial portion dedicated to operational infrastructure. Analyzing annual reports or budget justifications from NSF during those years would provide more precise context on how this single contract's funding aligns with the agency's broader strategic investments in Arctic science and logistics.

What were the key performance indicators (KPIs) or metrics used to evaluate CH2M HILL CONSTRUCTORS INC's performance?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract of this nature supporting critical research infrastructure in the Arctic, typical KPIs would likely focus on reliability, availability, and responsiveness. This could include metrics such as uptime for essential services (power, heat, communications), response times for maintenance requests, successful completion rates for logistical movements, adherence to safety protocols, and environmental compliance. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that performance against established cost targets and the fixed fee would also be a key evaluation area, alongside the quality and timeliness of services delivered.

What risks were identified or anticipated for a contract of this magnitude in the Arctic environment?

Operating in the Arctic presents inherent risks, and a contract of this scale would have anticipated several. These include logistical challenges related to transportation of personnel, equipment, and supplies in extreme weather and remote locations, potentially leading to delays and increased costs. Environmental risks, such as spills or damage to sensitive ecosystems, would require stringent mitigation and response plans. Operational risks involve the potential for equipment failure in extreme cold, power outages, and the need for robust emergency response capabilities. Furthermore, personnel safety in such a demanding environment is a significant concern. Contractor performance risk, ensuring consistent service delivery over the long term, is also a factor.

Were there any notable challenges or successes reported by the NSF or the contractor during the contract's execution?

The provided data does not contain specific details on challenges or successes encountered during the execution of this contract. To ascertain these, one would need to consult NSF Inspector General reports, contract performance reviews, or public statements from the agency or the contractor (CH2M HILL CONSTRUCTORS INC) during the period of 2005-2012. Successes might include uninterrupted research support, cost savings achieved through efficient operations, or successful navigation of complex logistical hurdles. Challenges could involve unforeseen environmental issues, cost overruns requiring contract modifications, or difficulties in maintaining remote facilities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)

Address: 9193 S JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $154,639,802

Exercised Options: $154,639,802

Current Obligation: $154,639,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline