State Department awards $19.7M for architectural services, with 88 bids received

Contract Overview

Contract Amount: $19,657,936 ($19.7M)

Contractor: Ennead Architects LLP

Awarding Agency: Department of State

Start Date: 2014-09-19

End Date: 2023-03-09

Contract Duration: 3,093 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 88

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT DEVELOPMENT SERVICES. IGF::OT::IGF.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10014

State: New York Government Spending

Plain-Language Summary

Department of State obligated $19.7 million to ENNEAD ARCHITECTS LLP for work described as: PROJECT DEVELOPMENT SERVICES. IGF::OT::IGF. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract duration of 3093 days suggests a long-term need for these services. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The number of bids (88) suggests significant market interest and potential for competitive pricing. 5. Architectural services are crucial for infrastructure development and modernization. 6. The contract was awarded to a single entity, Ennead Architects LLP.

Value Assessment

Rating: good

The contract value of approximately $19.7 million over nearly 8.5 years suggests a moderate annual spend for architectural services. Benchmarking this against similar large-scale government architectural projects would be necessary for a precise value-for-money assessment. However, the high number of bids received in a full and open competition implies that the pricing was likely competitive and reflected market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The high number of 88 bids received indicates a healthy level of competition for this requirement. This broad participation suggests that the solicitation was well-publicized and attractive to a wide range of architectural firms, likely driving more competitive pricing.

Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

The primary beneficiary is the Department of State, which will receive architectural services for its projects. Services delivered include architectural design, planning, and potentially oversight for facilities. The geographic impact is likely concentrated in New York, where the contractor is based, but could extend to any location where the State Department requires architectural services. The contract supports jobs within the architectural and engineering sector, particularly at Ennead Architects LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the long contract duration, requiring diligent oversight.
Reliance on a single contractor for an extended period could pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract type provides cost predictability.
High number of bidders indicates strong market interest and potential for quality service.

Sector Analysis

The architectural services sector is a critical component of the construction and engineering industry, supporting the development and maintenance of government and private infrastructure. This contract falls within the broader professional, scientific, and technical services category. Spending in this area is often project-driven and can fluctuate based on agency needs for new construction, renovation, or facility upgrades. Comparable spending benchmarks would typically be assessed against the scale and complexity of the specific projects being undertaken by the Department of State.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Ennead Architects LLP, is likely a large business, and their engagement does not inherently create opportunities for small business participation unless they voluntarily subcontract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. Accountability measures are typically embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract award databases, though detailed project-specific information may be limited. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

General Services Administration (GSA) Architectural and Engineering Contracts
Department of Defense Facilities Engineering and Construction
Public Building Service (PBS) Contracts

Risk Flags

Long contract duration may increase risk of scope creep and performance degradation.
Potential for increased costs if market conditions change significantly over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.7 million to ENNEAD ARCHITECTS LLP. PROJECT DEVELOPMENT SERVICES. IGF::OT::IGF.

Who is the contractor on this award?

The obligated recipient is ENNEAD ARCHITECTS LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2014-09-19. End: 2023-03-09.

What is the typical annual spending for architectural services by the Department of State?

The provided data shows a single contract for architectural services valued at approximately $19.7 million, spanning from September 19, 2014, to March 9, 2023 (3093 days). This averages to roughly $2.3 million per year for this specific contract. To understand the Department of State's typical annual spending, one would need to aggregate data across all similar architectural and engineering contracts awarded by the agency over multiple fiscal years. This would include contracts for design, planning, and construction oversight across various bureaus and global operations.

How does the number of bids (88) compare to similar architectural service contracts?

Receiving 88 bids for an architectural services contract, especially one awarded under full and open competition, is generally considered a high number. This suggests significant interest in the contract opportunity. For context, smaller or more specialized architectural contracts might receive fewer than 10 bids, while very large or high-profile projects could attract a similar or even greater number. The high bid count indicates that the solicitation was likely well-defined, the scope was attractive, and the market had sufficient capacity and interest to compete.

What are the potential risks associated with a long-duration contract (3093 days)?

Long-duration contracts, like this 3093-day (approximately 8.5 years) award, present several potential risks. Firstly, there's the risk of scope creep, where the project's requirements may expand beyond the original agreement, leading to cost overruns if not managed carefully. Secondly, maintaining consistent performance quality from the contractor over such an extended period can be challenging. Thirdly, market conditions, technology, or regulatory requirements might change significantly during the contract's life, potentially making the original design or specifications outdated or less effective. Finally, there's a risk of contractor dependency; if the contractor faces financial difficulties or performance issues late in the contract, finding a replacement and transitioning services can be disruptive and costly.

What is the significance of a 'Firm Fixed Price' contract type for this project?

A Firm Fixed Price (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience in performing the work. This provides the Department of State with a high degree of cost certainty, as the total amount paid will not exceed the agreed-upon price, barring any contract modifications. For the contractor, it incentivizes efficiency and effective management to maximize profit, but also means they absorb any cost overruns. This type is generally preferred when the scope of work is well-defined and risks are considered manageable.

How does the contractor's location (NY) impact service delivery for the Department of State?

The contractor, Ennead Architects LLP, is located in New York (st: NY, sn: NEW YORK). The impact of this location on service delivery for the Department of State depends heavily on the specific projects this contract supports. If the projects are primarily located in or near New York, the contractor's proximity could facilitate easier site visits, collaboration, and project oversight. However, the Department of State operates globally, and architectural services might be required for facilities worldwide. In such cases, the New York location might necessitate travel and remote work coordination, potentially adding logistical complexities and costs, although modern communication tools can mitigate some of these challenges.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 88

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 320 W 13TH ST, NEW YORK, NY, 10014

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,657,936

Exercised Options: $19,657,936

Current Obligation: $19,657,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA14D0001

IDV Type: IDC

Timeline