Commerce Awards $13.6M for NIST Building Operations, Sole-Sourced to Hensel Phelps
Contract Overview
Contract Amount: $13,602,617 ($13.6M)
Contractor: Hensel Phelps Services LLC
Awarding Agency: Department of Commerce
Start Date: 2021-12-01
End Date: 2026-11-30
Contract Duration: 1,825 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: O&M SERVICES FOR BLDG. 245
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $13.6 million to HENSEL PHELPS SERVICES LLC for work described as: O&M SERVICES FOR BLDG. 245 Key points: 1. Significant contract value for facilities support services. 2. Sole-source award limits competition and potentially price discovery. 3. Long-term contract (5 years) indicates ongoing need. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $13.6M over five years for facilities support services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach bypasses the competitive process, which can lead to higher prices and reduced innovation as there is no market pressure to offer the best value.
Taxpayer Impact: The lack of competition for a $13.6M contract raises concerns about taxpayer value, as a more competitive process could potentially yield cost savings.
Public Impact
Essential facility operations at NIST are secured for five years. Taxpayers may be overpaying due to the absence of a competitive bidding process. Lack of small business involvement limits opportunities for smaller firms in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
- Long contract duration without competition
Positive Signals
- Ensures continuity of essential building operations
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance and operational support for buildings. Spending in this sector can vary widely based on facility size, complexity, and location. This $13.6M contract appears significant for a single facility.
Small Business Impact
The contract explicitly states no small business participation (SB=false). This indicates that opportunities for small businesses were not sought or included in this particular sole-source award, potentially missing out on specialized services or cost efficiencies they might offer.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and verifying that the pricing is fair and reasonable, even without competitive benchmarks.
Related Government Programs
- Facilities Support Services
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Potential for overpayment due to absence of market forces.
- No small business participation limits economic opportunity.
- Long-term commitment without demonstrated best value.
Tags
facilities-support-services, department-of-commerce, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $13.6 million to HENSEL PHELPS SERVICES LLC. O&M SERVICES FOR BLDG. 245
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS SERVICES LLC.
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 $13.6 million.
What is the period of performance?
Start: 2021-12-01. End: 2026-11-30.
What is the justification for the sole-source award, and has it been adequately documented and approved?
The provided data indicates the contract was 'NOT COMPETED' and is a 'DEFINITIVE CONTRACT'. A sole-source award typically requires a strong justification, such as unique capabilities or urgent need, approved by the contracting officer. Without access to the contract file, the specific justification and its approval status remain unknown but are critical for assessing the legitimacy of bypassing competition.
How does the pricing compare to industry benchmarks for similar facilities support services, given the lack of competition?
Benchmarking is challenging due to the sole-source nature. The contract value is $13.6M over five years. Without competitive bids, it's difficult to ascertain if this price reflects fair market value. A thorough review of the contractor's cost proposal and comparison with publicly available data for similar-sized facilities in Maryland would be necessary to assess pricing reasonableness.
What is the potential impact on NIST's operational efficiency and cost-effectiveness due to the lack of competitive pressure?
The absence of competition can reduce the incentive for the contractor to optimize costs or improve service delivery beyond the contract's minimum requirements. While Hensel Phelps is a reputable firm, the lack of market pressure might lead to higher operational costs for NIST and potentially less proactive service improvements compared to a scenario with active competition.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1333ND21QNB190141
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps Construction CO
Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,602,717
Exercised Options: $13,602,717
Current Obligation: $13,602,617
Actual Outlays: $965,483
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-01
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-05
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