Commerce awards $5.86M for NIST cleanroom renovation, highlighting construction sector needs

Contract Overview

Contract Amount: $5,862,557 ($5.9M)

Contractor: Olgoonik Enterprises, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-01-30

End Date: 2026-08-31

Contract Duration: 944 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION RENOVATION SERVICES FOR BUILDING 81 CLEANROOM

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $5.9 million to OLGOONIK ENTERPRISES, LLC for work described as: CONSTRUCTION RENOVATION SERVICES FOR BUILDING 81 CLEANROOM Key points: 1. Contract value appears reasonable for specialized cleanroom construction, pending detailed benchmarking. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 944 days indicates a significant, multi-phase project. 4. The project falls within the Commercial and Institutional Building Construction sector. 5. Fixed-price contract type aims to control costs for the government. 6. Delivery order structure suggests this is part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $5.86 million for a cleanroom renovation is within a typical range for specialized construction projects of this nature. Benchmarking against similar NIST or other federal agency cleanroom projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources may have been excluded for specific reasons, possibly related to pre-qualification or prior performance. The number of bidders is not specified, but the 'full and open' designation generally suggests a robust competitive environment, which should lead to better price discovery.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are the scientists and researchers at the National Institute of Standards and Technology (NIST) who will utilize the upgraded cleanroom facilities. The services delivered include the renovation of Building 81's cleanroom, essential for sensitive scientific experiments and material development. The geographic impact is localized to the NIST facility in Colorado. The project will likely involve skilled construction labor, potentially creating short-term employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of delays due to unforeseen site conditions common in renovation projects.
Ensuring compliance with stringent cleanroom standards requires careful oversight.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a competitive market was accessed.
Delivery order structure may indicate a pre-vetted contractor pool for efficiency.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized facilities like cleanrooms. The market for such construction is driven by demand from research institutions, technology companies, and government agencies requiring controlled environments. Comparable spending benchmarks would involve analyzing other federal contracts for laboratory or cleanroom construction and renovation.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award, as it was not set aside for small businesses and the contractor is not identified as a small business. This means opportunities for small businesses would likely be through subcontracting, if any are planned by the prime contractor, Olgoonik Enterprises, LLC.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institute of Standards and Technology (NIST) contracting officers and technical representatives. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified renovation services. Transparency is generally maintained through federal contract databases like SAM.gov, where award details are published.

Related Government Programs

NIST Research Facilities Construction
Federal Laboratory Renovations
General Services Administration (GSA) Construction Contracts
Department of Commerce Capital Investments

Risk Flags

Potential for unforeseen site conditions in renovation projects.
Ensuring strict adherence to cleanroom standards requires diligent oversight.
Contract competition details ('after exclusion of sources') warrant further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.9 million to OLGOONIK ENTERPRISES, LLC. CONSTRUCTION RENOVATION SERVICES FOR BUILDING 81 CLEANROOM

Who is the contractor on this award?

The obligated recipient is OLGOONIK ENTERPRISES, 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 $5.9 million.

What is the period of performance?

Start: 2024-01-30. End: 2026-08-31.

What is the track record of Olgoonik Enterprises, LLC in performing similar cleanroom construction or renovation projects for federal agencies?

A review of federal contract databases and past performance information would be necessary to assess Olgoonik Enterprises, LLC's track record. Specifically, searching for previous awards to this contractor for projects involving cleanroom construction, laboratory upgrades, or similar specialized facility renovations would provide insight. Examining past performance evaluations, if publicly available, would indicate their success in meeting schedule, cost, and quality requirements on similar projects. A lack of extensive experience in cleanroom construction could represent a risk factor for this specific project's successful execution.

How does the awarded price of $5.86 million compare to market rates for similar cleanroom renovation projects of this scale?

To benchmark the value, one would compare this $5.86 million contract against similar cleanroom renovation projects awarded by federal agencies or large private institutions over the past 2-3 years. Key comparison points include project scope (square footage, complexity of environmental controls), location, and the specific types of renovations performed. Industry cost estimating guides and construction cost databases can also provide market rate data for specialized construction. Without specific details on the scope and complexity, a definitive comparison is difficult, but the value appears within a plausible range for a specialized federal facility.

What are the primary risks associated with renovating an existing cleanroom facility, and how are they mitigated in this contract?

Renovating existing cleanrooms presents several risks, including unforeseen structural or environmental issues discovered during demolition, potential contamination spread during the work, and integration challenges with existing systems. Mitigation strategies in this contract likely include detailed site surveys prior to work, phased construction to minimize disruption, strict containment protocols, and a firm fixed-price structure that incentivizes the contractor to manage risks effectively. The contract's specific clauses regarding change orders, unforeseen conditions, and quality control are crucial for managing these risks.

What is the expected impact of this cleanroom renovation on NIST's research capabilities and scientific output?

The renovation of Building 81's cleanroom is expected to enhance NIST's research capabilities by providing a modernized, more controlled, and potentially larger or more versatile environment for sensitive experiments. This could lead to improved accuracy, the ability to conduct new types of research, and increased throughput for existing projects. Ultimately, the upgrade aims to support NIST's mission of advancing measurement science, standards, and technology, potentially leading to breakthroughs in various scientific and industrial fields.

How has NIST's spending on construction and renovation services trended over the past five fiscal years?

Analyzing NIST's historical spending on construction and renovation services would require accessing federal procurement data (e.g., FPDS-NG, USASpending.gov) for fiscal years 2019 through 2023. This analysis would involve filtering for contracts categorized under NAICS codes related to building construction and renovation, specifically those awarded by NIST. Trends could reveal whether spending in this area has been increasing, decreasing, or remaining relatively stable, providing context for the significance of this $5.86 million award within NIST's overall capital investment strategy.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333ND23RNB190018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 S TEJON ST STE G, COLORADO SPRINGS, CO, 80903

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,044,379

Exercised Options: $5,862,557

Current Obligation: $5,862,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA251720D0004

IDV Type: IDC

Timeline