Design-build contract for genetics lab awarded to Trade Eastern, Inc. for $2.74M

Contract Overview

Contract Amount: $2,735,712 ($2.7M)

Contractor: Trade Eastern, Inc

Awarding Agency: Department of the Interior

Start Date: 2024-09-24

End Date: 2026-02-17

Contract Duration: 511 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK, THIS AWARD IS A DESIGN-BUILD CONTRACT FOR CONCEPTUAL DESIGN, FINAL DESIGN, AND CONSTRUCTION OF A FULLY ACCESSIBLE, STAND-ALONE GENETICS LABORATORY BUILDING IN CLOSE PROXIMITY TO THE EXISTING GENETICS

Place of Performance

Location: LAMAR, CLINTON County, PENNSYLVANIA, 16848

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $2.7 million to TRADE EASTERN, INC for work described as: IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK, THIS AWARD IS A DESIGN-BUILD CONTRACT FOR CONCEPTUAL DESIGN, FINAL DESIGN, AND CONSTRUCTION OF A FULLY ACCESSIBLE, STAND-ALONE GENETICS LABORATORY BUILDING IN CLOSE PROXIMITY TO THE EXISTING GENETICS Key points: 1. Value for money assessed through fixed-price contract structure, aiming to control costs. 2. Competition dynamics indicate full and open competition, suggesting a competitive bidding process. 3. Risk indicators include contract duration and fixed-price nature, which can shift risk to the contractor. 4. Performance context is a new genetics laboratory building, a critical infrastructure need. 5. Sector positioning within commercial and institutional building construction, a vital industry segment.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. Benchmarking against similar design-build projects for specialized laboratory facilities would provide a clearer picture of value. However, the absence of detailed cost breakdowns makes a precise value assessment challenging without further data. The price appears reasonable for a specialized facility of this nature, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The solicitation process aimed to attract a wide range of qualified contractors. The presence of multiple bidders generally fosters price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers, as it is expected to result in a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the U.S. Fish and Wildlife Service and potentially researchers utilizing the new genetics laboratory. The services delivered include conceptual design, final design, and construction of a specialized laboratory building. The geographic impact is localized to the site where the laboratory will be constructed, likely near existing facilities. Workforce implications include employment opportunities for construction workers, designers, and potentially laboratory personnel upon completion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design-build projects if not managed rigorously.
Fixed-price contracts can lead to disputes if unforeseen issues arise during construction.
Ensuring the contractor's specialized expertise in laboratory construction is crucial for project success.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
The project addresses a clear need for enhanced genetics research capabilities.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the U.S. economy. This sector encompasses a wide range of projects, from office buildings to specialized research facilities. The market size for such construction is substantial, driven by both public and private sector demand for new infrastructure and upgrades. This specific project represents a niche within the broader construction market, requiring specialized design and building expertise for a laboratory environment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Trade Eastern, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem will depend on whether Trade Eastern, Inc. engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Fish and Wildlife Service contracting officers and project managers. Accountability measures are inherent in the contract terms, particularly the fixed-price nature and defined delivery schedule. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Construction
Research Facility Construction
Design-Build Contracts
U.S. Fish and Wildlife Service Projects
Department of the Interior Infrastructure

Risk Flags

Potential for schedule delays impacting project completion.
Risk of cost increases if scope is not clearly defined.
Ensuring specialized construction quality meets laboratory standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.7 million to TRADE EASTERN, INC. IN ACCORDANCE WITH THE ATTACHED STATEMENT OF WORK, THIS AWARD IS A DESIGN-BUILD CONTRACT FOR CONCEPTUAL DESIGN, FINAL DESIGN, AND CONSTRUCTION OF A FULLY ACCESSIBLE, STAND-ALONE GENETICS LABORATORY BUILDING IN CLOSE PROXIMITY TO THE EXISTING GENETICS

Who is the contractor on this award?

The obligated recipient is TRADE EASTERN, INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-02-17.

What is the track record of Trade Eastern, Inc. with federal government contracts, particularly in specialized construction?

A review of Trade Eastern, Inc.'s federal contract history would be necessary to assess their track record. Key areas to examine would include past performance on similar design-build projects, especially those involving specialized facilities like laboratories. Data on contract values, timeliness of delivery, adherence to budget, and any reported disputes or contract modifications would provide insight into their reliability and expertise. Understanding their experience with the U.S. Fish and Wildlife Service or other agencies within the Department of the Interior would also be valuable context for this specific award.

How does the awarded price of $2.74 million compare to similar genetics laboratory construction projects?

Benchmarking this $2.74 million contract against similar genetics laboratory construction projects requires access to comparable data. Factors influencing cost include size (square footage), complexity of specialized systems (e.g., HVAC, containment), specific equipment needs, and geographic location. Without detailed project specifications for comparable projects, a direct price comparison is difficult. However, the firm fixed-price nature suggests the government sought cost certainty. Further analysis would involve comparing the cost per square foot or cost per specialized feature against industry averages for laboratory construction.

What are the primary risks associated with this design-build contract, and how are they mitigated?

The primary risks associated with this design-build contract include potential scope creep during the design phase, unforeseen site conditions impacting construction costs, and the contractor's ability to meet specialized laboratory construction requirements. The firm fixed-price structure shifts some financial risk to the contractor, incentivizing them to manage costs effectively. Mitigation strategies likely include rigorous design review processes, clear contract terms and conditions, performance bonds, and active project management by the U.S. Fish and Wildlife Service to ensure adherence to specifications and quality standards. Regular progress meetings and site inspections are also critical.

How effective is the 'full and open competition after exclusion of sources' method for ensuring value in specialized construction?

The 'full and open competition after exclusion of sources' method is generally effective for ensuring value in specialized construction by broadening the pool of potential bidders while allowing for pre-qualification. This approach aims to capture the benefits of broad competition (price discovery, innovation) while ensuring that only capable firms participate, reducing the risk of selecting an unqualified contractor. For specialized construction like a genetics lab, this method can be advantageous if the exclusion criteria are well-defined to target firms with relevant expertise, thereby fostering a competitive environment among qualified specialists and potentially leading to better pricing and performance outcomes for the government.

What is the historical spending pattern for genetics laboratory construction by the Department of the Interior?

Analyzing historical spending patterns for genetics laboratory construction by the Department of the Interior would provide context for this $2.74 million award. This would involve reviewing past contracts for similar facilities, noting their values, durations, and the agencies within the DOI that procured them. Understanding whether this is a recurring need or a new initiative, and how spending has trended over time, can indicate budget priorities and the typical investment level for such infrastructure. A significant increase or decrease in spending could signal shifts in research focus or funding availability.

What are the implications of the 511-day contract duration for project completion and potential cost overruns?

A contract duration of 511 days (approximately 17 months) for a design-build genetics laboratory project suggests a moderately complex undertaking. This timeframe allows for detailed design development and a structured construction phase. The implications for cost overruns are tied to how well this duration aligns with the project's scope and the contractor's ability to manage their schedule. A firm fixed-price contract means the contractor bears the risk of cost overruns due to schedule delays, provided the delays are not caused by government actions or unforeseen circumstances. Effective project management by both parties is crucial to ensure timely completion and prevent cost escalations.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140FC224R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 53 GRAVEL ST, WILKES BARRE, PA, 18705

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

Financial Breakdown

Contract Ceiling: $2,735,712

Exercised Options: $2,735,712

Current Obligation: $2,735,712

Actual Outlays: $2,685,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline