State Department awards $22.2M for architectural design services, with a 10-year performance period

Contract Overview

Contract Amount: $22,249,146 ($22.2M)

Contractor: Shop Architects, Inc.

Awarding Agency: Department of State

Start Date: 2017-12-05

End Date: 2028-12-04

Contract Duration: 4,017 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DESIGN SERVICES.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

Department of State obligated $22.2 million to SHOP ARCHITECTS, INC. for work described as: DESIGN SERVICES. Key points: 1. The contract value represents a significant investment in architectural services for the Department of State. 2. Competition dynamics for this contract are assessed to understand potential impacts on pricing and innovation. 3. Risk indicators are evaluated based on contract duration, type, and historical performance of similar awards. 4. Performance context is established by comparing this award to other architectural service contracts within the federal government. 5. The contract positions the Department of State to procure specialized design expertise for its facilities.

Value Assessment

Rating: good

The contract value of $22.2 million for architectural design services over 10 years appears reasonable given the scope and duration. Benchmarking against similar large-scale design contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it may limit flexibility for design changes. Further analysis of the specific deliverables and the contractor's proposed rates would offer a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the competition type. This level of competition generally fosters price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the value for public funds.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who will receive improved or new facilities designed to meet their operational needs. The services delivered include architectural design, potentially encompassing conceptualization, schematic design, design development, and construction documents. The geographic impact is likely concentrated around the facilities managed or to be constructed by the Department of State, potentially worldwide. Workforce implications may include employment opportunities for architects, designers, engineers, and support staff within the contracting firm and potentially for government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to scope creep or evolving requirements not fully captured in initial pricing.
Firm-fixed-price contracts can sometimes disincentivize innovation if not managed carefully to allow for design evolution.
Reliance on a single awardee for a decade may limit future opportunities for other firms to gain experience with the agency.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The firm-fixed-price contract provides budget certainty for the Department of State over the contract's life.
A 10-year performance period allows for long-term planning and consistent application of design expertise across multiple projects.

Sector Analysis

Architectural services fall under the broader professional, scientific, and technical services sector. This sector is characterized by specialized expertise and project-based work. The federal government is a significant consumer of these services, particularly for infrastructure, facility management, and research projects. The market size for federal architectural services is substantial, with agencies like the Department of State requiring ongoing design support for their global presence. This contract fits within the government's strategy to maintain and upgrade its diplomatic and operational facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, the prime contractor, SHOP ARCHITECTS, INC., may engage small businesses as subcontractors, providing them with opportunities to participate in specific aspects of the design services. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the design projects.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified design services within the agreed-upon budget and schedule. Transparency is facilitated through the Federal Procurement Data System (FPDS), which records contract actions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Facilities Management
Architectural and Engineering Services
Government Building Design
Capital Improvements Programs

Risk Flags

Long-term contract duration may increase risk of requirement changes.
Firm-fixed-price contract could limit flexibility for design evolution.
Potential for contractor underestimation of long-term project complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.2 million to SHOP ARCHITECTS, INC.. DESIGN SERVICES.

Who is the contractor on this award?

The obligated recipient is SHOP ARCHITECTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2017-12-05. End: 2028-12-04.

What is the track record of SHOP ARCHITECTS, INC. with federal contracts, particularly with the Department of State?

A comprehensive review of SHOP ARCHITECTS, INC.'s track record with federal contracts would require accessing detailed contract databases beyond the provided summary. Typically, analysts would examine past performance evaluations, any history of contract disputes or terminations, and the types and values of previous federal awards. For this specific contract with the Department of State, understanding their experience with similar projects (e.g., diplomatic facilities, international buildings) and their performance on prior State Department contracts would be crucial. Without this specific historical data, it's difficult to definitively assess their suitability beyond the fact they were selected through full and open competition.

How does the $22.2 million contract value compare to similar architectural design service contracts awarded by the Department of State or other agencies?

The $22.2 million contract value for 10 years of architectural design services needs to be contextualized against similar procurements. Federal agencies often award large contracts for architectural and engineering services, especially for major infrastructure or facility upgrades. For instance, the General Services Administration (GSA) manages numerous large-scale design contracts for federal buildings. Comparing this award to the average value, duration, and scope of architectural services contracts for agencies with similar facility needs (e.g., Department of Defense overseas facilities, other diplomatic missions) would provide a benchmark. The firm-fixed-price nature and the 10-year period are key factors influencing the total value, suggesting a long-term, potentially broad scope of work.

What are the primary risk indicators associated with this long-term, firm-fixed-price contract for architectural services?

The primary risk indicators for this contract include its long duration (10 years) and firm-fixed-price (FFP) structure. A 10-year performance period increases the risk of requirement changes due to evolving geopolitical needs, technological advancements, or shifting agency priorities, which might not be adequately captured in the initial FFP. For the government, the FFP structure, while providing cost certainty, can limit flexibility if design modifications become necessary, potentially leading to costly change orders or disputes. For the contractor, underestimating the complexity or duration of design tasks over a decade could lead to reduced profit margins. Additionally, the concentration of work with one firm for an extended period could pose a risk if performance issues arise.

How effective is the full and open competition process in ensuring the Department of State receives optimal value for its investment in architectural services?

The full and open competition process is generally considered highly effective in ensuring optimal value for government investments. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting the most qualified contractor. For the Department of State's architectural services, this means that multiple firms have the opportunity to propose their best solutions and pricing. The success of this process in delivering optimal value hinges on the clarity of the solicitation requirements, the rigor of the evaluation criteria, and the effective management of the subsequent contract to ensure performance aligns with expectations.

What are the potential implications of this contract on the broader market for architectural services, particularly for small and medium-sized businesses?

This contract, awarded through full and open competition and not set aside for small businesses, primarily benefits the large prime contractor, SHOP ARCHITECTS, INC. The direct impact on small and medium-sized businesses (SMBs) as prime contractors is minimal. However, there are indirect implications. The prime contractor may utilize SMBs for specialized subcontracting roles, providing them with valuable project experience and revenue. Conversely, large contracts awarded to major firms can sometimes create a competitive disadvantage for SMBs vying for smaller, more focused projects within the federal space. The overall effect depends on the prime's subcontracting strategy and the specific market dynamics for architectural services.

Are there specific performance metrics or oversight mechanisms in place to ensure the quality and timeliness of the design services delivered over the 10-year period?

While the provided data does not detail specific performance metrics or oversight mechanisms, federal contracts of this magnitude and duration typically include robust provisions. The Department of State would likely employ a combination of contract administration tools. These could include regular progress reviews, milestone-based payments tied to deliverable acceptance, quality assurance surveillance plans (QASPs), and designated government technical representatives. Performance evaluations, often documented in Contractor Performance Assessment Reporting System (CPARS), would track the contractor's adherence to schedule, quality standards, and cost controls throughout the contract lifecycle. These mechanisms are crucial for ensuring accountability and managing risks over the extended performance period.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 PARK PLACE PENTHOUSE, NEW YORK, NY, 10007

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

Financial Breakdown

Contract Ceiling: $22,249,146

Exercised Options: $22,249,146

Current Obligation: $22,249,146

Actual Outlays: $729,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA14D0002

IDV Type: IDC

Timeline