State Department awards $2.1M contract for design services, with a long performance period extending through 2028

Contract Overview

Contract Amount: $2,089,737 ($2.1M)

Contractor: NV5 Consultants, Inc.

Awarding Agency: Department of State

Start Date: 2019-07-30

End Date: 2028-02-28

Contract Duration: 3,135 days

Daily Burn Rate: $667/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMISSIONING DESIGN SERVICES FOR BRASILIA NEC D/B/B PROJECT.

Plain-Language Summary

Department of State obligated $2.1 million to NV5 CONSULTANTS, INC. for work described as: COMMISSIONING DESIGN SERVICES FOR BRASILIA NEC D/B/B PROJECT. Key points: 1. The contract's value appears reasonable for specialized engineering design services, especially considering the extended performance timeline. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor, NV5 Consultants, Inc. 4. This contract supports infrastructure development for the State Department's facilities. 5. The engineering services sector is characterized by specialized expertise and project-based engagements. 6. The long duration indicates a significant, multi-year project requiring sustained effort.

Value Assessment

Rating: good

The award amount of $2,089,737 for design services over a nearly nine-year period appears to be a fair valuation. Without specific benchmarks for 'Brasilia NEC D/B/B Project' design complexity, a direct comparison is difficult. However, the firm-fixed-price contract type suggests that the contractor has priced in the expected costs and risks. The duration of the contract implies a substantial scope of work, making the per-year cost relatively modest.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is generally expected to yield a fair market price and encourage innovation. The number of bidders is not specified, but the method of procurement suggests a robust selection process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in essential design services.

Public Impact

The primary beneficiaries are the Department of State, which will receive essential design services for its facilities. The services delivered include architectural and engineering design for the 'Brasilia NEC D/B/B Project'. The geographic impact is specific to the location of the project in Brasilia. The contract supports specialized engineering and design professionals within NV5 Consultants, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the long performance period if not managed tightly.
Ensuring consistent quality of design services throughout the multi-year engagement.
Reliance on a single contractor for a critical, long-term design project.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Firm-fixed-price contract aligns incentives and transfers risk to the contractor.
Long performance period allows for comprehensive project planning and execution.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant part of the professional, scientific, and technical services industry. This contract falls within the architectural, engineering, and related services sub-sector. Spending in this area is driven by government infrastructure projects, facility upgrades, and specialized technical requirements. Comparable spending benchmarks would typically involve other large-scale design and engineering contracts for federal agencies undertaking similar international facility projects.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely limited unless NV5 Consultants, Inc. engages them as subcontractors. The subcontracting opportunities, if any, would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and program managers within the Department of State. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified design services. Transparency is generally maintained through federal contract databases, though detailed project progress reports may be internal.

Related Government Programs

Department of State Facilities Management
Overseas Buildings Operations
Architectural and Engineering Services
Infrastructure Design Contracts

Risk Flags

Long contract duration may increase risk of requirement changes.
Potential for cost overruns if scope is not tightly managed.
Dependence on a single contractor for critical design services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.1 million to NV5 CONSULTANTS, INC.. COMMISSIONING DESIGN SERVICES FOR BRASILIA NEC D/B/B PROJECT.

Who is the contractor on this award?

The obligated recipient is NV5 CONSULTANTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2019-07-30. End: 2028-02-28.

What is the specific nature and scope of the 'Brasilia NEC D/B/B Project' that necessitates such a long design contract?

The 'Brasilia NEC D/B/B Project' likely refers to the design phase for a New Embassy Compound (NEC) in Brasilia, potentially involving a Design-Build-Brace (D/B/B) approach. The 'D/B/B' designation suggests a complex construction methodology focused on seismic resilience, which would require extensive and detailed engineering design. The long duration of the contract (over 8 years) indicates that the design phase itself is substantial, possibly encompassing multiple stages, detailed structural engineering, MEP (mechanical, electrical, plumbing) design, site planning, and coordination with various stakeholders, including local Brazilian authorities and U.S. State Department requirements for security and functionality. The complexity and potential for evolving requirements in an international project of this scale justify a prolonged design period.

How does the $2.1 million contract value compare to similar design service contracts for overseas embassy projects?

Benchmarking this $2.1 million contract for design services against similar overseas embassy projects requires access to detailed cost data for comparable projects. However, considering the extended performance period of nearly nine years, the annual average cost for design services is approximately $237,000. This figure needs to be evaluated against the complexity, size, and specific technical requirements of the Brasilia NEC project. Embassy projects often involve high security standards, specialized infrastructure, and compliance with both U.S. and host-nation regulations, which can increase design costs. Without specific comparable data, it's challenging to definitively state if this represents a high or low value, but the firm-fixed-price structure suggests the contractor has assessed the risks and costs accordingly.

What are the key performance indicators (KPIs) or milestones expected for NV5 Consultants, Inc. under this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs) or milestones, typical for a long-term design services contract like this, they would likely include the timely delivery of design packages at various stages (e.g., schematic design, design development, construction documents). Other potential KPIs could involve adherence to budget constraints within the design phase, successful coordination with government representatives and other consultants, compliance with all applicable codes and standards (both U.S. and Brazilian), and the quality and completeness of the final design documents. The firm-fixed-price nature of the contract implies that meeting these milestones and delivering a complete, compliant design package is crucial for the contractor's profitability.

What is the track record of NV5 Consultants, Inc. in performing similar large-scale international design projects for the federal government?

NV5 Consultants, Inc. is a well-established engineering and consulting firm with a broad portfolio of projects across various sectors, including federal government contracts. To assess their track record specifically for large-scale international design projects for the federal government, a deeper dive into their past performance evaluations and contract history would be necessary. This would involve reviewing data on their successful completion of similar embassy or diplomatic facility projects, their performance ratings on previous government contracts, and any history of disputes or contract modifications. Generally, a firm winning a full and open competition for a significant project like this suggests they have demonstrated relevant experience and capability to the awarding agency.

Are there any identified risks associated with the long duration of this contract, and how are they being mitigated?

The primary risk associated with a contract spanning nearly nine years is the potential for significant changes in project requirements, technology, or economic conditions that could impact the design's relevance or cost-effectiveness. Mitigations typically include robust contract management, clearly defined change order processes, and potentially incorporating flexibility clauses within the contract. The firm-fixed-price structure places the onus on NV5 Consultants, Inc. to anticipate and manage these risks within their pricing. Regular reviews and stakeholder engagement throughout the design process are also critical to ensure the design remains aligned with evolving needs and standards, minimizing the need for costly revisions later.

Industry Classification

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

Parent Company: NV5 Global, Inc.

Address: 1450 ENERGY PK DR STE 300, SAINT PAUL, MN, 55108

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

Financial Breakdown

Contract Ceiling: $2,089,737

Exercised Options: $2,089,737

Current Obligation: $2,089,737

Actual Outlays: $61,675

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0019

IDV Type: IDC

Timeline