State Department awards $22.6M contract for architectural services to Morphosis Architects

Contract Overview

Contract Amount: $22,567,545 ($22.6M)

Contractor: Morphosis Architects

Awarding Agency: Department of State

Start Date: 2020-07-14

End Date: 2027-10-16

Contract Duration: 2,650 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RIYADH NEC BRIDGING

Plain-Language Summary

Department of State obligated $22.6 million to MORPHOSIS ARCHITECTS for work described as: RIYADH NEC BRIDGING Key points: 1. Contract value represents a significant investment in architectural services for the State Department. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 2.5 years) indicates a long-term need for these services. 4. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor. 5. The specific services (architectural) are crucial for infrastructure development and maintenance. 6. The contract's value is substantial within the context of architectural services procurement.

Value Assessment

Rating: good

The contract value of $22.6 million for architectural services appears reasonable given the contract duration of over 2.5 years. Benchmarking against similar large-scale architectural projects for government agencies would provide a more precise value-for-money assessment. The firm fixed-price structure generally indicates a predictable cost for the government, assuming the scope of work is well-defined and managed effectively. Without specific details on the deliverables, a direct comparison to market rates for comparable services is challenging, but the award to a single entity suggests a focused approach to service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and ensure the government receives the best value for its investment. The transparency inherent in full and open competition also enhances accountability.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price point, minimizing unnecessary expenditure.

Public Impact

The primary beneficiaries are the Department of State, which will receive architectural services for its projects. The services delivered will likely involve the design, planning, and potentially oversight of construction or renovation projects. The geographic impact is likely concentrated on locations where the Department of State has facilities requiring architectural expertise. Workforce implications may include the direct employment of architects and related professionals by the contractor, and potentially indirect employment in construction if the services lead to building projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined upfront.
Reliance on a single contractor for a significant duration could lead to vendor lock-in.
Ensuring the quality and adherence to specifications of architectural designs requires robust oversight.

Positive Signals

Award through full and open competition suggests a fair and transparent selection process.
Firm fixed-price contract type provides cost certainty for the government.
The long contract duration allows for continuity and deep engagement on complex projects.

Sector Analysis

The architectural services sector is a critical component of the broader construction and engineering industries. Government agencies, particularly those with extensive infrastructure needs like the Department of State, are significant clients. This contract fits within the market for large-scale public works and facility management. Spending benchmarks for architectural services can vary widely based on project complexity, location, and scale, but contracts in the multi-million dollar range are common for major government projects.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. The impact on the small business ecosystem would depend on whether Morphosis Architects engages small businesses for subcontracting opportunities, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated by the contract's award through full and open competition, making the process publicly visible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Facilities Management
Government Architectural and Engineering Services
Public Building Design and Construction

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of performance issues impacting project timelines or quality.
Need for robust government oversight to ensure compliance and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.6 million to MORPHOSIS ARCHITECTS. RIYADH NEC BRIDGING

Who is the contractor on this award?

The obligated recipient is MORPHOSIS ARCHITECTS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2020-07-14. End: 2027-10-16.

What is the track record of Morphosis Architects in performing similar government contracts?

Assessing Morphosis Architects' track record with government contracts requires accessing historical procurement data. While this specific award is for $22.6 million, understanding their past performance on similar projects, including their success rate, any past performance issues, and their experience with federal acquisition regulations, is crucial. Information on previous contract values, durations, and client agencies would provide context. A review of past performance evaluations, if publicly available, would offer insights into their reliability, quality of work, and adherence to schedules and budgets. Without this historical data, it's difficult to definitively assess their suitability beyond the current award.

How does the awarded price compare to market rates for similar architectural services?

To benchmark the awarded price of $22.6 million against market rates, one would need to compare it with similar architectural service contracts for large-scale government facilities. Key comparison factors include the scope of services (e.g., design, project management, construction oversight), the type of facility, the geographic location, and the contract duration (over 2.5 years). Industry standard cost estimation tools and databases for architectural fees, often expressed as a percentage of construction cost or on a per-square-foot basis, would be used. Given the firm fixed-price nature, the government has a degree of cost certainty, but the initial negotiation and competitive bidding process are critical for ensuring the price reflects fair market value.

What are the primary risks associated with this contract for the Department of State?

The primary risks for the Department of State in this contract include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or delays, despite the firm fixed-price structure. Another risk is the contractor's performance quality; if the architectural designs are flawed or do not meet specifications, it could lead to costly rework or construction issues. Contractor viability is also a consideration; ensuring Morphosis Architects has the financial stability and resources to complete a project of this magnitude over its multi-year duration is important. Finally, effective oversight is crucial to mitigate risks related to schedule adherence and compliance with all contractual obligations.

How effective is the firm fixed-price contract type in managing costs for this architectural service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For architectural services, this means that the contractor, Morphosis Architects, assumes most of the financial risk. If their costs exceed the agreed-upon price, their profit margin decreases. This structure incentivizes the contractor to control their own costs efficiently. However, if unforeseen issues arise that necessitate changes to the scope, the FFP contract can become more complex to manage, potentially leading to change orders that could increase the overall cost. Clear initial scope definition is therefore paramount for the FFP's cost-control effectiveness.

What is the historical spending pattern for architectural services by the Department of State?

Analyzing the historical spending patterns for architectural services by the Department of State would involve examining past contract awards for similar services. This includes looking at the total annual expenditure on architectural services, the average contract value, the typical duration of such contracts, and the primary contractors engaged. Understanding these patterns helps contextualize the current $22.6 million award. For instance, if the Department typically awards several large contracts annually, this award might be within the normal range. Conversely, if this is an unusually large or infrequent award, it might warrant further investigation into the specific needs driving the expenditure. Historical data also reveals trends in competition levels and pricing.

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: 3440 WESLEY ST, CULVER CITY, CA, 90232

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

Financial Breakdown

Contract Ceiling: $22,567,545

Exercised Options: $22,567,545

Current Obligation: $22,567,545

Actual Outlays: $3,411,123

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0068

IDV Type: IDC

Timeline