NASA awards $12.9M contract for COF SUBSTATION 1 to LEAD BUILDERS INC, focusing on construction
Contract Overview
Contract Amount: $12,887,188 ($12.9M)
Contractor: Lead Builders Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-08-21
End Date: 2026-10-30
Contract Duration: 1,166 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COF SUBSTATION 1
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $12.9 million to LEAD BUILDERS INC for work described as: COF SUBSTATION 1 Key points: 1. Contract value appears reasonable given the project scope and duration. 2. Full and open competition suggests a competitive bidding process. 3. Project duration of nearly 4 years indicates a significant undertaking. 4. Fixed-price contract type shifts risk to the contractor. 5. The contract falls within the commercial and institutional building construction sector. 6. Geographic focus on California may have implications for local workforce and materials.
Value Assessment
Rating: good
The contract value of $12.9 million for a substation construction project over approximately 3.8 years appears to be within a reasonable range for similar large-scale infrastructure projects. Benchmarking against other federal construction contracts of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor has a strong incentive to manage costs effectively, which can be beneficial for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be broad, certain sources were excluded. This could be due to specific technical requirements, past performance, or other pre-qualification criteria. With 3 bidders, the competition level was moderate, which can still lead to fair price discovery, but might not be as robust as a completely unrestricted full and open competition.
Taxpayer Impact: A moderate level of competition suggests that taxpayers likely received a fair price, though potentially not the absolute lowest possible if more bidders had been included or fewer excluded.
Public Impact
The primary beneficiaries are NASA, which will receive the upgraded substation infrastructure. The services delivered include the construction and completion of COF SUBSTATION 1. The geographic impact is concentrated in California, where the substation is located. Workforce implications may include job creation for construction workers and related trades in the local California area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise, despite fixed-price.
- Dependence on the contractor's ability to secure specialized labor and materials.
- Risk of schedule delays due to complex construction processes or permitting.
Positive Signals
- Firm fixed-price contract aligns contractor incentives with project completion.
- Moderate competition among bidders suggests a reasonable price was likely negotiated.
- Long-term project duration allows for phased development and potential learning curve benefits.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. This sector is critical for infrastructure development, including facilities for government agencies like NASA. Spending in this sector can be influenced by economic conditions, technological advancements in construction, and government investment priorities. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by federal agencies for similar facility types.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The impact on the small business ecosystem would depend on whether the prime contractor, LEAD BUILDERS INC, voluntarily engages small businesses as subcontractors for specialized services or material supply.
Oversight & Accountability
Oversight for this contract would primarily be managed by the National Aeronautics and Space Administration (NASA). Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified substation within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details might be internal to NASA. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- NASA Facilities Construction
- Federal Infrastructure Projects
- Utility Infrastructure Contracts
- Commercial Building Construction
Risk Flags
- Potential for limited competition due to source exclusion.
- Contract duration may increase exposure to market fluctuations.
- Dependence on contractor's specialized expertise.
Tags
construction, nasa, california, firm-fixed-price, large-contract, commercial-institutional-building, limited-competition, infrastructure, substation, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $12.9 million to LEAD BUILDERS INC. COF SUBSTATION 1
Who is the contractor on this award?
The obligated recipient is LEAD BUILDERS INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2023-08-21. End: 2026-10-30.
What is the track record of LEAD BUILDERS INC in completing similar large-scale construction projects for federal agencies?
Assessing the track record of LEAD BUILDERS INC requires a review of their past performance on federal contracts, particularly those involving substation construction or similar complex infrastructure. This would involve examining contract completion data, any reported performance issues, and client feedback from agencies like NASA or others. A history of on-time, on-budget delivery of comparable projects would indicate a lower performance risk. Conversely, a pattern of delays, cost overruns, or quality issues would raise concerns about their capability to execute this specific contract successfully. Without specific past performance data readily available in this summary, further investigation into the contractor's federal award history and performance ratings is recommended.
How does the awarded price compare to industry benchmarks for similar substation construction projects?
To benchmark the $12.9 million contract value, one would need to compare it against similar substation construction projects, considering factors like size, complexity, location, and the specific technologies involved. Industry benchmarks can be derived from data on recently awarded projects by other government agencies or private entities, as well as cost estimation guides for construction. If this contract's price per square foot, per megawatt capacity, or per other relevant metric is significantly higher or lower than comparable projects, it could indicate either exceptional value or potential overpricing/underbidding. Given the 'full and open competition after exclusion of sources' with 3 bidders, the price is likely competitive but may not be the absolute lowest possible.
What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type for this project?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type presents a nuanced risk profile. While it aims for broad competition, the exclusion of certain sources means the pool of potential bidders is narrowed. This could inadvertently exclude highly capable contractors or lead to less aggressive pricing if the remaining bidders have limited alternatives. The primary risk is that the government might not achieve the most competitive pricing or the widest range of innovative solutions compared to a truly unrestricted competition. However, if the exclusions were based on legitimate technical requirements or pre-qualification standards, the risk could be mitigated by ensuring the remaining bidders are well-suited for the project's specific demands.
What is the expected effectiveness of the new substation in meeting NASA's operational needs?
The effectiveness of the new COF SUBSTATION 1 hinges on its design specifications, the quality of construction, and its integration into NASA's existing power infrastructure. Assuming the project meets all technical requirements outlined in the contract, the new substation should enhance reliability, capacity, and potentially energy efficiency for the facility it serves. Its effectiveness will be measured by its ability to consistently provide stable power, support current and future operational demands, and meet any specific performance metrics defined by NASA. Post-construction performance monitoring and operational feedback will be crucial to fully assess its effectiveness.
How has NASA's spending on construction projects of this scale evolved over the past five years?
Analyzing NASA's historical spending on construction projects requires accessing detailed budget and contract award data over the past five years. This would reveal trends in the volume and value of construction contracts, the types of facilities being built or upgraded, and the average cost per project. Understanding this trend can provide context for the $12.9 million award, indicating whether it represents a typical investment, an increase, or a decrease in spending for similar infrastructure. Factors like agency priorities, infrastructure modernization initiatives, and overall budget allocations would influence these spending patterns.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 80AFRC23B0037
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lead Builders, Inc.
Address: 2060 D AVE DE LOS ARBOLES U 116, THOUSAND OAKS, CA, 91362
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,887,188
Exercised Options: $12,887,188
Current Obligation: $12,887,188
Actual Outlays: $7,345,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80AFRC19D0009
IDV Type: IDC
Timeline
Start Date: 2023-08-21
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2026-01-06
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