NASA awards $7.06M for electrical safety repairs, highlighting industrial building construction needs
Contract Overview
Contract Amount: $7,061,234 ($7.1M)
Contractor: Diversified Construction of Oklahoma, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-11-13
End Date: 2026-11-13
Contract Duration: 730 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE PURPOSE OF THIS PROCUREMENT IS TO AWARD SOLICITATION 80MSFC24MAC01 BASE BID AND ADDITIVE ALTERNATE 2 ONLY.FOR ELECTRICAL SAFETY REPAIRS FOR MULTIPLE BUILDINGS IDENTIFIED ON THE AWARD SOLICITATION. ..
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $7.1 million to DIVERSIFIED CONSTRUCTION OF OKLAHOMA, INC. for work described as: THE PURPOSE OF THIS PROCUREMENT IS TO AWARD SOLICITATION 80MSFC24MAC01 BASE BID AND ADDITIVE ALTERNATE 2 ONLY.FOR ELECTRICAL SAFETY REPAIRS FOR MULTIPLE BUILDINGS IDENTIFIED ON THE AWARD SOLICITATION. .. Key points: 1. Contract focuses on essential building maintenance, indicating a need for infrastructure upkeep. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract is two years, aligning with the scope of repairs. 5. The contractor, Diversified Construction of Oklahoma, Inc., will perform work in Alabama. 6. This procurement addresses critical safety requirements for multiple NASA facilities.
Value Assessment
Rating: good
The contract value of $7.06 million for electrical safety repairs appears reasonable given the scope of work involving multiple buildings and a two-year performance period. Benchmarking against similar industrial building construction contracts for federal agencies would provide a more precise assessment of value for money. The firm-fixed-price structure is appropriate for well-defined repair work, transferring some risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The solicitation process aimed to ensure a competitive environment, which typically leads to better pricing and a wider selection of qualified contractors. The presence of 6 bids suggests a healthy level of interest and competition for this type of repair work.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
NASA facilities in Alabama will benefit from enhanced electrical safety and operational reliability. Essential electrical safety repairs will be conducted across multiple buildings, ensuring compliance and preventing potential hazards. The project supports the maintenance of critical infrastructure for NASA's operations. Local workforce in Alabama may see employment opportunities through the contractor's activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if unforeseen electrical issues arise beyond the initial assessment.
- Dependence on the contractor's ability to source specialized electrical components within the fixed-price constraint.
- Ensuring timely completion within the two-year period to avoid disruption to facility operations.
Positive Signals
- Awarded under full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Contract duration aligns with the expected scope of repairs, allowing for focused execution.
- The contractor has a track record that can be reviewed for performance history.
- Focus on safety repairs addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Industrial Building Construction sector, specifically addressing facility maintenance and repair. The market for federal building construction and repair is substantial, with agencies like NASA consistently investing in infrastructure upkeep. This award represents a targeted investment in ensuring the safety and operational integrity of existing facilities, rather than new construction. Comparable spending benchmarks would involve analyzing other federal contracts for similar repair and maintenance services across various agencies.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is Diversified Construction of Oklahoma, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this project. The absence of a specific small business set-aside suggests the competition was open to all qualified large and small businesses, with the award going to the most advantageous offer.
Oversight & Accountability
Oversight for this contract will likely be managed by the National Aeronautics and Space Administration (NASA) contracting officer and technical representatives. Performance monitoring will ensure adherence to the contract terms, specifications, and schedule. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- NASA Facilities Maintenance Contracts
- Federal Electrical Infrastructure Upgrades
- Industrial Building Construction Services
- Government Building Safety Compliance
Risk Flags
- Potential for unforeseen scope expansion
- Contractor performance risk
- Material availability and lead times
Tags
construction, nasa, alabama, delivery-order, firm-fixed-price, full-and-open-competition, industrial-building-construction, electrical-repairs, facility-maintenance, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $7.1 million to DIVERSIFIED CONSTRUCTION OF OKLAHOMA, INC.. THE PURPOSE OF THIS PROCUREMENT IS TO AWARD SOLICITATION 80MSFC24MAC01 BASE BID AND ADDITIVE ALTERNATE 2 ONLY.FOR ELECTRICAL SAFETY REPAIRS FOR MULTIPLE BUILDINGS IDENTIFIED ON THE AWARD SOLICITATION. ..
Who is the contractor on this award?
The obligated recipient is DIVERSIFIED CONSTRUCTION OF OKLAHOMA, 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 $7.1 million.
What is the period of performance?
Start: 2024-11-13. End: 2026-11-13.
What is the track record of Diversified Construction of Oklahoma, Inc. with federal contracts, particularly for electrical repairs?
A review of federal procurement data would be necessary to fully assess Diversified Construction of Oklahoma, Inc.'s track record. This would involve examining past performance on similar contracts, including their timeliness, quality of work, and adherence to budget. Specifically, looking for previous awards related to electrical safety repairs or industrial building construction for NASA or other federal agencies would provide valuable insights. Any past performance evaluations or reported disputes would also be critical factors in understanding their reliability and capability for this current project.
How does the awarded price of $7.06 million compare to similar electrical safety repair contracts for federal buildings?
Benchmarking this $7.06 million contract against similar federal electrical safety repair projects requires access to a comprehensive database of government contracts. Key comparison points would include the square footage of the facilities being repaired, the complexity of the electrical systems, the specific types of repairs needed (e.g., upgrades, replacements, code compliance), and the geographic location, which can influence labor and material costs. Without specific comparable contract data, it is difficult to definitively state if this price represents excellent, good, or fair value. However, the firm-fixed-price nature suggests a defined scope, which aids in price evaluation.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks for this contract include potential cost overruns if unforeseen electrical issues arise beyond the initial scope, delays in material procurement, and contractor performance issues. Mitigation strategies likely include a well-defined scope of work in the contract, clear performance standards, regular progress monitoring by NASA, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The two-year duration allows for a structured approach to repairs, and the competitive award process should have selected a contractor with a demonstrated ability to manage such projects effectively.
How effective is the firm-fixed-price contract type in ensuring value for money for these electrical safety repairs?
The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for well-defined projects like electrical safety repairs, as it shifts the risk of cost overruns to the contractor. This encourages the contractor to be efficient and manage their costs effectively to maintain profitability. For the government, it provides cost certainty, as the final price is known upfront, assuming no significant scope changes. This structure is particularly suitable when the scope of work is clearly understood, minimizing the potential for disputes over costs and maximizing the likelihood that the awarded price reflects the true cost of the work plus a reasonable profit.
What is the historical spending pattern for electrical safety repairs at NASA facilities, and how does this award fit in?
Analyzing historical spending patterns for electrical safety repairs at NASA facilities would require accessing NASA's historical contract data. This would reveal the frequency and average cost of such repairs over previous years. This $7.06 million award can then be assessed in context: is it higher or lower than average? Does it represent a significant increase in spending for this category, or is it consistent with past investments? Understanding these patterns helps determine if this award is part of a sustained infrastructure maintenance program or an anomaly, providing insight into NASA's long-term capital planning for facility safety.
What are the implications of awarding this contract under 'full and open competition after exclusion of sources' for price discovery?
The designation 'full and open competition after exclusion of sources' implies that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria outlined in the solicitation (e.g., specific certifications, past performance requirements). This approach aims to ensure a competitive environment while also filtering for highly qualified bidders. The fact that 6 bids were received suggests that the exclusion criteria did not unduly limit competition. This level of competition generally leads to robust price discovery, as bidders are motivated to offer competitive pricing to win the contract, thereby benefiting the government through potentially lower costs than a less competitive scenario.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6288 BOUCHER DR, EDMOND, OK, 73034
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $7,061,234
Exercised Options: $7,061,234
Current Obligation: $7,061,234
Actual Outlays: $4,113,712
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,425,894
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80SSC018D0004
IDV Type: IDC
Timeline
Start Date: 2024-11-13
Current End Date: 2026-11-13
Potential End Date: 2026-11-13 00:00:00
Last Modified: 2026-01-30
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