NASA awards $6.5M contract for Stennis Space Center sewer system upgrades to Drace Construction Corp
Contract Overview
Contract Amount: $6,473,048 ($6.5M)
Contractor: Drace Construction Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-10-16
End Date: 2026-12-31
Contract Duration: 806 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SEWER SYSTEM AND CONVEYANCE, PHASE 2 AT STENNIS SPACE CENTER, MS
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $6.5 million to DRACE CONSTRUCTION CORP for work described as: SEWER SYSTEM AND CONVEYANCE, PHASE 2 AT STENNIS SPACE CENTER, MS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The project duration of 806 days indicates a significant, multi-year infrastructure undertaking. 4. The industrial building construction nature of the work aligns with facility maintenance and upgrade needs. 5. The contract value of approximately $6.5 million is a notable investment in critical infrastructure. 6. The award is a delivery order against a larger contract vehicle, implying potential for future taskings.
Value Assessment
Rating: good
The contract value of $6.5 million for sewer system and conveyance upgrades appears reasonable for a project of this scope and duration, particularly within a federal facility like Stennis Space Center. Benchmarking against similar industrial building construction projects for municipal-style infrastructure within federal installations would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks 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.' This designation suggests that while the competition was intended to be broad, specific reasons led to the exclusion of certain potential bidders. The number of bids received (8) indicates a moderate level of competition. The exclusion of sources warrants further investigation to ensure it did not unduly limit competition and impact price discovery.
Taxpayer Impact: While 8 bidders participated, the exclusion of sources means taxpayers may not have benefited from the widest possible competitive pricing. Understanding the rationale for exclusion is key to assessing if the best possible value was secured.
Public Impact
The primary beneficiaries are NASA and the personnel at Stennis Space Center, who will receive improved and reliable wastewater infrastructure. The services delivered include the construction and upgrade of the sewer system and conveyance infrastructure. The geographic impact is localized to Stennis Space Center in Mississippi. The project will likely involve a workforce of construction laborers, engineers, and project managers, potentially including local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'Exclusion of Sources' clause, which could impact price.
- Firm-fixed-price contracts can sometimes lead to contractors cutting corners if not adequately overseen.
- Long project duration increases the risk of unforeseen site conditions or material price fluctuations.
Positive Signals
- Firm-fixed-price contract provides budget certainty for the government.
- Awarded under a competitive process (8 bidders), indicating some level of market interest.
- Project addresses critical infrastructure needs, ensuring operational continuity at Stennis Space Center.
Sector Analysis
This contract falls within the Industrial Building Construction sector, specifically focusing on infrastructure upgrades. The market for federal construction projects, especially those involving specialized facilities like space centers, is significant. Comparable spending benchmarks would involve looking at other large-scale infrastructure projects awarded by agencies like NASA, DoD, or DOE for facility maintenance and upgrades. The $6.5 million value is moderate for a multi-year federal construction project.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside, the primary contractor, Drace Construction Corp., has discretion in subcontracting, which may or may not involve small businesses. Further review of the contract's subcontracting clauses would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA). Specific oversight mechanisms would likely include contract officers, project managers, and potentially NASA's Office of Inspector General for audits and investigations. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities are typically internal.
Related Government Programs
- NASA Facilities Modernization Programs
- Stennis Space Center Operations and Maintenance
- Federal Infrastructure Improvement Projects
- Industrial Wastewater Management Systems
Risk Flags
- Limited competition due to source exclusion
- Potential quality compromises in fixed-price contracts without strong oversight
- Long project duration increases exposure to unforeseen risks
Tags
construction, nasa, stennis-space-center, mississippi, industrial-building-construction, full-and-open-competition-after-exclusion-of-sources, firm-fixed-price, delivery-order, infrastructure, sewer-system, multi-year-project
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $6.5 million to DRACE CONSTRUCTION CORP. SEWER SYSTEM AND CONVEYANCE, PHASE 2 AT STENNIS SPACE CENTER, MS
Who is the contractor on this award?
The obligated recipient is DRACE CONSTRUCTION CORP.
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 $6.5 million.
What is the period of performance?
Start: 2024-10-16. End: 2026-12-31.
What is the track record of Drace Construction Corp. with NASA and similar federal agencies?
A review of federal contract databases would be necessary to fully assess Drace Construction Corp.'s track record. This would involve examining past performance on contracts with NASA and other federal agencies, looking for any history of performance issues, contract disputes, or successful project completions. Understanding their experience with similar types of construction, particularly in industrial or specialized environments like space centers, is crucial for evaluating their capability to execute this project successfully. Data on past contract values and durations would also provide context for their capacity.
How does the $6.5 million cost compare to similar sewer system upgrade projects at other federal facilities?
Benchmarking this $6.5 million contract against similar sewer system and conveyance upgrade projects at other federal installations requires access to detailed cost data for comparable projects. Factors such as project scope, complexity, geographic location (which affects labor and material costs), and the specific requirements of the facility (e.g., environmental regulations, operational continuity needs) must be considered. Without specific comparable project data, it is difficult to definitively state if this represents excellent, good, or fair value. However, for a multi-year infrastructure project at a major federal facility, the amount appears within a plausible range.
What are the specific risks associated with the 'Exclusion of Sources' in the competition process?
The 'Exclusion of Sources' clause in the competition process introduces several risks. Primarily, it limits the pool of potential bidders, which can reduce overall competition. This reduced competition may lead to higher prices than could have been achieved in a truly full and open competition. It also raises questions about the fairness and transparency of the procurement process. The rationale for excluding sources must be clearly documented and justifiable to ensure it was not arbitrary or designed to favor specific contractors. If the exclusion was not well-founded, taxpayers may have incurred additional costs.
How effective are NASA's oversight mechanisms likely to be for this long-term infrastructure project?
NASA generally has robust oversight mechanisms for its contracts, including those for infrastructure projects. These typically involve dedicated contract officers, project managers, quality assurance personnel, and potentially the Office of Inspector General. For a project spanning over 800 days, continuous monitoring of progress, budget, and quality will be essential. The effectiveness will depend on the resources allocated to oversight, the clarity of performance metrics, and the contractor's adherence to contractual obligations. Regular reporting, site inspections, and performance reviews are standard practices that contribute to effective oversight.
What is the historical spending trend for sewer system and conveyance upgrades at Stennis Space Center?
To determine historical spending trends for sewer system and conveyance upgrades at Stennis Space Center, one would need to analyze NASA's contract award data for this specific facility over several fiscal years. This analysis would involve identifying all contracts related to wastewater infrastructure, their values, durations, and the contractors involved. Understanding past investments can reveal patterns of need, the frequency of such upgrades, and whether spending has been consistent, increasing, or decreasing. This context is vital for assessing the current $6.5 million award as part of a larger, ongoing infrastructure management strategy.
What are the potential implications of the firm-fixed-price contract type on project quality and cost?
A firm-fixed-price (FFP) contract type offers the government significant cost certainty, as the price is set and generally not subject to adjustment unless there are changes to the contract scope. This shifts the risk of cost overruns to the contractor. For taxpayers, this means the total expenditure is predictable. However, with FFP contracts, there's a potential risk that the contractor might prioritize cost savings over quality if not rigorously monitored. Effective government oversight is crucial to ensure that the contractor meets all performance and quality standards despite the fixed-price incentive to minimize their own costs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 922 PORTER AVE STE 101, OCEAN SPRINGS, MS, 39564
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,473,048
Exercised Options: $6,473,048
Current Obligation: $6,473,048
Actual Outlays: $4,626,783
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80SSC018D0014
IDV Type: IDC
Timeline
Start Date: 2024-10-16
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-18
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