DOE awards $20.9M facility construction contract to Perikin Enterprises LLC in New Mexico
Contract Overview
Contract Amount: $20,925,102 ($20.9M)
Contractor: Perikin Enterprises LLC
Awarding Agency: Department of Energy
Start Date: 2020-09-15
End Date: 2025-02-28
Contract Duration: 1,627 days
Daily Burn Rate: $12.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AWARD WESTERN COMMAND AGENT FACILITY CONSTRUCTION
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87102
Plain-Language Summary
Department of Energy obligated $20.9 million to PERIKIN ENTERPRISES LLC for work described as: AWARD WESTERN COMMAND AGENT FACILITY CONSTRUCTION Key points: 1. Contract awarded for commercial and institutional building construction. 2. Firm Fixed Price contract type suggests predictable costs. 3. Long duration of 1627 days indicates a substantial project. 4. No small business set-aside noted, potentially limiting smaller firm participation. 5. Contract awarded in New Mexico, impacting local workforce and economy. 6. The award is a definitive contract, suggesting a direct agreement.
Value Assessment
Rating: fair
The total award amount of $20.9 million for facility construction is substantial. Without specific benchmarks for comparable projects in New Mexico or for similar types of facilities, a precise value-for-money assessment is challenging. The firm fixed-price contract type helps control cost overruns, but the overall pricing efficiency depends on the initial negotiation and the contractor's ability to manage resources effectively over the project's extended duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor is uniquely qualified or when circumstances necessitate a direct award. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive bidding process.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive price.
Public Impact
The primary beneficiary is Perikin Enterprises LLC, which receives a significant contract award. The contract will result in the construction of a new facility for the Department of Energy. The project is located in New Mexico, likely creating local construction jobs and stimulating the regional economy. The completed facility will support the operational needs of the Western Command Agent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing benefits for taxpayers.
- Long contract duration increases exposure to potential cost escalations or delays.
- Lack of small business set-aside may exclude smaller, specialized construction firms.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Award to a single entity simplifies contract management.
- Project supports critical infrastructure needs for the Department of Energy.
Sector Analysis
The construction sector is a significant part of the federal spending landscape, encompassing a wide range of projects from infrastructure to facility development. This contract falls under commercial and institutional building construction, a broad category that includes various types of non-residential buildings. Benchmarking this specific award requires comparison with similar-sized construction projects awarded by federal agencies, particularly within the Department of Energy or for similar operational facilities, to gauge its relative cost-effectiveness.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. This means the contract was not specifically reserved for small businesses. Consequently, Perikin Enterprises LLC, presumably a larger entity, is the direct awardee. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant construction project.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding project milestones and expenditures would be managed through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facility Construction Projects
- Western Command Operations Support
- Commercial Building Construction Contracts
- Federal Infrastructure Development
Risk Flags
- Sole-source award may limit cost savings.
- Long project duration increases risk exposure.
- Lack of small business participation noted.
Tags
construction, department-of-energy, new-mexico, definitive-contract, firm-fixed-price, sole-source, commercial-building, institutional-building, large-contract, facility-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.9 million to PERIKIN ENTERPRISES LLC. AWARD WESTERN COMMAND AGENT FACILITY CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is PERIKIN ENTERPRISES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.9 million.
What is the period of performance?
Start: 2020-09-15. End: 2025-02-28.
What is the track record of Perikin Enterprises LLC with federal contracts, particularly with the Department of Energy?
Information regarding the specific track record of Perikin Enterprises LLC with federal contracts, especially with the Department of Energy, is not provided in the given data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance ratings, previous contract awards, and any history of performance issues or commendations. Understanding their experience with similar-sized construction projects and their past compliance with federal regulations would be crucial for assessing their reliability and capability for this significant facility construction award.
How does the $20.9 million award compare to similar facility construction contracts awarded by the Department of Energy or other agencies?
Without specific details on the scope, size, and complexity of the facility being constructed, a direct comparison of the $20.9 million award to similar contracts is difficult. However, for context, federal facility construction projects can range widely in cost. A $20.9 million project is a substantial undertaking, likely involving significant building size, specialized infrastructure, or complex site requirements. Benchmarking would involve identifying contracts for similar types of buildings (e.g., administrative, research, operational facilities) awarded within the last 1-3 years by agencies like DOE, GSA, or DoD, and comparing their total contract values and per-square-foot costs, adjusted for inflation and geographic location.
What are the primary risks associated with a sole-source award for a large construction project?
The primary risks associated with a sole-source award for a large construction project include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. Without multiple bids, there's less incentive for the awarded contractor to offer the most economical solution. Additionally, the government may miss out on innovative approaches or technologies that could have been proposed by other firms. There's also a risk that the sole-source justification might be weak or that the chosen contractor, while capable, may not be the absolute best value available in the market. This can also raise concerns about fairness and equal opportunity for other potential bidders.
How effective is the Firm Fixed Price (FFP) contract type in managing costs for long-duration construction projects like this one?
The Firm Fixed Price (FFP) contract type is generally effective in managing costs for construction projects, especially those with a long duration, by shifting most of the cost risk to the contractor. The price is set at the outset and generally does not change, regardless of the contractor's actual costs. This provides budget certainty for the government. However, for very long-duration projects (like this 1627-day contract), there's a risk that unforeseen economic conditions (e.g., significant material cost inflation) could severely impact the contractor's profitability if not adequately addressed through contract clauses or market conditions. While FFP limits cost growth, it can also lead to higher initial bid prices to account for contractor risk.
What are the potential workforce implications of a $20.9 million construction project in New Mexico?
A $20.9 million construction project in New Mexico is likely to have significant positive workforce implications for the region. It will create numerous direct jobs for skilled tradespeople (carpenters, electricians, plumbers, heavy equipment operators, etc.) and general laborers. Indirect employment will also be generated in supporting industries such as material suppliers, equipment rental companies, transportation, and local services (food, lodging). The project duration of over four years suggests sustained employment opportunities. Depending on the contractor's hiring practices and local labor availability, it could also provide training and development opportunities for the local workforce.
Are there any specific performance metrics or deliverables outlined for this facility construction contract?
The provided data does not specify the performance metrics or deliverables for this facility construction contract. Typically, such contracts would include detailed specifications for the facility's design, construction standards, quality control measures, safety protocols, and a project schedule with key milestones. Performance would be evaluated against these requirements, with potential penalties for non-compliance or delays and incentives for early completion or exceptional quality. A thorough review of the contract document itself would be necessary to identify the specific performance expectations and evaluation criteria.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233120RNA000083
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Perikin Enterprises, LLC
Address: 500 MARQUETTE AVE NW, ALBUQUERQUE, NM, 87102
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,925,102
Exercised Options: $20,925,102
Current Obligation: $20,925,102
Actual Outlays: $19,310,602
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $7,825,661
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-09-15
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-01-31
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