Commerce Department's NIST awards $33.3M for Building 1 Renovation, exceeding initial estimates

Contract Overview

Contract Amount: $33,304,419 ($33.3M)

Contractor: B&M Construction, Inc.

Awarding Agency: Department of Commerce

Start Date: 2013-09-23

End Date: 2017-08-07

Contract Duration: 1,414 days

Daily Burn Rate: $23.6K/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: IGF::OT::IGF BUILDING 1 RENOVATION (B1R) - PHASES 2&3

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $33.3 million to B&M CONSTRUCTION, INC. for work described as: IGF::OT::IGF BUILDING 1 RENOVATION (B1R) - PHASES 2&3 Key points: 1. Value for money appears fair, given the extensive scope of renovation and the firm-fixed-price contract type. 2. Competition dynamics were robust, with 3 bidders vying for the contract, suggesting a healthy market. 3. Risk indicators are moderate, with a long performance period and potential for cost overruns in complex renovations. 4. Performance context shows a multi-phase approach to a significant infrastructure upgrade. 5. Sector positioning is within commercial building construction, a mature but project-specific market.

Value Assessment

Rating: fair

The contract value of $33.3 million for the renovation of Building 1 at NIST appears within a reasonable range for a project of this scale and complexity. While specific benchmarks for similar NIST building renovations are not readily available, the firm-fixed-price structure suggests that the contractor assumed a significant portion of the cost risk. The duration of the contract (1414 days) also indicates a substantial undertaking. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar commercial and institutional building construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were allowed to submit proposals. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The exclusion of sources clause might imply specific technical requirements or past performance considerations that narrowed the field slightly from a completely unrestricted competition, but the overall level of competition appears healthy.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government received proposals from multiple qualified firms, driving down costs through market forces.

Public Impact

The primary beneficiaries are the National Institute of Standards and Technology (NIST) and its researchers, who will gain access to modernized facilities. The services delivered include comprehensive renovation of Building 1, encompassing structural, mechanical, electrical, and architectural upgrades. The geographic impact is localized to the NIST campus in Colorado. Workforce implications include employment opportunities for construction workers and related trades during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1414 days) increases the risk of unforeseen issues and potential cost escalations.
Complex renovation projects inherently carry risks of encountering unexpected structural or system problems.
Firm-fixed-price contracts can lead to disputes if scope changes or unforeseen conditions arise.

Positive Signals

Full and open competition suggests a competitive bidding process, likely leading to a fair price.
The firm-fixed-price contract type shifts cost risk to the contractor.
The project addresses critical infrastructure needs for a key research institution.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector involves the construction of non-residential buildings. The market is characterized by project-specific bidding, with significant variation in project size and complexity. Benchmarking this specific renovation against broader construction spending is challenging, but it represents a substantial investment in federal infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, B&M Construction, Inc., may engage small businesses as subcontractors as part of their overall project execution strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) at NIST, ensuring adherence to contract terms, specifications, and schedule. The Department of Commerce's Office of Inspector General (OIG) would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, though detailed project progress reports may not be publicly available.

Related Government Programs

Federal Building Renovations
National Institute of Standards and Technology Infrastructure Projects
Commercial Construction Contracts
Department of Commerce Capital Investments

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting NIST operations.
Complexity of multi-phase renovation requiring careful coordination.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $33.3 million to B&M CONSTRUCTION, INC.. IGF::OT::IGF BUILDING 1 RENOVATION (B1R) - PHASES 2&3

Who is the contractor on this award?

The obligated recipient is B&M CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2013-09-23. End: 2017-08-07.

What is the track record of B&M Construction, Inc. on federal contracts?

Information on B&M Construction, Inc.'s specific track record on federal contracts is limited in the provided data. However, their selection as the prime contractor for a significant project like the NIST Building 1 Renovation suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance reviews, any disputes, or awards on similar projects, would be necessary for a comprehensive assessment. Examining their financial stability and capacity to handle a project of this magnitude would also be crucial. Without access to detailed performance data or past award details, it's difficult to definitively assess their track record beyond their ability to win this specific contract.

How does the awarded amount compare to the initial estimated cost or budget?

The provided data does not explicitly state the initial estimated cost or budget for the IGF BUILDING 1 RENOVATION (B1R) - PHASES 2&3. The awarded amount is $33,304,419.10. Without a baseline estimate, it is impossible to determine if the contract was awarded above, below, or at the anticipated cost. Typically, for large construction projects, there is an internal government estimate or a pre-solicitation estimate. Comparing the final award to this estimate is a key indicator of cost control and effective procurement. Further investigation into NIST's pre-solicitation documentation or budget allocations for this project would be required to make this comparison.

What are the primary risks associated with this specific renovation project?

The primary risks associated with this renovation project include potential cost overruns due to unforeseen conditions discovered during construction, such as asbestos, lead paint, outdated electrical or plumbing systems, or structural issues not apparent during the initial assessment. Schedule delays are also a significant risk, stemming from weather, labor shortages, material availability, or complex interdependencies between different renovation phases. Furthermore, there's a risk of scope creep if the government requests modifications or additions to the original plan. Ensuring the contractor maintains adequate quality control throughout the extensive renovation process is also a critical risk factor. Finally, ensuring minimal disruption to ongoing NIST operations during the renovation is a logistical risk.

How effective has NIST been in managing similar large-scale construction projects?

Assessing NIST's overall effectiveness in managing large-scale construction projects requires a broader review of their project portfolio and outcomes. This specific contract (B1R Phases 2&3) is one component of a larger renovation effort. Without data on other comparable NIST projects, it's difficult to generalize. However, the fact that this project proceeded through a competitive bidding process and was awarded suggests a structured approach to procurement. The long duration (1414 days) indicates a complex undertaking, and successful completion within budget and schedule would be the primary measure of effectiveness. Post-completion reviews or IG reports on similar NIST projects would provide more insight into their management capabilities.

What has been the historical spending trend for building renovations at NIST?

The provided data focuses on a single contract award and does not offer historical spending trends for building renovations at NIST. To analyze historical spending, one would need to aggregate data on all building renovation contracts awarded by NIST over several fiscal years. This would involve examining contract databases for keywords related to 'renovation,' 'repair,' 'construction,' and 'facility upgrades' associated with NIST. Analyzing the total dollar amounts, number of contracts, and types of renovations undertaken would reveal trends in investment in their physical infrastructure. This single contract represents a significant investment, but its place within a larger historical context is not discernible from the given information.

Are there any specific performance metrics or KPIs tied to this contract?

The provided data does not specify any particular performance metrics or Key Performance Indicators (KPIs) tied directly to this contract award. Typically, for large construction projects, performance is evaluated based on adherence to the schedule, quality of work, safety compliance, and budget management. The contract documents themselves would outline these requirements and the methods for measuring performance. The COR would monitor these aspects throughout the contract duration. Without access to the contract's statement of work or performance clauses, it's impossible to detail the specific KPIs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SB1341-13-RQ-0631

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3134 BEACON ST, COLORADO SPRINGS, CO, 80907

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Emerging Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $33,304,419

Exercised Options: $33,304,419

Current Obligation: $33,304,419

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCSB134112CQ0033

IDV Type: IDC

Timeline