Commerce Awards $25.7M for NIST Building Addition to Hensel Phelps Construction Co

Contract Overview

Contract Amount: $25,703,441 ($25.7M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Commerce

Start Date: 2017-08-30

End Date: 2021-04-30

Contract Duration: 1,339 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF D WING ADDITION

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $25.7 million to HENSEL PHELPS CONSTRUCTION CO for work described as: IGF::OT::IGF D WING ADDITION Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project duration of 1339 days is substantial, indicating a complex construction undertaking. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The award was a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The award amount of $25.7 million for a building addition appears within a reasonable range for large commercial construction projects. However, without specific details on the scope and complexity of the addition, a precise comparison is difficult. Benchmarking against similar NIST or federal construction projects would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method is generally expected to yield competitive pricing.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Enhances research and development capabilities at NIST. Supports critical scientific infrastructure for the Department of Commerce. Creates construction jobs and stimulates economic activity in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector characterized by significant capital investment and long project timelines. Federal construction spending benchmarks vary widely based on project type, location, and scale.

Small Business Impact

The data indicates this was awarded to Hensel Phelps Construction Co., a large prime contractor. There is no explicit information on small business subcontracting participation in this specific award, which is a common requirement in federal construction.

Oversight & Accountability

Oversight would typically involve the National Institute of Standards and Technology (NIST) project managers ensuring adherence to contract terms, quality standards, and timelines. The Inspector General's office may also conduct audits.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-commerce, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25.7 million to HENSEL PHELPS CONSTRUCTION CO. IGF::OT::IGF D WING ADDITION

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

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 $25.7 million.

What is the period of performance?

Start: 2017-08-30. End: 2021-04-30.

What was the specific scope of work for the NIST building addition, and how does the $25.7 million cost align with industry standards for similar facilities?

The specific scope of work for the NIST building addition is not detailed in the provided data. However, $25.7 million for a significant commercial/institutional building project is substantial. To assess alignment, one would need to compare square footage, complexity of systems (labs, specialized equipment), and location-specific construction costs against similar federal or private sector projects.

Given the 1339-day duration, what are the primary risks associated with project delays and potential cost increases for this construction contract?

The primary risks associated with a 1339-day duration include potential material price fluctuations, labor availability issues, unforeseen site conditions, and changes in regulatory requirements over the extended period. These factors can lead to delays and necessitate contract modifications, potentially increasing the overall cost beyond the initial firm-fixed-price estimate if not managed proactively.

How effectively did the 'full and open competition' process ensure the best value was achieved for this $25.7 million NIST building addition?

Full and open competition generally promotes best value by encouraging multiple bids, which drives down prices and encourages innovation. Assuming the solicitation was well-defined and the evaluation criteria were robust, this method likely resulted in a competitive price. However, true effectiveness is best measured by post-award performance, adherence to budget, and the quality of the final construction.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,703,471

Exercised Options: $25,703,471

Current Obligation: $25,703,441

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCSB134116CQ0026

IDV Type: IDC

Timeline

Start Date: 2017-08-30

Current End Date: 2021-04-30

Potential End Date: 2021-04-30 00:00:00

Last Modified: 2021-04-29

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