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
- Long project duration could lead to cost overruns or delays.
- Potential for scope creep in large construction projects.
Positive Signals
- Firm-fixed-price contract helps manage cost uncertainty.
- Awarded under full and open competition.
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
- Commercial and Institutional Building Construction
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Long contract duration (1339 days).
- Potential for unforeseen site conditions.
- Risk of material and labor cost escalation over time.
- Lack of specific scope details for value assessment.
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: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION 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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