Commerce Department awards $22.6M design-build contract for NIST expansion, lacking competition

Contract Overview

Contract Amount: $22,620,299 ($22.6M)

Contractor: Northern Taiga Ventures Incorporated

Awarding Agency: Department of Commerce

Start Date: 2008-06-02

End Date: 2010-03-31

Contract Duration: 667 days

Daily Burn Rate: $33.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD OF NCNR EXPANSION

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $22.6 million to NORTHERN TAIGA VENTURES INCORPORATED for work described as: DESIGN BUILD OF NCNR EXPANSION Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined cost expectations. 2. The contract was not competed, raising questions about potential cost savings and market fairness. 3. A single award was made, suggesting limited market engagement or a specific contractor selection process. 4. The project duration of 667 days spans nearly two years, requiring sustained contractor performance. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded to Northern Taiga Ventures Incorporated. 7. The project is located in Maryland.

Value Assessment

Rating: questionable

Benchmarking the value of this $22.6 million contract is challenging without comparable projects or detailed cost breakdowns. The lack of competition suggests that the government may not have secured the most competitive pricing available in the market. Further analysis would be needed to determine if the final price reflects fair market value for the design and construction services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not openly competed among multiple potential bidders. This approach is typically used when only one contractor is capable of meeting the government's requirements, or in specific circumstances where full and open competition is not feasible. The absence of a competitive bidding process limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competitive pricing are forgone. Without a bidding process, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The National Institute of Standards and Technology (NIST) will benefit from expanded facilities, potentially enhancing its research and development capabilities. The contract delivers design and construction services for a new expansion, contributing to infrastructure development. The project's geographic impact is localized to Maryland, where NIST facilities are located. The construction activities will likely involve a workforce of skilled tradespeople and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than could have been achieved through a competitive process.
Sole-source awards can reduce transparency in government spending and contractor selection.
Limited visibility into the contractor's pricing structure due to the absence of bids.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract specifies a clear project scope for design and construction.
The award is to a single entity, potentially simplifying project management and coordination.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, laboratories, and research facilities. The total federal spending in this sector can vary annually based on infrastructure needs and agency priorities. This specific award represents a portion of the government's investment in its scientific and research infrastructure.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As a sole-source award, it is less likely to have specific small business subcontracting goals unless mandated by specific program requirements. Further investigation would be needed to determine if any small business participation was incorporated into the contract's terms or execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the Department of Commerce and NIST. Accountability measures would be defined by the contract terms, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts.

Related Government Programs

National Institute of Standards and Technology Facilities
Federal Building Construction
Research Facility Expansion

Risk Flags

Sole-source procurement
Lack of competition
Potential for cost overruns
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $22.6 million to NORTHERN TAIGA VENTURES INCORPORATED. DESIGN BUILD OF NCNR EXPANSION

Who is the contractor on this award?

The obligated recipient is NORTHERN TAIGA VENTURES INCORPORATED.

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 $22.6 million.

What is the period of performance?

Start: 2008-06-02. End: 2010-03-31.

What is the track record of Northern Taiga Ventures Incorporated with federal contracts, particularly in design-build projects?

A review of federal contract databases indicates that Northern Taiga Ventures Incorporated has received federal contracts. However, detailed information on their specific track record with design-build projects, especially those of similar scale and complexity to the NIST expansion, would require a more in-depth analysis of their past performance. Understanding their history with on-time delivery, budget adherence, and quality of work on previous government projects is crucial for assessing their capability and reliability for this significant expansion.

How does the awarded price of $22.6 million compare to similar NIST expansion or laboratory construction projects?

Direct comparison of the $22.6 million award for the NIST expansion is difficult without access to detailed cost breakdowns and specific project scopes of comparable NIST or similar laboratory construction projects. Factors such as size, complexity, specialized equipment integration, and prevailing market conditions at the time of award significantly influence project costs. A comprehensive benchmark analysis would involve identifying similar federal or private sector laboratory construction projects awarded around the same period, adjusting for size and scope differences, and evaluating their cost per square foot or per functional unit.

What are the primary risks associated with a sole-source award for a construction project of this magnitude?

The primary risks associated with a sole-source award for a construction project of this magnitude include potential overpricing due to the lack of competitive pressure, limited innovation from a single provider, and a reduced incentive for the contractor to achieve optimal efficiency. There's also a risk that the chosen contractor may not be the absolute best fit for the project's unique requirements, even if they are deemed the only viable option. Furthermore, the absence of multiple bids can obscure potential performance issues or cost overruns until they become significant problems, making oversight more critical.

What is the expected impact of this expansion on NIST's research capabilities and operational capacity?

The expansion of NIST facilities is intended to enhance its research capabilities and operational capacity by providing additional space and potentially state-of-the-art infrastructure. This could enable NIST to undertake new research initiatives, expand existing programs, accommodate more researchers, and improve the efficiency of its scientific operations. The specific impact will depend on the design of the new facilities and how they are integrated into NIST's overall mission and strategic goals. Enhanced facilities often translate to greater scientific output and impact.

What has been the historical spending pattern for NIST facility expansions or similar construction projects within the Department of Commerce?

Analyzing historical spending patterns for NIST facility expansions or similar construction projects within the Department of Commerce would reveal trends in investment in research infrastructure. This would involve examining past contract awards for construction, renovation, and expansion projects at NIST and other Commerce Department agencies. Key metrics to consider would include the average project cost, duration, procurement methods used (competed vs. sole-source), and the types of construction services procured. Such analysis can help contextualize the current $22.6 million award and identify any significant shifts in spending or procurement strategies over time.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northern Taiga Ventures, Inc. (UEI: 031748978)

Address: 814 W DIAMOND AVE STE 200, GAITHERSBURG, MD, 20878

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $22,620,299

Exercised Options: $22,620,299

Current Obligation: $22,620,299

Parent Contract

Parent Award PIID: DOCSB134107CQ0010

IDV Type: IDC

Timeline