GSA awards $20.9M contract for architect/engineering services to HLW INTERNATIONAL LLP

Contract Overview

Contract Amount: $20,916,451 ($20.9M)

Contractor: HLW International LLP

Awarding Agency: General Services Administration

Start Date: 1995-10-21

End Date: 2007-11-30

Contract Duration: 4,423 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECT/ENGINEERING SERVICES

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $20.9 million to HLW INTERNATIONAL LLP for work described as: ARCHITECT/ENGINEERING SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 4423 days (over 12 years) indicates a long-term need for these services. 3. The firm fixed-price contract type suggests that the price was set upfront, with potential for contractor risk if costs exceed estimates. 4. The contract was awarded by the General Services Administration (GSA), Public Buildings Service, indicating a focus on federal building infrastructure. 5. The contract was awarded in New York, suggesting a geographic concentration of services. 6. The absence of small business set-aside flags indicates this was not specifically targeted towards small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and the specific projects undertaken. The total award amount of over $20 million spread over more than 12 years suggests a significant but potentially reasonable investment for ongoing architectural and engineering support. However, without comparable contract data for similar services from GSA or other agencies, it's difficult to definitively assess if the pricing was competitive or if the value delivered was excellent. The fixed-price nature could lead to cost savings if managed efficiently, but also carries risk if project requirements change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders indicates a moderate level of competition for these services. While more than one bidder is positive, the exact number (5) doesn't necessarily guarantee the most competitive pricing without knowing the quality and pricing of each bid. This level of competition suggests that GSA sought multiple proposals to ensure a reasonable selection, but it's not as robust as a situation with a significantly larger number of bidders.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality. It helps ensure that the government is not overpaying for necessary services.

Public Impact

Federal agencies requiring architectural and engineering expertise for building projects and infrastructure management are the primary beneficiaries. Services delivered likely include design, planning, and oversight for federal building construction, renovation, and maintenance. The geographic impact is concentrated in New York, where the services were likely performed. The contract supports a professional workforce of architects and engineers, contributing to employment in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) could lead to scope creep or price escalation if not managed tightly.
Lack of specific performance metrics makes it difficult to assess the quality and efficiency of services delivered over time.
The absence of small business participation could limit opportunities for smaller, specialized firms in the federal contracting space.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
Firm fixed-price contract type can provide cost certainty for the government if managed effectively.
The General Services Administration's involvement suggests adherence to established procurement standards and oversight.

Sector Analysis

Architectural and engineering services are a critical component of the construction and facilities management sector. This contract falls within the broader professional services category, supporting the design, planning, and oversight of federal building projects. The market for these services is competitive, with numerous firms offering specialized expertise. GSA, as a major federal real estate manager, regularly procures such services to maintain and upgrade its vast portfolio of government buildings.

Small Business Impact

This contract does not appear to have a small business set-aside. The fact that it was awarded under full and open competition with 5 bidders suggests that small businesses were eligible to compete, but the prime contract was awarded to a larger entity. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage smaller firms in federal projects.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. As the awarding agency, GSA's Public Buildings Service would have established performance standards, monitoring mechanisms, and payment schedules. The firm fixed-price nature of the contract implies that the contractor bears the primary financial risk, which can incentivize efficient performance. Transparency would be facilitated through contract award databases and GSA's public reporting, though detailed performance data may not be readily available.

Related Government Programs

GSA Design Excellence Program
Federal Building Design and Construction
Architectural Services Contracts
Engineering Services Contracts
Public Buildings Service Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Lack of detailed performance metrics makes post-award evaluation difficult.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.9 million to HLW INTERNATIONAL LLP. ARCHITECT/ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is HLW INTERNATIONAL LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 1995-10-21. End: 2007-11-30.

What specific types of architectural and engineering services were included under this contract?

The provided data indicates the contract is for 'ARCHITECT/ENGINEERING SERVICES' awarded to HLW INTERNATIONAL LLP by the General Services Administration (GSA). However, the specific scope of work is not detailed. Typically, such contracts can encompass a wide range of services including feasibility studies, site analysis, conceptual design, schematic design, design development, construction documents, bidding assistance, construction administration, post-occupancy evaluations, and potentially specialized engineering disciplines like structural, mechanical, electrical, and plumbing (MEP) engineering. The long duration of over 12 years suggests these services were likely ongoing or covered multiple phases of various projects rather than a single, short-term task.

How does the $20.9 million award compare to similar GSA contracts for architectural and engineering services?

Direct comparison of the $20.9 million award to similar GSA contracts is difficult without access to a comprehensive database of GSA's architectural and engineering procurements, including their specific scopes of work and durations. However, GSA manages a vast portfolio of federal buildings, and multi-year contracts for A&E services in the tens of millions of dollars are not uncommon, especially for large-scale renovations, new constructions, or comprehensive facility management support. The value is spread over more than 12 years, making the average annual expenditure around $1.7 million, which falls within a reasonable range for significant federal real estate support.

What are the key risks associated with a firm fixed-price contract of this duration?

A primary risk with a firm fixed-price (FFP) contract, especially one spanning over 12 years, is the potential for cost overruns for the contractor if project requirements change significantly or unforeseen issues arise. For the government, the risk lies in potentially paying a premium if the initial price was set too high due to uncertainty, or if the contractor becomes less incentivized to innovate or provide exceptional value once the price is fixed. Scope creep, where the client requests additional work not originally envisioned, can also become a significant issue, potentially leading to disputes or requiring contract modifications that could negate the fixed-price benefit if not managed carefully.

What does the level of competition (5 bidders) indicate about the effectiveness of GSA's procurement process for these services?

Having 5 bidders for a full and open competition suggests a moderately effective procurement process. It indicates that GSA successfully advertised the requirement and attracted a reasonable number of interested firms. However, the ideal number of bidders can vary depending on the complexity and value of the contract. While 5 bidders is better than a sole-source or limited competition, a higher number might indicate even stronger competition, potentially driving prices lower and fostering greater innovation. The effectiveness also depends on the quality of the proposals received and whether the selected contractor truly offered the best value.

What is the historical spending pattern for architectural and engineering services by the GSA Public Buildings Service?

Historical spending data for GSA's Public Buildings Service (PBS) on architectural and engineering (A&E) services would typically show consistent and substantial investment. PBS is responsible for managing and maintaining a vast portfolio of federal buildings across the United States. Consequently, they regularly procure A&E services for new construction, major renovations, repairs, and facility modernization projects. Spending patterns would likely reflect national economic conditions, federal infrastructure priorities, and the lifecycle needs of the federal building inventory. Without specific historical data, it's reasonable to assume GSA PBS spends hundreds of millions, if not billions, annually on such services across all its contracts.

What is the track record of HLW INTERNATIONAL LLP in securing and performing federal contracts?

The provided data indicates HLW INTERNATIONAL LLP was awarded this specific contract. To assess their track record, one would need to examine their broader federal contracting history, including the number of contracts awarded, their values, the agencies involved, contract performance ratings (if available), and any past performance issues or disputes. A quick search of federal procurement databases would likely reveal if HLW has a significant history with GSA or other federal agencies, and whether they have successfully completed similar large-scale A&E projects. Their performance on this specific, long-term contract would be a key indicator.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: GS-02P-93-CU-C-0062

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 5TH AVE FL 5, NEW YORK, NY, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,916,451

Exercised Options: $20,916,451

Current Obligation: $20,916,451

Contract Characteristics

Cost or Pricing Data: NO

Timeline