State Dept. awards $18.7M for architectural services to DLR Group, raising questions on value and competition

Contract Overview

Contract Amount: $18,674,264 ($18.7M)

Contractor: DLR Group of DC, P.C.

Awarding Agency: General Services Administration

Start Date: 2007-04-10

End Date: 2023-12-31

Contract Duration: 6,109 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::47 4543::TAS RECOVERY - U.S. DEPARTMENT OF STATE PHASE 1C ARCHITECTURAL/ENGINEERING SERVICES AND DELIVERABLES FOR THE EXISTING CONDITIONS SURVEY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $18.7 million to DLR GROUP OF DC, P.C. for work described as: TAS::47 4543::TAS RECOVERY - U.S. DEPARTMENT OF STATE PHASE 1C ARCHITECTURAL/ENGINEERING SERVICES AND DELIVERABLES FOR THE EXISTING CONDITIONS SURVEY Key points: 1. The contract's significant value of $18.7M for architectural services warrants scrutiny. 2. Competition details are unclear, potentially impacting price discovery and taxpayer value. 3. The long duration (6109 days) and fixed-price nature present potential risks. 4. This spending falls within the architectural services sector, with benchmarks to consider.

Value Assessment

Rating: questionable

The $18.7M award for architectural services over a long period requires comparison to similar contracts. Without detailed cost breakdowns or benchmarks, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to fully assess the competitive pressure on pricing.

Taxpayer Impact: The long duration and fixed-price nature of this contract could lead to suboptimal pricing if market conditions or project requirements change significantly over time, potentially impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying if the fixed price doesn't account for evolving needs or market shifts over the contract's extensive lifespan. The long-term commitment raises concerns about the government's flexibility to adapt to new technologies or requirements. Transparency in the bidding process and cost justification is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (6109 days)
Fixed-price contract risk
Limited transparency on competition details

Positive Signals

Awarded under full and open competition
Clear contract type (FFP)

Sector Analysis

This contract for architectural/engineering services falls within the professional services sector. Benchmarks for similar large-scale, long-duration architectural projects would be needed to assess cost-effectiveness.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had adequate opportunities to participate in this procurement.

Oversight & Accountability

Oversight is needed to ensure the General Services Administration (GSA) is effectively managing this long-term contract and that the services provided remain relevant and cost-effective throughout its duration.

Related Government Programs

Architectural Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Extended contract duration
Potential for price escalation over time
Lack of detailed cost justification
Unclear competitive landscape details

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.7 million to DLR GROUP OF DC, P.C.. TAS::47 4543::TAS RECOVERY - U.S. DEPARTMENT OF STATE PHASE 1C ARCHITECTURAL/ENGINEERING SERVICES AND DELIVERABLES FOR THE EXISTING CONDITIONS SURVEY

Who is the contractor on this award?

The obligated recipient is DLR GROUP OF DC, P.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2007-04-10. End: 2023-12-31.

What specific architectural and engineering deliverables are included in this $18.7M contract, and how were they valued?

The contract specifies 'Architectural/Engineering Services and Deliverables for the Existing Conditions Survey.' However, the precise nature and scope of these deliverables, along with the methodology used to arrive at the $18.7M price, are not detailed. A breakdown of costs associated with specific tasks, such as site assessments, documentation, and reporting, would be necessary to evaluate the value proposition.

Given the 6109-day duration, what mechanisms are in place to mitigate the risk of cost overruns or scope creep?

The contract is firm fixed-price, which typically shifts cost overrun risk to the contractor. However, the extended duration presents a significant risk of market shifts, inflation, or evolving government needs. The contract's terms regarding change orders, price adjustments, and performance monitoring over such a long period are critical for managing these risks effectively.

How does the $18.7M award compare to industry benchmarks for similar long-term architectural surveys, and what was the competitive landscape?

Without specific industry benchmarks for comparable long-duration architectural surveys, it's challenging to definitively assess the $18.7M award. While the contract was 'full and open,' the lack of information on the number of bids received and their pricing makes it difficult to gauge the effectiveness of the competition in driving down costs and ensuring optimal value for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: GS11P05MKC0095

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLR Holding Company

Address: 419 7TH STREET, NW, 2ND FLOOR, WASHINGTON, DC, 20004

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

Financial Breakdown

Contract Ceiling: $18,768,633

Exercised Options: $18,674,264

Current Obligation: $18,674,264

Actual Outlays: $75,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline