Architectural services contract for USUHS Education and Research Building awarded to HKS WSP Joint Venture for over $20M

Contract Overview

Contract Amount: $20,129,408 ($20.1M)

Contractor: HKS WSP Joint Venture

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2024-05-18

Contract Duration: 2,424 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF P-2822 USUHS EDUCATION AND RESEARCH BUILDING, NSA BETHESDA, MD

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to HKS WSP JOINT VENTURE for work described as: IGF::OT::IGF P-2822 USUHS EDUCATION AND RESEARCH BUILDING, NSA BETHESDA, MD Key points: 1. Contract value appears reasonable for specialized architectural services on a large-scale federal project. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Long duration of the contract (2017-2024) may indicate complex project phases or potential for scope creep. 4. Fixed-price contract type generally shifts risk to the contractor, but requires careful scope definition. 5. Project located in Maryland, potentially impacting local architectural firms and workforce. 6. No small business set-aside, indicating the primary competition was likely among larger firms.

Value Assessment

Rating: good

The contract value of approximately $20.1 million for architectural services is within a typical range for large-scale federal research and education facilities. Benchmarking against similar projects for university research buildings or specialized medical facilities would provide a more precise value-for-money assessment. The firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process. While the number of bidders is not specified, full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and better quality proposals for the government.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it encourages multiple firms to offer their best pricing and services, potentially reducing overall project costs and ensuring the government receives optimal value.

Public Impact

The primary beneficiaries are the Uniformed Services University of the Health Sciences (USUHS) and its students/researchers, who will gain access to a new education and research facility. The contract delivers essential architectural design and potentially related services for the construction of a significant federal research building. The project's geographic impact is concentrated in Bethesda, Maryland, potentially stimulating local economic activity and employment in the design and construction sectors. Workforce implications include employment opportunities for architects, engineers, and support staff within the winning joint venture and potentially for subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2017-2024) could indicate potential for schedule delays or cost increases if not managed effectively.
Firm Fixed Price contract requires meticulous scope definition to avoid contractor claims for unforeseen work.
Lack of small business participation might limit opportunities for smaller, specialized architectural firms.
Dependence on a single joint venture for critical architectural services could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a strong proposal.
Firm Fixed Price contract type generally provides cost certainty for the government.
The project supports a critical federal educational and research institution (USUHS).
The contract is for architectural services, a specialized field requiring significant expertise.

Sector Analysis

This contract falls within the Architectural, Engineering, and Construction (AEC) services sector, specifically focusing on specialized design for federal research and educational facilities. The market for such services is competitive, with numerous firms capable of undertaking large-scale government projects. Comparable spending benchmarks would involve analyzing other federal contracts for similar institutional buildings, such as university research labs or medical training centers, to assess the pricing and scope relative to industry standards.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. This suggests that the primary competition likely occurred among larger architectural firms or joint ventures. The absence of set-aside provisions means that opportunities for small businesses would primarily depend on the prime contractor's subcontracting strategy, which is not detailed here. This could limit the direct participation of small businesses in this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy or USUHS. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USUHS Research Facilities Construction
Department of Defense Architectural Services
Federal Education Facility Design
Medical Research Building Construction

Risk Flags

Long contract duration may indicate potential for delays or cost overruns.
Firm Fixed Price requires meticulous scope management to prevent contractor claims.
Lack of small business participation limits opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to HKS WSP JOINT VENTURE. IGF::OT::IGF P-2822 USUHS EDUCATION AND RESEARCH BUILDING, NSA BETHESDA, MD

Who is the contractor on this award?

The obligated recipient is HKS WSP JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2017-09-28. End: 2024-05-18.

What is the track record of HKS WSP Joint Venture in performing federal architectural contracts?

Information regarding the specific track record of the HKS WSP Joint Venture in performing federal architectural contracts is not directly available within the provided data. However, HKS and WSP are established firms in the architecture and engineering industry, respectively. HKS is known for its work on large-scale public and private projects, including healthcare and educational facilities. WSP is a global engineering professional services consulting firm. Their joint venture likely leverages the combined expertise of both entities. A deeper dive into their past performance ratings on federal contracts, particularly those with the Department of Defense or similar agencies, would be necessary for a comprehensive assessment of their track record.

How does the awarded amount compare to similar federal architectural contracts for research buildings?

The awarded amount of approximately $20.1 million for architectural services for the USUHS Education and Research Building needs to be benchmarked against similar federal contracts to assess value for money. Without specific comparable contract data (e.g., square footage, complexity, specific services included), a precise comparison is difficult. However, for large-scale, specialized facilities like a medical research and education building, a contract value in the tens of millions for architectural design is not unusual. Factors such as the project's unique requirements, location, and the specific scope of architectural services (e.g., schematic design, design development, construction documents, construction administration) would influence the final cost. A comprehensive analysis would require access to a database of similar federal projects and their associated architectural service costs.

What are the primary risks associated with a firm fixed-price contract for architectural services on a long-duration project?

The primary risks associated with a firm fixed-price (FFP) contract for architectural services on a long-duration project like this (2017-2024) revolve around scope definition and potential for change orders. For the government, the risk is that the contractor may attempt to claim additional costs if the scope of work expands beyond what was initially defined, or if unforeseen conditions arise that were not adequately addressed in the contract. Conversely, the contractor bears the risk of cost overruns if their initial estimates were too low or if project complexities lead to higher-than-anticipated labor or material costs. For long-duration projects, the risk of inflation or changes in market conditions impacting costs also falls more heavily on the contractor under an FFP agreement. Effective contract management and clear communication are crucial to mitigate these risks.

What is the expected effectiveness of the architectural services in supporting the USUHS mission?

The effectiveness of the architectural services is critical to supporting the USUHS mission of educating health professionals and scientists to serve the nation. High-quality architectural design ensures that the new Education and Research Building will be functional, efficient, and conducive to learning and scientific discovery. This includes optimizing laboratory layouts, lecture hall acoustics, collaborative spaces, and overall building flow. A well-designed facility can enhance research capabilities, improve the learning environment for students, and attract top-tier faculty and researchers. The success of the architectural services will be measured by how well the completed building meets the specific programmatic needs of USUHS and facilitates its core educational and research objectives over its lifespan.

How has federal spending on architectural services for educational and research facilities evolved over the past decade?

Federal spending on architectural services for educational and research facilities has likely seen fluctuations over the past decade, influenced by overall federal budget priorities, infrastructure investment initiatives, and specific agency needs. Agencies like the Department of Defense (which includes USUHS), Department of Health and Human Services, and the National Science Foundation often require specialized facilities for research and training. Spending trends can be impacted by major construction programs, the need to modernize aging infrastructure, and investments in scientific research capacity. While specific aggregate data for this niche category is not provided, general trends in federal construction and facilities spending, often driven by economic conditions and national priorities, would provide a broader context. Increased focus on STEM education and advanced medical research could suggest sustained or growing demand for such services.

What are the implications of the contract's duration (2024 end date) for ongoing federal needs in this sector?

The contract's substantial duration, extending to May 2024, implies a long-term engagement for the architectural design and potentially related services for the USUHS Education and Research Building. This extended timeline suggests a complex project with multiple phases, possibly including detailed design, construction administration, and potentially post-occupancy evaluations. For federal needs in this sector, such long-term contracts indicate significant investment in infrastructure development. It also means that resources are committed for an extended period, potentially impacting the availability of funds or contractors for other concurrent or future projects. The successful completion of this project could serve as a model for future federal educational and research facility designs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 350 N ST PAUL STE 100, DALLAS, TX, 75201

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,129,408

Exercised Options: $20,129,408

Current Obligation: $20,129,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247017D5010

IDV Type: IDC

Timeline