NASA awards $19.9M contract for Altitude Combustion Stand Research Facility to New Era Builders Inc
Contract Overview
Contract Amount: $19,859,959 ($19.9M)
Contractor: NEW ERA Builders Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-12-12
End Date: 2010-12-31
Contract Duration: 1,845 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ALTITUDE COMBUSTION STAND RESEARCH FACILITY
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44135
State: Ohio Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $19.9 million to NEW ERA BUILDERS INC for work described as: ALTITUDE COMBUSTION STAND RESEARCH FACILITY Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1845 days indicates a significant, long-term project. 3. The firm-fixed-price structure aims to control costs for the government. 4. The project is located in Ohio, potentially impacting the local construction workforce. 5. The nature of the work, a research facility, suggests a focus on scientific advancement. 6. The award amount of nearly $20 million represents a substantial investment in infrastructure.
Value Assessment
Rating: fair
The contract value of $19.9 million for a research facility construction project appears within a reasonable range for a project of this scale and duration. Without specific benchmarks for similar combustion stand facilities, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests an effort to establish a clear cost ceiling. Further analysis would require comparing this to other large-scale specialized construction projects undertaken by NASA or similar research agencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specialized construction project. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive pricing.
Public Impact
The primary beneficiaries are NASA researchers and scientists who will utilize the new facility for combustion studies. The contract will deliver a specialized research facility, enhancing NASA's capabilities in combustion science. The geographic impact is concentrated in Ohio, where the facility will be constructed. The project is expected to create jobs in the construction sector within Ohio. The research conducted at this facility could lead to advancements in aerospace technology and safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
- The long duration of the contract could expose it to risks associated with material price fluctuations or labor availability.
- Ensuring the facility meets highly specialized research requirements will be critical for its ultimate utility.
Positive Signals
- The firm-fixed-price contract provides cost certainty for the government.
- Awarding through full and open competition suggests a thorough vetting of potential contractors.
- The project's focus on a research facility aligns with NASA's mission to advance scientific knowledge.
Sector Analysis
The construction industry, particularly specialized commercial and institutional building, is a significant sector. This contract falls within the broader category of non-residential construction. NASA's investment in a dedicated research facility like the Altitude Combustion Stand indicates a commitment to advancing specific scientific fields, such as aerospace propulsion and materials science. Comparable spending benchmarks would typically involve other large-scale government or private sector investments in research infrastructure or specialized industrial facilities.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The contractor, New Era Builders Inc., is not explicitly identified as a small business in the provided data. Further investigation would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, in this project.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance milestones and quality standards. Transparency is facilitated through contract award databases like FPDS. The Inspector General of NASA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Research and Development Facilities
- Federal Construction Contracts
- Aerospace Research Infrastructure
- Commercial and Institutional Building Construction
Risk Flags
- Potential for cost overruns
- Schedule delays
- Scope creep
- Technical challenges in specialized construction
- Contractor performance issues
Tags
nasa, construction, research-facility, firm-fixed-price, full-and-open-competition, ohio, large-contract, aerospace, commercial-institutional-building-construction, new-era-builders-inc
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $19.9 million to NEW ERA BUILDERS INC. ALTITUDE COMBUSTION STAND RESEARCH FACILITY
Who is the contractor on this award?
The obligated recipient is NEW ERA BUILDERS INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $19.9 million.
What is the period of performance?
Start: 2005-12-12. End: 2010-12-31.
What is the track record of New Era Builders Inc. with NASA or similar government agencies?
Information regarding New Era Builders Inc.'s specific track record with NASA or other government agencies is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including project types, values, timeliness of completion, and any reported issues or commendations. Examining their history would help gauge their capacity and reliability for executing a complex research facility construction project of this magnitude.
How does the awarded amount compare to similar combustion research facility constructions?
Benchmarking the $19.9 million award for the Altitude Combustion Stand Research Facility against similar projects is challenging without access to a database of comparable specialized research infrastructure costs. Factors such as facility size, technological complexity, specific testing capabilities, and geographic location significantly influence construction expenses. While the firm-fixed-price contract aims for cost control, a detailed comparison would necessitate identifying projects with analogous scope and technical specifications to ascertain if this award represents optimal value for money.
What are the primary risks associated with a long-duration construction project like this?
Long-duration construction projects, such as this 1845-day contract, carry inherent risks including potential cost escalation due to inflation in material and labor prices, unforeseen site conditions requiring extensive remediation, and delays caused by weather, regulatory changes, or supply chain disruptions. For a specialized research facility, there's also the risk that evolving scientific requirements might necessitate design modifications during construction. Effective risk mitigation strategies, robust project management, and contingency planning are crucial for successful completion.
How effective is the firm-fixed-price contract type in managing costs for specialized construction?
The firm-fixed-price (FFP) contract type is generally effective in managing costs for specialized construction by shifting the risk of cost overruns to the contractor. This structure provides the government with a predictable ceiling for expenditures. However, for highly complex or novel projects where unforeseen technical challenges are likely, contractors may build in larger contingencies, potentially leading to a higher initial price compared to cost-reimbursement contracts. The success of FFP hinges on a well-defined scope of work and thorough contractor vetting.
What is the historical spending pattern for NASA's construction of research facilities?
Analyzing NASA's historical spending on research facility construction would involve examining contract awards over several fiscal years, looking at the types of facilities built, their costs, and the agencies or departments responsible for their management. This contract for the Altitude Combustion Stand Research Facility represents a specific investment within that broader pattern. Understanding past spending trends can help contextualize the current award, identify any significant shifts in investment priorities, and assess the typical scale and cost ranges for such specialized infrastructure.
What are the implications of awarding a contract of this size in Ohio?
Awarding a nearly $20 million construction contract in Ohio has several implications. Economically, it is likely to stimulate local employment in the construction trades and related support industries. It may also benefit local suppliers of materials and equipment. From a regional development perspective, the presence of a new NASA research facility could foster innovation and attract further scientific or technological investment to the area. The long-term impact depends on the facility's operational success and its contribution to NASA's mission.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 16126 SAINT CLAIR AVE, CLEVELAND, OH, 90
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,859,959
Exercised Options: $19,859,959
Current Obligation: $19,859,959
Timeline
Start Date: 2005-12-12
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-01-04
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