NASA awards $32.8M construction contract for industrial water line replacement at SSC
Contract Overview
Contract Amount: $32,758,108 ($32.8M)
Contractor: Healtheon, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2013-06-28
End Date: 2016-01-22
Contract Duration: 938 days
Daily Burn Rate: $34.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF HIGH PRESSURE INDUSTRIAL WATER LINE REPLACEMNET B-LEG, B-STAND, PIPE LINER AND BUILDING 4400 MANIFOLD. MULTIPLE AWARD CONSTRUCTION CONTRAC (MACC) FOR SSC, MS.
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $32.8 million to HEALTHEON, INC for work described as: IGF::OT::IGF HIGH PRESSURE INDUSTRIAL WATER LINE REPLACEMNET B-LEG, B-STAND, PIPE LINER AND BUILDING 4400 MANIFOLD. MULTIPLE AWARD CONSTRUCTION CONTRAC (MACC) FOR SSC, MS. Key points: 1. Contract awarded to HEALTHEON, INC. for industrial building construction services. 2. The contract was a firm-fixed-price delivery order under a Multiple Award Construction Contract (MACC). 3. This contract addresses critical infrastructure needs for water line replacement and manifold upgrades. 4. The project duration was 938 days, indicating a significant scope of work. 5. The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. 6. The total value of the contract was approximately $32.8 million.
Value Assessment
Rating: good
The contract value of $32.8 million for industrial water line replacement and manifold upgrades appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for critical infrastructure within federal agencies suggests that this pricing falls within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it places more risk on the contractor for cost overruns. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the overall award seems to reflect a competitive market price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial MACC may have had specific criteria, this particular delivery order was competed broadly among eligible contractors. The presence of 5 bidders indicates a healthy level of competition for this specific task order. A competitive process like this generally leads to better price discovery and ensures that the government receives proposals from multiple qualified firms, driving down costs and improving the quality of services.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces to obtain the best value.
Public Impact
The primary beneficiaries are NASA and the personnel at the Stennis Space Center (SSC), who will receive improved and reliable water infrastructure. The services delivered include the replacement of high-pressure industrial water lines, a critical component for facility operations. The geographic impact is localized to SSC in Mississippi, ensuring the operational continuity of this key NASA facility. The project supports the industrial base and construction workforce in the Mississippi region through employment opportunities during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on complex infrastructure projects, though mitigated by firm-fixed-price contract.
- Dependence on contractor performance for timely completion and quality of work.
- Risk of unforeseen site conditions impacting project schedule and cost.
Positive Signals
- Awarded under a competitive process, suggesting a fair market price was obtained.
- Firm-fixed-price contract provides cost certainty for the government.
- Focus on critical infrastructure upgrades enhances facility reliability and safety.
Sector Analysis
This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities. The market for federal construction contracts is substantial, with agencies like NASA frequently investing in infrastructure maintenance and upgrades. Comparable spending benchmarks for large-scale industrial construction projects within federal agencies often range from tens to hundreds of millions of dollars, depending on complexity and scope. This $32.8 million award is a significant but not extraordinary investment for critical infrastructure renewal.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if HEALTHEON, INC. chose to engage them. Without specific subcontracting plans or performance data, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and project managers, ensuring adherence to contract terms, specifications, and timelines. Accountability measures are embedded within the firm-fixed-price structure, incentivizing the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and reporting requirements. While no specific Inspector General (IG) jurisdiction is mentioned, the NASA OIG would have oversight authority over potential fraud, waste, or abuse related to federal contracts.
Related Government Programs
- NASA Facilities and Infrastructure Modernization Programs
- Department of Defense Construction Contracts
- General Services Administration (GSA) Public Buildings Service Contracts
- Army Corps of Engineers Construction Projects
Risk Flags
- Potential for cost overruns if unforeseen conditions arise.
- Contractor performance risk impacting schedule and quality.
- Dependency on specialized construction services.
Tags
construction, industrial-building, nasa, stennis-space-center, mississippi, firm-fixed-price, delivery-order, multiple-award-construction-contract, full-and-open-competition, infrastructure-upgrade, water-line-replacement
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $32.8 million to HEALTHEON, INC. IGF::OT::IGF HIGH PRESSURE INDUSTRIAL WATER LINE REPLACEMNET B-LEG, B-STAND, PIPE LINER AND BUILDING 4400 MANIFOLD. MULTIPLE AWARD CONSTRUCTION CONTRAC (MACC) FOR SSC, MS.
Who is the contractor on this award?
The obligated recipient is HEALTHEON, 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 $32.8 million.
What is the period of performance?
Start: 2013-06-28. End: 2016-01-22.
What is the track record of HEALTHEON, INC. with federal construction contracts, particularly for NASA?
Information on HEALTHEON, INC.'s specific track record with federal construction contracts, especially with NASA, is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous federal awards, and any history of disputes or contract terminations. Generally, agencies assess past performance as a key factor in awarding contracts. For a contract of this magnitude, NASA would have likely reviewed HEALTHEON, INC.'s experience with similar projects, their financial stability, and their ability to manage complex construction tasks to ensure successful project execution.
How does the $32.8 million cost compare to similar industrial water line replacement projects at other federal facilities?
Benchmarking the $32.8 million cost requires comparing it to similar projects in terms of scope (e.g., length and diameter of pipes replaced, complexity of manifold systems), location (considering regional labor and material costs), and the specific industrial requirements of the facility. Without access to a database of comparable federal construction projects with detailed cost breakdowns, a precise comparison is difficult. However, large-scale infrastructure upgrades at major federal installations can easily run into tens of millions of dollars. Factors like the 'high-pressure' nature of the lines and the need for specialized materials or construction techniques would influence the overall cost. The firm-fixed-price nature suggests the government sought cost certainty, implying the bid was considered competitive at the time of award.
What are the primary risks associated with this type of construction contract, and how were they mitigated?
The primary risks associated with large-scale industrial construction projects include unforeseen site conditions (e.g., encountering unexpected soil issues, existing utilities not on plans), contractor performance issues (delays, quality defects), and cost overruns. This contract, being firm-fixed-price, shifts much of the cost overrun risk to the contractor, HEALTHEON, INC. Mitigation strategies would have included thorough site investigations prior to bidding, detailed contract specifications, performance bonds, regular progress monitoring by NASA, and potentially liquidated damages clauses for delays. The competitive bidding process itself helps mitigate risks by selecting a contractor with a demonstrated ability to manage such projects.
How effective has NASA been in managing similar large-scale construction contracts at SSC?
Assessing the effectiveness of NASA's management of similar large-scale construction contracts at SSC requires historical data on project completion rates, adherence to budget, and post-construction performance. The provided data focuses on a single contract award. A broader analysis would involve examining NASA's project management capabilities, its procurement processes, and its success in overseeing infrastructure projects at SSC over time. Factors like the use of MACC contracts suggest a strategy to streamline procurement for recurring construction needs, which can improve efficiency. However, the effectiveness ultimately depends on the execution by both the agency and the selected contractors.
What has been the historical spending trend for industrial infrastructure at NASA's Stennis Space Center?
The provided data only includes one contract award. To understand the historical spending trend for industrial infrastructure at NASA's Stennis Space Center (SSC), one would need to analyze multiple years of contract awards related to facilities maintenance, upgrades, and construction at that location. This would involve querying federal procurement databases for contracts issued to SSC across various categories, such as construction, engineering services, and major repairs. Analyzing these trends would reveal patterns in investment, identify periods of significant capital expenditure, and potentially highlight shifts in infrastructure priorities over time.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NNS13460606R
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 201 SAINT CHARLES AVE STE 2500, NEW ORLEANS, LA, 70170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,758,108
Exercised Options: $32,758,108
Current Obligation: $32,758,108
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNS12AA75B
IDV Type: IDC
Timeline
Start Date: 2013-06-28
Current End Date: 2016-01-22
Potential End Date: 2016-01-22 00:00:00
Last Modified: 2017-12-04
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