State Dept. Awards $11.5M for Architectural & Engineering Services to Skidmore, Owings & Merrill LLP

Contract Overview

Contract Amount: $11,459,046 ($11.5M)

Contractor: Skidmore, Owings & Merrill LLP

Awarding Agency: Department of State

Start Date: 2003-11-13

End Date: 2014-11-24

Contract Duration: 4,029 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARCHITECTUAL AND ENGINEERING SERVICES

Plain-Language Summary

Department of State obligated $11.5 million to SKIDMORE, OWINGS & MERRILL LLP for work described as: ARCHITECTUAL AND ENGINEERING SERVICES Key points: 1. Contract awarded for architectural and engineering services. 2. Skidmore, Owings & Merrill LLP is the primary contractor. 3. The contract was awarded under full and open competition. 4. The total award value is approximately $11.5 million. 5. The contract duration was over 11 years.

Value Assessment

Rating: fair

The contract value of $11.5 million over 11 years suggests a significant but potentially reasonable investment for architectural and engineering services. Benchmarking against similar long-term, large-scale A&E contracts is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for price discovery and selection. This method generally promotes competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment.

Public Impact

Supports critical infrastructure projects for the Department of State. Ensures access to specialized architectural and engineering expertise. Long contract duration may indicate ongoing or phased project needs. Potential for follow-on work or related service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (over 11 years) could lead to cost overruns if not managed effectively.
  • Potential for scope creep over an extended period.
  • Limited visibility into specific project deliverables and outcomes.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Contractor has a strong reputation in architectural and engineering services.
  • Clear contract type (Firm Fixed Price) helps manage cost certainty.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for government infrastructure and facility development. Spending benchmarks for A&E services vary widely based on project scope and complexity.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract.

Oversight & Accountability

Oversight would focus on ensuring the contractor meets performance requirements, stays within budget, and adheres to the firm fixed price terms throughout the contract's extended duration.

Related Government Programs

  • Engineering Services
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Long contract duration increases risk of cost escalation and scope creep.
  • Potential for contractor performance issues over an extended period.
  • Limited transparency on specific project outcomes and value realization.
  • Dependence on a single firm for critical services over many years.

Tags

engineering-services, department-of-state, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.5 million to SKIDMORE, OWINGS & MERRILL LLP. ARCHITECTUAL AND ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is SKIDMORE, OWINGS & MERRILL LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2003-11-13. End: 2014-11-24.

What specific architectural and engineering projects were covered under this long-term contract, and how did their scope justify the extended duration and total value?

The contract likely encompassed a series of projects related to the Department of State's facilities, potentially including design, planning, and oversight for renovations, new constructions, or specialized infrastructure upgrades. The extended duration suggests a need for consistent, long-term support across multiple, possibly phased, initiatives, rather than a single, discrete project. A detailed breakdown of project phases and deliverables would clarify the justification for the $11.5 million award over 11 years.

Given the firm fixed price contract type, what mechanisms were in place to mitigate risks associated with potential cost increases or scope changes over the 11-year period?

A firm fixed price contract aims to shift risk to the contractor. However, over an 11-year period, mechanisms like detailed initial scope definition, phased reviews, change order limitations, and performance-based incentives would be crucial. The government likely relied on robust contract management and clear performance metrics to ensure the contractor absorbed unforeseen costs and managed scope effectively within the agreed-upon price.

How effectively did the full and open competition process ensure the best value for taxpayer dollars, considering the specialized nature of the services and the long contract term?

Full and open competition is designed to maximize value by encouraging multiple bidders. For specialized A&E services over a long term, the effectiveness hinges on the clarity of the solicitation's technical requirements and evaluation criteria. If the competition attracted highly qualified firms and resulted in competitive bids, it likely secured good value. However, the long duration necessitates careful monitoring to ensure the initial value proposition holds throughout the contract's life.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: ONE FRONT STREET, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,383,153

Exercised Options: $23,383,153

Current Obligation: $11,459,046

Timeline

Start Date: 2003-11-13

Current End Date: 2014-11-24

Potential End Date: 2014-11-24 00:00:00

Last Modified: 2015-02-04

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