Army awards $65M design-build contract for Bureau of Engraving and Printing facility, focusing on currency production

Contract Overview

Contract Amount: $64,992,722 ($65.0M)

Contractor: Capital Currency Team

Awarding Agency: Department of Defense

Start Date: 2022-09-13

End Date: 2025-07-01

Contract Duration: 1,022 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOR THE DESIGN-BID-BUILD (DBB) ACQUISITION OF BUREAU OF ENGRAVING AND PRINTING CURRENCY PRODUCTION FACILITY BELTSVILLE, MARYLAND FINAL DESIGN

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $65.0 million to CAPITAL CURRENCY TEAM for work described as: FOR THE DESIGN-BID-BUILD (DBB) ACQUISITION OF BUREAU OF ENGRAVING AND PRINTING CURRENCY PRODUCTION FACILITY BELTSVILLE, MARYLAND FINAL DESIGN Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these specialized engineering services. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope changes. 3. The duration of over 1000 days indicates a complex project with significant planning and execution phases. 4. The contract is for design and build services, integrating architectural and construction elements. 5. The project's focus on currency production highlights its critical national infrastructure importance. 6. The award is a delivery order under a larger contract, implying potential for future taskings.

Value Assessment

Rating: good

The contract value of approximately $65 million for a design-bid-build acquisition of a currency production facility appears reasonable given the specialized nature of the work and the project's critical infrastructure status. Benchmarking against similar large-scale federal design and construction projects for sensitive facilities would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope and aims to mitigate cost overruns, though vigilance against change orders will be crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and capability for this type of specialized engineering and construction service.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging innovative solutions from a wider pool of contractors, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Bureau of Engraving and Printing (BEP) and the Department of the Treasury, who will gain enhanced currency production capabilities. The contract delivers essential design and build services for a new currency production facility. The geographic impact is localized to Beltsville, Maryland, but the services provided have national implications for the U.S. currency supply. The project will likely create jobs in the engineering, architecture, and construction sectors in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a large design-build project, requiring stringent change order management.
Ensuring timely delivery within the 1022-day performance period is critical for operational readiness.
The specialized nature of currency production facilities may limit the pool of truly experienced contractors.
Coordination between design and construction phases needs to be seamless to avoid delays and cost overruns.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting competitive pricing and a broad contractor base.
The project addresses a critical national infrastructure need for the Bureau of Engraving and Printing.
The contract is a delivery order, indicating it's part of a potentially larger, pre-vetted framework.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, specifically related to large-scale facility design and construction. The market for such specialized services is often dominated by a few large engineering and construction firms capable of handling complex, high-security government projects. The value of this contract, approximately $65 million, is significant but not extraordinary for major federal infrastructure development. Comparable spending benchmarks would involve other large federal building projects, particularly those involving secure or specialized manufacturing facilities.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular award. While this contract itself may not directly involve small business set-asides, the prime contractor will likely engage subcontractors. The extent to which small businesses are included in the subcontracting chain will be a key factor in assessing the overall impact on the small business ecosystem. Further investigation into the prime contractor's subcontracting plan would be necessary for a complete analysis.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices, given their role as the procuring agency. Accountability measures are embedded in the firm-fixed-price contract terms and the defined performance period. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged during the contract's lifecycle.

Related Government Programs

Bureau of Engraving and Printing Operations
Federal Currency Production Facilities
Department of the Treasury Capital Projects
Department of Defense Design and Construction Contracts
Army Corps of Engineers Construction Management

Risk Flags

Potential for schedule delays due to complexity.
Risk of cost increases if scope changes significantly.
Dependency on specialized contractor expertise.
Ensuring security protocols are met throughout construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.0 million to CAPITAL CURRENCY TEAM. FOR THE DESIGN-BID-BUILD (DBB) ACQUISITION OF BUREAU OF ENGRAVING AND PRINTING CURRENCY PRODUCTION FACILITY BELTSVILLE, MARYLAND FINAL DESIGN

Who is the contractor on this award?

The obligated recipient is CAPITAL CURRENCY TEAM.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $65.0 million.

What is the period of performance?

Start: 2022-09-13. End: 2025-07-01.

What is the track record of the contractor, CAPITAL CURRENCY TEAM, with similar large-scale federal design-build projects, particularly those involving secure facilities?

Information regarding the specific track record of 'CAPITAL CURRENCY TEAM' for large-scale federal design-build projects, especially those involving secure facilities, is not directly available in the provided data snippet. As a Capital Currency Team, it is likely a specialized entity or a joint venture formed for this specific purpose or a broader program. A thorough assessment would require examining past performance evaluations (e.g., CPARS), project portfolios, and any prior government contracts held by the entity or its principal members. Understanding their experience with similar complexity, security requirements, and project scales is crucial for evaluating performance risk and ensuring successful project delivery.

How does the awarded amount of $65 million compare to the estimated cost or benchmark for similar currency production facility construction projects?

Benchmarking the $65 million award for the Bureau of Engraving and Printing Currency Production Facility against similar projects is challenging without access to detailed cost breakdowns or a database of comparable federal construction projects for highly specialized facilities. However, the value appears substantial, reflecting the complexity, security, and critical nature of currency production infrastructure. Factors such as square footage, specific technological requirements for printing, and security features significantly influence costs. A comprehensive comparison would involve analyzing cost-per-square-foot metrics for secure government facilities, factoring in the unique demands of currency manufacturing, and reviewing historical data for similar BEP or U.S. Mint construction endeavors, if publicly available.

What are the primary risks associated with a 'Delivery Order' award structure for a project of this magnitude and duration?

A Delivery Order (DO) award structure, while often efficient for tasking under an existing contract, can introduce specific risks for a large, multi-year project like the currency production facility. Key risks include potential scope definition issues if the initial contract vehicle did not fully anticipate the detailed requirements of this specific facility. There's also a risk of 'scope creep' if subsequent modifications or taskings are not tightly managed against the original contract's intent. Furthermore, the pricing established for the base contract might not perfectly align with the evolving market conditions over the project's extended duration (2025 end date). Ensuring robust oversight and clear task definitions within each DO is critical to mitigate these risks and maintain cost control and project alignment.

What are the implications of the 'Firm Fixed Price' (FFP) contract type on project flexibility and potential for cost overruns?

The Firm Fixed Price (FFP) contract type offers significant cost certainty for the government, as the contractor assumes most of the risk for cost overruns. This means the $65 million is the target price, and the contractor is obligated to complete the work within that budget. However, FFP contracts can reduce flexibility. If unforeseen issues arise or the scope needs to change substantially, modifications can be difficult and potentially costly to negotiate. Conversely, contractors may build in higher contingency amounts upfront to protect against unknown risks, potentially leading to a higher initial price compared to cost-reimbursement contracts. Effective management of the contract, particularly change order proposals, is crucial to realizing the benefits of FFP while mitigating its potential drawbacks.

How does the 1022-day duration (approx. 2.8 years) impact the assessment of project risk and the Bureau of Engraving and Printing's operational planning?

A duration of 1022 days for the design and construction of a currency production facility signifies a complex undertaking with inherent risks. Longer project timelines increase exposure to market fluctuations (materials, labor), potential design challenges, and the need for sustained project management oversight. For the Bureau of Engraving and Printing (BEP), this extended period necessitates careful operational planning to manage the transition to the new facility and potential disruptions to existing production capabilities. Delays in construction could impact the BEP's ability to meet currency demand, highlighting the importance of rigorous schedule management and proactive risk mitigation by the contractor and the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 2001 K ST NW STE 200, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $65,053,052

Exercised Options: $64,992,722

Current Obligation: $64,992,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DR20D0007

IDV Type: IDC

Timeline