NIH spent $19.9M on construction management services, awarded to Hill International, Inc. over 7 years

Contract Overview

Contract Amount: $19,947,361 ($19.9M)

Contractor: Hill International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-30

End Date: 2011-01-31

Contract Duration: 2,680 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: CONSTRUCTION (MANAGEMENT/SUPPORT)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.9 million to HILL INTERNATIONAL, INC. for work described as: CONSTRUCTION (MANAGEMENT/SUPPORT) Key points: 1. The contract provided essential construction management and support services for NIH facilities. 2. Awarded via full and open competition, suggesting a robust market for these services. 3. The duration of the contract (over 7 years) indicates a long-term need for these specialized services. 4. The cost-plus-fixed-fee contract type may incentivize cost control while ensuring contractor availability. 5. The contract's focus on R&D facilities highlights the critical infrastructure needs of scientific research. 6. The geographic location in Washington D.C. suggests a concentration of federal research facilities.

Value Assessment

Rating: good

The total award amount of approximately $19.9 million over more than seven years suggests a moderate annual expenditure for construction management services. Benchmarking this against similar contracts for large-scale research facility management would provide a clearer picture of value for money. The cost-plus-fixed-fee structure, while common, requires careful monitoring to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work.

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 firms were likely solicited and submitted proposals. The presence of six bidders (no) suggests a competitive environment, which generally leads to better pricing and service offerings for the government. This approach ensures that the government can select the most capable contractor at a fair and reasonable price.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a marketplace where contractors vie for government business, driving down costs and improving service quality through competitive pressures.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced facility management and construction oversight. Services delivered include construction management and support, crucial for maintaining and upgrading research infrastructure. The geographic impact is primarily within the District of Columbia, where NIH facilities are located. The contract supports specialized roles in construction management, potentially involving architects, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
Long contract duration could lead to contractor complacency or outdated practices if not actively managed.
Dependence on a single contractor for critical facility support over an extended period.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor has a defined role in supporting critical research infrastructure.
Fixed fee component provides some cost predictability for the government.

Sector Analysis

This contract falls within the construction management and support services sector, a critical component for government agencies managing extensive physical infrastructure, particularly research facilities. The market for these services is competitive, with specialized firms offering expertise in project planning, execution, and oversight. Spending in this area is often tied to capital investment cycles and the need to maintain aging facilities or build new ones to support evolving scientific endeavors.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false) and the contractor, Hill International, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem is likely minimal unless subcontracting opportunities were pursued independently by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within NIH. Performance would be monitored against contract deliverables and milestones. Given the nature of construction management, regular site inspections and progress reports are standard. Inspector General involvement would depend on allegations of fraud, waste, or abuse.

Related Government Programs

NIH Facility Management Contracts
Federal Construction Support Services
Research Infrastructure Development
Capital Investment in Scientific Facilities

Risk Flags

Long contract duration requires sustained oversight.
Cost-plus contract type necessitates robust cost monitoring.
Potential for scope creep in construction management projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.9 million to HILL INTERNATIONAL, INC.. CONSTRUCTION (MANAGEMENT/SUPPORT)

Who is the contractor on this award?

The obligated recipient is HILL INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2003-09-30. End: 2011-01-31.

What was the specific scope of construction management services provided under this contract?

The contract data indicates 'CONSTRUCTION (MANAGEMENT/SUPPORT)' as the service type. This generally encompasses a range of activities including project planning, scheduling, cost control, quality assurance, coordination of trades, site supervision, and ensuring compliance with building codes and safety regulations. For NIH, this likely involved managing the construction, renovation, or maintenance of laboratory spaces, research buildings, and associated infrastructure, ensuring minimal disruption to ongoing scientific activities.

How does the $19.9 million total award compare to typical spending on similar NIH construction management contracts?

Without specific benchmarks for NIH construction management contracts of similar scope and duration, a direct comparison is difficult. However, $19.9 million spread over more than seven years averages approximately $2.8 million per year. This figure appears moderate for managing complex research facility projects, especially considering the high costs associated with specialized scientific environments. A detailed analysis would require comparing this contract's scope, complexity, and duration against a portfolio of comparable NIH or other federal agency contracts.

What were the key performance indicators (KPIs) used to evaluate Hill International, Inc.'s performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for construction management contracts include adherence to schedule, budget performance (cost savings or variance), quality of work (defect rates, compliance), safety record (incident rates), and client satisfaction. For NIH, KPIs might also include minimizing disruption to ongoing research operations and ensuring facilities met specific scientific operational requirements.

What is the significance of the contract type 'Cost Plus Fixed Fee' (CPFF) in this context?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor (Hill International, Inc.) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is well-defined but the exact costs are uncertain, such as in construction projects. For NIH, CPFF provides flexibility but requires diligent oversight to manage costs effectively and ensure the fixed fee remains appropriate for the services rendered. It incentivizes the contractor to control costs to protect their fee.

What was the historical spending trend for construction management support at NIH prior to or during this contract period?

The provided data focuses on a single contract awarded in 2003 and ending in 2011. It does not offer historical spending trends for NIH construction management support. To understand historical patterns, one would need to analyze NIH's contracting data over a longer period, identifying all contracts related to construction management and support, their values, durations, and award types. This would reveal whether spending has increased, decreased, or remained stable, and identify any shifts in contracting strategies.

Were there any notable challenges or successes reported regarding Hill International's performance on this contract?

The provided data does not contain qualitative information about the performance of Hill International, Inc. on this specific contract, such as reported challenges or successes. Such details would typically be found in contract performance reports, agency evaluations, or potentially in Inspector General reports if significant issues arose. Without access to these internal documents, assessing specific performance outcomes is not possible based solely on the award data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 303 LIPPINCOTT DR, MARLTON, NJ, 08053

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

Financial Breakdown

Contract Ceiling: $26,871,949

Exercised Options: $12,989,110

Current Obligation: $19,947,361

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline