HHS awards $19.7M for Architectural Services to Smith Carter, a sole-source contract

Contract Overview

Contract Amount: $19,741,778 ($19.7M)

Contractor: Cuh2a Smith Carter

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2016-08-31

Contract Duration: 4,734 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to CUH2A SMITH CARTER for work described as: Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Long contract duration of over 13 years suggests potential for cost overruns. 3. Fixed-price contract type offers some cost certainty but may limit flexibility. 4. Services procured are architectural, a common need across government agencies.

Value Assessment

Rating: questionable

The contract value of $19.7 million over 13 years averages approximately $1.5 million annually. Benchmarking is difficult without specific service details, but the long duration and sole-source nature warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for architectural services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in the procurement process raises concerns about accountability. The long-term nature of the contract could lock the government into potentially suboptimal services or pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition

Positive Signals

Firm fixed price contract type

Sector Analysis

Architectural services are essential for government infrastructure projects. The $19.7 million awarded over 13 years represents a significant investment in this sector, though benchmarks are hard to establish without specific project details.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants closer oversight to ensure fair pricing and adequate service delivery. Accountability is reduced when competition is absent.

Related Government Programs

Architectural Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Potential for overpayment
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to CUH2A SMITH CARTER. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CUH2A SMITH CARTER.

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 $19.7 million.

What is the period of performance?

Start: 2003-09-15. End: 2016-08-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further documentation, it's impossible to determine the specific rationale, but it's a critical factor in assessing the value and fairness of the procurement.

How does the annual cost compare to similar architectural service contracts awarded competitively?

Direct comparison is challenging without detailed service scope and location. However, sole-source contracts often carry a premium. A competitive process would likely have yielded a lower price point, making this contract's value questionable relative to market alternatives.

What mechanisms are in place to ensure the quality and necessity of services throughout the 13-year contract term?

Given the long duration and sole-source nature, robust oversight is crucial. This includes regular performance reviews, clear deliverables, and mechanisms for contract modification or termination if services are not meeting requirements or if market conditions change significantly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $63,189,466

Exercised Options: $48,344,429

Current Obligation: $19,741,778

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline