NIH Awards $46.2M for Pharmacy Renovation, Boosting Efficiency and Functionality

Contract Overview

Contract Amount: $46,237,336 ($46.2M)

Contractor: DPR Construction, a General Partnership

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-03

End Date: 2024-12-31

Contract Duration: 1,946 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TITLE: PHARMACY AND INTRAVENOUS ADMIXTURE UNIT RENOVATION (DB INITIAL AWARD), BLDG 10THE PHARMACY DEPARTMENT SPACES ARE TO BE RENOVATED TO PROVIDE AN UPDATED, MORE EFFICIENT, AND FUNCTIONAL DEPARTMENT TO ACCOMMODATE THE FOLLOWING OPERATIONS: ASE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP for work described as: TITLE: PHARMACY AND INTRAVENOUS ADMIXTURE UNIT RENOVATION (DB INITIAL AWARD), BLDG 10THE PHARMACY DEPARTMENT SPACES ARE TO BE RENOVATED TO PROVIDE AN UPDATED, MORE EFFICIENT, AND FUNCTIONAL DEPARTMENT TO ACCOMMODATE THE FOLLOWING OPERATIONS: ASE Key points: 1. The project aims to modernize the Pharmacy Department's spaces for improved operational efficiency. 2. DPR Construction secured the contract through full and open competition. 3. The renovation is expected to enhance the department's ability to accommodate current and future operations. 4. This significant investment highlights the NIH's commitment to upgrading critical healthcare infrastructure.

Value Assessment

Rating: good

The award amount of $46.2M for a 1946-day duration appears reasonable for a large-scale renovation of a specialized healthcare unit. Benchmarking against similar hospital renovation projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified contractors bid on the project.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades within a leading research institution, aiming for long-term operational efficiencies.

Public Impact

Improved patient care through a more efficient pharmacy operation. Enhanced research capabilities by providing a modern and functional workspace. Potential for cost savings in the long run due to increased operational efficiency. Modernization of a critical healthcare facility at a major federal research center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration of 1946 days (over 5 years) is lengthy and may indicate potential for delays or scope creep.
Lack of specific details on the 'ASE' operations to be accommodated makes it difficult to fully assess the scope's impact.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Focus on modernization and efficiency improvements.
Significant investment in healthcare infrastructure.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a broad sector encompassing significant federal spending. Benchmarks for similar healthcare facility renovations vary widely based on scope and location, but large-scale projects often exceed tens of millions.

Small Business Impact

While the prime contractor is DPR Construction, a large entity, the contract details do not specify any small business subcontracting goals or participation. Further investigation into subcontracting plans would be beneficial.

Oversight & Accountability

The award is a delivery order under a larger contract vehicle (NAICS 236220). Oversight will likely involve the National Institutes of Health (NIH) project management team ensuring adherence to scope, budget, and timeline.

Related Government Programs

Commercial and Institutional Building Construction
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lengthy project duration (1946 days).
Potential for disruption to critical pharmacy services.
Scope details ('ASE') are vague.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP. TITLE: PHARMACY AND INTRAVENOUS ADMIXTURE UNIT RENOVATION (DB INITIAL AWARD), BLDG 10THE PHARMACY DEPARTMENT SPACES ARE TO BE RENOVATED TO PROVIDE AN UPDATED, MORE EFFICIENT, AND FUNCTIONAL DEPARTMENT TO ACCOMMODATE THE FOLLOWING OPERATIONS: ASE

Who is the contractor on this award?

The obligated recipient is DPR CONSTRUCTION, A GENERAL PARTNERSHIP.

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 $46.2 million.

What is the period of performance?

Start: 2019-09-03. End: 2024-12-31.

What specific operational efficiencies are expected from this renovation, and how will they be measured?

The renovation aims to provide an updated, more efficient, and functional department to accommodate specific operations (ASE). Expected efficiencies likely include streamlined workflows, improved inventory management, and enhanced medication dispensing processes. Measurement metrics could involve reduced turnaround times for prescriptions, decreased error rates, and optimized staff productivity, though these are not explicitly detailed in the award notice.

What are the primary risks associated with a renovation project of this scale and duration, and what mitigation strategies are in place?

Key risks include potential construction delays, cost overruns due to unforeseen site conditions or material price fluctuations, and disruption to ongoing pharmacy operations. Mitigation strategies typically involve detailed project planning, contingency budgeting, phased construction to minimize operational impact, and robust contract management by the NIH to oversee progress and address issues promptly.

How will the success of this renovation be evaluated in terms of its long-term impact on the Pharmacy Department's effectiveness?

Success will be evaluated based on the Pharmacy Department's ability to effectively accommodate its intended operations post-renovation, improved workflow efficiency, and adherence to updated safety and regulatory standards. Long-term effectiveness will be gauged by sustained operational improvements, reduced errors, enhanced staff satisfaction, and the facility's capacity to support future growth and technological advancements in pharmaceutical services.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHOF2011367

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1450 VETERANS BLVD OFC, REDWOOD CITY, CA, 94063

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,237,336

Exercised Options: $46,237,336

Current Obligation: $46,237,336

Actual Outlays: $22,724,762

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HHSN292201400008I

IDV Type: IDC

Timeline