HHS awards $2.08M for Central Utility Plant Grid Support Services to ABB Inc

Contract Overview

Contract Amount: $2,081,178 ($2.1M)

Contractor: ABB Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CENTRAL UTILITY PLANT GRID SUPPORT SERVICES

Place of Performance

Location: CARY, WAKE County, NORTH CAROLINA, 27511

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to ABB INC. for work described as: CENTRAL UTILITY PLANT GRID SUPPORT SERVICES Key points: 1. Contract awarded to a single vendor, ABB Inc., for essential utility plant support. 2. The contract value is $2.08 million over a 5-year period. 3. No competition was utilized for this procurement. 4. The service falls under 'Other Electronic and Precision Equipment Repair and Maintenance'.

Value Assessment

Rating: fair

The contract value of $2.08 million over five years for utility plant grid support services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts is difficult without more specific details on the scope of services provided by ABB Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential grid support services.

Public Impact

Ensures continuous operation of critical utility infrastructure at NIH facilities. Potential for increased costs due to the absence of competitive bidding. Reliability of essential services is maintained through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Ensures critical infrastructure support
Long-term contract provides stability

Sector Analysis

This contract falls within the broader category of facility maintenance and operations, specifically supporting critical utility plants. Spending in this sector is generally stable, driven by the need for continuous operational support for government facilities.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The award was made to a large corporation, ABB Inc.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and that the services are indeed essential and cannot be competitively procured.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of transparency in justification
Potential for inflated costs
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to ABB INC.. CENTRAL UTILITY PLANT GRID SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ABB 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 $2.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What specific services are included in the 'Central Utility Plant Grid Support Services' to justify a sole-source award?

The specific services are not detailed in the provided data. However, 'grid support services' typically encompass maintenance, repair, and operational support for the electrical grid infrastructure within a facility's central utility plant. This could include managing power distribution, ensuring system reliability, and responding to outages or performance issues.

What is the justification for not competing this contract, and what steps were taken to ensure a fair and reasonable price?

The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was likely made, possibly due to unique capabilities or proprietary technology of ABB Inc. Without the justification documentation, it's impossible to detail the steps taken to ensure a fair and reasonable price, but agencies typically rely on historical pricing, market research, or certified cost and pricing data.

How does this contract contribute to the overall effectiveness of the National Institutes of Health's operations?

The Central Utility Plant is critical for providing essential services like power, heating, and cooling to NIH facilities. Reliable grid support ensures the uninterrupted operation of laboratories, research equipment, and administrative functions, directly contributing to the effectiveness of NIH's mission and research activities.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N99020R00027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ABB Ltd

Address: 305 GREGSON DR, CARY, NC, 27511

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,081,178

Exercised Options: $2,081,178

Current Obligation: $2,081,178

Actual Outlays: $1,864,856

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline