NIH awards $14.4M electrical substation repair contract to Olgoonik Specialty Contractors LLC

Contract Overview

Contract Amount: $14,366,265 ($14.4M)

Contractor: Olgoonik Specialty Contractors LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-04-16

End Date: 2025-12-31

Contract Duration: 2,085 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C102846 - CONSTRUCTION REPAIR ELECTRICAL NIH EAST SUBSTATION 17, BETHESDA CAMPUS, REZA JAFARI

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.4 million to OLGOONIK SPECIALTY CONTRACTORS LLC for work described as: C102846 - CONSTRUCTION REPAIR ELECTRICAL NIH EAST SUBSTATION 17, BETHESDA CAMPUS, REZA JAFARI Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2085 days (approx. 5.7 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. 6. The award was made by the National Institutes of Health (NIH), a major research institution.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of work and the specific repairs required. However, the total award amount of approximately $14.4 million over nearly six years suggests a significant investment in maintaining critical infrastructure at the NIH Bethesda campus. Without comparable project data or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm-fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders (as indicated by 'no': 8) suggests a healthy level of competition for this project. A competitive process like this typically leads to better price discovery and potentially more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A competitive award means taxpayer dollars are more likely to be spent efficiently, as multiple companies vied to offer the best value. This process helps ensure the government secures services at a market-driven price.

Public Impact

The primary beneficiaries are the National Institutes of Health, ensuring the operational integrity of its electrical infrastructure at the Bethesda campus. The services delivered include construction and repair of electrical systems for a major research and healthcare facility. The geographic impact is localized to the NIH Bethesda campus in Maryland. The contract supports jobs within the commercial and institutional building construction sector, specifically those with expertise in electrical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial definition of 'repair' is not precise, leading to cost increases.
Long contract duration could lead to contractor complacency or difficulty in adapting to new technologies if not managed actively.
Dependence on a single contractor for critical infrastructure repairs could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition with multiple bidders suggests a competitive market and potentially good pricing.
The contractor, Olgoonik Specialty Contractors LLC, is likely experienced in similar construction and repair projects.
The long duration allows for a sustained focus on maintaining critical infrastructure.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). This sector involves the construction of non-residential buildings. The NIH campus represents a large, complex facility requiring specialized construction and maintenance services. Spending on facility maintenance and upgrades for government research institutions is substantial, reflecting the need to maintain state-of-the-art research environments. Comparable spending benchmarks would typically involve other large federal facility renovation or construction projects.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors for specialized tasks, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the National Institutes of Health. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH Facilities Maintenance Contracts
Federal Building Construction and Repair
Department of Health and Human Services Infrastructure Projects
Large-scale Electrical System Upgrades
Commercial Building Construction Services

Risk Flags

Long contract duration may require active management to prevent performance decay.
Scope definition for 'repair' needs to be precise to avoid cost overruns.
Potential for material cost fluctuations over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.4 million to OLGOONIK SPECIALTY CONTRACTORS LLC. C102846 - CONSTRUCTION REPAIR ELECTRICAL NIH EAST SUBSTATION 17, BETHESDA CAMPUS, REZA JAFARI

Who is the contractor on this award?

The obligated recipient is OLGOONIK SPECIALTY CONTRACTORS LLC.

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 $14.4 million.

What is the period of performance?

Start: 2020-04-16. End: 2025-12-31.

What specific electrical systems or components are included in the 'repair' scope for the NIH East Substation?

The provided data does not detail the specific electrical systems or components covered under the 'repair' scope for the NIH East Substation. This level of detail would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract award. Such documents outline the exact nature of the repairs, including but not limited to transformers, switchgear, distribution panels, wiring, control systems, and emergency power backups. Understanding the specifics is crucial for assessing the technical complexity, risk, and overall value of the contract.

How does the awarded price of approximately $14.4 million compare to similar electrical repair projects at other federal research facilities?

Directly comparing the $14.4 million award to similar projects is difficult without access to detailed cost data for comparable federal electrical repair contracts. Factors such as facility size, age, specific system requirements, geographic location (affecting labor and material costs), and the extent of the repairs significantly influence project costs. However, for a multi-year project involving critical infrastructure at a major research campus like NIH, this amount suggests a substantial undertaking. A comprehensive benchmark would require analyzing contracts with similar scope, duration, and complexity, ideally within the same agency or sector.

What is the track record of Olgoonik Specialty Contractors LLC in performing similar large-scale electrical construction and repair projects for federal agencies?

Information on Olgoonik Specialty Contractors LLC's specific track record for similar large-scale electrical construction and repair projects for federal agencies is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous federal contract awards, and any reported issues or successes on comparable projects. Their ability to successfully execute this NIH contract will depend on their demonstrated experience in managing complex electrical infrastructure work, adherence to safety standards, and timely project completion.

What are the key performance indicators (KPIs) used to measure the success of this electrical repair contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for construction and repair contracts, KPIs would focus on aspects such as adherence to schedule, budget compliance (though less critical with FFP), quality of workmanship, safety incident rates, and responsiveness to issues. For electrical systems, specific performance metrics related to system uptime, power quality, and successful testing of repaired components would also be critical. These KPIs are usually defined in the contract's SOW or PWS and are monitored by the government's technical point of contact.

What is the historical spending trend for electrical infrastructure maintenance and repair at the NIH Bethesda campus?

The provided data does not include historical spending trends for electrical infrastructure maintenance and repair at the NIH Bethesda campus. To analyze this, one would need to examine past contract awards for similar services at this specific location over several fiscal years. Understanding historical spending patterns can help determine if the current $14.4 million award represents an increase, decrease, or consistent level of investment in maintaining the campus's electrical systems, and whether it aligns with the aging of the infrastructure.

Are there any specific risks associated with the long duration (2085 days) of this contract, and how are they being mitigated?

The long duration of 2085 days (approximately 5.7 years) for this electrical repair contract presents several potential risks. These include the possibility of outdated technology being installed if the scope isn't carefully managed, potential increases in material costs over time (though mitigated by FFP), and the risk of contractor performance degradation or complacency. Mitigation strategies typically involve robust contract management, clear performance standards, regular progress reviews, and potentially incorporating clauses for material cost adjustments or technology updates if necessary. The government's technical team plays a crucial role in overseeing the project throughout its lifecycle.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olgoonik General, LLC

Address: 7619 LITTLE RIVER TURNPIKE STE 800, ANNANDALE, VA, 22003

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,366,265

Exercised Options: $14,366,265

Current Obligation: $14,366,265

Actual Outlays: $11,095,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00028

IDV Type: IDC

Timeline