NICHD Building Renovation Project Awarded to Westerly Enterprises for $3.95M, Lacking Competition
Contract Overview
Contract Amount: $3,954,564 ($4.0M)
Contractor: Westerly Enterprises, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2022-10-24
End Date: 2026-02-27
Contract Duration: 1,222 days
Daily Burn Rate: $3.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: C111170 - NICHD BLDG. 31A 2ND FLOOR RENOVATION PROJECT, PHASE III CONSTRUCTION CO: ZACHARY PRICE CS: MARIO HENRIQUEZ COR: DAVID SATTERLEE PAST PERFORMANCE POC: STEVE O'REILLY
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $4.0 million to WESTERLY ENTERPRISES, LLC for work described as: C111170 - NICHD BLDG. 31A 2ND FLOOR RENOVATION PROJECT, PHASE III CONSTRUCTION CO: ZACHARY PRICE CS: MARIO HENRIQUEZ COR: DAVID SATTERLEE PAST PERFORMANCE POC: STEVE O'REILLY Key points: 1. Project focuses on construction for NIH facilities. 2. The contract is a Firm Fixed Price type. 3. Westerly Enterprises, LLC is the awarded contractor. 4. The project duration is 1222 days.
Value Assessment
Rating: questionable
The contract value of $3.95M for a multi-year renovation project is difficult to assess without a per-unit cost benchmark. The firm fixed price structure aims to control costs, but the lack of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This significantly limits price discovery and negotiation leverage, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant renovation project may result in taxpayers paying more than necessary for the construction services.
Public Impact
Renovation of critical NIH infrastructure. Potential impact on research facility operations. Long-term implications for healthcare construction spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long project duration
Positive Signals
- Firm Fixed Price contract type
- Focus on essential infrastructure
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Benchmarks for similar NIH facility renovations are needed to properly assess value, but the sole-source nature complicates direct comparison.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small business contractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost, despite the absence of competitive pressure.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns due to limited price discovery
- Long project duration may increase risk of unforeseen issues
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, md, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $4.0 million to WESTERLY ENTERPRISES, LLC. C111170 - NICHD BLDG. 31A 2ND FLOOR RENOVATION PROJECT, PHASE III CONSTRUCTION CO: ZACHARY PRICE CS: MARIO HENRIQUEZ COR: DAVID SATTERLEE PAST PERFORMANCE POC: STEVE O'REILLY
Who is the contractor on this award?
The obligated recipient is WESTERLY ENTERPRISES, 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 $4.0 million.
What is the period of performance?
Start: 2022-10-24. End: 2026-02-27.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. A thorough review would be required to understand the specific reasons, such as unique capabilities or urgent needs, and to confirm that no viable competitive options were overlooked. This is crucial for ensuring fair and efficient use of taxpayer funds.
How does the $3.95M contract value compare to similar NIH building renovation projects, considering the lack of competition?
Direct comparison is challenging due to the sole-source award. While the value is $3.95M, the absence of competition prevents a definitive assessment of whether this represents a fair market price. Benchmarking against publicly available data for similar-sized and scoped NIH construction projects, adjusted for inflation and specific requirements, would be necessary to identify potential cost deviations.
What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the effectiveness and timely completion of this renovation project?
The contract details specify a long duration (1222 days) and a firm fixed price. Effective oversight would involve regular progress reviews, quality inspections, and adherence to the project schedule. Key performance indicators should focus on milestones, budget adherence, and quality of work. The COR and POC roles suggest established oversight, but the specifics of their monitoring are not detailed.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75N99022R00077
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 507 N FREDERICK AVE STE 101, GAITHERSBURG, MD, 20877
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $3,954,564
Exercised Options: $3,954,564
Current Obligation: $3,954,564
Actual Outlays: $3,897,684
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-24
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2026-03-03
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