Hensel Phelps Construction Co. awarded $115M for NIH Vivarium Project, highlighting significant investment in research infrastructure

Contract Overview

Contract Amount: $115,090,053 ($115.1M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Department of Health and Human Services

Start Date: 2021-10-09

End Date: 2024-07-31

Contract Duration: 1,026 days

Daily Burn Rate: $112.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C104385 - BUILDING B VIVARIUM PROJECT, RML

Place of Performance

Location: HAMILTON, RAVALLI County, MONTANA, 59840

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $115.1 million to HENSEL PHELPS CONSTRUCTION CO for work described as: C104385 - BUILDING B VIVARIUM PROJECT, RML Key points: 1. The contract represents a substantial investment in specialized research facilities, indicating a focus on enhancing scientific capabilities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring cost-effectiveness and quality. 3. Potential risks include project delays, cost overruns, and adherence to stringent scientific facility standards. 4. The project's performance context will be measured against timelines, budget adherence, and the successful commissioning of the vivarium. 5. This contract positions the National Institutes of Health to expand its capacity for critical biomedical research.

Value Assessment

Rating: good

The $115 million award for the Vivarium Project appears to be a significant but potentially reasonable investment for a specialized research facility of this scale. Benchmarking against similar large-scale construction projects for scientific institutions would provide a clearer picture of value for money. The firm-fixed-price contract type suggests that the contractor bears more risk for cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without detailed cost breakdowns or comparisons to similar projects, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. This approach is generally favored for large contracts as it promotes a wider range of offers and potentially drives down prices through competitive pressure. The presence of multiple bidders suggests a healthy market for specialized construction services. The specific number of bids received would further clarify the intensity of the competition.

Taxpayer Impact: Full and open competition for this substantial project is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the construction of vital research infrastructure.

Public Impact

The primary beneficiaries are researchers and scientists at the National Institutes of Health (NIH) who will utilize the new vivarium facilities. The project will deliver a state-of-the-art vivarium, essential for housing and studying laboratory animals crucial for biomedical research. The geographic impact is concentrated in Montana, where the facility is being constructed, potentially creating local construction jobs. Workforce implications include employment opportunities for construction workers, engineers, architects, and specialized trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex research facility construction.
Ensuring adherence to highly specific and evolving scientific and animal welfare standards.
Managing long lead times for specialized equipment and materials.
Risk of unforeseen site conditions impacting schedule and budget.
Coordination challenges among multiple stakeholders (contractor, NIH, researchers).

Positive Signals

Firm-fixed-price contract structure limits government exposure to cost overruns.
Full and open competition likely secured competitive pricing and a qualified contractor.
Experienced contractor (Hensel Phelps Construction Co.) suggests a higher likelihood of successful project execution.
Clear project objective (vivarium construction) provides a defined scope.
Project duration allows for methodical planning and execution.

Sector Analysis

The construction sector for institutional and commercial buildings is a significant part of the U.S. economy. This contract falls within the specialized segment of constructing facilities for research and development, which often requires unique architectural, engineering, and environmental controls. Comparable spending benchmarks for similar large-scale laboratory or vivarium construction projects at federal research institutions would provide context for the $115 million award. The market for such specialized construction is typically dominated by large, experienced firms capable of managing complex projects.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor, Hensel Phelps Construction Co., is a large entity. There is no explicit mention of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Hensel Phelps actively seeks to subcontract portions of the work to qualified small businesses, which is a common practice in large construction projects to meet diversity goals and leverage specialized expertise.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant program officials within the National Institutes of Health (NIH). Accountability measures will include adherence to the contract terms, performance milestones, and quality standards. Transparency is generally facilitated through federal contract databases and reporting requirements. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

NIH Research Facilities Construction
Federal Laboratory Modernization Projects
Biomedical Research Infrastructure Grants
Large-Scale Construction Contracts
Department of Health and Human Services Capital Investments

Risk Flags

Potential for cost overruns in specialized construction.
Adherence to stringent scientific and animal welfare standards.
Long lead times for specialized materials and equipment.
Complexity of integrating advanced building systems.
Ensuring adequate competition for future phases or related work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.1 million to HENSEL PHELPS CONSTRUCTION CO. C104385 - BUILDING B VIVARIUM PROJECT, RML

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

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 $115.1 million.

What is the period of performance?

Start: 2021-10-09. End: 2024-07-31.

What is the track record of Hensel Phelps Construction Co. on similar federal construction projects, particularly those involving specialized facilities like laboratories or animal research centers?

Hensel Phelps Construction Co. has a substantial track record in large-scale construction projects, including significant work for federal agencies and in the healthcare and research sectors. While specific details on past vivarium projects are not provided in this data snippet, their extensive experience in commercial and institutional building construction suggests a capability to handle complex requirements. A deeper dive into their past performance on projects with similar technical specifications, regulatory compliance needs (e.g., animal welfare standards, biosafety levels), and contract values would be necessary to fully assess their suitability and past success in delivering comparable facilities. Reviewing past performance evaluations and any reported issues on similar federal contracts would offer further insight.

How does the awarded amount of $115 million compare to the estimated cost or budget for this specific NIH Vivarium Project?

The provided data lists the award amount as $115,090,053.01. Without access to the original contract solicitation, pre-award estimates, or subsequent modifications, it is difficult to definitively state how this award compares to the initial budget. However, the fact that it was awarded under 'Full and Open Competition' suggests that the bids received were evaluated against established criteria, and this amount represents the selected offer's price. If the award is close to or below initial estimates, it could indicate effective cost management during the solicitation phase. Conversely, if it significantly exceeds estimates, further investigation into the reasons for the variance would be warranted.

What are the key risk indicators associated with constructing a vivarium, and how are they being mitigated in this contract?

Key risk indicators for constructing a vivarium include the highly specialized nature of the facility (requiring precise environmental controls, containment, and animal welfare considerations), potential for regulatory non-compliance, long lead times for specialized equipment, and the possibility of unforeseen site conditions. This contract, being a firm-fixed-price (FFP) award, shifts significant cost overrun risk to the contractor, Hensel Phelps Construction Co. Mitigation strategies likely involve rigorous design reviews, adherence to strict building codes and animal welfare regulations, detailed project scheduling with contingency planning, and potentially performance bonds. The selection of an experienced contractor through full and open competition also serves as a risk mitigation factor, assuming thorough vetting occurred.

What is the expected impact of this vivarium project on the NIH's overall research capacity and specific scientific endeavors?

The construction of a new vivarium is expected to significantly enhance the NIH's research capacity by providing state-of-the-art facilities for housing and conducting studies involving laboratory animals. This is crucial for a wide range of biomedical research, including drug development, disease modeling, and fundamental biological studies. A modern vivarium can support more complex experiments, improve animal welfare standards, and potentially increase the efficiency and throughput of research projects. The specific scientific endeavors that will benefit depend on the NIH's strategic research priorities, but generally, such infrastructure upgrades are vital for advancing medical breakthroughs and understanding complex biological processes.

How has federal spending on similar large-scale construction projects for research facilities evolved over the past five years?

Federal spending on large-scale construction projects for research facilities has generally seen fluctuations driven by appropriations cycles, infrastructure initiatives, and evolving scientific needs. While specific data for 'vivarium projects' alone is not readily available, broader trends in federal construction spending for R&D facilities indicate a sustained, albeit variable, investment. Agencies like NIH, NSF, and DOE often undertake significant capital projects. Factors influencing this spending include the need to modernize aging infrastructure, accommodate new research technologies, and meet increasing demands for specialized laboratory space. Economic conditions and government budget priorities also play a crucial role in the overall level of investment in such projects.

What are the implications of the 'Delivery Order' (DO) award type for the overall project management and potential for future modifications?

A Delivery Order (DO) is typically issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar basic ordering agreement. In this context, it suggests that the $115 million award might represent a specific task order or a significant portion of a larger, pre-negotiated contract vehicle. The 'Delivery Order' designation implies that the scope of work, delivery schedule, and price for this particular order have been finalized. While DOs provide flexibility for agencies to order goods or services as needed, they are usually tied to a broader contract. If this is a standalone project awarded via a DO, it suggests a defined scope for this specific construction phase. Future modifications would depend on the terms of the underlying contract vehicle, if any.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 800, TYSONS CORNER, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $115,090,053

Exercised Options: $115,090,053

Current Obligation: $115,090,053

Actual Outlays: $119,053,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00016

IDV Type: IDC

Timeline