NIH renovates 6th floor of Building 10 for $4.16M, awarding contract to ARGUS CJW JV LLC

Contract Overview

Contract Amount: $4,163,408 ($4.2M)

Contractor: Argus CJW JV 3 LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-22

End Date: 2026-03-31

Contract Duration: 1,286 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C109892 - BLDG. 10 ACRF 6TH FLOOR RENOVATION

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.2 million to ARGUS CJW JV 3 LLC for work described as: C109892 - BLDG. 10 ACRF 6TH FLOOR RENOVATION Key points: 1. Contract awarded for building renovation services, indicating a need for facility upgrades. 2. The contract duration of 1286 days suggests a complex and extensive renovation project. 3. The firm fixed-price contract type aims to control costs and provide budget certainty. 4. Awarded by the National Institutes of Health, a key agency within HHS. 5. The project is located in Maryland, a hub for federal research and development. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

The total contract value of $4.16 million for a 6th-floor renovation appears within a reasonable range for a project of this scope, though specific benchmarks for similar NIH renovations are not readily available. The firm fixed-price structure suggests an effort to manage costs, but without detailed project specifications, a precise value-for-money assessment is challenging. Further analysis would require comparing the cost per square foot or per functional area to similar projects within the NIH or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were 5 bidders suggests a healthy level of competition for this type of construction service. This competitive environment is generally favorable for price discovery and potentially leads to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

The primary beneficiaries are the National Institutes of Health, which will gain updated and improved research or operational space. The services delivered include the renovation of approximately 1286 days of construction work on the 6th floor of Building 10. The geographic impact is localized to the NIH campus in Maryland. Workforce implications include the employment of construction workers, project managers, and subcontractors involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite the fixed-price contract.
Delays in project completion could impact the operational readiness of the facility.
Ensuring quality of work meets the stringent standards required for NIH facilities.

Positive Signals

The full and open competition process likely secured competitive pricing.
The firm fixed-price contract provides cost certainty for the government.
The project addresses a clear need for facility modernization at a critical research institution.

Sector Analysis

The construction sector, specifically commercial and institutional building construction (NAICS 236220), is a significant area of federal spending. This contract falls within the broader category of facilities maintenance and upgrades, which are essential for government operations. Comparable spending benchmarks would involve analyzing other renovation and construction contracts awarded by agencies like NIH, GSA, or DoD for similar facility types and sizes.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the full and open competition, it is possible that small businesses participated, but their specific role or the extent of their involvement is not detailed in the provided data. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project's technical point of contact within the National Institutes of Health. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly accessible.

Related Government Programs

NIH Facilities Renovation Projects
HHS Building Modernization Contracts
Federal Construction Services
Commercial Building Renovation

Risk Flags

Potential for scope creep impacting budget and timeline.
Unforeseen site conditions during renovation.
Contractor performance and quality control.
Timely completion of a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.2 million to ARGUS CJW JV 3 LLC. C109892 - BLDG. 10 ACRF 6TH FLOOR RENOVATION

Who is the contractor on this award?

The obligated recipient is ARGUS CJW JV 3 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 $4.2 million.

What is the period of performance?

Start: 2022-09-22. End: 2026-03-31.

What is the track record of ARGUS CJW JV LLC with federal contracts, particularly within the Department of Health and Human Services?

A review of federal procurement data indicates that ARGUS CJW JV LLC has been awarded multiple federal contracts. While specific details on their performance history with HHS or NIH require deeper database analysis, the award of this $4.16 million contract suggests a level of capability and past performance deemed sufficient by the agency. Further investigation into contract performance reports (CPARS) and historical award amounts would provide a more comprehensive understanding of their track record, including any past issues or commendations.

How does the cost per square foot of this renovation compare to similar projects at NIH or other federal facilities?

Without the specific square footage of the 6th floor of Building 10 being renovated, a direct cost per square foot comparison is not possible with the provided data. However, the total contract value of $4.16 million for a significant renovation project suggests a substantial undertaking. To benchmark effectively, one would need to identify the renovated area's size and then compare the resulting cost per square foot against similar institutional building renovations awarded by federal agencies, adjusting for factors like location, age of the facility, and complexity of the work (e.g., lab space vs. office space).

What are the primary risks associated with a large-scale building renovation contract of this duration?

The primary risks associated with a renovation contract of this duration (1286 days) include potential cost overruns due to unforeseen site conditions (e.g., asbestos, structural issues), material price fluctuations, and labor availability challenges. Schedule delays are also a significant risk, which can impact the operational continuity of the facility. Furthermore, ensuring the quality of work meets the specific requirements of a research institution like NIH, which may have specialized needs for its labs or equipment, presents a technical risk. The firm fixed-price nature of the contract shifts much of the financial risk to the contractor, but scope creep or change orders could still impact the overall cost and timeline.

How effective is the firm fixed-price contract type in ensuring value for money for this specific renovation project?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For a renovation project, FFP provides budget certainty for the government, as the contractor is obligated to complete the work for the agreed-upon price. This incentivizes the contractor to manage costs efficiently. However, if unforeseen conditions necessitate significant changes to the scope, change orders can increase the total cost, potentially negating some of the initial value-for-money benefits. The success of FFP in this case hinges on the thoroughness of the initial project definition and the contractor's ability to execute within that scope.

What is the historical spending trend for building renovation and construction at the National Institutes of Health?

Historical spending data for building renovation and construction at the National Institutes of Health would reveal trends in facility upgrades and maintenance investments. Analyzing past contracts awarded under NAICS code 236220 and similar codes by NIH would show the typical scale, frequency, and cost of such projects. This context is crucial for understanding whether the $4.16 million awarded to ARGUS CJW JV LLC represents a typical investment, an increase, or a decrease in spending for facility modernization. Such analysis helps in assessing budget allocation and the agency's commitment to maintaining its infrastructure.

What are the implications of awarding this contract through full and open competition for the government and taxpayers?

Awarding this contract through full and open competition has several positive implications. It maximizes the pool of potential bidders, increasing the likelihood of receiving competitive proposals and thus potentially lower prices. This competitive pressure encourages contractors to offer their best value and innovation. For taxpayers, this process generally leads to a more efficient use of public funds, as the government is more likely to secure services at or near market rates. It also promotes fairness and transparency in the procurement process, ensuring that all qualified businesses have an equal opportunity to compete for government work.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 CATOCTIN CIR SE STE 10, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,163,408

Exercised Options: $4,163,408

Current Obligation: $4,163,408

Actual Outlays: $3,945,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00019

IDV Type: IDC

Timeline