HHS awards $2.7M for NIH Building 10 renovation, a sole-source contract for commercial construction

Contract Overview

Contract Amount: $2,730,675 ($2.7M)

Contractor: Vanguard Pacific LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-31

End Date: 2026-02-27

Contract Duration: 911 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C112543 DESCRIPTION - BASE 3B LABS RENOVATION, BUILDING 10 AWARD CO - DAN BURK CS - DAVE SEID PO - JM LEE COR - SILVANA LAVADO VENDOR POC - SYDNEY CODY

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.7 million to VANGUARD PACIFIC LLC for work described as: C112543 DESCRIPTION - BASE 3B LABS RENOVATION, BUILDING 10 AWARD CO - DAN BURK CS - DAVE SEID PO - JM LEE COR - SILVANA LAVADO VENDOR POC - SYDNEY CODY Key points: 1. The contract is a firm-fixed-price definitive contract, indicating a clear scope and payment structure. 2. The award was made on August 31, 2023, with an estimated completion date of February 27, 2026, spanning 911 days. 3. The contract is for commercial and institutional building construction, specifically a renovation project. 4. The vendor, VANGUARD PACIFIC LLC, is the sole awardee, suggesting a non-competitive procurement. 5. The contract value is $2,730,675.32. 6. The project is located in Maryland (MD), specifically Montgomery County. 7. No small business set-aside was indicated for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific renovation is challenging without detailed project specifications and comparable renovation costs in the Maryland region. The firm-fixed-price structure suggests the government has a defined budget and expects the contractor to manage costs within that. However, the lack of competition raises questions about whether the price represents the best possible value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required services or when specific circumstances justify bypassing full and open competition. The justification for this sole-source award is not detailed in the provided data, which limits the ability to assess the procurement process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive bidding process, it is difficult to ascertain if the awarded price is the most economical.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) facilities, which will receive updated infrastructure. The services delivered include commercial and institutional building renovation, enhancing the functionality and safety of Building 10. The geographic impact is localized to Maryland, specifically the NIH campus. Workforce implications may include construction jobs for VANGUARD PACIFIC LLC and its subcontractors, as well as potential disruption to NIH operations during renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than a competed contract.
Sole-source justification needs further review to ensure it was appropriate.
Project timeline of 911 days could be subject to delays impacting facility availability.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Definitive contract indicates a clear scope of work and duration.
Award to a single vendor may indicate specialized capabilities required for the renovation.

Sector Analysis

The commercial and institutional building construction sector is vast, encompassing a wide range of projects from small renovations to large-scale new builds. Federal spending in this sector supports infrastructure critical for government operations. Benchmarking this specific renovation's cost against similar NIH facility upgrades or other federal building renovations in the Maryland area would provide further context on its value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, VANGUARD PACIFIC LLC, may still engage small businesses as subcontractors, but this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the National Institutes of Health. The firm-fixed-price nature of the contract implies that the contractor is responsible for managing costs within the agreed-upon price. Transparency would be enhanced by public disclosure of the sole-source justification and detailed project milestones. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Facilities Management Contracts
Federal Building Renovations
Commercial Construction Services
Health and Human Services Infrastructure Projects

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited data on contractor's past performance.
Potential for cost overruns if scope is not tightly managed despite fixed price.
Project duration may be subject to delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to VANGUARD PACIFIC LLC. C112543 DESCRIPTION - BASE 3B LABS RENOVATION, BUILDING 10 AWARD CO - DAN BURK CS - DAVE SEID PO - JM LEE COR - SILVANA LAVADO VENDOR POC - SYDNEY CODY

Who is the contractor on this award?

The obligated recipient is VANGUARD PACIFIC 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 $2.7 million.

What is the period of performance?

Start: 2023-08-31. End: 2026-02-27.

What is the specific nature of the renovation required for Building 10 at NIH?

The provided data identifies the contract as being for 'BASE 3B LABS RENOVATION, BUILDING 10'. While the exact scope of 'Base 3B Labs Renovation' is not detailed, it implies significant work within a specific section of Building 10, likely involving laboratory spaces. This could encompass upgrades to HVAC systems, electrical and plumbing, structural modifications, installation of specialized lab equipment infrastructure, and general refurbishment to meet current safety and operational standards for research facilities. Further details would be found in the contract's statement of work.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract type is 'NOT AVAILABLE FOR COMPETITION', which is synonymous with a sole-source award. The specific justification for this sole-source procurement is not provided in the abbreviated data. Typically, sole-source awards are justified under circumstances such as the unique capability of a single contractor, urgent and compelling needs where competition is not feasible, or when a specific technology or proprietary product is required. A thorough review of the contract file would be necessary to understand the official justification and assess its validity.

How does the contract duration of 911 days compare to similar federal renovation projects?

A duration of 911 days, approximately 2.5 years, for a significant building renovation is not uncommon, especially for complex facilities like those at NIH which house sensitive research. The duration accounts for planning, procurement of materials, execution of work, and potential commissioning or testing phases. However, without knowing the exact scope of 'Base 3B Labs Renovation', a direct comparison is difficult. Factors like the size of the renovated area, the complexity of the lab equipment being installed, and the need to maintain partial operations within the building can significantly influence project timelines. Federal projects often face delays, so this duration may include contingency.

What is the track record of VANGUARD PACIFIC LLC with federal contracts, particularly with HHS or NIH?

The provided data does not include information on the track record of VANGUARD PACIFIC LLC. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review past awards, contract performance evaluations (e.g., CPARS), and any history of disputes or terminations. Understanding their experience with similar renovation projects, especially within the healthcare or research sectors, would be crucial for evaluating their capability to successfully execute this contract.

Are there any potential risks associated with this sole-source contract for the government?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, the government may not achieve the most economical price. Additionally, there's a risk if the sole-source justification was not robust, potentially indicating a flawed procurement process. If VANGUARD PACIFIC LLC lacks sufficient experience or resources, project delays, cost overruns (if not strictly fixed-price), or quality issues could arise. The long duration also presents risks related to changing requirements or unforeseen site conditions.

What is the total federal spending on commercial and institutional building construction by HHS in recent years?

The provided data only pertains to a single contract and does not offer insights into the total federal spending on commercial and institutional building construction by HHS. To determine this, one would need to aggregate data from federal procurement databases for all contracts awarded by HHS (and its sub-agencies like NIH) under relevant North American Industry Classification System (NAICS) codes related to building construction over a specified period. This would involve querying databases for contract awards, filtering by agency, fiscal year, and relevant NAICS codes, and summing the award amounts.

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: 75N99023R00060

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14051 COUNTY ROAD 9, FOLEY, AL, 36535

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,730,675

Exercised Options: $2,730,675

Current Obligation: $2,730,675

Actual Outlays: $2,717,289

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline