NIH awards $2.7M for building renovation, highlighting a need for specialized construction services

Contract Overview

Contract Amount: $2,707,307 ($2.7M)

Contractor: Fedpoint Systems LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-15

End Date: 2026-09-01

Contract Duration: 1,082 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C107747 - CONSTRUCTION SERVICES - NHLBI BLDG 14E MURINE PHENOTYPING CORE (MPC) RENOVATION - CHETNA GOLA

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 FEDPOINT SYSTEMS LLC for work described as: C107747 - CONSTRUCTION SERVICES - NHLBI BLDG 14E MURINE PHENOTYPING CORE (MPC) RENOVATION - CHETNA GOLA Key points: 1. Contract value appears reasonable for specialized renovation work. 2. Limited competition suggests potential for higher pricing. 3. Contract duration is substantial, indicating a complex project. 4. Project is located in Maryland, impacting local construction workforce. 5. Focus on scientific facility renovation positions it within healthcare R&D sector.

Value Assessment

Rating: fair

The contract value of $2.7 million for the NHLBI Building 14E Murine Phenotyping Core renovation is within a typical range for specialized institutional construction projects. Benchmarking against similar NIH or other federal agency renovations of laboratory or research facilities would provide a more precise value-for-money assessment. Without specific details on the scope of work, it is difficult to definitively assess if the pricing is competitive or represents an exceptional value. The firm-fixed-price structure aims to control costs, but the absence of competitive bidding limits direct price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Fedpoint Systems LLC was the only bidder considered. This approach is typically used when only one contractor possesses the unique capabilities, specialized knowledge, or proprietary technology required for the project. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or offered alternative solutions. This raises questions about whether alternative contractors could have met the requirements if the opportunity had been opened.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition removes the incentive for aggressive pricing. It also limits opportunities for other businesses to secure federal contracts.

Public Impact

The primary beneficiaries are the researchers and staff at the National Institutes of Health (NIH) National Heart, Lung, and Blood Institute (NHLBI) who will utilize the renovated Murine Phenotyping Core. The services delivered include construction and renovation to upgrade a critical research facility. The geographic impact is localized to Bethesda, Maryland, where the NIH campus is located. Workforce implications include employment for construction trades and project management personnel during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings for taxpayers.
Lack of competition may indicate a lack of market research or a failure to identify potential bidders.
Long contract duration (over 1000 days) increases the risk of cost overruns or schedule delays.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor may indicate specialized expertise necessary for the unique renovation.
Project aims to improve critical research infrastructure for the NIH.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on renovations for a scientific research facility. The market for specialized construction services for government research institutions is often characterized by unique requirements and stringent compliance standards. While the total federal spending on construction is vast, contracts for highly specialized laboratory renovations represent a niche within this sector. Benchmarking would involve comparing this project's cost and duration to similar renovations of scientific facilities within federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Fedpoint Systems LLC, a single entity, does not inherently indicate its size category. The lack of a small business set-aside means that opportunities for small businesses to participate in this specific renovation project are not guaranteed through this contract vehicle.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency regarding the sole-source justification and the specific scope of work would be key to assessing accountability. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

NIH Research Facility Renovations
Federal Building and Construction Contracts
Healthcare Infrastructure Projects
Scientific Equipment Installation Services

Risk Flags

Sole-source award
Long contract duration
Potential for cost escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to FEDPOINT SYSTEMS LLC. C107747 - CONSTRUCTION SERVICES - NHLBI BLDG 14E MURINE PHENOTYPING CORE (MPC) RENOVATION - CHETNA GOLA

Who is the contractor on this award?

The obligated recipient is FEDPOINT SYSTEMS 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: 2023-09-15. End: 2026-09-01.

What specific technical capabilities does Fedpoint Systems LLC possess that justified a sole-source award for this specialized renovation?

The justification for a sole-source award typically rests on unique capabilities, proprietary knowledge, or specialized experience that only one contractor possesses. For the NHLBI Building 14E Murine Phenotyping Core renovation, this could involve expertise in handling sensitive biological research environments, specific HVAC and containment systems required for animal research facilities, or experience with the particular architectural and engineering specifications of the existing building. Without the formal sole-source justification document, it is speculative, but these types of projects often require contractors with a proven track record in constructing or renovating biosafety level laboratories or similar high-containment research spaces. The government would have had to demonstrate that no other responsible source could meet the needs of the project.

How does the $2.7 million cost compare to similar NIH or federal laboratory renovation projects?

Directly comparing the $2.7 million cost without a detailed scope of work is challenging. However, renovations of specialized research facilities, particularly those involving animal housing or sensitive equipment, are inherently more expensive than standard commercial construction due to stringent requirements for ventilation, sterilization, power, and structural integrity. For context, smaller laboratory upgrades can range from hundreds of thousands to millions, while major overhauls of entire wings or buildings can reach tens or hundreds of millions. The cost per square foot for such specialized renovations can significantly exceed typical commercial rates. A more precise comparison would require analyzing the square footage, the complexity of the systems being installed (e.g., HVAC, plumbing, electrical), and the specific research functions the facility will support.

What are the primary risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($2.7 million) and duration (over 1000 days) are twofold. Firstly, the lack of competition means the government may not have secured the most cost-effective solution, potentially leading to overpayment compared to a competitive scenario. There's a reduced incentive for the contractor to minimize costs aggressively. Secondly, the extended duration increases the risk of unforeseen issues, such as material price escalations, labor shortages, or changes in project requirements, which could lead to cost overruns or schedule delays, even within a firm-fixed-price contract if scope changes are managed poorly. The government also bears the risk of the contractor's performance quality over a prolonged period.

What is the expected impact of this renovation on the NIH's research capabilities?

This renovation is expected to significantly enhance the NIH's research capabilities by modernizing the Murine Phenotyping Core (MPC) within the National Heart, Lung, and Blood Institute (NHLBI). A state-of-the-art MPC is crucial for advanced biomedical research, particularly studies involving genetically engineered mice, which are vital models for understanding human diseases. Improved facilities can lead to more efficient data collection, higher quality experimental outcomes, and the ability to conduct more complex and cutting-edge research. This directly supports the NHLBI's mission to advance the understanding, diagnosis, and treatment of heart, lung, and blood diseases.

Are there any historical spending patterns with Fedpoint Systems LLC for similar construction services at NIH?

To assess historical spending patterns with Fedpoint Systems LLC for similar services at NIH, one would need to review federal procurement databases (like FPDS or USASpending.gov) for previous contracts awarded to this company by the NIH or other agencies. This would reveal the volume, value, and nature of past work. If Fedpoint Systems has a history of successful, well-managed contracts for specialized scientific facility construction or renovation, it could support the rationale for a sole-source award based on demonstrated capability and past performance. Conversely, a history of issues or cost overruns might raise concerns.

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: 75N99023R00071

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13042 BLACKBIRD PL, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, 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: $2,707,307

Exercised Options: $2,707,307

Current Obligation: $2,707,307

Actual Outlays: $1,079,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline