NIH awards $28.8M contract for clinical center radiopharmacy construction, highlighting significant investment in specialized medical infrastructure

Contract Overview

Contract Amount: $28,785,377 ($28.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-25

End Date: 2026-06-01

Contract Duration: 980 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C100883 CLINICAL CENTER RADIO PHARMACY/BIOLOGICS RADIOLABELING FACILITY CONSTRUCTION SERVICES COR: ASHISH PANDIT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: C100883 CLINICAL CENTER RADIO PHARMACY/BIOLOGICS RADIOLABELING FACILITY CONSTRUCTION SERVICES COR: ASHISH PANDIT Key points: 1. The contract value represents a substantial investment in critical healthcare infrastructure. 2. Competition dynamics for this specialized construction project warrant further examination. 3. Potential risks include project delays and cost overruns common in large-scale construction. 4. The project's performance will be benchmarked against similar NIH or large-scale medical facility builds. 5. This contract positions Whiting-Turner Contracting Company as a key player in federal healthcare construction. 6. The firm-fixed-price structure aims to control costs, but scope creep remains a risk.

Value Assessment

Rating: good

The contract value of $28.8 million for the radiopharmacy construction appears reasonable given the specialized nature of the facility. Benchmarking against similar NIH or large-scale medical construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to control costs, but the duration of the project (980 days) introduces potential for escalation if not managed tightly. Without specific cost breakdowns or comparisons to private sector equivalents, a definitive value assessment is challenging, but the scale suggests a significant, albeit necessary, investment.

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 considered. This approach is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition. A robust competitive process suggests that the selected contractor, Whiting-Turner Contracting Company, offered a compelling technical and price proposal.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for essential services and infrastructure.

Public Impact

Patients requiring advanced radiopharmaceuticals will benefit from improved treatment capabilities. The construction project will create jobs in the Maryland region for skilled trades and construction professionals. The National Institutes of Health (NIH) will gain enhanced capacity for critical research and clinical applications. This facility will support the development and delivery of cutting-edge medical treatments. The geographic impact is concentrated in Maryland, supporting local economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in specialized construction projects, leading to cost overruns.
Delays in construction timelines can impact the operational readiness of critical medical facilities.
Ensuring adherence to stringent safety and regulatory standards in a radiopharmacy environment.
Managing the integration of complex specialized equipment within the new facility.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Award to an experienced contractor like Whiting-Turner suggests a lower risk of execution issues.
Full and open competition likely resulted in a competitive price.
The project addresses a critical need within the NIH's clinical center.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized medical facilities. The market for constructing such advanced healthcare infrastructure is highly specialized, requiring contractors with expertise in handling complex systems, stringent regulatory compliance, and unique environmental controls. Spending in this area is driven by the need for modernization, expansion, and the development of new treatment modalities within federal healthcare institutions like the NIH. Comparable spending benchmarks would involve analyzing other large-scale hospital or research facility construction projects within the federal government.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific contract may not have direct small business set-aside provisions, large prime contractors like Whiting-Turner are often required to meet subcontracting goals. The impact on the small business ecosystem will depend on Whiting-Turner's subcontracting strategy and their engagement with small businesses for specialized construction trades or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the NIH's contracting officers and project managers, ensuring adherence to the contract terms, schedule, and quality standards. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon budget. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the Department of Health and Human Services IG typically oversees federal healthcare spending for potential fraud, waste, and abuse.

Related Government Programs

NIH Clinical Center Renovations
Federal Healthcare Facility Construction
Radiopharmaceutical Production Facilities
Department of Health and Human Services Capital Investments

Risk Flags

Potential for construction delays impacting critical medical services.
Risk of cost overruns if scope is not tightly managed.
Ensuring compliance with highly specialized safety and regulatory standards for radiopharmaceuticals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. C100883 CLINICAL CENTER RADIO PHARMACY/BIOLOGICS RADIOLABELING FACILITY CONSTRUCTION SERVICES COR: ASHISH PANDIT

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

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 $28.8 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-06-01.

What is Whiting-Turner Contracting Company's track record with similar federal healthcare construction projects?

Whiting-Turner Contracting Company has a significant history of undertaking large-scale construction projects, including many within the healthcare and institutional sectors. While specific details on their past NIH projects or radiopharmacy constructions require deeper database searches, their general profile suggests substantial experience. Federal contract databases often list past performance information, which would detail their success rates, any past performance issues, and the types of projects they have completed for government agencies. Reviewing these records would provide insight into their capability to manage complex projects like the NIH radiopharmacy facility, assessing their reliability and expertise in delivering projects on time and within budget for federal clients.

How does the $28.8 million cost compare to similar federal radiopharmacy construction projects?

Direct comparisons for specialized radiopharmacy construction projects are challenging due to their unique technical requirements and limited market size. However, the $28.8 million figure can be benchmarked against broader categories of federal medical facility construction. For instance, major hospital wing additions or specialized research laboratory constructions within federal agencies can range from tens to hundreds of millions of dollars, depending on size, complexity, and location. The cost per square foot or per specialized function (e.g., hot lab space) would be a more granular metric for comparison. Given the NIH's status as a leading research institution, the investment reflects the high standards and advanced capabilities required for such a facility, suggesting the cost is likely aligned with specialized, high-tech medical infrastructure development.

What are the primary risks associated with this specific contract, and how are they being mitigated?

The primary risks for this contract revolve around construction project management: potential for schedule delays, cost overruns due to unforeseen site conditions or scope creep, and ensuring compliance with stringent radiopharmaceutical handling regulations. Mitigation strategies likely include the firm-fixed-price contract type, which shifts some cost risk to the contractor, Whiting-Turner. Robust project oversight by NIH officials, detailed scheduling, contingency planning for unforeseen issues, and rigorous quality assurance protocols are crucial. The contractor's experience in similar projects also serves as a risk mitigation factor. Regular progress reviews and clear communication channels between the NIH and Whiting-Turner are essential for proactive risk management throughout the project lifecycle.

How effective is the firm-fixed-price contract in controlling costs for this specialized construction?

The firm-fixed-price (FFP) contract is generally effective in controlling costs by establishing a ceiling price that the contractor must adhere to. This structure incentivizes the contractor to manage their expenses efficiently and complete the project within the agreed budget. For specialized construction like a radiopharmacy, an FFP contract provides significant cost certainty for the government, reducing the risk of unexpected budget increases. However, the effectiveness can be challenged if the initial scope definition is incomplete, leading to change orders that increase the total cost. Careful scope definition, rigorous change order management, and strong contractor performance are key to maximizing the cost-control benefits of an FFP agreement in complex projects.

What is the historical spending pattern for radiopharmacy or similar specialized medical construction at NIH?

Analyzing historical spending patterns for specialized medical construction at NIH requires access to detailed contract databases over several fiscal years. Generally, NIH, as a major biomedical research hub, invests significantly in infrastructure to support its cutting-edge work. Spending on facilities like radiopharmacies, specialized labs, and clinical research centers can be substantial and episodic, often tied to strategic initiatives, technological advancements, or facility modernization plans. While specific figures for radiopharmacy construction are not readily available without deep data mining, NIH's overall capital investment in facilities typically runs into the tens or hundreds of millions annually, reflecting the ongoing need for state-of-the-art research and treatment environments.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 21286

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,785,377

Exercised Options: $28,785,377

Current Obligation: $28,785,377

Actual Outlays: $22,700,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00014

IDV Type: IDC

Timeline