NIH Awards $2.67M for Child Care Center Playground Upgrades to Meet NAEYC Standards

Contract Overview

Contract Amount: $2,666,342 ($2.7M)

Contractor: Olgoonik Specialty Contractors LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-07

End Date: 2026-06-01

Contract Duration: 998 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADING THE PLAYGROUND AND REPLACING PLAYGROUND EQUIPMENT TO SERVE THE TARGETED AGE GROUP ATTENDING THE BUILDING 64 EAST CHILD CARE CENTER. THE UPGRADES ARE AIMED AT MEETING THE NEW NAEYC ACCREDITATION REQUIREMENTS. DRAINAGE AND EROSION ISSUES WILL

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.7 million to OLGOONIK SPECIALTY CONTRACTORS LLC for work described as: UPGRADING THE PLAYGROUND AND REPLACING PLAYGROUND EQUIPMENT TO SERVE THE TARGETED AGE GROUP ATTENDING THE BUILDING 64 EAST CHILD CARE CENTER. THE UPGRADES ARE AIMED AT MEETING THE NEW NAEYC ACCREDITATION REQUIREMENTS. DRAINAGE AND EROSION ISSUES WILL Key points: 1. Spending focuses on essential facility upgrades for child care, driven by accreditation needs. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate, with project duration and fixed-price contract mitigating some cost overruns. 4. The sector is commercial building construction, specifically for institutional facilities.

Value Assessment

Rating: good

The award of $2.67 million for playground upgrades appears reasonable given the scope of work, which includes drainage, erosion control, and new equipment to meet NAEYC standards. Benchmarking against similar institutional construction projects would provide further context.

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 had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for necessary improvements to a federal child care facility, ensuring a safe and compliant environment for children.

Public Impact

Enhances safety and developmental opportunities for children at the NIH child care center. Ensures compliance with national accreditation standards (NAEYC), improving facility quality. Addresses critical infrastructure issues like drainage and erosion, preventing future damage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration of nearly 1000 days could introduce risks related to material cost fluctuations or labor availability.
Potential for scope creep if unforeseen issues arise during construction beyond initial assessment.

Positive Signals

Full and open competition likely secured a competitive price.
Fixed-price contract provides cost certainty for the government.
Clear objective tied to accreditation requirements ensures focused execution.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar projects would typically consider factors like square footage, complexity of site work, and specific equipment costs.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication that small businesses were prioritized or subcontracted. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award is a delivery order under an existing contract, suggesting some level of pre-qualification. Oversight will be crucial to ensure adherence to the fixed-price terms and project timelines, especially given the long duration.

Related Government Programs

Commercial and Institutional Building Construction
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Extended project duration increases risk.
Potential for unforeseen site conditions (drainage/erosion) impacting scope.
Dependence on NAEYC accreditation adds a compliance risk.
Fixed-price contract may limit flexibility if scope changes are needed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to OLGOONIK SPECIALTY CONTRACTORS LLC. UPGRADING THE PLAYGROUND AND REPLACING PLAYGROUND EQUIPMENT TO SERVE THE TARGETED AGE GROUP ATTENDING THE BUILDING 64 EAST CHILD CARE CENTER. THE UPGRADES ARE AIMED AT MEETING THE NEW NAEYC ACCREDITATION REQUIREMENTS. DRAINAGE AND EROSION ISSUES WILL

Who is the contractor on this award?

The obligated recipient is OLGOONIK SPECIALTY CONTRACTORS 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: 2023-09-07. End: 2026-06-01.

What is the estimated cost per square foot for the playground upgrade, and how does it compare to industry averages for similar institutional projects?

The provided data does not include square footage for the playground area, making a direct cost-per-square-foot calculation impossible. To benchmark effectively, one would need the total area being upgraded and comparable data for institutional playground construction, considering site preparation, equipment, and surfacing costs.

What are the specific NAEYC accreditation requirements driving these upgrades, and what is the risk if these are not met?

NAEYC accreditation requires specific safety standards, age-appropriate equipment, adequate space for play, and safe surfacing. Failure to meet these requirements could jeopardize the center's accreditation status, potentially impacting its ability to operate or receive federal support, and most importantly, compromising the safety and developmental experience for the children.

How will the long project duration (998 days) impact the effectiveness and cost of the playground upgrades?

The extended duration increases the risk of cost escalation due to inflation and potential material shortages, despite the fixed-price contract. It could also lead to prolonged disruption for the child care center. Effectiveness might be impacted if the playground is unusable for extended periods, but the long timeline could also allow for meticulous execution and integration of complex site work like drainage.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olgoonik General, LLC

Address: 7619 LITTLE RIVER TURNPIKE STE 800, ANNANDALE, VA, 22003

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,666,342

Exercised Options: $2,666,342

Current Obligation: $2,666,342

Actual Outlays: $2,442,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00028

IDV Type: IDC

Timeline