HHS awards $8.5M construction contract to BELT BUILT CFM JV for NIH facilities

Contract Overview

Contract Amount: $8,556,768 ($8.6M)

Contractor: Belt Built CFM Government Services JV LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-10-12

End Date: 2026-02-28

Contract Duration: 870 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C108217 - CONSTRUCTION SERVICES BASE CONTRACT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.6 million to BELT BUILT CFM GOVERNMENT SERVICES JV LLC for work described as: C108217 - CONSTRUCTION SERVICES BASE CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for construction services, a critical component of maintaining federal facilities. 3. The duration of the contract is 870 days, indicating a medium-term project. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the National Institutes of Health, a key agency within HHS. 6. The contractor is a joint venture, potentially indicating a specialized or consolidated approach to service delivery.

Value Assessment

Rating: good

The contract value of $8.56 million for construction services appears reasonable given the project duration and the nature of commercial and institutional building construction. Benchmarking against similar NIH or other federal construction projects of comparable scope and complexity would provide a more precise value-for-money assessment. The firm fixed price structure is generally favorable for the government in managing cost certainty.

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 presence of two bids suggests a moderate level of competition for this specific requirement. A higher number of bidders typically leads to more competitive pricing and a broader range of solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the National Institutes of Health, which will receive updated or maintained facilities. The services delivered include commercial and institutional building construction, essential for operational infrastructure. The geographic impact is focused on Maryland, where the NIH facilities are located. The contract may have implications for the construction workforce in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite the fixed-price nature.
Dependence on the joint venture's capacity and performance to meet project timelines and quality standards.
Risk of delays if permitting or regulatory approvals are not managed efficiently.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a fair and transparent process.
The contractor is a joint venture, potentially bringing specialized expertise to the project.

Sector Analysis

The construction services sector is a significant part of federal spending, encompassing a wide range of activities from minor repairs to major facility development. Federal agencies like HHS rely heavily on construction contracts to maintain and upgrade their infrastructure, which is critical for research, healthcare delivery, and administrative functions. This contract for commercial and institutional building construction fits within the broader category of facilities maintenance and improvement, a recurring need across government.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a joint venture, it is unclear if this structure involves small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' internal procurement and project management offices. The National Institutes of Health would likely have contracting officers and technical representatives responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm fixed price nature of the contract provides a degree of accountability for the contractor regarding cost.

Related Government Programs

NIH Facilities Maintenance Contracts
HHS Construction Services
Federal Building and Infrastructure Projects
Commercial Building Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Risk of delays impacting project timelines.
Contractor performance and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.6 million to BELT BUILT CFM GOVERNMENT SERVICES JV LLC. C108217 - CONSTRUCTION SERVICES BASE CONTRACT

Who is the contractor on this award?

The obligated recipient is BELT BUILT CFM GOVERNMENT SERVICES JV 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 $8.6 million.

What is the period of performance?

Start: 2023-10-12. End: 2026-02-28.

What is the track record of BELT BUILT CFM GOVERNMENT SERVICES JV LLC in performing federal construction contracts?

A thorough review of the contractor's past performance is essential. This would involve examining their history with federal agencies, specifically the Department of Health and Human Services and the National Institutes of Health, if applicable. Key aspects to investigate include their on-time delivery rates, adherence to budget (especially for fixed-price contracts), quality of work, and any history of disputes or contract terminations. Databases like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting systems (CPARS) would be primary sources for this information. Understanding their experience with similar types of construction (commercial and institutional buildings) and their capacity to manage projects of this scale (approximately $8.56 million over 870 days) is crucial for assessing their reliability and capability to successfully execute this current contract.

How does the awarded price of $8.56 million compare to similar construction contracts awarded by the NIH or other federal agencies?

To benchmark the value for money, the awarded price of $8.56 million needs to be compared against similar construction contracts. This involves identifying comparable projects in terms of scope (e.g., building type, size, complexity), duration (870 days), and geographic location (Maryland). Data from the Federal Procurement Data System (FPDS) can be queried for contracts with similar NAICS codes (236220 - Commercial and Institutional Building Construction) awarded by the NIH or other agencies within the last few years. Factors such as the number of bids received, the type of contract (firm fixed price), and specific project requirements should be considered when making comparisons. A higher number of bids and a price significantly below estimates for comparable projects would indicate better value.

What are the primary risks associated with this firm fixed-price construction contract for the government?

While firm fixed-price (FFP) contracts are generally advantageous for the government by providing cost certainty, they do carry certain risks. The primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. This could lead to subpar construction or a need for future remedial work. Another risk is contractor default or poor performance, which, despite the FFP structure, can still lead to significant delays and the need to procure a replacement contractor, potentially at a higher cost. Effective government oversight and robust contract administration are crucial to mitigate these risks by ensuring adherence to specifications and quality standards throughout the project lifecycle.

What is the expected impact of this contract on the NIH's operational capabilities and infrastructure?

This contract is expected to directly impact the National Institutes of Health's operational capabilities and infrastructure by ensuring the maintenance, repair, or upgrade of its facilities. Construction services are vital for providing safe, functional, and modern environments for research, administration, and other critical functions. Depending on the specific nature of the construction (e.g., laboratory upgrades, building renovations, new construction), this contract could enhance research capacity, improve energy efficiency, ensure compliance with safety regulations, or provide necessary space for expanding operations. The successful and timely completion of this project is therefore crucial for the NIH to continue its mission effectively.

How has federal spending on construction services for the Department of Health and Human Services trended over the past five years?

Analyzing historical spending trends for construction services within the Department of Health and Human Services (HHS) provides context for the current award. This would involve examining data from sources like the Federal Procurement Data System (FPDS) to track the total dollar value of construction contracts awarded by HHS agencies over the last five fiscal years. Trends could reveal whether spending in this category is increasing, decreasing, or remaining stable. Factors influencing these trends might include agency budget allocations, infrastructure modernization initiatives, new facility requirements, or shifts in procurement strategies. Understanding these patterns can help assess whether the current $8.56 million award is consistent with historical spending levels or represents a significant deviation.

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: 2139 ESPEY CT STE 6, CROFTON, MD, 21114

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,556,768

Exercised Options: $8,556,768

Current Obligation: $8,556,768

Actual Outlays: $7,903,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00020

IDV Type: IDC

Timeline