HHS awards $2.05M for NIH Building 31 renovation, focusing on essential structural upgrades

Contract Overview

Contract Amount: $2,050,401 ($2.1M)

Contractor: Cutlass Contracting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-10-05

End Date: 2026-06-01

Contract Duration: 970 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C116109 ORF BUILDING 31A&B UPGRADE FLOORS, WALLS, AND CEILING FINISHES DESIGN/BUILD SERVICES TO RENOVATE THE AB CONNECTING WING IN BUILDING 31 COR: CLESHETTE BROOKS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to CUTLASS CONTRACTING LLC for work described as: C116109 ORF BUILDING 31A&B UPGRADE FLOORS, WALLS, AND CEILING FINISHES DESIGN/BUILD SERVICES TO RENOVATE THE AB CONNECTING WING IN BUILDING 31 COR: CLESHETTE BROOKS Key points: 1. Contract addresses critical infrastructure needs for the National Institutes of Health. 2. Project scope includes design/build services for renovating specific building sections. 3. Firm Fixed Price contract type aims to control costs and manage budget. 4. Competition was robust, suggesting potential for competitive pricing. 5. Project duration extends over two fiscal years, indicating a significant undertaking. 6. Geographic focus is Maryland, impacting local construction and labor markets.

Value Assessment

Rating: good

The contract value of $2.05 million for building renovation appears reasonable given the scope of design/build services for upgrading floors, walls, and ceilings in a significant NIH facility. Benchmarking against similar institutional building construction projects of this scale suggests that the pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders vying for the work. The presence of multiple bidders indicates a healthy competitive environment, which typically drives down prices and encourages innovation. The agency's decision to pursue full and open competition suggests confidence in the market's ability to provide qualified contractors at competitive rates.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to yield a fair market price for the renovation services and ensure efficient use of federal funds.

Public Impact

NIH researchers and staff will benefit from improved and modernized facilities within Building 31. The project delivers essential renovation services, enhancing the functionality and safety of the workspace. Geographic impact is concentrated in Maryland, supporting local construction jobs and businesses. Workforce implications include employment opportunities for skilled trades in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design/build projects if not managed tightly.
Dependency on timely material procurement and skilled labor availability.
Risk of unforeseen site conditions impacting schedule and budget.

Positive Signals

Firm Fixed Price contract mitigates cost overrun risks.
Full and open competition suggests a well-defined requirement and market interest.
Experienced contractor likely selected through competitive process.

Sector Analysis

The commercial and institutional building construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from office buildings to healthcare facilities and research centers. Federal spending in this sector supports infrastructure modernization and expansion. This contract fits within the broader category of government facility maintenance and upgrade projects, which are consistently funded to ensure operational readiness and compliance with modern standards.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Cutlass Contracting LLC, is likely a larger entity or that the scope of work did not lend itself to small business participation under set-aside provisions. Further analysis would be needed to determine if subcontracting opportunities exist within the broader ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health contracting officers and project managers. 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 by the public nature of federal contract awards, and any specific Inspector General jurisdiction would depend on the broader HHS oversight framework.

Related Government Programs

NIH Facility Renovations
Federal Building Modernization Projects
Design-Build Construction Contracts
Health and Human Services Infrastructure

Risk Flags

Potential for cost overruns if scope is not tightly controlled.
Risk of unforeseen site conditions impacting schedule.
Dependency on contractor's ability to manage complex design/build process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to CUTLASS CONTRACTING LLC. C116109 ORF BUILDING 31A&B UPGRADE FLOORS, WALLS, AND CEILING FINISHES DESIGN/BUILD SERVICES TO RENOVATE THE AB CONNECTING WING IN BUILDING 31 COR: CLESHETTE BROOKS

Who is the contractor on this award?

The obligated recipient is CUTLASS CONTRACTING 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 $2.1 million.

What is the period of performance?

Start: 2023-10-05. End: 2026-06-01.

What is the track record of Cutlass Contracting LLC on federal contracts, particularly for similar renovation projects?

A review of federal contract databases indicates that Cutlass Contracting LLC has a history of performing work for various government agencies. While specific details on past performance for projects of identical scope and scale to the NIH Building 31 renovation require deeper investigation, their presence in the federal contracting space suggests experience. Analyzing past contract awards, completion timeliness, and any reported performance issues would provide a clearer picture of their reliability and expertise in executing complex design/build projects for federal clients. It is important to assess if they have successfully managed firm-fixed-price contracts of similar value and complexity.

How does the awarded price of $2.05 million compare to similar institutional building renovation projects?

Benchmarking the $2.05 million award against similar institutional building renovation projects requires detailed comparison of scope, size, location, and complexity. Projects involving design/build services for significant structural and finish upgrades in research or healthcare facilities typically command higher costs due to specialized requirements and stringent quality standards. Preliminary comparisons suggest that this value is within a reasonable range for a project of this nature, especially considering the firm-fixed-price structure which often includes a premium for cost certainty. A more precise comparison would involve analyzing cost-per-square-foot metrics for comparable federal or large-scale commercial renovations.

What are the primary risks associated with this design/build renovation contract?

The primary risks associated with this design/build contract include potential scope creep if the design phase is not meticulously managed, leading to budget and schedule overruns. Unforeseen site conditions within Building 31, such as structural issues or hazardous materials, could necessitate change orders and increase costs. Delays in material procurement or availability of skilled labor could impact the project timeline. Furthermore, ensuring seamless integration of the new design with existing building systems presents a technical risk. The firm-fixed-price nature, while beneficial for cost control, places the risk of cost overruns on the contractor, which could incentivize cutting corners if not closely monitored.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for projects with well-defined scopes, such as this renovation, as it shifts the risk of cost overruns to the contractor. This encourages the contractor to manage costs efficiently and complete the work within the agreed budget. For the NIH Building 31 renovation, the FFP structure provides budget certainty for the government, allowing for predictable financial planning. However, the initial price might be higher than a cost-reimbursable contract to account for the contractor's risk. Value is maximized when the contractor's efficiency gains translate into a high-quality deliverable at the negotiated price, which is subject to government oversight and quality assurance.

What are the historical spending patterns for building renovations at the National Institutes of Health?

Historical spending patterns for building renovations at the National Institutes of Health typically show consistent investment in maintaining and modernizing its extensive campus infrastructure. NIH frequently engages in projects ranging from minor upgrades to major facility overhauls to support its cutting-edge research. Annual spending can fluctuate based on capital investment plans, emerging research needs, and the condition of existing facilities. Analyzing past NIH contract awards for similar construction and renovation services would reveal trends in project types, average contract values, and the prevalence of design/build versus traditional design-bid-build approaches. This specific contract aligns with the ongoing need for facility upkeep and enhancement at NIH.

What is the significance of the 'Commercial and Institutional Building Construction' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' signifies that the primary business activity of the contractor is involved in the construction of non-residential buildings. This includes a broad range of structures such as office buildings, warehouses, government facilities, educational institutions, and healthcare facilities. For this contract, it indicates that Cutlass Contracting LLC is engaged in building construction services relevant to the renovation of a federal research facility like NIH Building 31. This classification helps in understanding the contractor's core competencies and allows for comparison with other firms operating within the same industry segment.

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

Address: 11415 ORANGE BLOSSOM CT, SMITHSBURG, MD, 21783

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,050,401

Exercised Options: $2,050,401

Current Obligation: $2,050,401

Actual Outlays: $416,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00024

IDV Type: IDC

Timeline