HHS awards $4.8M contract for building decommissioning services to 3D Envirologics LLC

Contract Overview

Contract Amount: $4,821,113 ($4.8M)

Contractor: 3D Envirologics LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-17

End Date: 2025-08-01

Contract Duration: 746 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: C109338 - BLDG 29/29A DECOMMISSIONING - JAKE DEAL CONTRACT NO. 75N99020A00015

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.8 million to 3D ENVIROLOGICS LLC for work described as: C109338 - BLDG 29/29A DECOMMISSIONING - JAKE DEAL CONTRACT NO. 75N99020A00015 Key points: 1. The contract value of $4.8M appears reasonable for specialized environmental remediation services. 2. Full and open competition suggests a competitive bidding process, likely leading to better pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of approximately two years provides a defined timeframe for project completion. 5. The project is located in Maryland, a state with significant federal facilities and environmental regulations. 6. The contractor, 3D Envirologics LLC, is a relatively new entity in federal contracting. 7. The National Institutes of Health (NIH) is the specific agency awarding the contract.

Value Assessment

Rating: good

The contract value of $4.8 million for building decommissioning and remediation services is within a typical range for such specialized environmental projects. Benchmarking against similar contracts for hazardous material abatement and facility decommissioning in the federal sector suggests this award is competitive. The firm-fixed-price structure indicates that the contractor bears the financial risk for cost overruns, which is generally favorable for the government. Further analysis would require comparing specific scope of work and remediation complexity against publicly available data for similar projects.

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 bids. While the specific number of bidders is not provided, this method of procurement generally fosters a competitive environment, which is expected to result in a fair market price. The open nature of the competition suggests that the agency sought the best value from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly procurement method, as it maximizes the pool of potential bidders and drives down prices through market forces, ensuring federal dollars are used efficiently.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will have a decommissioned building ready for future use or redevelopment. The services delivered include the safe and compliant decommissioning of Building 29/29A, likely involving hazardous material abatement, demolition, and site remediation. The geographic impact is localized to the NIH campus in Maryland. The contract supports specialized labor in the environmental remediation and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record with large-scale federal decommissioning projects is not extensively documented, requiring close monitoring of performance.
Potential for scope creep or unforeseen environmental hazards could impact project timelines and costs if not managed proactively.

Positive Signals

The firm-fixed-price contract type aligns incentives for the contractor to complete the work efficiently and within budget.
Awarding under full and open competition suggests a robust vetting process for qualified bidders.
The specific agency (NIH) has a vested interest in successful project completion for its facilities.

Sector Analysis

The environmental remediation and building decommissioning sector is a critical component of the construction and facilities management industry, particularly for government agencies managing aging infrastructure. This contract falls within the broader category of environmental services, which includes hazardous waste management, site cleanup, and demolition. The federal government is a significant client in this sector, with substantial spending on infrastructure maintenance, upgrades, and disposal. Comparable spending benchmarks would typically be found in data related to environmental consulting, hazardous material abatement, and demolition services awarded by agencies like the EPA, GSA, and DoD.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger or non-small business entity. The lack of small business set-aside or subcontracting goals means there is no direct positive impact on the small business ecosystem from this specific contract award, though the prime contractor may engage small businesses as vendors.

Oversight & Accountability

Oversight for this contract will primarily be managed by the contracting officers and program managers within the National Institutes of Health (NIH). As a firm-fixed-price contract, performance monitoring will focus on adherence to the scope of work, quality standards, and completion timelines. Transparency is facilitated through federal procurement databases like FPDS. While no specific Inspector General (IG) jurisdiction is mentioned, the HHS OIG would have oversight authority over potential fraud, waste, or abuse related to this award.

Related Government Programs

NIH Facilities Management Contracts
Environmental Remediation Services
Building Demolition and Decommissioning
Hazardous Material Abatement

Risk Flags

Contractor_Experience_Uncertain
Potential_Environmental_Hazards
Schedule_Adherence_Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.8 million to 3D ENVIROLOGICS LLC. C109338 - BLDG 29/29A DECOMMISSIONING - JAKE DEAL CONTRACT NO. 75N99020A00015

Who is the contractor on this award?

The obligated recipient is 3D ENVIROLOGICS 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 $4.8 million.

What is the period of performance?

Start: 2023-07-17. End: 2025-08-01.

What is the specific scope of work for the decommissioning of Building 29/29A?

The provided data does not detail the specific scope of work for the decommissioning of Building 29/29A. However, based on the contract's classification under NAICS code 562910 (Remediation Services), the scope likely includes activities such as hazardous material identification and abatement (e.g., asbestos, lead paint, PCBs), selective demolition of building components, removal of utilities, waste disposal in compliance with environmental regulations, and potentially site restoration. The exact nature of the building's previous use within the NIH campus would inform the specific hazards and decommissioning requirements. A detailed statement of work (SOW) within the contract documents would provide precise requirements.

How does the $4.8 million contract value compare to similar federal building decommissioning projects?

Benchmarking the $4.8 million contract value requires comparing it to similar federal building decommissioning projects, considering factors like building size, age, complexity, and the types of hazardous materials present. Without specific details on the scope, a precise comparison is difficult. However, for large-scale federal facility decommissioning or demolition projects involving significant environmental remediation, $4.8 million can be considered a moderate to substantial award. Projects involving extensive asbestos abatement, chemical cleanup, or structural demolition of large buildings can range from several million to tens of millions of dollars. The firm-fixed-price nature suggests a well-defined scope, which helps in cost control. Further analysis would involve accessing databases of federal contract awards for similar services and locations.

What are the potential risks associated with this contract for 3D Envirologics LLC?

The primary risks for 3D Envirologics LLC stem from the firm-fixed-price contract type, which places the financial burden of cost overruns on the contractor. Potential risks include unforeseen environmental hazards discovered during decommissioning (e.g., undocumented asbestos, underground storage tanks, chemical contamination) that could significantly increase remediation costs and complexity. Delays caused by permitting issues, unexpected structural problems, or regulatory changes could also impact profitability. Furthermore, the contractor must ensure strict compliance with all federal, state, and local environmental and safety regulations to avoid fines, penalties, or reputational damage. Managing the project schedule effectively to meet the August 1, 2025, completion date is also critical.

What is the track record of 3D Envirologics LLC in federal contracting?

Based on the provided data, 3D Envirologics LLC is the contractor for this award. Information regarding their specific track record, past performance on similar federal contracts, and overall experience is not detailed. As a relatively new entity or one with limited publicly available contract history, the National Institutes of Health (NIH) would have conducted due diligence to assess their capability to perform this complex environmental remediation task. Future performance on this contract will establish a more significant part of their federal contracting history. Reviewing their past performance questionnaires (PPQs) or seeking references would provide a clearer picture of their capabilities.

What are the historical spending patterns for building decommissioning at NIH or HHS?

Historical spending patterns for building decommissioning at the National Institutes of Health (NIH) or the broader Department of Health and Human Services (HHS) are not detailed in the provided data. However, federal agencies with large campuses and aging infrastructure, like NIH, regularly undertake projects for facility modernization, renovation, and decommissioning. Spending in this area can fluctuate based on capital improvement plans, infrastructure assessments, and specific project needs. Agencies often bundle smaller projects or award larger, multi-year contracts for comprehensive decommissioning efforts. To understand historical patterns, one would need to analyze historical contract awards for environmental services, demolition, and construction at NIH/HHS over several fiscal years.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4774 BURNLEY STATION RD, BARBOURSVILLE, VA, 22923

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,821,113

Exercised Options: $4,821,113

Current Obligation: $4,821,113

Actual Outlays: $4,821,113

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75N99020A00015

IDV Type: BPA

Timeline