NIH Awards $2.16M Design-Build Contract for Secure Area Construction to N&S Property Services LLC

Contract Overview

Contract Amount: $2,158,845 ($2.2M)

Contractor: N&S Property Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-19

End Date: 2026-07-25

Contract Duration: 674 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C116171 BUILDING 1, 3RD FLOOR SECURE AREA DESIGN-BUILD CS: CHRIS HSU CO: ZACH PRICE COR: WOODY INSCOE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.2 million to N&S PROPERTY SERVICES LLC for work described as: C116171 BUILDING 1, 3RD FLOOR SECURE AREA DESIGN-BUILD CS: CHRIS HSU CO: ZACH PRICE COR: WOODY INSCOE Key points: 1. The contract is for the design and construction of a secure area on the 3rd floor of Building 1. 2. N&S Property Services LLC, a single awardee, will perform the work. 3. The contract is a Firm Fixed Price type, indicating a defined scope and cost. 4. The project is located in Maryland and is scheduled for completion in July 2026.

Value Assessment

Rating: fair

The contract value of $2.16 million for a secure area design-build project appears within a reasonable range for specialized construction. Benchmarking against similar government or private sector secure facility projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), suggesting it was likely procured through other limited competition methods or potentially a sole-source justification not detailed here. The lack of broad competition may limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for this specialized construction. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Enhances security infrastructure at the National Institutes of Health. Supports the operational needs of a federal health research agency. Creates construction jobs and economic activity in Maryland. Ensures compliance with federal security standards for sensitive areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Contract duration is substantial, increasing risk of cost overruns or delays.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Project supports critical NIH infrastructure.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector for federal agencies can vary significantly based on infrastructure needs, modernization efforts, and security requirements. Benchmarks for similar secure facility construction projects are essential for evaluating cost-effectiveness.

Small Business Impact

The awardee, N&S Property Services LLC, is not indicated as a small business. Analysis of whether small business set-aside goals were considered or met for this procurement is not provided in the data.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Health and Human Services, National Institutes of Health. Oversight will be crucial to ensure adherence to the design-build scope, timeline, and budget, especially given the limited competition.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Long contract duration increases potential for delays and cost overruns.
Lack of small business participation noted.
Potential for scope creep if not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.2 million to N&S PROPERTY SERVICES LLC. C116171 BUILDING 1, 3RD FLOOR SECURE AREA DESIGN-BUILD CS: CHRIS HSU CO: ZACH PRICE COR: WOODY INSCOE

Who is the contractor on this award?

The obligated recipient is N&S PROPERTY SERVICES 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 $2.2 million.

What is the period of performance?

Start: 2024-09-19. End: 2026-07-25.

What specific factors led to the 'NOT COMPETED UNDER SAP' determination, and were other competitive avenues explored?

The determination 'NOT COMPETED UNDER SAP' suggests the procurement likely exceeded the simplified acquisition threshold or had specific requirements necessitating a different contracting approach. Without further details on the justification (e.g., sole-source rationale, specific agency needs), it's difficult to ascertain if other competitive avenues were thoroughly explored. This lack of transparency can hinder a full understanding of the price discovery process.

How does the $2.16 million cost compare to industry benchmarks for similar secure area design-build projects of comparable size and complexity?

A direct comparison to industry benchmarks is challenging without more detailed project specifications (e.g., square footage, specific security features, materials). However, $2.16 million for a secure area design-build project is a significant investment. A thorough cost-benefit analysis, including life-cycle costs and comparison with alternative solutions, would be necessary to validate its value for money.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful and timely completion of this project?

Effective oversight for this design-build project would typically involve regular progress reviews, site inspections, quality control checks, and adherence to the firm fixed price schedule. Key performance indicators should focus on meeting design specifications, security requirements, construction milestones, and final delivery by the established deadline. Robust communication channels between NIH and N&S Property Services LLC are vital.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75N99024R00075

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 260 PEACHTREE ST NW STE 2232, ATLANTA, GA, 30303

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,158,845

Exercised Options: $2,158,845

Current Obligation: $2,158,845

Actual Outlays: $670,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline