NIH Awards $2.2M for Cafeteria Renovation to JB Contracting, Inc

Contract Overview

Contract Amount: $2,212,496 ($2.2M)

Contractor: JB Contracting, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-25

End Date: 2026-03-27

Contract Duration: 548 days

Daily Burn Rate: $4.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C116681 - 2ND FLOOR CAFETERIA, DEMO AND SHELL

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.2 million to JB CONTRACTING, INC. for work described as: C116681 - 2ND FLOOR CAFETERIA, DEMO AND SHELL Key points: 1. Contract awarded for cafeteria demolition and shell construction. 2. JB Contracting, Inc. is the sole awardee. 3. The contract is a firm fixed-price definitive contract. 4. Project duration is 548 days. 5. The agency is the Department of Health and Human Services (NIH).

Value Assessment

Rating: fair

The contract value of $2.2M for a cafeteria renovation appears within a reasonable range for commercial and institutional building construction projects of this scope. However, without specific details on the scope of work and market rates for similar projects in Maryland, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The rationale for sole-source is not provided.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the benefit of competitive pricing, potentially resulting in a higher overall cost for this renovation.

Public Impact

Federal employees at NIH will benefit from an updated cafeteria facility. The project supports the construction sector through a federal contract. The renovation aims to improve the working environment for NIH staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Lack of detailed scope of work for precise value assessment.

Positive Signals

  • Supports infrastructure improvement at a key federal agency.
  • Firm fixed-price contract provides cost certainty once awarded.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on project size, complexity, and location. Federal construction spending is a key component of infrastructure investment.

Small Business Impact

The awardee, JB Contracting, Inc., is not identified as a small business. There is no indication that small business participation was a requirement or consideration for this specific sole-source contract.

Oversight & Accountability

The contract is a definitive contract with a set duration and price. Oversight would typically involve monitoring project progress, adherence to specifications, and financial management by the NIH contracting officers.

Related Government Programs

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

Risk Flags

  • Sole-source award raises concerns about potential overpricing.
  • Lack of competition limits transparency in the procurement process.
  • Potential for cost overruns if scope was not fully defined.
  • No clear indication of small business utilization.

Tags

commercial-and-institutional-building-co, department-of-health-and-human-services, md, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.2 million to JB CONTRACTING, INC.. C116681 - 2ND FLOOR CAFETERIA, DEMO AND SHELL

Who is the contractor on this award?

The obligated recipient is JB CONTRACTING, INC..

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: 2024-09-25. End: 2026-03-27.

What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives explored?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Without further documentation, the specific reasons remain unclear. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services. Exploring alternatives would depend on the nature of the justification, but agencies are generally required to consider competition unless specific exceptions apply.

How does the $2.2M cost compare to similar cafeteria renovation projects of comparable size and complexity in the Maryland region?

Benchmarking the $2.2M cost against similar projects requires detailed project specifications, square footage, scope of work (e.g., demolition, structural changes, equipment installation), and prevailing labor/material costs in Maryland. Without this granular data, a direct comparison is difficult. However, for a significant renovation, this figure is plausible, but a competitive process would have provided stronger assurance of value.

What is the expected impact of this renovation on NIH employee productivity and morale?

An updated cafeteria can positively impact employee morale by providing a more comfortable and modern space for breaks and meals, potentially fostering a better work environment. Improved facilities can also contribute to employee satisfaction and retention. While difficult to quantify directly, a well-executed renovation is generally seen as a positive investment in the federal workforce's well-being and indirectly, their productivity.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N99024R00088

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10744 BALTIMORE AVE, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,212,496

Exercised Options: $2,212,496

Current Obligation: $2,212,496

Actual Outlays: $1,175,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2024-09-25

Current End Date: 2026-03-27

Potential End Date: 2026-03-27 00:00:00

Last Modified: 2026-01-07

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