NIH awards $56.9M contract for electrical reliability upgrades at Maryland facility

Contract Overview

Contract Amount: $56,918,386 ($56.9M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-26

End Date: 2029-05-31

Contract Duration: 1,708 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C115440 - PHASE 2 ELECTRICAL RELIABILITY BUILDING 10

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.9 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: C115440 - PHASE 2 ELECTRICAL RELIABILITY BUILDING 10 Key points: 1. Contract value represents a significant investment in critical infrastructure. 2. The project aims to enhance the reliability of essential building systems. 3. Fixed-price contract type suggests defined scope and cost control. 4. Long performance period indicates a complex and extensive scope of work. 5. Location in Maryland positions the project within a key federal hub. 6. The award is for a specific phase, implying a larger program.

Value Assessment

Rating: good

The contract value of $56.9 million for electrical reliability upgrades appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction and infrastructure projects within federal agencies suggests that this figure is within expected ranges. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value. However, a more precise assessment would require detailed cost breakdowns and comparisons to specific, comparable 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 offers. The fact that there were two bids suggests a moderate level of competition for this significant project. While two bidders is better than a sole-source award, a higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.

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

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its research operations, which will benefit from improved facility reliability. The project will deliver essential upgrades to the electrical systems of Building 10, ensuring continuity of critical research and administrative functions. The geographic impact is localized to the NIH campus in Bethesda, Maryland. The contract is expected to support jobs in the construction sector, particularly in electrical and construction trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive renovation period.
Risk of schedule delays impacting research continuity if construction encounters significant challenges.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
Focus on reliability upgrades addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the construction and renovation of non-residential buildings. Federal spending in this sector is substantial, supporting the maintenance and modernization of government facilities nationwide. The NIH's investment in Building 10's electrical reliability is a component of this larger spending trend, aimed at ensuring the operational integrity of its extensive research infrastructure.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside criterion for this award (ss: false, sb: false). While the prime contractor, The Whiting-Turner Contracting Company, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the availability of qualified small business firms for specialized electrical and construction services.

Oversight & Accountability

Oversight for this contract will likely be managed by the NIH's contracting officers and project managers, ensuring adherence to the contract terms and specifications. The firm-fixed-price nature of the award provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

NIH Facilities Management and Construction
Federal Building Modernization Programs
Critical Infrastructure Upgrades

Risk Flags

Potential for schedule slippage due to complexity.
Risk of unforeseen site conditions impacting cost.
Dependence on contractor's ability to manage specialized subcontractors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.9 million to WHITING-TURNER CONTRACTING COMPANY, THE. C115440 - PHASE 2 ELECTRICAL RELIABILITY BUILDING 10

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

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 $56.9 million.

What is the period of performance?

Start: 2024-09-26. End: 2029-05-31.

What is the historical spending pattern for electrical upgrades at NIH Building 10?

Historical spending data specifically for electrical upgrades at NIH Building 10 is not directly available in the provided data. However, the current award of $56.9 million for Phase 2 suggests a significant, multi-phase investment in this critical infrastructure. To understand historical patterns, one would need to access NIH's historical procurement records, potentially identifying previous contracts for electrical work, maintenance, or other building system upgrades within Building 10 or comparable facilities on the NIH campus. Analyzing these past expenditures would reveal trends in investment, the types of upgrades undertaken, and the associated costs over time, providing context for the current Phase 2 award.

How does the cost per square foot for this project compare to similar federal building construction projects?

The provided data does not include the square footage of Building 10 or the specific scope of the electrical upgrades, making a direct cost-per-square-foot comparison impossible. To perform such an analysis, the total square footage of the affected areas within Building 10 would need to be obtained. Subsequently, this figure would be divided into the $56.9 million contract value to derive a cost per square foot. This metric could then be benchmarked against similar federal construction or renovation projects, particularly those involving electrical system overhauls in large institutional or laboratory buildings. Without the square footage, any comparison would be speculative.

What is the track record of The Whiting-Turner Contracting Company on similar federal contracts?

The Whiting-Turner Contracting Company has a substantial track record of performing large-scale construction projects, including many for federal agencies. While specific details on their past performance related to NIH electrical reliability projects are not in this data, their general profile suggests experience with complex builds and adherence to federal procurement standards. A thorough assessment would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), examining the types and scale of their previous federal contracts, and verifying their successful completion of similar infrastructure upgrades. Their history indicates they are a capable contractor for projects of this magnitude.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided summary data. However, given the nature of the project (electrical reliability upgrades), success will likely be measured by metrics such as the reduction in electrical system failures or downtime, adherence to project schedules and milestones, compliance with all safety and building codes, and the successful integration of new systems with existing infrastructure. The firm-fixed-price contract structure implies that meeting the defined scope within budget and schedule will be primary measures of success. The NIH project managers will establish specific technical and performance standards that the contractor must meet.

What is the potential impact of this contract on the NIH's research capabilities?

This contract is crucial for maintaining and enhancing the NIH's research capabilities by ensuring the reliability of its core infrastructure. Building 10 is a vital hub for numerous research activities, and dependable electrical systems are fundamental to the operation of sensitive equipment, laboratories, and data centers. By upgrading these systems, the contract aims to prevent disruptions caused by power outages or system failures, thereby safeguarding ongoing research, protecting valuable data, and ensuring a stable environment for scientific discovery. The long-term impact is the continued operational integrity and advancement of NIH's mission.

How does the competition level (2 bidders) for this contract compare to the average for similar federal construction projects?

A competition level of two bidders for a federal contract of this magnitude ($56.9 million) is not uncommon, but it is on the lower side compared to what might be considered ideal for maximizing competition. Many large federal construction projects, especially those with specialized requirements or in specific geographic areas, may attract fewer than a dozen bidders. However, averages can vary significantly by sector, agency, and project complexity. Generally, a higher number of bidders (e.g., 4-6 or more) is preferred as it typically leads to more competitive pricing and a broader selection of qualified contractors. Two bidders suggest a moderate but not robust level of competition.

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: 300 E JOPPA RD, BALTIMORE, MD, 21286

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,918,386

Exercised Options: $56,918,386

Current Obligation: $56,918,386

Actual Outlays: $2,810,862

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00014

IDV Type: IDC

Timeline