HHS awards $46.7M contract for NIH Building 10 A Wing infrastructure upgrade, focusing on electrical power

Contract Overview

Contract Amount: $46,737,156 ($46.7M)

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: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C115441 - BLDG. 10 A WING INFRASTRUCTURE UPGRADE PHASE 3 ELECTRICAL POWER RESPONSIBILITY

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.7 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: C115441 - BLDG. 10 A WING INFRASTRUCTURE UPGRADE PHASE 3 ELECTRICAL POWER RESPONSIBILITY Key points: 1. Contract value of $46.7 million for a multi-year infrastructure project. 2. Project involves significant electrical power upgrades to a critical NIH facility. 3. Awarded to Whiting-Turner Contracting Company, a large, experienced construction firm. 4. Full and open competition indicates a robust bidding process. 5. Firm-fixed-price contract type aims to control costs. 6. Project duration spans over four years, suggesting complex scope. 7. Located in Maryland, impacting local construction workforce and economy.

Value Assessment

Rating: good

The contract value of $46.7 million for a multi-year infrastructure upgrade appears reasonable given the scope of electrical power system modernization for a large facility like NIH's Building 10 A Wing. Benchmarking against similar large-scale federal building construction and renovation projects suggests that costs are within expected ranges for complex, specialized work. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

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. The presence of two bidders suggests a competitive environment, though the exact number of potential bidders for such a specialized project is not detailed. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. It provides assurance that the selected contractor offers the best value, not just the lowest price, for this critical infrastructure upgrade.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its researchers, who will gain a more reliable and modern electrical power system for critical operations. The project will deliver essential infrastructure upgrades, ensuring the continued functionality and safety of Building 10 A Wing. The geographic impact is concentrated in Bethesda, Maryland, supporting the local economy through construction activities. The contract is expected to create or sustain jobs within the construction sector in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Dependence on a single contractor for a critical, multi-year infrastructure project.
Risk of schedule delays impacting NIH research operations if construction is not managed efficiently.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to an experienced contractor like Whiting-Turner suggests a higher likelihood of successful project execution.
Full and open competition indicates a thorough vetting of potential contractors and pricing.
Project addresses critical infrastructure needs, ensuring long-term operational stability for NIH.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area often involves large-scale, complex projects requiring specialized expertise, such as upgrading critical infrastructure like electrical power systems. Comparable spending benchmarks for similar federal building renovations and upgrades indicate that projects of this magnitude can range from tens to hundreds of millions of dollars, depending on scope and complexity.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Whiting-Turner Contracting Company, is a large firm, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's procurement practices and the availability of qualified small business firms for specialized construction services.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH) contracting officers and project managers. The firm-fixed-price structure provides a degree of accountability for cost control. Transparency is generally maintained through contract award databases and public reporting. The Inspector General for the Department of Health and Human Services may conduct audits or investigations if concerns regarding performance, cost, or compliance arise.

Related Government Programs

NIH Facilities Management and Operations
Federal Building and Infrastructure Modernization Programs
Large-Scale Construction Projects
Electrical System Upgrades

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Risk of schedule delays impacting research operations.
Contractor performance risk on a large, multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.7 million to WHITING-TURNER CONTRACTING COMPANY, THE. C115441 - BLDG. 10 A WING INFRASTRUCTURE UPGRADE PHASE 3 ELECTRICAL POWER RESPONSIBILITY

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 $46.7 million.

What is the period of performance?

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

What is Whiting-Turner Contracting Company's track record with similar federal infrastructure projects, particularly those involving complex electrical systems?

Whiting-Turner Contracting Company has a substantial track record in federal construction, including numerous projects for agencies like the Department of Defense and the General Services Administration. They have experience with large-scale renovations and new construction, often involving complex mechanical and electrical systems. While specific details on their past electrical power upgrade projects for research facilities like NIH are not immediately available in this summary, their general profile suggests they are well-equipped to handle such work. A deeper dive into their project portfolio and past performance evaluations (e.g., through CPARS) would provide more granular insights into their success with similar federal contracts.

How does the $46.7 million cost compare to the estimated value of similar electrical power infrastructure upgrades at other federal research institutions?

The $46.7 million cost for this multi-year electrical power infrastructure upgrade at NIH's Building 10 A Wing is substantial, reflecting the complexity and scale of modernizing critical systems in a large research facility. Benchmarking against similar projects is challenging without specific details on the scope of work (e.g., capacity upgrades, redundancy, specific technologies). However, large-scale federal building renovations, especially those involving critical infrastructure like power, can easily run into tens of millions of dollars. For context, major hospital or laboratory renovations with significant MEP (mechanical, electrical, plumbing) components often exceed $20 million. The firm-fixed-price nature of this contract suggests an effort to cap costs, but the final expenditure will depend on the contractor's efficiency and management of unforeseen issues.

What are the primary risks associated with a firm-fixed-price contract for a project of this duration and complexity?

The primary risk with a firm-fixed-price (FFP) contract for a long-duration, complex project like this electrical power upgrade is the potential for the contractor to incur significant losses if costs escalate beyond their initial estimates. This can lead to pressure on the contractor to cut corners on quality or safety, although robust oversight should mitigate this. Conversely, if the contractor significantly underestimates costs, they may seek to recoup losses through change orders or claims, potentially increasing the overall cost to the government. For the government, the risk is less about cost overrun (as the price is fixed) and more about potential impacts on schedule and quality if the contractor struggles financially or operationally. Effective project management and clear contract specifications are crucial to managing these risks.

What is the expected impact of this infrastructure upgrade on the continuity and advancement of research at NIH?

This infrastructure upgrade is critical for ensuring the continuity and advancement of research at NIH. Reliable and robust electrical power is fundamental to the operation of sensitive laboratory equipment, data centers, and life support systems essential for biomedical research. An aging or inadequate power system poses risks of equipment failure, data loss, and operational disruptions, which can set back research timelines and compromise experimental integrity. By modernizing the electrical power infrastructure, this project aims to enhance system reliability, increase capacity to support future research needs, and improve energy efficiency, thereby creating a more stable and advanced research environment.

How has federal spending on building construction and infrastructure modernization evolved in recent years, and how does this contract fit into that trend?

Federal spending on building construction and infrastructure modernization has seen fluctuations but generally remains a significant area of investment, particularly in recent years with increased focus on aging federal facilities and critical infrastructure resilience. Agencies like HHS, through NIH, consistently invest in maintaining and upgrading their extensive campus infrastructure. This $46.7 million contract for electrical power upgrades aligns with the broader trend of federal agencies addressing deferred maintenance and modernizing essential systems to ensure operational continuity and support mission objectives. It reflects a commitment to investing in the physical assets necessary for scientific research and public health initiatives.

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: $46,737,156

Exercised Options: $46,737,156

Current Obligation: $46,737,156

Actual Outlays: $3,054,421

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