HHS Awards $47.6M for Bethesda Campus Electrical Work to Olgoonik Specialty Contractors
Contract Overview
Contract Amount: $47,561,744 ($47.6M)
Contractor: Olgoonik Specialty Contractors LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-30
End Date: 2028-04-16
Contract Duration: 1,294 days
Daily Burn Rate: $36.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PHASE 1 CAMPUS ELECTRICAL DISTRIBUTION, BETHESDA CAMPUS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $47.6 million to OLGOONIK SPECIALTY CONTRACTORS LLC for work described as: PHASE 1 CAMPUS ELECTRICAL DISTRIBUTION, BETHESDA CAMPUS Key points: 1. Significant contract value for campus infrastructure upgrades. 2. Competition method indicates broad market access. 3. Risk appears moderate given project scope and duration. 4. Construction sector spending is substantial nationwide.
Value Assessment
Rating: good
The award amount of $47.6 million for campus electrical distribution appears reasonable for a project of this scale and duration. Benchmarking against similar large-scale institutional building construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified contractors to bid, driving competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds for essential infrastructure.
Public Impact
Ensures reliable power for critical NIH research and operations. Modernizes aging electrical infrastructure, reducing future maintenance costs. Supports local employment through construction activities in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep during a multi-year construction project.
- Reliance on a single contractor for critical infrastructure.
- Coordination challenges with ongoing campus operations.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Experienced contractor likely selected.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar campus infrastructure projects would indicate if this award is within the expected range.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the awardee is Olgoonik Specialty Contractors LLC. Further analysis would be needed to determine if small business subcontracting opportunities exist within this project.
Oversight & Accountability
The award process under full and open competition suggests adherence to procurement regulations. Ongoing oversight by the Department of Health and Human Services will be crucial to ensure project completion and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for unforeseen site conditions.
- Dependency on a single prime contractor.
- Coordination with active campus operations.
- Long project duration increases risk exposure.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $47.6 million to OLGOONIK SPECIALTY CONTRACTORS LLC. PHASE 1 CAMPUS ELECTRICAL DISTRIBUTION, BETHESDA CAMPUS
Who is the contractor on this award?
The obligated recipient is OLGOONIK SPECIALTY CONTRACTORS 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 $47.6 million.
What is the period of performance?
Start: 2024-09-30. End: 2028-04-16.
What is the historical performance of Olgoonik Specialty Contractors LLC on similar federal contracts?
Assessing the past performance of Olgoonik Specialty Contractors LLC is crucial for understanding their capability to deliver this complex project. Reviewing their track record on similar-sized federal construction contracts, particularly those involving critical infrastructure like electrical distribution, can reveal their reliability, adherence to schedule, and quality of work. This information helps validate the selection and mitigate potential risks associated with project execution.
Are there specific risks associated with the Bethesda campus's existing electrical infrastructure that could impact project cost or timeline?
The age and complexity of the existing electrical infrastructure at the Bethesda campus present inherent risks. Unforeseen conditions, such as outdated wiring, hidden structural issues, or integration challenges with new systems, could lead to scope changes, delays, and cost overruns. A thorough site assessment and contingency planning are vital to address these potential challenges effectively and ensure the project stays on track.
How will the success of this electrical distribution upgrade be measured in terms of operational efficiency and resilience?
The effectiveness of this upgrade will be measured by improvements in the reliability and efficiency of the campus's electrical power. Key metrics could include a reduction in power outages, decreased energy consumption, enhanced system capacity to support future growth, and improved resilience against disruptions. Post-completion performance monitoring and user feedback will be essential to validate the project's success.
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
Parent Company: Olgoonik General, LLC
Address: 7619 LITTLE RIVER TURNPIKE STE 800, ANNANDALE, VA, 22003
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,561,744
Exercised Options: $47,561,744
Current Obligation: $47,561,744
Actual Outlays: $2,777,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75N99019D00028
IDV Type: IDC
Timeline
Start Date: 2024-09-30
Current End Date: 2028-04-16
Potential End Date: 2028-04-16 00:00:00
Last Modified: 2025-09-23
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