NIH awards $7.7M contract for construction services, with 9 bidders competing for the work

Contract Overview

Contract Amount: $7,704,817 ($7.7M)

Contractor: Belt Built CFM Government Services JV LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-10-01

End Date: 2027-04-30

Contract Duration: 576 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C107213 - CONSTRUCTION FOR NEI SUITE LOCATED IN BLDG.31A 6TH FLOOR - NASEERA MOORE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.7 million to BELT BUILT CFM GOVERNMENT SERVICES JV LLC for work described as: C107213 - CONSTRUCTION FOR NEI SUITE LOCATED IN BLDG.31A 6TH FLOOR - NASEERA MOORE Key points: 1. The contract value appears reasonable given the scope of construction services for a specialized suite. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The project duration of 576 days indicates a significant construction undertaking. 5. The contract is positioned within the healthcare construction sector, supporting critical research infrastructure.

Value Assessment

Rating: good

The contract value of approximately $7.7 million for the construction of the NEI Suite is within a reasonable range for specialized institutional building construction. Benchmarking against similar projects for laboratory and research space fit-outs within federal facilities suggests this pricing is competitive. The firm fixed-price nature of the award provides cost certainty to the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 9 bidders submitting proposals. The high number of bidders indicates a robust and competitive market for commercial and institutional building construction services relevant to this project. This level of competition is generally favorable for price discovery and ensures the government receives proposals from a wide range of qualified contractors.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the selection of a contractor offering good value for the services rendered.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its researchers, who will gain access to a new, modern suite for their work. The services delivered include comprehensive construction for the NEI Suite, likely encompassing structural, electrical, plumbing, and finishing work. The geographic impact is localized to the NIH campus in Maryland, supporting federal infrastructure development. The project will likely involve a workforce of construction laborers, tradespeople, and project managers, contributing to employment in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting research timelines.
Ensuring adherence to specialized building codes for research facilities.
Managing the logistical challenges of construction within an active federal campus.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
High number of bidders suggests strong contractor interest and capability.
Award to a joint venture may indicate capacity for complex projects.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the construction industry. This sector encompasses the building of non-residential structures such as hospitals, educational facilities, and government buildings. Federal spending in this area supports the maintenance and expansion of critical government infrastructure, including research facilities like those at NIH. Comparable spending benchmarks for similar federal construction projects of this scale typically range from several million to tens of millions of dollars, depending on complexity and location.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is a joint venture, which may include small business participation. However, without specific subcontracting plans or further details on the joint venture's composition, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and project officers within the National Institutes of Health. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through public contract databases. While no specific Inspector General jurisdiction is mentioned, the HHS OIG would have oversight authority over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Facilities Construction
Federal Building and Infrastructure Projects
Healthcare Construction Contracts
General Services Administration (GSA) Construction Contracts

Risk Flags

Potential for scope creep
Risk of construction delays impacting research timelines
Ensuring compliance with specialized laboratory construction standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.7 million to BELT BUILT CFM GOVERNMENT SERVICES JV LLC. C107213 - CONSTRUCTION FOR NEI SUITE LOCATED IN BLDG.31A 6TH FLOOR - NASEERA MOORE

Who is the contractor on this award?

The obligated recipient is BELT BUILT CFM GOVERNMENT SERVICES JV 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 $7.7 million.

What is the period of performance?

Start: 2025-10-01. End: 2027-04-30.

What is the track record of BELT BUILT CFM GOVERNMENT SERVICES JV LLC in completing similar federal construction projects?

Information regarding the specific track record of BELT BUILT CFM GOVERNMENT SERVICES JV LLC is not detailed in the provided data. However, as a joint venture, its performance would be a composite of its member companies' experiences. Federal procurement databases often contain past performance information, including ratings and past contract awards, which would be crucial for a comprehensive assessment. A review of their award history, including any past performance issues or successes on similar-sized government construction projects, would be necessary to fully evaluate their capability and reliability for this specific NIH contract.

How does the awarded price of $7.7 million compare to similar NIH construction projects?

The awarded price of $7.7 million for the NEI Suite construction needs to be benchmarked against similar NIH projects to assess its value. Factors such as the square footage, complexity of the build-out (e.g., specialized labs, clean rooms), and specific location on campus influence costs. Without access to a database of comparable NIH construction projects with detailed cost breakdowns, a precise comparison is difficult. However, given the typical costs associated with specialized institutional construction and fit-outs, $7.7 million appears to be a reasonable figure for a project of this nature, especially considering the competitive bidding process which likely optimized pricing.

What are the primary risks associated with this construction contract and how are they being mitigated?

Key risks for this construction contract include potential construction delays, unforeseen site conditions, and adherence to stringent building codes for research facilities. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. Mitigation for schedule risks would involve robust project management, clear milestones, and potentially liquidated damages clauses for significant delays. Site condition risks are typically addressed through thorough site investigations prior to bidding and contingency planning. Adherence to codes is managed through detailed specifications, inspections, and oversight by NIH personnel.

How effective is the full and open competition strategy in ensuring value for this contract?

The full and open competition strategy, evidenced by 9 bidders, is generally highly effective in ensuring value for this contract. A larger pool of bidders increases the likelihood of receiving competitive pricing and innovative solutions. It allows the government to select from a wider range of qualified contractors, potentially leading to better quality and performance. The competitive pressure inherent in this approach incentivizes bidders to offer their best pricing and terms, thereby maximizing the value received by the government and, by extension, taxpayers. This method is considered the gold standard for achieving fair and reasonable prices.

What is the historical spending pattern for construction services at the National Institutes of Health?

Historical spending patterns for construction services at the National Institutes of Health (NIH) are substantial, reflecting the agency's ongoing need to maintain, upgrade, and expand its extensive research facilities. NIH frequently procures construction services for laboratory renovations, new building construction, and specialized infrastructure projects. Annual spending can fluctuate based on major capital initiatives and infrastructure modernization efforts. Analyzing past NIH contract awards for construction, particularly for similar types of facilities (e.g., research labs, clinical spaces), would reveal trends in contract values, types of services procured, and the prevalence of different contracting methods like full and open competition versus sole-source awards.

What is the significance of the project duration (576 days) in the context of NIH's operational needs?

A project duration of 576 days (approximately 1.5 years) for the NEI Suite construction indicates a substantial undertaking that requires careful planning to minimize disruption to ongoing NIH operations. The length suggests the scope involves significant structural work, complex installations, or extensive finishing. NIH's operational needs would necessitate a phased approach to construction, clear communication regarding access and noise, and potentially temporary relocation of personnel or research activities. The duration also implies a need for robust project management to ensure timely completion and avoid cascading delays that could impact research timelines and the availability of critical facilities.

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

Solicitation ID: C107213

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2139 ESPEY CT STE 6, CROFTON, MD, 21114

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,704,817

Exercised Options: $7,704,817

Current Obligation: $7,704,817

Actual Outlays: $19,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00020

IDV Type: IDC

Timeline