NIH Awards $8.1M for Lab Cooling Coil Replacements to Cutlass Contracting LLC

Contract Overview

Contract Amount: $8,107,868 ($8.1M)

Contractor: Cutlass Contracting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-12-22

End Date: 2027-05-31

Contract Duration: 525 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C115999 - CRC LAB AHU COOLING COIL REPLACEMENTS THIS PROJECT CONSISTS OF PROVIDING DESIGN AND CONSTRUCTION SERVICES TO REPLACE THE COOLING COILS IN BUILDING 10 CRC AHUS SERVING LAB SPACES-SILVANA LAVADO

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.1 million to CUTLASS CONTRACTING LLC for work described as: C115999 - CRC LAB AHU COOLING COIL REPLACEMENTS THIS PROJECT CONSISTS OF PROVIDING DESIGN AND CONSTRUCTION SERVICES TO REPLACE THE COOLING COILS IN BUILDING 10 CRC AHUS SERVING LAB SPACES-SILVANA LAVADO Key points: 1. Project focuses on critical infrastructure replacement for lab spaces. 2. Cutlass Contracting LLC, a new awardee, faces initial performance scrutiny. 3. Risk of project delays or cost overruns due to complex lab environments. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The contract's value of $8.1M for cooling coil replacements appears reasonable given the scope of work involving design and construction services for lab AHUs. Benchmarking against similar HVAC replacement projects in institutional settings is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. The use of a Firm Fixed Price contract aims to control costs, but the impact on price discovery for specialized lab equipment needs further evaluation.

Taxpayer Impact: Taxpayers benefit from a competitive award process, but the final cost-effectiveness will depend on project execution and the actual value delivered.

Public Impact

Ensures continued operation of critical lab research facilities. Supports modernization of aging building infrastructure. Potential for disruption to research activities during replacement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

New awardee with no prior contract history.
Potential for unforeseen site conditions in existing lab infrastructure.
Project duration extends over multiple fiscal years.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type.
Clear project objective for infrastructure improvement.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector often characterized by significant infrastructure investments. Benchmarks for similar HVAC replacement projects in research or healthcare facilities would provide context for the $8.1M award.

Small Business Impact

The awardee, Cutlass Contracting LLC, is not identified as a small business in the provided data. Further analysis would be needed to determine if small business participation was incorporated into the subcontracting plan.

Oversight & Accountability

The Department of Health and Human Services, specifically the National Institutes of Health, is responsible for oversight. Monitoring project progress, adherence to schedule, and cost control will be crucial for ensuring accountability.

Related Government Programs

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

Risk Flags

New awardee with limited performance history.
Potential for unforeseen conditions in lab infrastructure.
Project duration spans over a year and a half.
Complexity of maintaining lab environmental controls during work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.1 million to CUTLASS CONTRACTING LLC. C115999 - CRC LAB AHU COOLING COIL REPLACEMENTS THIS PROJECT CONSISTS OF PROVIDING DESIGN AND CONSTRUCTION SERVICES TO REPLACE THE COOLING COILS IN BUILDING 10 CRC AHUS SERVING LAB SPACES-SILVANA LAVADO

Who is the contractor on this award?

The obligated recipient is CUTLASS CONTRACTING 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 $8.1 million.

What is the period of performance?

Start: 2025-12-22. End: 2027-05-31.

What is the estimated cost per AHU for this cooling coil replacement project?

The total contract value is $8,107,867.52 for replacing cooling coils in an unspecified number of AHUs serving lab spaces. With 3 AHUs mentioned in the data, this would suggest a per-AHU cost of approximately $2.7 million. However, the exact number of AHUs involved and the complexity of each unit's replacement are critical factors not fully detailed, making a precise per-unit cost difficult to ascertain without further project specifications.

What are the primary risks associated with replacing cooling coils in active laboratory environments?

Replacing cooling coils in active lab environments presents significant risks, including potential disruption to sensitive experiments requiring precise temperature and humidity control. There's also a risk of contamination or damage to existing lab equipment and infrastructure. Ensuring containment of dust and debris during construction, and maintaining negative air pressure where necessary, are critical to mitigate these risks and protect ongoing research.

How does the firm-fixed-price contract type impact the effectiveness of this project's budget?

A firm-fixed-price contract is intended to provide budget certainty by establishing a set price for the work. This shifts the risk of cost overruns to the contractor, Cutlass Contracting LLC. While this can be effective in controlling the government's expenditure, it may incentivize the contractor to minimize costs, potentially impacting the quality of materials or workmanship if not rigorously overseen. Effective oversight is key to ensuring value.

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: C115998

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11415 ORANGE BLOSSOM CT, SMITHSBURG, MD, 21783

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,107,868

Exercised Options: $8,107,868

Current Obligation: $8,107,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00024

IDV Type: IDC

Timeline