HHS awards $6.49M contract for NIH steam replacement design, with RMF Engineering Inc. selected

Contract Overview

Contract Amount: $64,862 ($64.9K)

Contractor: RMF Engineering, Inc., P.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2027-05-14

Contract Duration: 403 days

Daily Burn Rate: $161/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: C104562 MH88 TO VV87A STEAM REPLACEMENT DESIGN UPDATE TO MEET BUILDING CODES AND DRM UPDATED STANDARDS. IMPLEMENTATION OF PCAS TO SUPPORT CONSTRUCTION. WITHOUT SUPPORT SERVICES CONSTRUCTION CANNOT MOVE FORWARD.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $64,862 to RMF ENGINEERING, INC., P.C. for work described as: C104562 MH88 TO VV87A STEAM REPLACEMENT DESIGN UPDATE TO MEET BUILDING CODES AND DRM UPDATED STANDARDS. IMPLEMENTATION OF PCAS TO SUPPORT CONSTRUCTION. WITHOUT SUPPORT SERVICES CONSTRUCTION CANNOT MOVE FORWARD. Key points: 1. Contract focuses on critical infrastructure upgrades for NIH facilities. 2. Engineering services are essential for subsequent construction phases. 3. The contract duration is over a year, indicating a substantial scope. 4. Fixed-price contract type aims to control costs. 5. The project is located in Maryland, impacting local infrastructure. 6. This award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $6.49 million for engineering services appears reasonable for a project of this scope, involving design updates for critical building systems. Benchmarking against similar federal contracts for facility modernization and engineering design would provide a more precise value assessment. The firm-fixed-price structure suggests an effort to manage costs upfront, but the ultimate value will depend on the successful completion of the design and its impact on subsequent construction expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value through a transparent process. This approach generally leads to more competitive pricing and a wider selection of technical solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can drive down costs and encourage innovation, ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive updated and code-compliant steam systems. The services delivered include crucial design updates and support for construction readiness. The geographic impact is localized to NIH facilities in Maryland. The project supports the federal government's infrastructure modernization efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen design challenges arise.
Dependence on the contractor's ability to meet complex building code and DRM standards.
Risk of delays if construction support services are not adequately managed.

Positive Signals

Firm-fixed-price contract helps mitigate cost overruns.
Awarded under full and open competition, suggesting competitive pricing.
Contractor has a specific designation (P.C.) indicating professional licensing.
Project addresses essential infrastructure maintenance and upgrades.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market focused on design, consulting, and project management for infrastructure and facilities. Spending in this sector is driven by the government's continuous need to maintain, upgrade, and modernize its vast portfolio of physical assets. Comparable spending benchmarks would involve analyzing other federal contracts for building system design, HVAC upgrades, and facility engineering services across various agencies.

Small Business Impact

The contract was awarded under full and open competition and the data indicates no specific small business set-aside (ss: false) or subcontracting requirements (sb: false). This suggests that the primary award was made to a firm based on overall best value, rather than a specific set-aside for small businesses. While there are no explicit subcontracting mandates in this data, the prime contractor may still engage small businesses as part of their overall project execution strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the National Institutes of Health. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through federal procurement databases where contract awards are reported. The specific Inspector General jurisdiction would typically align with the Department of Health and Human Services.

Related Government Programs

NIH Facilities Modernization Projects
Federal Building Infrastructure Upgrades
Engineering and Design Services Contracts
Department of Health and Human Services Capital Investments

Risk Flags

Potential for design complexity impacting schedule.
Reliance on contractor's expertise for code compliance.
Interdependency between design completion and construction readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $64,862 to RMF ENGINEERING, INC., P.C.. C104562 MH88 TO VV87A STEAM REPLACEMENT DESIGN UPDATE TO MEET BUILDING CODES AND DRM UPDATED STANDARDS. IMPLEMENTATION OF PCAS TO SUPPORT CONSTRUCTION. WITHOUT SUPPORT SERVICES CONSTRUCTION CANNOT MOVE FORWARD.

Who is the contractor on this award?

The obligated recipient is RMF ENGINEERING, INC., P.C..

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 $64,862.

What is the period of performance?

Start: 2026-04-06. End: 2027-05-14.

What is the track record of RMF Engineering, Inc., P.C. with federal contracts, particularly within the Department of Health and Human Services?

Assessing RMF Engineering, Inc., P.C.'s track record requires a review of their past federal contract awards, performance evaluations, and any reported issues. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Specifically, examining their history with HHS and NIH would reveal their experience with similar projects, their ability to meet deadlines and budgets, and their overall performance quality. A history of successful, on-time, and within-budget project completions would indicate a lower risk for this current contract. Conversely, a pattern of performance issues, cost overruns, or disputes could raise concerns about their suitability for this critical infrastructure project.

How does the awarded amount of $6.49 million compare to similar federal contracts for steam replacement and building code compliance design services?

To benchmark the $6.49 million award, one would need to analyze comparable federal contracts for engineering design services related to steam systems, HVAC upgrades, and building code compliance. This involves searching federal procurement databases for contracts with similar scopes of work, durations, and agencies. Key comparison points include the contract type (e.g., firm-fixed-price), the size and complexity of the facility, and the specific engineering disciplines involved. If similar projects have been awarded for significantly lower or higher amounts, it would indicate whether this contract represents a particularly good or poor value. Factors like geographic location and the specific technical requirements (e.g., updating to DRM standards) can also influence pricing, necessitating a nuanced comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential design challenges in meeting updated building codes and DRM standards, the possibility of scope creep, and the contractor's ability to effectively support subsequent construction phases. Delays in the design update could impact the overall construction timeline and budget. Mitigation strategies likely include the firm-fixed-price contract type, which incentivizes the contractor to manage costs, and the requirement for comprehensive design documentation. The contract's duration and the explicit mention of 'support services to support construction' suggest that the government has considered the integration between design and implementation. Robust project management and oversight by NIH officials will be critical to identifying and addressing risks proactively.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and the risks of unforeseen costs are manageable. For this steam replacement design update, an FFP contract provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to perform efficiently and accurately. However, the effectiveness hinges on the thoroughness of the initial scope definition and the contractor's ability to accurately estimate all design and support service costs. If significant unforeseen technical challenges arise that were not reasonably foreseeable during bidding, the FFP structure could potentially lead to disputes or a contractor seeking change orders, which might negate some of the cost certainty benefits.

What are the historical spending patterns for engineering services at the National Institutes of Health, and how does this award fit within that context?

Analyzing historical spending patterns for engineering services at NIH would involve examining aggregate data on contracts awarded for facility maintenance, upgrades, and design over several fiscal years. This would reveal the typical contract values, the frequency of awards, and the primary service categories (e.g., HVAC, structural, electrical). This $6.49 million award for steam replacement design appears to be a significant investment in critical infrastructure, aligning with the ongoing need for NIH to maintain its research facilities. Understanding historical spending can help contextualize whether this award is within the expected range for such projects or represents an unusual increase or decrease in investment in this specific area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PK DR STE 300, CATONSVILLE, MD, 21228

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

Financial Breakdown

Contract Ceiling: $64,862

Exercised Options: $64,862

Current Obligation: $64,862

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99020D00005

IDV Type: IDC

Timeline