HHS spent $15M on building maintenance and alterations with KIC Development, LLC over 7 years

Contract Overview

Contract Amount: $14,971,249 ($15.0M)

Contractor: KIC Development, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-23

End Date: 2014-06-20

Contract Duration: 2,524 days

Daily Burn Rate: $5.9K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MAINT-REP-ALT/MAINT BLDGS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.0 million to KIC DEVELOPMENT, LLC for work described as: MAINT-REP-ALT/MAINT BLDGS Key points: 1. The contract value of $14.97 million for building maintenance and alterations is substantial. 2. Competition details are not provided, making it difficult to assess market competitiveness. 3. The long duration (7 years) and time-and-materials pricing present potential cost escalation risks. 4. This spending falls under 'Other Services to Buildings and Dwellings', a broad category.

Value Assessment

Rating: fair

The total award of $14.97 million over seven years suggests a significant investment. Without specific task orders or comparable contract data, it's challenging to definitively assess if the pricing was optimal. The time-and-materials structure can lead to variable costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is 'TIME AND MATERIALS', and the competition method is not specified. This lack of transparency hinders an assessment of how effectively prices were discovered and if the government received fair value.

Taxpayer Impact: The $14.97 million expenditure represents taxpayer funds allocated to building maintenance. The efficiency and fairness of the procurement process directly impact the overall taxpayer benefit.

Public Impact

Federal facilities require ongoing maintenance to ensure operational readiness and safety. The contract supported services for the National Institutes of Health, a key research institution. Long-term contracts can provide stability for service providers but require careful oversight to manage costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition details
Time and materials pricing
Long contract duration

Positive Signals

Supported critical NIH facilities
Provided long-term service

Sector Analysis

This contract falls under the 'Other Services to Buildings and Dwellings' NAICS code. Spending in this sector is generally consistent with the operational needs of government agencies maintaining physical infrastructure.

Small Business Impact

There is no indication whether small businesses were involved as prime contractors or subcontractors in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services. Oversight would typically involve monitoring contract performance, expenditures, and adherence to terms to ensure accountability.

Related Government Programs

Other Services to Buildings and Dwellings
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competition details
Time and materials pricing
Long contract duration
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.0 million to KIC DEVELOPMENT, LLC. MAINT-REP-ALT/MAINT BLDGS

Who is the contractor on this award?

The obligated recipient is KIC DEVELOPMENT, 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 $15.0 million.

What is the period of performance?

Start: 2007-07-23. End: 2014-06-20.

What was the average annual spending under this contract, and how does it compare to benchmarks for similar facilities?

The contract spanned approximately 7 years (2524 days) with a total award of $14.97 million, averaging roughly $2.14 million per year. Benchmarking this against similar NIH facilities would require detailed data on facility size, age, and specific maintenance needs to determine if this represents efficient spending.

What were the specific risks associated with the time-and-materials pricing structure over a 7-year period?

Time-and-materials contracts carry inherent risks of cost overruns, especially over long durations, as the final cost is not fixed. Without clear labor rates, material markups, and robust oversight, there's a risk of inflated hours or unnecessary material purchases, potentially leading to inefficient use of taxpayer funds.

How effectively did the procurement process ensure value for money given the lack of specified competition?

The provided data does not specify the competition method used for this contract. If it was not a full and open competition, or if competition was limited, it raises concerns about whether the government secured the best possible price and service. A lack of transparency in competition makes value assessment difficult.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Contractor Details

Parent Company: Kikiktagruk Inupiat Corp (UEI: 079259065)

Address: 557 E FIREWEED LN STE B, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,971,249

Exercised Options: $14,971,249

Current Obligation: $14,971,249

Parent Contract

Parent Award PIID: HHSN26320050006I

IDV Type: IDC

Timeline