Global Constructors LLC awarded $11.4M for NIH masonry work, highlighting construction sector spending

Contract Overview

Contract Amount: $11,386,034 ($11.4M)

Contractor: Global Constructors LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-08-10

End Date: 2010-02-26

Contract Duration: 931 days

Daily Burn Rate: $12.2K/day

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Construction

Official Description: CHANGE #133, NJE43611, PROCURE MASONRY PACKAGE OF CONTRACT - PROVIDE LABOR MATERIAL FOR MASONRY WORK, DIVISION 4 MASONRY - BLDG.6 - HCY70003 - BOB MCDONALD -LOG #21753 - B&F

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to GLOBAL CONSTRUCTORS LLC for work described as: CHANGE #133, NJE43611, PROCURE MASONRY PACKAGE OF CONTRACT - PROVIDE LABOR MATERIAL FOR MASONRY WORK, DIVISION 4 MASONRY - BLDG.6 - HCY70003 - BOB MCDONALD -LOG #21753 - B&F Key points: 1. Contract value of $11.4M for masonry services indicates significant investment in facility maintenance and upgrades. 2. The award to Global Constructors LLC suggests a focus on established contractors for specialized construction needs. 3. A single delivery order for this scope of work may warrant scrutiny regarding potential for future task orders. 4. The contract duration of 931 days points to a long-term need for the services provided. 5. Geographic location in Maryland (MD) aligns with the concentration of federal facilities in the Mid-Atlantic region. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The $11.4 million contract for masonry work represents a substantial investment. Benchmarking this against similar large-scale construction projects for federal facilities is challenging without more granular data on the scope and complexity of the masonry required. However, the duration of the contract (931 days) suggests a significant, ongoing need, which could justify the expenditure if the quality of work and materials meets expectations. Further analysis would require comparing the per-square-foot cost or cost per unit of masonry work to industry standards for similar government projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. As a delivery order under a larger contract vehicle (implied by 'PROCURE MASONRY PACKAGE OF CONTRACT'), the initial competition for the base contract is unknown. The number of bidders for this specific delivery order is also not specified. If this was competed as a sole-source or limited competition action, it could impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition generally drives down prices and encourages innovation, leading to better deals for the government. Limited or sole-source awards may result in higher costs if the contractor faces less pressure to offer competitive pricing.

Public Impact

The National Institutes of Health (NIH) benefits from the maintenance and upgrade of its facilities, ensuring a conducive environment for research. Specialized masonry services are delivered, contributing to the structural integrity and longevity of Building 6. The geographic impact is concentrated in Maryland, supporting local construction labor and material suppliers. The contract supports the federal government's infrastructure maintenance and capital improvement efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises questions about optimal price discovery.
The substantial contract value could indicate a significant scope, requiring careful oversight to ensure efficient use of funds.
Absence of small business participation flags may limit opportunities for smaller firms in this specific award.

Positive Signals

The award to a single entity suggests a streamlined process for a specific need.
The long contract duration implies a consistent need for these specialized services.
The contract is associated with a major federal health research institution (NIH), indicating a critical operational requirement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this area supports infrastructure maintenance, upgrades, and new construction for government facilities. The NIH, as a major research institution, requires significant investment in its physical plant to support its mission. Comparable spending benchmarks would involve analyzing other large construction contracts awarded by agencies like the General Services Administration (GSA) or the Department of Defense for similar facility types and scopes of work.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that the competition was likely open to all eligible contractors, including large businesses. While this ensures a broad pool of potential bidders, it may limit direct opportunities for small businesses unless they are subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Health and Human Services and the National Institutes of Health. Specific oversight mechanisms would include contract administration, performance monitoring, and quality assurance processes to ensure the work is completed according to specifications. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities Construction
Department of Health and Human Services Capital Investments
National Institutes of Health Infrastructure Projects
Commercial Building Construction Services

Risk Flags

Potential for limited competition
Long contract duration may increase cost overrun risk
Concentration of funds in a single delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to GLOBAL CONSTRUCTORS LLC. CHANGE #133, NJE43611, PROCURE MASONRY PACKAGE OF CONTRACT - PROVIDE LABOR MATERIAL FOR MASONRY WORK, DIVISION 4 MASONRY - BLDG.6 - HCY70003 - BOB MCDONALD -LOG #21753 - B&F

Who is the contractor on this award?

The obligated recipient is GLOBAL CONSTRUCTORS 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 $11.4 million.

What is the period of performance?

Start: 2007-08-10. End: 2010-02-26.

What is the specific nature of the 'masonry package' and the scope of work covered under this delivery order?

The provided data describes the contract as a 'PROCURE MASONRY PACKAGE OF CONTRACT - PROVIDE LABOR MATERIAL FOR MASONRY WORK, DIVISION 4 MASONRY - BLDG.6'. This indicates the contract covers the provision of both labor and materials for masonry work, specifically related to Division 4 of construction specifications, and is designated for Building 6. The 'masonry package' likely encompasses a range of tasks such as bricklaying, block work, stone setting, mortar repair, and potentially structural masonry reinforcement or restoration within Building 6 at the NIH facility. The exact scope would be detailed in the Statement of Work (SOW) attached to the delivery order, which is not available in this dataset.

How does the $11.4 million award compare to typical construction spending for similar federal facilities?

Comparing the $11.4 million award requires context on the size and specific needs of Building 6 at NIH. Federal construction projects vary widely in cost based on factors like building age, structural requirements, renovation scope, and material quality. For a significant renovation or upgrade involving extensive masonry work on a large institutional building, $11.4 million could be within a reasonable range. However, without knowing the square footage of Building 6, the extent of the masonry work (e.g., facade restoration vs. minor repairs), and the specific materials used, a precise benchmark is difficult. Industry data on large-scale commercial and institutional building construction costs would be needed for a more accurate comparison.

What are the potential risks associated with a single delivery order of this magnitude and duration?

A single delivery order of $11.4 million with a 931-day duration presents several potential risks. Firstly, it could indicate a lack of competition if the base contract vehicle allowed for multiple options or if the scope could have been broken down further. This concentration of funds with one contractor might reduce price pressure. Secondly, the long duration increases the risk of cost overruns due to inflation, material price fluctuations, or unforeseen site conditions. Thirdly, reliance on a single delivery order for such a large sum might suggest a less agile procurement strategy, potentially missing opportunities for cost savings through more frequent, smaller competitions or by leveraging different contract vehicles. Finally, performance risk is concentrated; if the contractor underperforms, it could significantly impact the facility's operations.

What is the track record of Global Constructors LLC in performing federal construction contracts?

Information on Global Constructors LLC's track record is limited in the provided data. The award details show this specific contract (NJE43611) valued at $11.4 million, awarded on August 10, 2007, and ending on February 26, 2010. To assess their track record, one would need to examine their performance on this and other federal contracts. This includes looking at past performance reviews, any documented disputes or contract terminations, and their history of delivering projects on time and within budget. A search of the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to gather this comprehensive performance history.

How does this contract fit into the broader spending patterns for facility maintenance and construction at the National Institutes of Health?

This $11.4 million contract for masonry work represents a specific investment in the physical infrastructure of Building 6 at NIH. Federal agencies like NIH have ongoing needs for facility maintenance, repair, and modernization to support their research missions. Spending in this category is crucial for ensuring the operational integrity and safety of laboratories, offices, and other facilities. Analyzing this contract in the context of NIH's overall capital improvement budget and historical spending on construction and maintenance services would reveal its significance. It is likely one of many such contracts supporting the vast campus infrastructure required for cutting-edge biomedical research.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Contractor Details

Address: 3900 C STREET SUITE 703, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,386,034

Exercised Options: $11,386,034

Current Obligation: $11,386,034

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN292200400317I

IDV Type: IDC

Timeline