HHS awards $22.3M for NIH E-Wing Enabler Project, with DPR Construction winning a firm-fixed-price contract

Contract Overview

Contract Amount: $22,341,211 ($22.3M)

Contractor: DPR Construction, a General Partnership

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-28

End Date: 2020-09-01

Contract Duration: 1,434 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF:: (ITEM # 1) (REQ# 4355929) C100663 - E-WING ENABLER PROJECT, BLDG. 10 - CHETNA GOLA

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.3 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP for work described as: IGF::OT::IGF:: (ITEM # 1) (REQ# 4355929) C100663 - E-WING ENABLER PROJECT, BLDG. 10 - CHETNA GOLA Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure indicates that the contractor bears the risk of cost overruns. 3. The project duration of 1434 days spans over three years, indicating a significant construction undertaking. 4. The contract was awarded to DPR Construction, a general partnership. 5. The project is located in Maryland, a state with a substantial federal presence. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular cost breakdowns or comparable project data. However, the firm-fixed-price nature suggests that the government secured a defined cost upfront, transferring cost overrun risk to the contractor. The total award amount of $22.3 million for a significant building construction project over nearly four years appears within a reasonable range for large-scale federal construction, though specific cost-per-square-foot or cost-per-unit metrics would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. While the exact number of bids received is not specified, this procurement method generally fosters a competitive environment, which can lead to better pricing and value for the government. The presence of multiple bidders, if applicable, would have allowed for price discovery and selection of the most advantageous offer.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of contractors to participate.

Public Impact

The primary beneficiaries of this contract are the National Institutes of Health (NIH), which will receive the completed E-Wing Enabler Project. The project involves the construction of a building, likely to support research, administrative, or operational functions at the NIH campus. The geographic impact is localized to the NIH campus in Maryland. The construction project will likely create or sustain jobs in the construction sector within the local Maryland workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting NIH operations.
Unforeseen site conditions could lead to scope creep or cost adjustments, despite the fixed-price nature.
Ensuring compliance with all federal building codes and environmental regulations throughout the construction process.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition likely resulted in competitive pricing.
Experienced contractor (DPR Construction) selected for a significant project.
Project duration is clearly defined, allowing for project management and resource allocation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses firms that build new commercial and institutional buildings, as well as those that provide alterations, repairs, and additions to existing structures. Federal spending in construction is substantial, supporting infrastructure development, agency facilities, and research centers. Comparable spending benchmarks would involve analyzing other large-scale federal building projects awarded by agencies like GSA, DoD, or other health-related entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, DPR Construction, may still engage small businesses as subcontractors as part of their standard business practices or supply chain management, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the National Institutes of Health. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. While no specific Inspector General jurisdiction is mentioned, the HHS Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

NIH Research Facilities Construction
Federal Building and Infrastructure Projects
Department of Health and Human Services Capital Investments
Commercial Building Construction Contracts

Risk Flags

Potential for cost overruns if scope changes significantly.
Ensuring quality control in a firm-fixed-price environment.
Coordination with existing NIH infrastructure and operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.3 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP. IGF::OT::IGF:: (ITEM # 1) (REQ# 4355929) C100663 - E-WING ENABLER PROJECT, BLDG. 10 - CHETNA GOLA

Who is the contractor on this award?

The obligated recipient is DPR CONSTRUCTION, A GENERAL PARTNERSHIP.

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 $22.3 million.

What is the period of performance?

Start: 2016-09-28. End: 2020-09-01.

What is the track record of DPR Construction with federal contracts, particularly with the NIH or HHS?

DPR Construction is a well-established general contractor with a significant history of performing large-scale construction projects, including for federal agencies. While specific details on their past performance with NIH or HHS require a deeper dive into federal procurement databases, their selection for a project of this magnitude suggests they have a proven track record. Analyzing their past federal contract awards, including any performance evaluations or past performance questionnaires, would provide further insight into their reliability and capability in delivering complex federal construction projects on time and within budget.

How does the $22.3 million award compare to similar NIH or HHS building construction projects?

Comparing the $22.3 million award requires identifying similar projects in terms of scope, size, and complexity within the NIH or HHS portfolio. Without specific project details like square footage, specific functionalities (e.g., laboratory vs. administrative space), and the year of award, a direct comparison is difficult. However, for major institutional building projects, this figure represents a substantial investment. Benchmarking would involve looking at the cost per square foot or cost per functional unit for comparable NIH or HHS facilities constructed around the same period to assess if the pricing was competitive.

What are the primary risks associated with this firm-fixed-price construction contract for the government?

The primary risk for the government with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or materials to maintain profitability if they encounter unforeseen cost increases. While the price is fixed, ensuring adherence to specifications and quality standards remains crucial. Additionally, if the scope of work needs to change significantly, the government might face higher costs for change orders compared to other contract types. However, the FFP structure is generally favored for construction projects where the scope is well-defined, as it provides cost certainty.

What is the expected impact of the E-Wing Enabler Project on NIH's research or operational capabilities?

The 'E-Wing Enabler Project' name suggests that this construction is intended to facilitate or enhance existing or future capabilities within the NIH. It could involve creating new laboratory space, upgrading existing infrastructure to support advanced research equipment, providing additional administrative offices, or improving building systems (e.g., HVAC, power) essential for research operations. The specific impact would depend on the intended use of the E-Wing, but it is likely designed to support the NIH's mission of advancing biomedical research and public health.

What has been the historical spending trend for commercial and institutional building construction by the NIH?

Analyzing historical spending trends for commercial and institutional building construction by the NIH would involve reviewing procurement data over several fiscal years. This would reveal patterns in the volume and value of construction contracts awarded. Factors influencing these trends include budget allocations, specific facility needs, modernization efforts, and the lifecycle of existing infrastructure. A review of past NIH construction spending could indicate whether this $22.3 million award is consistent with, higher than, or lower than typical annual investments in building projects.

Were there any specific performance issues or concerns raised during the execution or closeout of this contract?

Information regarding specific performance issues or concerns during the execution or closeout of this contract is not directly available in the provided data snippet. A thorough assessment would require examining contract performance reports, payment histories, any modifications or claims filed, and potentially feedback from the contracting officer's representative (COR) or end-users. Without access to these detailed performance records, it is assumed the contract was executed satisfactorily, given its completion.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHOF2011367

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DPR Construction, Inc. (UEI: 617801915)

Address: 1450 VETERANS BLVD OFC, REDWOOD CITY, CA, 94063

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

Financial Breakdown

Contract Ceiling: $22,341,211

Exercised Options: $22,341,211

Current Obligation: $22,341,211

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HHSN292201400008I

IDV Type: IDC

Timeline