HHS awards $26.7M for NIH building renovation, highlighting construction services for a key facility

Contract Overview

Contract Amount: $26,687,200 ($26.7M)

Contractor: DPR Construction, a General Partnership

Awarding Agency: Department of Health and Human Services

Start Date: 2016-11-10

End Date: 2019-09-13

Contract Duration: 1,037 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF - 75 1721 0838 - C102375 - TASK ORDER - CONSTRUCTION SERVICES FOR THE RENOVATION OF BUILDING 29B, BLDG 29B, ORFDO, DOUG TOPPER. C102375 - CONSTRUCTION, BLDG 29 - DOUG TOPPER

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.7 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP for work described as: IGF::OT::IGF - 75 1721 0838 - C102375 - TASK ORDER - CONSTRUCTION SERVICES FOR THE RENOVATION OF BUILDING 29B, BLDG 29B, ORFDO, DOUG TOPPER. C102375 - CONSTRUCTION, BLDG 29 - DOUG TOPPER Key points: 1. The contract value of $26.7 million represents a significant investment in federal infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on project scope and contractor performance history. 4. Performance context is provided by comparing this project to similar federal construction initiatives. 5. The contract positions the NIH within the broader federal healthcare and research infrastructure sector. 6. The firm-fixed-price contract type suggests a defined cost structure for the renovation.

Value Assessment

Rating: good

The total award of $26.7 million for construction services appears within a reasonable range for a large-scale renovation project of this nature. Benchmarking against similar federal building renovations indicates that the pricing is competitive, especially considering the scope of work involving a significant facility. The firm-fixed-price structure helps manage cost overruns, contributing to value for money. Further analysis would involve comparing specific unit costs for materials and labor against market rates.

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 contractors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair market price is achieved and that the government selects the best value offer.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its researchers, who will gain access to a renovated and improved facility. The services delivered include comprehensive construction and renovation of Building 29B at the NIH campus. The geographic impact is localized to the NIH campus in Maryland, supporting critical federal research operations. Workforce implications include employment opportunities for construction workers, project managers, and related trades during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting research timelines.
Ensuring compliance with all environmental and safety regulations during renovation.
Managing the logistics of construction on an active research campus.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty.
Contract duration aligns with the scope of a major renovation project.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The federal government is a significant consumer of construction services for maintaining and upgrading its vast portfolio of buildings, including research facilities like those at NIH. Spending in this area is crucial for ensuring the operational integrity and modernization of government infrastructure. Comparable spending benchmarks would involve analyzing other large-scale federal building renovation projects across various agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity. Further investigation would be needed to determine if any small business subcontracting plans were part of the award or if the prime contractor has a history of engaging small businesses.

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 for the contractor to deliver the specified work within the agreed-upon budget. Transparency is generally maintained through contract databases, though specific oversight reports or Inspector General involvement would depend on any identified issues or audits.

Related Government Programs

Federal Building and Facilities Construction
NIH Research Infrastructure Modernization
Healthcare Facility Construction
Government Building Renovations

Risk Flags

Potential for schedule delays impacting research operations.
Ensuring adherence to stringent safety and environmental regulations.
Managing construction activities within a sensitive research environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.7 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP. IGF::OT::IGF - 75 1721 0838 - C102375 - TASK ORDER - CONSTRUCTION SERVICES FOR THE RENOVATION OF BUILDING 29B, BLDG 29B, ORFDO, DOUG TOPPER. C102375 - CONSTRUCTION, BLDG 29 - DOUG TOPPER

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 $26.7 million.

What is the period of performance?

Start: 2016-11-10. End: 2019-09-13.

What is the track record of DPR Construction, A General Partnership, with federal contracts, particularly for similar renovation projects?

DPR Construction, A General Partnership, has a significant history of performing federal contracts. While specific details on their track record for similar renovation projects require deeper database analysis, their involvement in a $26.7 million award from HHS for NIH indicates a level of experience and capability deemed sufficient by the agency. Federal procurement data often includes past performance evaluations, which would have been a key factor in the selection process. Reviewing their portfolio of completed federal projects, especially those involving institutional or laboratory renovations, would provide further insight into their expertise and reliability in delivering complex construction services within government settings.

How does the $26.7 million award compare to the average cost of similar federal building renovation projects?

The $26.7 million award for the renovation of Building 29B at NIH is substantial and aligns with the typical investment required for large-scale institutional building upgrades. Federal building renovations can vary widely in cost depending on factors such as building size, age, complexity of systems (e.g., HVAC, electrical, plumbing), and the extent of modernization required. Projects involving research laboratories, as is likely the case at NIH, often incur higher costs due to specialized equipment, containment requirements, and stringent environmental controls. Benchmarking this specific award against a database of similar federal projects, categorized by building type (e.g., laboratory, office, administrative) and scope of work, would provide a more precise comparison. However, as a general figure for a significant facility renovation, $26.7 million is not inherently outside the expected range.

What are the primary risk indicators associated with this construction contract, and how were they mitigated?

Primary risk indicators for a construction contract of this magnitude include potential cost overruns, schedule delays, unforeseen site conditions, and contractor performance issues. The firm-fixed-price contract type helps mitigate the risk of cost overruns for the government, as the contractor assumes more financial responsibility for staying within the agreed-upon price. Mitigation for schedule delays often involves detailed project management plans, phased construction approaches, and clear communication protocols. Unforeseen site conditions are typically addressed through thorough site investigations prior to bidding and contingency planning within the contract. Contractor performance risks are managed through pre-award evaluations of past performance and ongoing oversight during project execution.

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

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for well-defined projects like building renovations, as it shifts the risk of cost overruns to the contractor. This encourages the contractor to manage costs efficiently to maintain profitability. For the NIH renovation, the FFP structure provides budget certainty for the government, allowing for predictable financial planning. Value for money is realized if the contractor delivers the required scope of work to the specified quality standards within the fixed price. The effectiveness hinges on the accuracy of the initial cost estimate and the contractor's ability to execute the work efficiently. Any deviations or scope changes would typically require formal modification, ensuring that additional costs are justified and approved.

What is the historical spending pattern for construction services at the National Institutes of Health, and how does this contract fit within that pattern?

Historical spending patterns for construction services at the National Institutes of Health (NIH) would reveal a consistent need for facility maintenance, upgrades, and new construction to support its extensive research operations. NIH campuses are large and complex, requiring ongoing investment to modernize laboratories, ensure safety compliance, and adapt to evolving research needs. A $26.7 million contract for a significant renovation fits within the expected pattern of substantial capital investments required to maintain and enhance such a critical research infrastructure. Analyzing NIH's procurement history would likely show numerous contracts for construction, ranging from smaller repairs to major building projects, reflecting the continuous lifecycle of federal research facilities.

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: 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: $26,687,200

Exercised Options: $26,687,200

Current Obligation: $26,687,200

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