HHS awards $28.2M for NCI TIL Cell Processing Modular Facility, with DPR Construction as prime

Contract Overview

Contract Amount: $28,178,618 ($28.2M)

Contractor: DPR Construction, a General Partnership

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-29

End Date: 2022-03-31

Contract Duration: 1,644 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF OTHER FUNCTIONS: (REQ#4748903) (WR#C105122); ADD FUNDS TO REQ#4659310; NCI TIL CELL PROCESSING MODULAR FACILITY, VACANT AREAS SOUTH OF BLDG. 10 CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP for work described as: IGF::OT::IGF OTHER FUNCTIONS: (REQ#4748903) (WR#C105122); ADD FUNDS TO REQ#4659310; NCI TIL CELL PROCESSING MODULAR FACILITY, VACANT AREAS SOUTH OF BLDG. 10 CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN Key points: 1. Value for money appears fair, given the fixed-price contract type and multi-year duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and a single awardee. 4. Performance context shows a significant investment in a critical research facility. 5. Sector positioning places this contract within the broader healthcare and construction industries.

Value Assessment

Rating: fair

The contract value of $28.2 million for a modular cell processing facility seems within a reasonable range for a project of this scale and duration. As a firm-fixed-price contract, the risk of cost overruns is primarily on the contractor. Benchmarking against similar specialized construction projects would provide a more precise value assessment, but the initial outlay suggests a substantial investment in research infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a degree of competition, which is generally positive for price discovery. However, the specifics of the bidding process and the number of proposals received would offer a clearer picture of the competitive intensity.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing.

Public Impact

The National Institutes of Health (NIH) and its National Cancer Institute (NCI) are the primary beneficiaries, gaining enhanced capabilities for cell processing. The contract supports the delivery of a modular facility crucial for advanced cancer research and treatment development. The geographic impact is localized to Maryland, where the facility will be constructed and operated. Workforce implications include potential job creation in construction and specialized scientific support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) increases the risk of scope creep or unforeseen cost escalations, despite the fixed-price nature.
Reliance on a single awardee for a critical facility could pose risks if performance issues arise.
The specialized nature of the facility may limit the pool of qualified contractors, potentially impacting future competition.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
Full and open competition suggests a robust initial bidding process.
The project addresses a critical need within the National Cancer Institute's research infrastructure.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically serving the healthcare and research sub-sector. The market for specialized research facilities is driven by government funding and private investment in life sciences. Comparable spending benchmarks would involve analyzing construction costs for similar laboratory or processing facilities, considering factors like square footage, specialized equipment integration, and regulatory compliance.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities with the prime contractor, DPR Construction. Analysis of the subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of the specified facility. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports from an Inspector General would depend on any audits or investigations initiated.

Related Government Programs

National Institutes of Health Research Facilities
National Cancer Institute Programs
Biotechnology Infrastructure Contracts
Modular Construction Projects
Cell Therapy Research Support

Risk Flags

Long contract duration may increase exposure to changing requirements or economic conditions.
Single awardee for a critical facility could present performance or continuity risks.
Specialized nature of the facility might limit future competitive options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP. IGF::OT::IGF OTHER FUNCTIONS: (REQ#4748903) (WR#C105122); ADD FUNDS TO REQ#4659310; NCI TIL CELL PROCESSING MODULAR FACILITY, VACANT AREAS SOUTH OF BLDG. 10 CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN

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 $28.2 million.

What is the period of performance?

Start: 2017-09-29. End: 2022-03-31.

What is the track record of DPR Construction with the federal government, particularly on similar healthcare or research facility projects?

DPR Construction has a significant history of federal contracting. While specific project details beyond this award are not provided in the data, their involvement in large-scale institutional and commercial building projects suggests experience relevant to this contract. A deeper dive into their past performance ratings, any past performance issues, and the scale and complexity of their previous federal healthcare or research facility awards would be necessary for a comprehensive assessment. Examining their award history with agencies like HHS, NIH, or other research-focused bodies would offer further insight into their capabilities and reliability for this type of specialized construction.

How does the awarded amount compare to the estimated cost or budget for this modular facility?

The provided data does not include the estimated cost or budget for the NCI TIL Cell Processing Modular Facility. Therefore, a direct comparison to assess if the $28.2 million award represents a favorable or unfavorable outcome relative to expectations is not possible. To conduct such an analysis, one would need access to the original solicitation documents, pre-award cost estimates, or any internal budget documents related to this project. Without this information, it's difficult to definitively state whether the contract represents excellent, good, or fair value from a budgetary perspective.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a construction project of this nature, typical KPIs would likely include adherence to the construction schedule, quality of workmanship, compliance with building codes and safety regulations, and successful installation and commissioning of specialized equipment. Performance monitoring would be conducted by the contracting officer's representative (COR) or a designated technical point of contact, who would conduct site visits, review progress reports, and verify deliverables against contract requirements. The firm-fixed-price nature implies that meeting the defined scope and specifications by the completion date is paramount.

What is the historical spending trend for similar cell processing or modular research facility construction by the NIH or NCI?

The provided data does not offer historical spending trends for similar projects by NIH or NCI. To analyze this, one would need to query federal procurement databases (like FPDS or USASpending) for contracts with similar Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes within the relevant agencies over several fiscal years. This would help identify patterns in contract values, awardees, and the frequency of such specialized construction projects. Understanding historical spending would provide context for the $28.2 million award, indicating whether it is an outlier, a typical investment, or a significant increase/decrease in spending for such facilities.

Are there any known risks associated with the specific location or site preparation for this modular facility in Maryland?

The provided data does not contain information regarding specific risks associated with the location or site preparation for this modular facility in Maryland. Site-specific risks could include environmental considerations, geological conditions, zoning regulations, utility access, or security requirements. A thorough risk assessment would typically be part of the planning and design phase, involving site surveys, environmental impact studies, and geotechnical investigations. Without access to these planning documents or any specific risk mitigation plans mentioned in the contract, it is impossible to identify or assess such risks based solely on the award data.

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

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: $28,178,618

Exercised Options: $28,178,618

Current Obligation: $28,178,618

Actual Outlays: $13,297

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HHSN292201400008I

IDV Type: IDC

Timeline