HHS awards $26.1M for NIH building construction, with DPR Construction as prime

Contract Overview

Contract Amount: $26,187,272 ($26.2M)

Contractor: DPR Construction, a General Partnership

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-26

End Date: 2023-03-31

Contract Duration: 2,012 days

Daily Burn Rate: $13.0K/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#4703605)(WR#C104935); CC-DTM MODULAR CELL PROCESSING UNITS IN EAST TERRACE OF BUILDING 10 - CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN DELIVER TO: BLDG. 10/EAST DECK PRODUCT SERVICE CODE: Y1JZ PRODUCT/SERVICE DESCRIPTION: CONSTRUCTION OF MISCELLANEOUS BUILDINGS CAN 88030177 OD OM ORFDO DDCM LDCB LABORATORY DESIGN AND CONSTRU TAS:: 75-17-4554::TAS 08000420170RA0 PERFORMANCE CONSTITUTES ACCEPTANCE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP for work described as: IGF::OT::IGF OTHER FUNCTIONS: (REQ#4703605)(WR#C104935); CC-DTM MODULAR CELL PROCESSING UNITS IN EAST TERRACE OF BUILDING 10 - CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN DELIVER TO: BLDG. 10/EAST DECK PRODUCT SERVICE CODE: Y1JZ PRODUCT/SERVICE DESCRIPTION: CONSTRUCTION OF MISCEL… Key points: 1. Contract value of $26.1M for construction services at NIH facilities. 2. Awarded under full and open competition, indicating broad market engagement. 3. Performance period spans from 2017 to 2023, suggesting a multi-year project. 4. The contract is for miscellaneous building construction, specifically laboratory design and construction. 5. Prime contractor is DPR Construction, a significant player in the construction industry. 6. The contract was issued as a delivery order against a larger contract. 7. The project is located in Maryland, impacting the local construction sector.

Value Assessment

Rating: good

The contract value of $26.1 million for miscellaneous building construction, including laboratory design and construction, appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. However, the firm fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control. The contract was awarded under full and open competition, which typically leads to more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates two bids were received. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and innovation. The fact that it was competed broadly is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition allows for a wider range of contractors to bid, increasing the likelihood of securing the best possible price for the government and, by extension, the taxpayer. This approach helps prevent inflated costs that can sometimes occur with less competitive solicitations.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive upgraded or new laboratory facilities. The services delivered include the construction of miscellaneous buildings, with a specific focus on laboratory design and construction. The geographic impact is localized to the East Terrace of Building 10 at NIH facilities in Maryland. The contract supports the construction workforce in Maryland, providing employment opportunities for skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex laboratory construction projects.
Dependence on a single prime contractor for a significant construction undertaking.
Risk of delays due to unforeseen site conditions or regulatory hurdles in construction.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
DPR Construction is a reputable firm with experience in large-scale projects.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on laboratory design and construction. This sector is characterized by large projects requiring specialized expertise and adherence to stringent building codes and safety regulations. Federal spending in this area is often driven by the need to modernize research facilities, expand capacity, or meet evolving scientific requirements. Comparable spending benchmarks would involve analyzing other federal construction contracts for research facilities or similar institutional buildings awarded by agencies like the General Services Administration (GSA) or other research-intensive departments.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. While the prime contractor, DPR Construction, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on DPR's procurement strategy and any flow-down requirements from the government. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be managed by the contracting officer and the relevant program officials within the National Institutes of Health (NIH). The firm fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

NIH Research Facilities Construction
Federal Laboratory Modernization Projects
General Services Administration (GSA) Construction Contracts
Department of Health and Human Services (HHS) Capital Investments

Risk Flags

Potential for construction delays
Complexity of laboratory construction requirements
Contract performance risk
Site condition variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.2 million to DPR CONSTRUCTION, A GENERAL PARTNERSHIP. IGF::OT::IGF OTHER FUNCTIONS: (REQ#4703605)(WR#C104935); CC-DTM MODULAR CELL PROCESSING UNITS IN EAST TERRACE OF BUILDING 10 - CT#HHSN292201400008I - HAMIDEH ALEHOSSEIN DELIVER TO: BLDG. 10/EAST DECK PRODUCT SERVICE CODE: Y1JZ PRODUCT/SERVICE DESCRIPTION: CONSTRUCTION OF MISCELLANEOUS BUILDINGS CAN 88030177 OD OM ORFDO DDCM LDCB LABORATORY DESIGN AND CONSTRU TAS:: 75-17-4554::TAS 08000420170RA0 PERFORMANCE CONSTITUTES ACCEPTANCE

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 $26.2 million.

What is the period of performance?

Start: 2017-09-26. End: 2023-03-31.

What is the track record of DPR Construction on similar federal construction contracts, particularly those involving laboratory facilities?

DPR Construction is a well-established general contractor with a significant portfolio of federal projects, including those for research institutions and laboratories. Their experience often includes complex construction, design-build, and renovation projects. To assess their track record specifically for this contract, one would examine past performance evaluations on similar federal contracts, looking for indicators of on-time delivery, adherence to budget, quality of work, and client satisfaction. Publicly available contract databases and agency performance rating systems can provide insights into their history with government clients. Their involvement in projects for agencies like the NIH, Department of Defense, and Department of Veterans Affairs would be particularly relevant.

How does the awarded amount of $26.1 million compare to the typical cost of constructing similar laboratory facilities for federal agencies?

The awarded amount of $26.1 million for miscellaneous building construction, including laboratory design and construction, needs to be benchmarked against similar federal projects to assess value. Factors influencing cost include square footage, complexity of laboratory systems (e.g., specialized ventilation, containment), materials used, and geographic location. For instance, a 2019 report by the Congressional Research Service on federal laboratory construction noted significant cost variations. Without specific details on the scope, size, and technical requirements of the NIH facility, a precise comparison is difficult. However, for large-scale, specialized laboratory construction, $26.1 million could represent a moderate to significant investment, and its value is best judged against projects with comparable specifications and market conditions at the time of award.

What are the primary risks associated with this specific construction contract, and how are they being mitigated?

Primary risks for this contract include potential construction delays due to unforeseen site conditions, complexity of laboratory systems requiring specialized design and execution, and potential cost escalations if not managed tightly, although the firm fixed-price contract mitigates this for the government. Mitigation strategies likely involve rigorous project management by DPR Construction, detailed site investigations prior to and during construction, robust quality assurance/quality control (QA/QC) processes, and clear communication channels with NIH stakeholders. The contract's duration (2017-2023) also implies a phased approach, allowing for adjustments and risk management over time. The government's oversight role, through the contracting officer's representative (COR), is crucial for monitoring progress and addressing issues proactively.

What is the historical spending pattern for construction services at the National Institutes of Health (NIH) over the past five years?

Historical spending on construction services at the NIH over the past five years would likely show a consistent demand driven by the need to maintain and upgrade state-of-the-art research facilities. NIH, as a leading biomedical research center, invests significantly in its infrastructure. Spending patterns would reflect a mix of new construction, renovations, and specialized facility upgrades. Analyzing contract awards data from agencies like the General Services Administration (GSA) or directly from NIH solicitations would reveal trends in contract values, types of construction (e.g., laboratories, administrative buildings, vivariums), and prime contractors. This specific $26.1 million award fits within the broader context of ongoing capital investments required to support NIH's mission.

Given the firm fixed-price contract type, what is the potential for cost savings or overruns for the government?

With a firm fixed-price (FFP) contract, the government's financial risk regarding cost overruns is significantly minimized. The contractor, DPR Construction in this case, agrees to a set price for the defined scope of work. If the contractor's costs exceed the agreed-upon price due to inefficiencies, poor planning, or unexpected material price increases, the government is generally not obligated to pay more. Conversely, if the contractor can complete the work for less than the fixed price, they realize a higher profit margin. This contract type incentivizes the contractor to manage costs effectively and efficiently. Potential savings for the government are realized if the contractor underbids the actual cost, but the primary benefit is cost certainty and predictability.

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: $26,187,272

Exercised Options: $26,187,272

Current Obligation: $26,187,272

Actual Outlays: $840,063

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