HHS awarded Jacobs Project Management Co. $24.5M for construction quality management services

Contract Overview

Contract Amount: $24,552,456 ($24.6M)

Contractor: Jacobs Project Management CO

Awarding Agency: Department of Health and Human Services

Start Date: 2010-03-10

End Date: 2016-06-30

Contract Duration: 2,304 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::75 0839::TAS -- CONSTRUCTION QUALITY MANAGEMENT SERVICES TO CONSTRUCT PNRC II

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.6 million to JACOBS PROJECT MANAGEMENT CO for work described as: TAS::75 0839::TAS -- CONSTRUCTION QUALITY MANAGEMENT SERVICES TO CONSTRUCT PNRC II Key points: 1. The contract value represents a significant investment in infrastructure quality assurance. 2. Competition dynamics for this type of specialized service warrant further examination. 3. The duration of the contract suggests a long-term need for these services. 4. Performance context is crucial to understanding the value delivered over the contract period. 5. This contract falls within the broader category of engineering and construction management services for federal facilities.

Value Assessment

Rating: fair

The total award of $24.5 million over approximately six years suggests a substantial commitment. Benchmarking this against similar construction quality management contracts is difficult without more granular data on the scope and complexity of the PNRC II project. The firm-fixed-price structure implies that the contractor bore the risk of cost overruns, which can be a positive indicator of value if managed effectively. However, without performance metrics, a definitive assessment of value-for-money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of four bidders, as noted, suggests a reasonable level of competition for this specialized service. This competitive process should have theoretically driven a more favorable price for the government compared to a sole-source award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive bidding environment, which can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its research facilities, ensuring the quality of construction for critical infrastructure like PNRC II. The services delivered include quality assurance and management oversight during the construction phase of the project. The geographic impact is concentrated in Maryland, where the NIH facilities are located. Workforce implications include the employment of project managers, quality inspectors, and other construction management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration.
Ensuring consistent quality oversight across the entire project lifecycle.
Managing contractor performance effectively to maximize value.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract structure can provide cost certainty.
Long-term contract indicates a sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of federal infrastructure development and maintenance. The federal government is a major consumer of engineering and construction management services, particularly for large-scale projects like those undertaken by the NIH. Comparable spending benchmarks would typically involve analyzing other large construction management contracts awarded by agencies like the General Services Administration (GSA) or the Department of Defense for similar facility types and project scales.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus is likely on large, specialized firms capable of managing complex construction projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and 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 services within the agreed-upon price. Transparency would be enhanced through contract award databases and potentially through public reporting on project milestones, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

NIH Capital Planning and Construction
Federal Building and Facility Management
Construction Quality Assurance Programs
Engineering Services Contracts

Risk Flags

Long contract duration may increase risk of performance degradation or scope creep.
Lack of specific performance metrics makes value-for-money assessment difficult.
Potential for cost overruns if not managed effectively, despite fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.6 million to JACOBS PROJECT MANAGEMENT CO. TAS::75 0839::TAS -- CONSTRUCTION QUALITY MANAGEMENT SERVICES TO CONSTRUCT PNRC II

Who is the contractor on this award?

The obligated recipient is JACOBS PROJECT MANAGEMENT CO.

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 $24.6 million.

What is the period of performance?

Start: 2010-03-10. End: 2016-06-30.

What was the specific scope of 'Construction Quality Management Services' for PNRC II?

The 'Construction Quality Management Services' for the PNRC II project likely encompassed a range of activities aimed at ensuring the constructed facility met all design specifications, building codes, and quality standards. This would typically include developing and implementing quality control plans, conducting site inspections, reviewing construction materials and methods, verifying compliance with safety regulations, managing documentation, and coordinating with architects, engineers, and construction crews. The goal is to proactively identify and address potential issues during construction to prevent costly rework or performance deficiencies later. The specific details of the scope would be elaborated in the contract's Statement of Work (SOW).

How does the $24.5 million award compare to similar construction quality management contracts for federal facilities?

Directly comparing the $24.5 million award to similar contracts is challenging without more specific data on the scale, complexity, and duration of other projects. However, for major federal construction projects, multi-million dollar contracts for specialized management and quality assurance services are common. For instance, large hospital or laboratory construction projects, similar to what PNRC II might represent for NIH, often involve extensive oversight. The value suggests a significant construction undertaking, likely involving new construction or major renovation, where rigorous quality management is paramount. Benchmarking would require analyzing contracts with similar project values, facility types (e.g., research labs, healthcare facilities), and service scopes.

What were the key performance indicators (KPIs) used to evaluate Jacobs Project Management Co.'s performance?

The provided data does not specify the key performance indicators (KPIs) used for this contract. However, for construction quality management services, typical KPIs might include adherence to project schedules, budget management (if applicable to the management aspect), number of quality deficiencies identified and rectified, timeliness of inspections and reports, compliance with safety standards, and overall client satisfaction. The firm-fixed-price nature suggests that performance would be evaluated against the successful completion of the contracted services and adherence to the quality standards outlined in the contract's Statement of Work.

What is the historical spending pattern for construction quality management services by the NIH?

Analyzing the historical spending patterns for construction quality management services by the NIH would require access to historical contract databases and procurement records. This specific contract, awarded in 2010 and ending in 2016, represents a significant investment during that period. To understand broader patterns, one would need to examine spending trends over multiple fiscal years, identify other similar contracts awarded for construction management and quality assurance, and analyze the total expenditure in this category. This would help determine if this $24.5 million award is an outlier or representative of NIH's typical investment in such services for major capital projects.

What risks are associated with a long-duration contract like this (2010-2016)?

Long-duration contracts, such as this one spanning over six years, carry several inherent risks. For the government, there's the risk of the contractor's performance degrading over time, potential for cost inefficiencies if not managed tightly, and the possibility that the initial scope or requirements may become outdated, necessitating costly modifications. For the contractor, risks include market changes affecting labor costs or material availability, potential for unforeseen project complexities that exceed initial estimates, and the challenge of maintaining consistent project teams and institutional knowledge over an extended period. Effective contract management, regular performance reviews, and clear communication channels are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1100 N GLEBE RD STE 500, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $24,552,456

Exercised Options: $24,552,456

Current Obligation: $24,552,456

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline