Hensel Phelps Construction Awarded $33.9M for NIH Alzheimer's Research Facility
Contract Overview
Contract Amount: $33,987,845 ($34.0M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Department of Health and Human Services
Start Date: 2020-02-07
End Date: 2022-12-31
Contract Duration: 1,058 days
Daily Burn Rate: $32.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NIA ALZHEIMER DISEASE TEMPORARY RESEARCH STRUCTURE, BETHESDA CAMPUS.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.0 million to HENSEL PHELPS CONSTRUCTION CO for work described as: NIA ALZHEIMER DISEASE TEMPORARY RESEARCH STRUCTURE, BETHESDA CAMPUS. Key points: 1. Significant investment in critical medical research infrastructure. 2. Construction sector faces ongoing labor and material cost pressures. 3. Potential for cost overruns due to project complexity and duration. 4. NIH's commitment to advancing Alzheimer's research is a key driver.
Value Assessment
Rating: good
The award amount of $33.9M for a temporary research structure appears reasonable given the scope and duration. Benchmarking against similar institutional construction projects of this scale is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. The firm-fixed-price contract type further limits risk for the government.
Taxpayer Impact: Taxpayer funds are being used for a critical research facility, aiming for long-term health benefits that could outweigh the upfront construction cost.
Public Impact
Supports critical research into Alzheimer's disease, a major public health concern. Creates jobs in the construction sector and related industries. Enhances the research capabilities of the National Institutes of Health.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in research facility construction.
- Unforeseen site conditions could impact schedule and budget.
- Long-term maintenance and operational costs not detailed.
Positive Signals
- Firm-fixed-price contract mitigates cost escalation risk.
- Full and open competition promotes competitive pricing.
- Project supports a high-priority national research goal.
Sector Analysis
The construction sector is experiencing volatility in material costs and labor availability. This project falls within commercial and institutional building construction, a segment often subject to rigorous oversight and competitive bidding.
Small Business Impact
While the prime contractor is Hensel Phelps Construction Co., a large firm, the contract details do not specify subcontracting goals for small businesses. Further investigation into subcontracting opportunities would be beneficial.
Oversight & Accountability
The project is managed by the National Institutes of Health, a reputable agency with established oversight mechanisms. The firm-fixed-price contract provides a degree of cost control, but ongoing monitoring of progress and adherence to scope is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for cost escalation due to market volatility.
- Scope creep risk in research facility projects.
- Lack of detail on long-term operational and decommissioning costs.
- Temporary nature of the structure may impact long-term utility.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.0 million to HENSEL PHELPS CONSTRUCTION CO. NIA ALZHEIMER DISEASE TEMPORARY RESEARCH STRUCTURE, BETHESDA CAMPUS.
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS CONSTRUCTION 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 $34.0 million.
What is the period of performance?
Start: 2020-02-07. End: 2022-12-31.
What is the projected long-term operational cost of this research structure, and how does it compare to the initial construction investment?
The provided data focuses solely on the construction phase and does not include projections for the long-term operational costs of the Alzheimer's research structure. A comprehensive lifecycle cost analysis would be needed to compare operational expenses against the initial $33.9 million investment. This would typically involve estimating utility, maintenance, staffing, and equipment refresh costs over the facility's intended lifespan.
Given the temporary nature of the structure, what is the plan for its eventual decommissioning or repurposing, and what are the associated costs?
The data indicates this is a 'temporary research structure,' but provides no details on its decommissioning or repurposing strategy. Understanding the end-of-life plan is crucial for assessing the full taxpayer impact. Costs associated with demolition, site restoration, or potential relocation/modification for reuse should be evaluated to ensure responsible use of federal funds.
How will the success of the research conducted within this facility be measured, and what is the anticipated return on investment in terms of scientific breakthroughs or public health improvements?
Measuring the success of research conducted within the facility is outside the scope of this construction contract analysis. However, the ultimate 'return on investment' for taxpayer funds will be evaluated by the scientific advancements made in Alzheimer's research. Key performance indicators would likely include publications, patents, development of diagnostic tools, or therapeutic interventions stemming from the work conducted in this new structure.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hensel Phelps - Shimizu JV
Address: 1600 TYSONS BLVD STE 800, TYSONS CORNER, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,987,845
Exercised Options: $33,987,845
Current Obligation: $33,987,845
Actual Outlays: $19,897,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75N99019D00016
IDV Type: IDC
Timeline
Start Date: 2020-02-07
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2023-10-23
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