NIH Awards $50.3M for Chiller Replacement Project at Maryland Facility

Contract Overview

Contract Amount: $50,331,550 ($50.3M)

Contractor: Potomac Electric Power CO

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-20

End Date: 2025-12-31

Contract Duration: 1,594 days

Daily Burn Rate: $31.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REQUISITION NUMBER: 5952723,6112449 WORK REQUEST NUMBER C102579 PROVIDE ALL WORK INCLUDING LABOR AND MATERIALS FOR CONSTRUCTION AND INSTALLATION OF GOVERNMENT FURNISHED EQUIPMENT TO REPLACE CHILLER 16, COOLING TOWER 16, 17 & 18, BLDG 11. CO: PET

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.3 million to POTOMAC ELECTRIC POWER CO for work described as: REQUISITION NUMBER: 5952723,6112449 WORK REQUEST NUMBER C102579 PROVIDE ALL WORK INCLUDING LABOR AND MATERIALS FOR CONSTRUCTION AND INSTALLATION OF GOVERNMENT FURNISHED EQUIPMENT TO REPLACE CHILLER 16, COOLING TOWER 16, 17 & 18, BLDG 11. CO: PET Key points: 1. The contract focuses on replacing critical HVAC components, including chillers and cooling towers. 2. This is a significant investment in maintaining essential infrastructure for the National Institutes of Health. 3. The project duration spans over four years, indicating a complex and extensive scope. 4. The award is a Firm Fixed Price type, providing cost certainty for the government.

Value Assessment

Rating: fair

The total award amount is $50.3 million. Without specific per-unit cost data for chillers and cooling towers, a direct comparison to similar contracts is difficult. However, the scale of the project suggests a substantial investment in infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, suggesting a sole-source award. This limits price discovery and may result in a higher cost than if competitive bids were solicited.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition, but the essential nature of the infrastructure replacement justifies the expenditure.

Public Impact

Ensures continued operation of critical research facilities by maintaining essential cooling systems. Supports the modernization of aging infrastructure at the National Institutes of Health. Potential for disruption to ongoing research activities during construction and installation phases. Long-term operational cost savings are expected from the installation of new, efficient equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Potential for project delays impacting facility operations.
Risk of unforeseen site conditions increasing costs.

Positive Signals

Addresses critical infrastructure needs.
Firm Fixed Price contract provides cost control.
Long-term project duration allows for phased implementation.

Sector Analysis

This contract falls under the construction and facilities maintenance sector, specifically related to HVAC systems. Spending benchmarks for similar large-scale infrastructure replacement projects can vary widely based on facility size, complexity, and geographic location.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract, as it was awarded sole-source. Opportunities for small business participation may exist in subcontracting roles, but this is not explicitly detailed.

Oversight & Accountability

The award is a Delivery Order under a larger contract vehicle. Oversight would typically involve monitoring project progress, adherence to specifications, and financial expenditures by the contracting officer and relevant NIH personnel.

Related Government Programs

Other Electric Power Generation
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award limits competitive pricing.
Potential for cost overruns due to unforeseen construction issues.
Risk of project delays impacting facility operations.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.3 million to POTOMAC ELECTRIC POWER CO. REQUISITION NUMBER: 5952723,6112449 WORK REQUEST NUMBER C102579 PROVIDE ALL WORK INCLUDING LABOR AND MATERIALS FOR CONSTRUCTION AND INSTALLATION OF GOVERNMENT FURNISHED EQUIPMENT TO REPLACE CHILLER 16, COOLING TOWER 16, 17 & 18, BLDG 11. CO: PET

Who is the contractor on this award?

The obligated recipient is POTOMAC ELECTRIC POWER 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 $50.3 million.

What is the period of performance?

Start: 2021-08-20. End: 2025-12-31.

What is the estimated cost savings from the new equipment compared to maintaining the old chillers?

The provided data does not include details on projected operational cost savings from the new equipment. A thorough analysis would require information on energy efficiency improvements, reduced maintenance needs, and the lifespan of the new components compared to the aging systems being replaced.

What is the justification for the sole-source award, and were any alternatives considered?

The justification for the sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Alternatives might have been considered and deemed unsuitable due to unique requirements, existing infrastructure compatibility, or urgent needs.

How will the project minimize disruption to ongoing research activities at the NIH facility?

Minimizing disruption would likely involve phased construction, scheduling noisy or impactful work during off-hours, and implementing strict site management protocols. The contracting officer and NIH facility managers would need to coordinate closely to ensure research continuity and safety throughout the project lifecycle.

Industry Classification

NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Other Electric Power Generation

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N99021R00010

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 9TH ST NW, WASHINGTON, DC, 20068

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

Financial Breakdown

Contract Ceiling: $50,331,550

Exercised Options: $50,331,550

Current Obligation: $50,331,550

Actual Outlays: $43,285,462

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PA0420D0064

IDV Type: IDC

Timeline