HHS Awards $19.7M for NIH Building 49 Piping Replacement to Olgoonik Enterprises

Contract Overview

Contract Amount: $19,726,297 ($19.7M)

Contractor: Olgoonik Enterprises, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-23

End Date: 2027-01-31

Contract Duration: 1,257 days

Daily Burn Rate: $15.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C109652/C115970 DESCRIPTION - BASE AWARD BUILDING 49 REPLACEMENT OF REHEAT WATER PIPING & ASSOCIATED COMPONENTS CO - DAN BURK CS - DAVE SEID COR - EARL JOHNSON VENDOR POC - DAVID FREDERICK

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to OLGOONIK ENTERPRISES, LLC for work described as: C109652/C115970 DESCRIPTION - BASE AWARD BUILDING 49 REPLACEMENT OF REHEAT WATER PIPING & ASSOCIATED COMPONENTS CO - DAN BURK CS - DAVE SEID COR - EARL JOHNSON VENDOR POC - DAVID FREDERICK Key points: 1. Contract awarded to Olgoonik Enterprises, LLC for $19.7 million. 2. Project involves replacing reheat water piping and associated components at NIH. 3. The contract type is Firm Fixed Price, indicating clear cost expectations. 4. This is a construction project within the Commercial and Institutional Building sector.

Value Assessment

Rating: fair

The contract value of $19.7 million for building infrastructure replacement appears within a reasonable range for a project of this scope. However, without specific benchmarks for similar piping replacement projects at federal facilities, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, suggesting that not all eligible vendors were solicited. This approach may limit price discovery and potentially lead to higher costs compared to a full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this essential infrastructure repair. The limited competition raises questions about whether the best possible price was secured.

Public Impact

Ensures continued operation of critical NIH facilities by addressing aging infrastructure. Supports the maintenance and modernization of federal research and healthcare environments. Potential for disruption to NIH operations during construction, though mitigation efforts are expected.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Lack of detailed cost breakdown for assessment.
Potential for cost overruns if unforeseen issues arise during construction.

Positive Signals

Addresses critical infrastructure needs.
Firm Fixed Price contract provides cost certainty.
Project duration aligns with the scope of work.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is driven by the need to maintain and upgrade federal facilities, including research institutions like the NIH. Benchmarks for similar projects would typically consider square footage, complexity of systems, and location.

Small Business Impact

The contract was awarded to Olgoonik Enterprises, LLC, which is not identified as a small business in the provided data. There is no indication of small business subcontracting goals or achievements within this award notice.

Oversight & Accountability

Oversight will be managed by the Department of Health and Human Services, specifically the National Institutes of Health. The firm fixed price contract and defined period of performance provide a framework for accountability, but detailed oversight of construction quality and adherence to schedule is crucial.

Related Government Programs

Commercial and Institutional Building Construction
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Lack of detailed cost breakdown hinders thorough value assessment.
Potential for unforeseen construction challenges impacting schedule and cost.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to OLGOONIK ENTERPRISES, LLC. C109652/C115970 DESCRIPTION - BASE AWARD BUILDING 49 REPLACEMENT OF REHEAT WATER PIPING & ASSOCIATED COMPONENTS CO - DAN BURK CS - DAVE SEID COR - EARL JOHNSON VENDOR POC - DAVID FREDERICK

Who is the contractor on this award?

The obligated recipient is OLGOONIK ENTERPRISES, LLC.

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 $19.7 million.

What is the period of performance?

Start: 2023-08-23. End: 2027-01-31.

What specific factors led to the limited competition for this contract, and were all eligible vendors properly notified?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which typically suggests a specific justification, such as a sole-source award or a limited number of capable vendors. Further investigation into the contract file would be needed to determine the precise reason and confirm if all appropriate procedures for limited competition were followed to ensure fairness and identify potential vendors.

How does the $19.7 million cost compare to industry benchmarks for similar building system replacements in the Maryland region?

A direct comparison to industry benchmarks is challenging without more detailed project specifications and access to proprietary cost data. However, the value appears substantial, necessitating a review of the scope of work, duration, and any unique requirements of the NIH facility to justify the expenditure against typical commercial or institutional construction costs in the area.

What are the key performance indicators and quality assurance measures in place to ensure the successful completion of the piping replacement project?

While the contract is Firm Fixed Price, ensuring successful completion relies on robust oversight. Key indicators would include adherence to the project schedule, quality of materials used, and successful system testing post-installation. The contracting officer's representative (COR) and technical team will be vital in monitoring progress and ensuring compliance with specifications.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N99023R00055

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,726,297

Exercised Options: $19,726,297

Current Obligation: $19,726,297

Actual Outlays: $17,050,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline