NIH awards $2.4M for building refurbishment, addressing potential structural damage

Contract Overview

Contract Amount: $2,422,618 ($2.4M)

Contractor: Addon Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-19

End Date: 2026-04-08

Contract Duration: 994 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C105342-NIEHS BLDG 101 E MODULE ROOF REFURBISHMENT NEEDED TO PREVENT STRUCTURAL DAMAGE-ALISON KARVER

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to ADDON SERVICES LLC for work described as: C105342-NIEHS BLDG 101 E MODULE ROOF REFURBISHMENT NEEDED TO PREVENT STRUCTURAL DAMAGE-ALISON KARVER Key points: 1. Contract value appears reasonable for a building refurbishment project of this scope. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of nearly 1000 days indicates a substantial scope of work. 5. The award to Addon Services LLC requires monitoring for performance and quality. 6. This contract addresses critical infrastructure needs at the National Institutes of Health.

Value Assessment

Rating: good

The contract value of approximately $2.4 million for building refurbishment seems within a reasonable range for a project of this nature, especially considering the need to prevent structural damage. Benchmarking against similar institutional building repair contracts would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control. However, without detailed scope breakdowns and specific material costs, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the agency actively sought bids from all eligible sources after initially excluding some. The presence of 3 bidders suggests a moderate level of competition. While not the highest number of bidders, it implies that multiple companies were interested and capable of performing the work, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition scenario. The agency's effort to ensure broad participation helps ensure funds are used efficiently.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive essential building infrastructure improvements. The project will deliver critical roof refurbishment services to prevent further structural damage to Building 101 E Module. The geographic impact is localized to the NIH campus in North Carolina. The contract is expected to support jobs within the construction sector, particularly in commercial and institutional building maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen structural issues are discovered during refurbishment.
Dependence on contractor's ability to manage a long-duration project effectively.
Ensuring adherence to quality standards for critical structural repairs.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition suggests a robust bidding process.
Project addresses a critical need to prevent structural damage, mitigating future costs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the repair, maintenance, and new construction of non-residential buildings. Spending in this area is often driven by the need to maintain aging infrastructure, comply with regulations, and ensure operational efficiency. Comparable spending benchmarks would typically be found in government reports on facilities maintenance and construction across federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the National Institutes of Health's facilities and contracting officers. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through federal contract databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Fund
NIH Facilities Management
General Services Administration (GSA) Public Buildings Service
Department of Defense Facilities Maintenance

Risk Flags

Potential for unforeseen structural issues impacting cost and schedule.
Long project duration increases risk exposure.
Contractor performance monitoring is critical for quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to ADDON SERVICES LLC. C105342-NIEHS BLDG 101 E MODULE ROOF REFURBISHMENT NEEDED TO PREVENT STRUCTURAL DAMAGE-ALISON KARVER

Who is the contractor on this award?

The obligated recipient is ADDON SERVICES 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 $2.4 million.

What is the period of performance?

Start: 2023-07-19. End: 2026-04-08.

What is the track record of Addon Services LLC in performing similar large-scale institutional building refurbishment projects for federal agencies?

Assessing the track record of Addon Services LLC requires a review of their past performance on federal contracts, particularly those involving institutional building refurbishment and structural repairs. Information on past performance, including CPARS (Contractor Performance Assessment Reporting System) ratings, would be crucial. A history of successful, on-time, and within-budget project completion for similar projects would indicate a lower performance risk. Conversely, a history of delays, cost overruns, or quality issues would raise concerns and necessitate closer monitoring of this current contract. Without specific past performance data, it is difficult to definitively assess their capability for this specific project.

How does the awarded price of $2.4 million compare to market rates for similar roof refurbishment projects in North Carolina?

To benchmark the $2.4 million price, one would need to compare it against market rates for similar roof refurbishment projects in North Carolina, considering factors like building size, roof complexity, materials used, and the extent of structural repair required. Industry cost estimating guides, regional construction cost data, and data from similar publicly solicited projects can serve as benchmarks. Given that this is a firm fixed-price contract awarded through full and open competition with three bidders, it suggests the price is likely competitive. However, a detailed cost breakdown from the contractor and comparison with independent cost estimates would provide a more robust assessment of value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential unforeseen structural issues discovered during the refurbishment that could lead to scope creep and cost increases, despite the fixed-price nature. There's also the risk of project delays due to weather, material availability, or contractor performance, impacting the building's availability. Furthermore, ensuring the quality of critical structural repairs is paramount. Mitigation strategies likely include thorough initial site assessments, contingency planning within the contract scope, clear communication protocols, and robust government oversight by NIH facilities personnel. The firm fixed-price contract itself is a primary risk mitigation tool, placing the financial burden of cost overruns on the contractor.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects?

This method aims to balance the need for broad competition with specific circumstances that might necessitate excluding certain sources initially (e.g., specific technical requirements, past performance issues with certain vendors). By then opening it to full and open competition, the agency ensures a wide net is cast. With three bidders, it indicates a reasonable level of competition, which generally drives prices down compared to sole-source or limited competition. The effectiveness hinges on the clarity of the solicitation, the number and capability of the bidders, and the agency's negotiation strategy. It's generally considered a strong approach for achieving competitive pricing when properly executed.

What is the historical spending pattern for building maintenance and refurbishment at the National Institutes of Health?

Analyzing historical spending patterns for building maintenance and refurbishment at NIH would reveal trends in investment in facilities infrastructure. This includes understanding the frequency of major repairs, the average cost of such projects, and the allocation of funds towards preventative maintenance versus reactive repairs. Consistent underinvestment could lead to the need for more extensive and costly repairs, as potentially indicated by this contract addressing structural damage. Conversely, a history of proactive maintenance might suggest this is a planned upgrade. Examining NIH's budget allocations and contract awards over the past 5-10 years for facilities would provide this context.

What are the implications of the nearly 1000-day duration for this refurbishment project?

A duration of approximately 1000 days (around 2.7 years) for a roof refurbishment project suggests a complex scope of work that extends beyond a simple re-roofing. It may involve significant structural repairs, integration with other building systems, or phased work to minimize disruption to NIH operations. Such a long duration increases the potential for unforeseen challenges, requires sustained project management effort from both the contractor and the government, and necessitates careful planning to ensure continuity of operations within the facility. It also implies a substantial investment and a critical need for the refurbishment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 DIAGONAL RD, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $2,422,618

Exercised Options: $2,422,618

Current Obligation: $2,422,618

Actual Outlays: $1,709,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99023D00013

IDV Type: IDC

Timeline