HHS Awards $20.7M for NIH Utility Tunnel Construction, Funded by ARRA
Contract Overview
Contract Amount: $20,732,016 ($20.7M)
Contractor: Gilbane Building Company
Awarding Agency: Department of Health and Human Services
Start Date: 2010-07-15
End Date: 2012-07-12
Contract Duration: 728 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARRA::YES::ARRA TAS::75 0839::TAS RECOVERY -- ARRA -- (ITEM# 1) (REQ# 1699674 LINE# 1) BASE PART 1/2 -- RECOVERY -- WR# HQC80192 - REPLACES REQ#1683775 - ARRA FUNDED PROJECT - DESIGN BUILD WEST UTILITY TUNNEL - HQC80192 - LOG#26182 - NATE ADAMS - CT# HHSN263999900408I-HHSN29200069
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.7 million to GILBANE BUILDING COMPANY for work described as: ARRA::YES::ARRA TAS::75 0839::TAS RECOVERY -- ARRA -- (ITEM# 1) (REQ# 1699674 LINE# 1) BASE PART 1/2 -- RECOVERY -- WR# HQC80192 - REPLACES REQ#1683775 - ARRA FUNDED PROJECT - DESIGN BUILD WEST UTILITY TUNNEL - HQC80192 - LOG#26182 - NATE ADAMS - CT# HHSN263999900408I-HHSN2920… Key points: 1. Significant investment in infrastructure via ARRA stimulus. 2. Competition was full and open, suggesting market price discovery. 3. Risk appears moderate given fixed-price contract and construction nature. 4. Sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: good
The contract value of $20.7M for a design-build utility tunnel appears reasonable for a project of this scope and complexity, especially considering it was funded by ARRA. Benchmarking against similar large-scale construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: The use of ARRA funds indicates a taxpayer investment aimed at economic stimulus through infrastructure development.
Public Impact
Project supports economic stimulus goals through infrastructure investment. Construction of essential utility tunnels can improve facility operations. ARRA funding implies a focus on job creation and economic recovery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Construction project risks (delays, cost overruns) are inherent.
- ARRA funding timeline may impose schedule pressures.
Positive Signals
- Full and open competition.
- Firm fixed-price contract type.
- ARRA funding for economic stimulus.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions and government investment priorities, such as infrastructure projects funded by stimulus packages like ARRA.
Small Business Impact
While the contract was awarded to Gilbane Building Company, a large firm, the full and open competition process theoretically allows small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The use of ARRA funds likely involved specific oversight mechanisms to ensure proper expenditure and project completion. The contract type and delivery order structure suggest a managed procurement process.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- ARRA funding may impose accelerated timelines.
- Construction projects carry inherent risks of delays and cost overruns.
- Potential for scope creep in complex infrastructure projects.
- Reliance on subcontractor performance.
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 $20.7 million to GILBANE BUILDING COMPANY. ARRA::YES::ARRA TAS::75 0839::TAS RECOVERY -- ARRA -- (ITEM# 1) (REQ# 1699674 LINE# 1) BASE PART 1/2 -- RECOVERY -- WR# HQC80192 - REPLACES REQ#1683775 - ARRA FUNDED PROJECT - DESIGN BUILD WEST UTILITY TUNNEL - HQC80192 - LOG#26182 - NATE ADAMS - CT# HHSN263999900408I-HHSN29200069
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
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 $20.7 million.
What is the period of performance?
Start: 2010-07-15. End: 2012-07-12.
What was the specific scope of work for the West Utility Tunnel and how does its complexity compare to similar projects?
The scope involved the design and construction of a utility tunnel, likely to house essential services like power, water, and data lines for NIH facilities. Its complexity would depend on factors such as length, depth, geological conditions, and the types of utilities it accommodates. Benchmarking against similar tunnel projects would clarify its relative complexity and cost-effectiveness.
What were the primary risks identified during the procurement process for this ARRA-funded project?
Key risks likely included potential construction delays due to unforeseen site conditions or weather, and the possibility of cost overruns despite the firm fixed-price contract, especially if scope changes were necessary. Given the ARRA funding, there might also have been risks associated with meeting specific stimulus-related reporting or timeline requirements.
How effectively did the full and open competition process ensure value for taxpayer money on this project?
The full and open competition process is designed to maximize contractor interest and encourage competitive bidding, which generally leads to better pricing for the government. The firm fixed-price contract further locks in costs, providing strong value assurance. However, the ultimate effectiveness depends on the quality of proposals received and the agency's evaluation process.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc.
Address: 7901 SANDY SPRING RD, LAUREL, MD, 20707
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,732,016
Exercised Options: $20,732,016
Current Obligation: $20,732,016
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 292030107
IDV Type: IDC
Timeline
Start Date: 2010-07-15
Current End Date: 2012-07-12
Potential End Date: 2012-07-12 00:00:00
Last Modified: 2024-11-23
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