HHS awarded $18M for NIH Building 10 East Vault and Chilled Water Enabling project

Contract Overview

Contract Amount: $18,003,937 ($18.0M)

Contractor: Gilbane Building Company

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-01

End Date: 2012-08-31

Contract Duration: 730 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: (ITEM #1) (REQ# 1745075) BASE PART 1/2 - WR# HQF60038, (XREF CHANGE#7 HHSN29200022) - DESIGN-BUILD EAST VAULT AND CHILLED WATER ENABLING FOR E WING, BLDG 10 - HQF60038 - LOG#26202 - HOWARD DROGIN - CT# .HHSN263999900408I/HHSN29200073.CAN 8362256 ORF FY-2010TAS::75 0838::TAS 08003820100DB0STATEMENT OF WORKTHE INTEGRATED SERVICE PROVIDER (ISP) SHALL FURNISH ALL LABOR, MATERIALS, SUPERVISION, EQUIPMENT, INSURANCE, TAXES, OVERHEAD, AND ALL OTHER FORMS OF EXPENSE AND SERVICES NECESSARY TO PERFORM ALL PROFESSIONAL DESIGN AND CONSTRUCTION SERVICES STATED HEREIN AND AS STATED IN THE BASE CONTRACT, NO. 292-03-D-0107, TO DESIGN, BUILD, AND OUTFIT THE EAST VAULT AND CONNECTED EAST KNUCKLE RISERS OF BUILDING 10.BLDG 10 EAST VAULT, EAST KNUCKLE RISERS, AND E-WING ENABLING.CONTRACT NO.: 292-03-D-0107WORK REQUEST # HQF60038 LOCATION: NIH, CAMPUS, BETHESDA, MD.PROJECT CONTACT PERSONSCONTRACTING OFFICER (OVERALL AUTHORITY IN ALL CONTRACTUAL MATTERS FOR THIS PROJECT)KEN ROMANNATIONAL INSTITUTES OF HEALTHACQUISITIONS BRANCH - CDIVISION OF PROCUREMENTBUILDING 13, ROOM 2E-489000 ROCKVILLE PIKEBETHESDA, MD 20892TELEPHONE: 301-435-4332PROJECT OFFICER NATHAN ADAMS / HOWARD DROGINNATIONAL INSTITUTES OF HEALTHOFFICE OF RESEARCH FACILITIESBUILDING 13, ROOM 210 9000 ROCKVILLE PIKEBETHESDA, MD 20892TELEPHONE: 301.402.7126 TITLE: DESIGN, BUILD, AND OUTFIT EAST VAULT, EAST KNUCKLE RISERS, AND E-WING ENABLING CHILLED WATER DATE: AUGUST 11, 2010PROJECT OFFICER: NATHAN ADAMS / HOWARD DROGINCAN: 0-8362256 (FY 10)THIS STATEMENT OF WORK COVERS THE REQUIREMENTS FOR THE DESIGN AND CONSTRUCTION SERVICES NECESSARY TO DESIGN, CONSTRUCT, AND OUTFIT THE EAST ELECTRICAL VAULT, AND CHILLED WATER AND STEAM ENABLING FOR THE FUTURE E-WING AND PRESENT EAST DISTAL WING NEEDS.BACKGROUND: THE NATIONAL INSTITUTES OF HEALTH (NIH) USES A SYSTEM OF STEAM AND CHILLED WATER PIPES TO DISTRIBUTE STEAM AND CHILLED WATER FROM A CENTRAL GENERATION PLANT TO THE VARIOUS BUILDINGS ON CAMPUS. OVER THE YEARS, BUILDING 10 HAS BEEN UTILIZED BEYOND THE CAPACITY OF ITS PRESENT POWER, CHILLED WATER, AND STEAM UTILITY SYSTEMS. IN ADDITION TO THESE SYSTEMS BEING OVER-STRESSED, SOME OF THE POWER SYSTEM COMPONENTS, ESPECIALLY CIRCUIT BREAKERS, ARE PRONE TO FAILURE.THIS IS A PROJECT TO DEMOLISH THE OLD SELF-SERVICE STORE, BUILD THE EAST ELECTRICAL VAULT IN ITS PLACE, AND TO FURNISH AND INSTALL BUS DUCTS FROM THIS EAST VAULT TO AND UP THE EAST KNUCKLE ELECTRICAL RISER. THIS PROJECT ALSO WILL FINISH THE INSTALLATION OF ALL NECESSARY SYSTEMS AND EQUIPMENT IN ALL OF THE EAST KNUCKLE ELECTRICAL RISER ROOMS AND ADJACENT MECHANICAL RISER ROOMS. 20 INCH CHILLED WATER ENABLING PIPING FOR THE E-WING SHALL BE INSTALLED IN THE EAST VAULT, CONNECTED TO THE EAST REDUNDANCY LOOP, AND INSTALLED UP THE SIDE OF C-WING OF BUILDING 10. THIS PIPING WILL REENTER THE BUILDING ON THE 14TH FLOOR AND CONNECT TO THE 20 INCH F-WING CHILLED WATER PIPING. A CHILLED WATER RISER SUPPLY AND RETURN, (SIZE TO BE DESIGNED AND CONNECTED TO THE 20 INCH CHILLED WATER RISER), SHALL BE INSTALLED IN THE EAST KNUCKLE MECHANICAL RISER ROOMS FROM THE 13TH FLOOR DOWN TO THE B1 LEVEL TO BE AVAILABLE FOR THE NEEDS OF THE EAST DISTAL WINGS. A 12 INCH PIPE FOR THE FUTURE HIGH PRESSURE STEAM USE OF THE E-WING SHALL BE INSTALLED UP THE SIDE OF C-WING IN THE SAME BUILT OUT ENCLOSURE WITH THE 20 INCH CHILLED WATER PIPING. THIS FUTURE HPS PIPING WILL NOT BE CONNECTED TO A STEAM SOURCE AND WILL BE CAPPED FOR FUTURE USE BY THE E-WING. THIS FUTURE USE STEAM PIPING IS BEING INSTALLED AT THIS TIME TO AVOID THE UNNECESSARY COST OF REMOVING AND REBUILDING THE BRICK CLADDING THAT WILL ENCASE THE 20 INCH CHILLED WATER PIPING. TO ACCOMPLISH THIS PROJECT, IT WILL BE NECESSARY TO DEMOLISH AND REBUILD THE B1 LOADING DOCK AND CANOPY.DESIGN/BUILD SERVICES, SCOPE OF WORK AND DELIVERABLES:1 THE DESIGN/BUILD CONTRACTOR FOR THIS PROJECT SHALL PROVIDE A FINISHED VA

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.0 million to GILBANE BUILDING COMPANY for work described as: (ITEM #1) (REQ# 1745075) BASE PART 1/2 - WR# HQF60038, (XREF CHANGE#7 HHSN29200022) - DESIGN-BUILD EAST VAULT AND CHILLED WATER ENABLING FOR E WING, BLDG 10 - HQF60038 - LOG#26202 - HOWARD DROGIN - CT# .HHSN263999900408I/HHSN29200073.CAN 8362256 ORF FY-2010TAS::75 0838::TAS 0800… Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The project involves design-build services for critical infrastructure within the NIH's Building 10. 3. The firm-fixed-price contract type aims to control costs by establishing a set price. 4. The duration of the contract is 730 days, indicating a medium-term project. 5. The project is located in Maryland, a hub for federal research and development activities. 6. The award was made by the Department of Health and Human Services to Gilbane Building Company.

Value Assessment

Rating: good

The contract value of $18,003,937 for a design-build project of this scope appears reasonable. Benchmarking against similar large-scale institutional construction projects within the federal sector would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of contractors and potentially better pricing due to market forces. The number of bidders is not specified, but the competition type suggests multiple entities vied for the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from contractors seeking to win the bid.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive upgraded infrastructure for Building 10. The project delivers essential design and construction services for the East Vault and chilled water systems. The geographic impact is localized to the NIH campus in Maryland. The project will likely involve construction workers and potentially impact the local labor market during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the design-build process.
Schedule delays could impact the operational continuity of Building 10.
Ensuring the long-term reliability and maintainability of the new infrastructure.

Positive Signals

The use of a firm-fixed-price contract helps to mitigate cost uncertainty.
Awarding to an experienced construction firm like Gilbane Building Company suggests a level of confidence in their capabilities.
The project addresses critical infrastructure needs, which is essential for the continued operation of NIH facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by large-scale projects requiring specialized design and construction expertise. Federal spending in this area often supports the maintenance and upgrade of critical government facilities, research labs, and administrative buildings. Comparable spending benchmarks would involve analyzing other design-build contracts for similar institutional or research facilities awarded by agencies like GSA or other federal departments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Gilbane Building Company, may engage small businesses as subcontractors as part of their overall project execution strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Health and Human Services and the National Institutes of Health. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Facilities Modernization Projects
Federal Building Construction Contracts
Design-Build Infrastructure Projects
HHS Capital Improvement Programs

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Ensuring contractor performance meets quality standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.0 million to GILBANE BUILDING COMPANY. (ITEM #1) (REQ# 1745075) BASE PART 1/2 - WR# HQF60038, (XREF CHANGE#7 HHSN29200022) - DESIGN-BUILD EAST VAULT AND CHILLED WATER ENABLING FOR E WING, BLDG 10 - HQF60038 - LOG#26202 - HOWARD DROGIN - CT# .HHSN263999900408I/HHSN29200073.CAN 8362256 ORF FY-2010TAS::75 0838::TAS 08003820100DB0STATEMENT OF WORKTHE INTEGRATED SERVICE PROVIDER (ISP) SHALL FURNISH ALL LABOR, MATERIALS, SUPERVISION, EQUIPMENT, INSURANCE, TAXES, OVERHEAD, AND ALL OTHER FORMS OF EXPENSE AND SERVICES NECESSARY TO PERFORM AL

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 $18.0 million.

What is the period of performance?

Start: 2010-09-01. End: 2012-08-31.

What is the track record of Gilbane Building Company on similar federal design-build projects?

Gilbane Building Company has a significant history of executing large-scale federal construction projects, including design-build contracts. Their portfolio often includes work for agencies such as the Department of Defense, Department of Veterans Affairs, and other civilian agencies. Analyzing their past performance on projects with similar scope, complexity, and value would provide insight into their ability to deliver this specific NIH project successfully. Key metrics to review would include on-time and on-budget completion rates, safety records, and client satisfaction feedback from previous federal engagements. Their experience in institutional and research facility construction is particularly relevant for this NIH contract.

How does the awarded amount compare to similar NIH infrastructure projects?

The $18 million award for the East Vault and chilled water enabling project at NIH's Building 10 represents a substantial investment in infrastructure. To benchmark this value, one would compare it to other design-build contracts for similar facility upgrades, expansions, or new construction within the NIH or comparable research institutions. Factors such as project complexity, square footage, specific system requirements (e.g., HVAC, electrical, structural), and the prevailing construction market conditions at the time of award are crucial for a fair comparison. Without specific data on comparable projects, it's challenging to definitively state if this represents excellent or fair value, but it aligns with the typical scale of major facility work at large federal research campuses.

What are the primary risks associated with this design-build contract for the government?

The primary risks for the government in a design-build contract like this include potential scope creep if the design is not adequately defined upfront, contractor performance issues leading to delays or quality defects, and unforeseen site conditions that could necessitate change orders and increase costs, despite the firm-fixed-price structure. Ensuring robust government oversight during the design and construction phases is critical to mitigating these risks. The contractor's financial stability and technical expertise are also key factors. The government also bears the risk if the contractor fails to meet performance standards or adhere to the contract terms.

How effective are firm-fixed-price contracts in managing costs for complex construction projects like this?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs in construction projects where the scope of work is well-defined and risks can be reasonably anticipated. For the government, FFP provides cost certainty, as the contractor assumes most of the risk for cost overruns. However, for highly complex projects with potential for unforeseen issues, there's a risk that contractors may build in significant contingencies, potentially leading to a higher initial price. Effective negotiation and clear contract terms are crucial. In this case, the FFP structure for the NIH East Vault project aims to lock in the price, making budgeting more predictable for HHS.

What is the historical spending trend for similar infrastructure upgrades at NIH facilities?

Historical spending on infrastructure upgrades at NIH facilities typically fluctuates based on capital investment cycles, specific research needs, and aging infrastructure requirements. Major projects like the one awarded to Gilbane Building Company are part of a broader strategy to maintain and modernize the extensive NIH campus. Analyzing past NIH capital improvement budgets and the types of contracts awarded (e.g., design-build, construction management) would reveal trends in spending priorities, project sizes, and the allocation of funds towards critical infrastructure versus new research facilities. This specific $18M award fits within the expected range for significant building system overhauls.

What are the implications of the 'East Vault and Chilled Water Enabling' scope for NIH operations?

The 'East Vault and Chilled Water Enabling' scope directly addresses critical building systems within NIH's Building 10, a major research facility. The East Vault likely refers to a secure or specialized area, possibly for sensitive equipment or materials, while chilled water systems are fundamental for HVAC operations, temperature control for experiments, and maintaining a stable research environment. Upgrading or enabling these systems is crucial for ensuring the reliability, efficiency, and safety of ongoing research activities. Disruptions during construction must be carefully managed to minimize impact on laboratory work and building occupants.

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. (UEI: 022726165)

Address: 7901 SANDY SPRING RD, LAUREL, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,003,937

Exercised Options: $18,003,937

Current Obligation: $18,003,937

Parent Contract

Parent Award PIID: 292030107

IDV Type: IDC

Timeline