HHS awards $17.3M for NIH building construction to Skanska USA, facing limited competition
Contract Overview
Contract Amount: $17,319,545 ($17.3M)
Contractor: Skanska USA Building Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-08-16
End Date: 2017-04-03
Contract Duration: 2,422 days
Daily Burn Rate: $7.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAS::75 0849::TAS BRC - SKANSKA BAYVIEW RESOLUTION AGREEMENT
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.3 million to SKANSKA USA BUILDING INC. for work described as: TAS::75 0849::TAS BRC - SKANSKA BAYVIEW RESOLUTION AGREEMENT Key points: 1. Significant contract value of $17.3 million for construction services. 2. Limited competition raises questions about price discovery and potential overpayment. 3. Risk of higher costs due to sole-source justification and lack of competitive bidding. 4. Construction sector spending is substantial, but this specific award lacks transparency.
Value Assessment
Rating: questionable
The contract value of $17.3 million is substantial. Without competitive bids, it's difficult to assess if this price is reasonable compared to similar commercial and institutional building construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of robust competition may result in Skanska USA receiving a price higher than what could have been achieved through a fully competitive process.
Public Impact
Taxpayers may have overpaid due to limited competition on this $17.3 million contract. Lack of transparency in the procurement process hinders public trust. The NIH's reliance on non-competitive awards warrants further scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price transparency
- Potential for overpayment
Positive Signals
- Contract awarded to a known entity (Skanska USA)
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area is significant, but competitive bidding is crucial for ensuring value for money.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as Skanska USA Building Inc. is a large corporation and the contract was not set aside for small businesses.
Oversight & Accountability
The limited competition and lack of detailed justification for this procurement method raise concerns about oversight. Further review is needed to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement
- Insufficient justification for limited competition
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.3 million to SKANSKA USA BUILDING INC.. TAS::75 0849::TAS BRC - SKANSKA BAYVIEW RESOLUTION AGREEMENT
Who is the contractor on this award?
The obligated recipient is SKANSKA USA BUILDING INC..
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 $17.3 million.
What is the period of performance?
Start: 2010-08-16. End: 2017-04-03.
What was the specific justification for limiting competition on this $17.3 million construction contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited competition justification was used. However, the specific reasons, such as unique capabilities or urgent needs, are not detailed. Understanding this justification is critical for assessing the necessity of the limited competition and its impact on value.
How does the $17.3 million award compare to industry benchmarks for similar NIH construction projects?
Without access to detailed project specifications and a competitive bidding process, a direct comparison to industry benchmarks is challenging. However, the absence of competition suggests the possibility of a price premium. A thorough cost-benefit analysis or a review of similar, competitively awarded projects would be necessary to establish a reliable benchmark.
What measures are in place to ensure the effectiveness and quality of the construction services provided by Skanska USA under this contract?
While the contract type is 'FIRM FIXED PRICE,' which generally incentivizes contractor performance, the effectiveness and quality depend on the NIH's contract management and oversight. Specific performance metrics, quality assurance protocols, and inspection schedules would be detailed within the contract's statement of work and are crucial for ensuring successful project completion.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Skanska AB (UEI: 353937956)
Address: 1633 LITTLETON RD, PARSIPPANY, NJ, 07054
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,319,545
Exercised Options: $17,319,545
Current Obligation: $17,319,545
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-16
Current End Date: 2017-04-03
Potential End Date: 2017-04-03 00:00:00
Last Modified: 2021-04-30
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