HHS awards $301.8M for NIH Building 10 E-Wing Renovation to Whiting-Turner

Contract Overview

Contract Amount: $301,758,907 ($301.8M)

Contractor: Whiting-Turner Contracting Company, the

Awarding Agency: Department of Health and Human Services

Start Date: 2017-10-10

End Date: 2024-09-19

Contract Duration: 2,536 days

Daily Burn Rate: $119.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF::C100663 - BUILDING 10 E-WING RENOVATION

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $301.8 million to WHITING-TURNER CONTRACTING COMPANY, THE for work described as: IGF::OT::IGF::C100663 - BUILDING 10 E-WING RENOVATION Key points: 1. Contract value represents a significant investment in federal infrastructure. 2. The project falls under commercial and institutional building construction, a key sector for federal facilities. 3. A firm-fixed-price contract type suggests defined costs and potential for contractor risk. 4. The long duration indicates a complex, multi-year project with substantial logistical planning. 5. The contract's value places it among larger federal construction awards.

Value Assessment

Rating: good

The contract value of $301.8 million for the NIH Building 10 E-Wing Renovation is substantial, reflecting the scale and complexity of the project. Benchmarking against similar large-scale federal building renovations would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally aims to control costs, and the duration suggests a comprehensive scope. Without specific cost breakdowns or comparisons to similar projects, it's difficult to definitively assess if the pricing is optimal, but the award to a single, established contractor implies a level of confidence in their ability to deliver within the negotiated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a competitive environment, though the exact number of bids received is not detailed. A competitive process like this is generally expected to yield fair market pricing and encourage efficiency from the awarded contractor. The fact that multiple firms were willing to bid on such a large and complex project points to a healthy market for this type of construction.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures that the government receives the best possible value for its investment in infrastructure.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its researchers, who will gain access to modernized facilities. The project delivers essential renovation and construction services to upgrade critical federal research infrastructure. The geographic impact is concentrated in Maryland, specifically at the NIH campus. The project will likely have implications for the construction workforce in the Maryland region, creating jobs and demand for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the multi-year renovation.
Risk of schedule delays due to the complexity of renovating an occupied facility.
Dependence on a single contractor for a large, critical infrastructure project.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an experienced contractor (Whiting-Turner) suggests a lower risk of performance issues.
Full and open competition indicates a robust bidding process likely resulting in competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The federal government is a major consumer of construction services for its vast portfolio of buildings, including research facilities like those at NIH. The market for large-scale federal construction projects is competitive, with established firms often bidding on high-value contracts. The $301.8 million award is substantial and aligns with the typical scale of major federal building renovation or construction efforts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large contractor. While large federal construction projects can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside information means their direct participation in the prime contract is unlikely. Further analysis would be needed to determine if subcontracting plans include provisions for small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The firm-fixed-price nature of the contract shifts much of the cost risk to the contractor, but performance monitoring remains crucial. Transparency is facilitated through contract award databases. While no specific Inspector General (IG) jurisdiction is mentioned, the HHS OIG would have oversight authority over potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

NIH Research Facilities Modernization
Federal Building Construction
Healthcare Infrastructure Projects
Large-Scale Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Complexity of renovating occupied research facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $301.8 million to WHITING-TURNER CONTRACTING COMPANY, THE. IGF::OT::IGF::C100663 - BUILDING 10 E-WING RENOVATION

Who is the contractor on this award?

The obligated recipient is WHITING-TURNER CONTRACTING COMPANY, THE.

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 $301.8 million.

What is the period of performance?

Start: 2017-10-10. End: 2024-09-19.

What is Whiting-Turner Contracting Company's track record with large federal construction projects?

Whiting-Turner Contracting Company has a significant track record with large federal construction projects across various agencies, including the Department of Defense, General Services Administration, and Health and Human Services. They are known for undertaking complex projects, often involving renovations, new construction, and specialized facilities. Their experience typically includes managing large budgets, extensive project timelines, and coordinating with multiple stakeholders. While specific performance metrics for past federal contracts are not detailed here, their consistent ability to win and execute large-scale contracts suggests a strong operational capacity and a history of successful project delivery within the federal sector. Further due diligence would involve reviewing past performance evaluations and any reported issues on similar projects.

How does the cost per square foot of this renovation compare to similar NIH or federal building projects?

Without the specific square footage of the Building 10 E-Wing being renovated, a direct cost-per-square-foot comparison is not possible. However, the total contract value of $301.8 million for a major renovation of a significant facility like NIH's Building 10 suggests a substantial investment. Federal building renovations, especially those involving complex systems, laboratories, or specialized infrastructure, often incur higher costs per square foot than standard commercial construction due to stringent requirements, security protocols, and the need to maintain ongoing operations. To benchmark effectively, one would need to identify comparable NIH or federal projects of similar scope (e.g., laboratory renovations, wing modernizations) and their associated square footage and total costs, adjusting for inflation and regional economic factors.

What are the primary risks associated with a multi-year renovation of an occupied federal research building?

Renovating an occupied federal research building like NIH's Building 10 E-Wing over a multi-year period presents several significant risks. Firstly, maintaining ongoing research operations necessitates careful phasing and containment to prevent disruption, contamination, or damage to sensitive experiments and equipment, which can lead to schedule delays and increased costs. Secondly, unforeseen site conditions (e.g., asbestos, structural issues, outdated utilities) are common in older buildings and can significantly impact both budget and timeline. Thirdly, security and access control must be rigorously managed to protect sensitive research and personnel. Finally, coordination between the construction team, NIH staff, researchers, and regulatory bodies is complex and requires constant communication to mitigate conflicts and ensure compliance, all of which contribute to the project's inherent risk profile.

What is the historical spending trend for building renovations at the National Institutes of Health?

Historical spending on building renovations at the National Institutes of Health (NIH) has been substantial and generally increasing over the years, reflecting the agency's vast infrastructure needs and aging facilities. NIH consistently invests in modernizing its research laboratories, clinical facilities, and administrative buildings to support cutting-edge scientific endeavors. Annual spending fluctuates based on specific capital improvement projects, major renovations, and new construction initiatives. Data from previous fiscal years would show significant outlays for facility upgrades, often in the hundreds of millions of dollars annually, driven by the need to maintain state-of-the-art research environments and comply with evolving safety and technological standards. This $301.8 million contract represents a major component of that ongoing investment.

How does the 'definitive contract' award type impact oversight and flexibility compared to other contract types?

A 'definitive contract' is simply the final contract awarded after a period of negotiation or bidding, as opposed to a letter contract or other preliminary agreement. In this case, it's a Firm Fixed Price Definitive Contract. The firm fixed price (FFP) aspect means the price is set and not subject to adjustment based on the contractor's cost experience, placing the cost risk on Whiting-Turner. This provides significant cost certainty for the government and simplifies financial oversight compared to cost-reimbursement contracts. However, FFP contracts can offer less flexibility for scope changes; modifications typically require formal change orders, which can be time-consuming. Oversight focuses heavily on ensuring the contractor meets the defined scope, quality standards, and schedule, rather than scrutinizing costs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: NIHOF2017154

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E JOPPA RD, BALTIMORE, MD, 21286

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $302,019,506

Exercised Options: $302,019,506

Current Obligation: $301,758,907

Actual Outlays: $165,064,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline