Department of Health and Human Services Awarded a Contract to OLGOONIK GENERAL, LLC for $1,861,102.73

Summary of Award

The awarded contract under discussion is a definitive contract valued at $1,861,102.73, designated with the unique award identifier "CONT_AWD_75N99024C00040_7529_-NONE-_-NONE-." The contract is between the US federal government and Olgoonik General, LLC, for the repair and replacement of a defective circuit breaker in Building 35. This procurement falls under the oversight of the Department of Health and Human Services (HHS), specifically through its subsidiary, the National Institutes of Health (NIH).

**Contract Overview:**

The contract, classified as a "definitive contract" (Type D), was signed on July 23, 2024, with a performance period extending to April 1, 2025. The total obligation under this contract matches the base exercised options and the total potential value, signaling that no optional extensions or expansions were considered beyond the stated financial commitment. The nature of work involves commercial and institutional building construction as described under the North American Industry Classification System (NAICS) code 236220. Additionally, the Product Service Code (PSC) Y1JZ indicates the work involves the construction of miscellaneous buildings. **Financial Details:** According to the financial breakdown, the total obligation is $1,861,102.73, with a recorded total outlay of $363,751.44. These figures suggest funds are disbursed incrementally as project phases are completed. Notably, the award is exempt from competition, granted under an 8(a) sole source set-aside—a strategic choice typically made to support small and disadvantaged businesses. **Awarding and Funding Agencies:** The primary and secondary agencies involved are HHS and NIH, indicating the agency's priorities in maintaining and upgrading their infrastructure to facilitate their core missions more efficiently. The office responsible is labeled NIH A/E Construction, highlighting a specialized focus on architecture and engineering related to government-operated facilities. **Recipient Details:** Based in Anchorage, Alaska, Olgoonik General, LLC is the recipient of this contract. The company is a small, disadvantaged business with multiple certifications and designations, including being Alaskan Native Corporation owned and minority-owned. Such identifications possibly played a role in the sole-source procurement. Olgoonik General, LLC is involved in a broad range of services, including construction, which aligns with the scope of this contract. The firm is classified under various business categories, ensuring their alignment with federal small business objectives, which often include promoting workplace diversity and supporting smaller or indigenous businesses. **Transactions Overview:** Two main transactions are of interest: 1. **Initial Contract Award (Transaction 1):** - **Action Date:** July 23, 2024. - **Transaction Amount:** $1,861,102.73. - This is the principal transaction marking the initiation and full funding of the project. The significant transaction amount reflects the total obligation initially sanctioned to Olgoonik General, LLC for undertaking the defined construction tasks. 2. **Subsequent Modification (Transaction 2):** - **Action Date:** April 10, 2025. - **Transaction Amount:** $0. - This transaction indicates a modification, likely non-financial, made to the contract during its period of performance. While the modification did not require additional funds, it suggests administrative updates or extensions yet not elaboratively financial. **Project Specifics:** The awarded contract's focus is renovating a specific infrastructure element at Building 35. It involves replacing a defective circuit breaker—a task critical for maintaining the building's operational and safety standards. The operation is situated in Bethesda, Maryland, where the NIH campus resides. Montgomery County is expected to gain socio-economic benefits from this project, including job creation and business opportunities from local sub-contractors or suppliers, in accordance with federal guidelines. **Strategic Importance:** The contract being categorized as "not applicable for competition" is strategic, supporting statutory mandates. Federal Acquisition Regulation (FAR) 6.302-5(A)(2)(I) authorization allows bypassing open competition, suggesting that specialized criteria—such as meeting socio-economic objectives or having unique capabilities—were decisive factors. **Conclusion:** This definitive contract illustrates the federal government's continued investment in maintaining and upgrading its critical health and research infrastructure. The funds allocated to Olgoonik General, LLC signify trust and reliance on their capacity to deliver in compliance with strict federal expectations. The contract not only supports essential physical infrastructure enhancements but also aligns with broader governmental goals of supporting marginalized business entities, thus promoting economic equity. Through these strategic, nuanced procurement decisions, the government ensures its facilities remain both safe and capable of supporting its essential health missions, while fostering diversity and inclusion within its vendor base.