HHS Awards $46.5M for Chiller Plant Construction in Arkansas
Contract Overview
Contract Amount: $46,470,615 ($46.5M)
Contractor: Amerind BG JV, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-06-02
End Date: 2029-02-18
Contract Duration: 2,088 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BLDG. 2 - CHILLER PLANT CONSTRUCTION AND ASSOCIATED PROJECTS
Place of Performance
Location: JEFFERSON, JEFFERSON County, ARKANSAS, 72079
State: Arkansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $46.5 million to AMERIND BG JV, LLC for work described as: BLDG. 2 - CHILLER PLANT CONSTRUCTION AND ASSOCIATED PROJECTS Key points: 1. Significant investment in critical infrastructure for FDA facilities. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the long duration and construction nature. 4. Sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: good
The contract value of $46.5 million for a chiller plant construction project appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional building 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 typically fosters competitive bidding and can lead to better pricing for the government. The use of a definitive contract indicates a clear scope of work.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process on this substantial infrastructure project.
Public Impact
Ensures operational continuity for FDA facilities by upgrading essential cooling systems. Supports regional economic activity through construction jobs and material procurement in Arkansas. Long-term asset improvement for a federal agency, potentially reducing future maintenance costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (over 6 years) increases risk of cost overruns and delays.
- Construction projects are inherently susceptible to unforeseen site conditions and material price fluctuations.
- Reliance on a single awardee for a large project requires robust oversight.
Positive Signals
- Full and open competition should drive cost efficiencies.
- Firm fixed price contract provides cost certainty.
- Project addresses critical infrastructure needs.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending for infrastructure and facility upgrades. Benchmarks for similar projects vary widely based on scale and complexity.
Small Business Impact
The data indicates the awardee is AMERIBND BG JV, LLC. Further analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.
Oversight & Accountability
Robust oversight will be crucial given the project's multi-year duration and significant value to ensure adherence to schedule, budget, and quality standards. The definitive contract structure implies a defined scope, aiding oversight.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Long project duration increases risk of cost escalation and schedule delays.
- Construction projects are susceptible to unforeseen site conditions and material price volatility.
- Potential for scope creep if not managed tightly.
- Dependence on a single contractor for a critical infrastructure project.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $46.5 million to AMERIND BG JV, LLC. BLDG. 2 - CHILLER PLANT CONSTRUCTION AND ASSOCIATED PROJECTS
Who is the contractor on this award?
The obligated recipient is AMERIND BG JV, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $46.5 million.
What is the period of performance?
Start: 2023-06-02. End: 2029-02-18.
What is the projected impact of this chiller plant upgrade on the FDA's energy efficiency and operational costs?
The chiller plant upgrade is expected to enhance energy efficiency by incorporating modern, more efficient cooling technologies, potentially leading to reduced energy consumption and lower operational costs for the FDA facility. Quantifying these savings would require detailed projections from the contractor and agency analysis, considering factors like system lifespan and maintenance requirements.
How will potential supply chain disruptions or material cost increases be managed under the firm fixed price contract?
Under a firm fixed price contract, the contractor typically bears the risk of increased material costs or supply chain disruptions. However, contract clauses may exist to address extraordinary circumstances. The government's role would involve monitoring market conditions and ensuring the contractor has adequate contingency plans in place to mitigate these risks.
What mechanisms are in place to ensure the long-term reliability and maintainability of the new chiller plant?
Mechanisms for ensuring long-term reliability include detailed performance specifications in the contract, rigorous inspection and testing protocols during construction, and potentially warranty periods and service agreements. The agency will likely require comprehensive documentation and training for facility staff on the new system's operation and maintenance.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75F40122R00051
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1301 WESTPARK DRIVE, LITTLE ROCK, AR, 72204
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,470,615
Exercised Options: $46,470,615
Current Obligation: $46,470,615
Actual Outlays: $46,236,448
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-02
Current End Date: 2029-02-18
Potential End Date: 2029-02-18 00:00:00
Last Modified: 2026-02-19
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