HHS Awards $6.4M for Pueblo Pintado Healthcare Center Design to Health Facilities Group LLC

Contract Overview

Contract Amount: $6,439,866 ($6.4M)

Contractor: Health Facilities Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-13

End Date: 2028-06-23

Contract Duration: 2,628 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUEBLO PINTADO HEALTH CARE CENTER DESIGN"

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67202

State: Kansas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.4 million to HEALTH FACILITIES GROUP LLC for work described as: PUEBLO PINTADO HEALTH CARE CENTER DESIGN" Key points: 1. The contract is for design services for a healthcare center. 2. Health Facilities Group LLC is the sole awardee. 3. The contract value is $6.4 million. 4. The period of performance extends to June 2028.

Value Assessment

Rating: fair

The contract value of $6.4 million for design services appears reasonable for a healthcare facility project of this scope. Benchmarking against similar design contracts would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this design contract. The limited competition raises questions about whether the best possible price was secured.

Public Impact

Improved healthcare infrastructure for the Pueblo Pintado community. Potential for job creation during the design and subsequent construction phases. Ensures specialized engineering services are procured for a critical health facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing.
Long performance period could introduce cost escalation risks.

Positive Signals

Addresses a critical need for healthcare infrastructure.
Utilizes specialized engineering services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically for healthcare facility design. Spending in this sector is driven by infrastructure needs and government health initiatives. Benchmarks for similar design contracts vary widely based on project complexity and location.

Small Business Impact

The data indicates that neither small business nor socioeconomic status was a factor in this award. There is no indication of specific outreach or utilization of small businesses for this particular contract.

Oversight & Accountability

The Department of Health and Human Services, through the Indian Health Service, is responsible for overseeing this contract. Standard oversight procedures for design contracts should be in place to ensure quality and adherence to scope.

Related Government Programs

Engineering Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Limited competition may lead to higher costs.
Long contract duration increases risk of cost escalation.
Lack of small business participation.
Potential for design obsolescence over the long performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.4 million to HEALTH FACILITIES GROUP LLC. PUEBLO PINTADO HEALTH CARE CENTER DESIGN"

Who is the contractor on this award?

The obligated recipient is HEALTH FACILITIES GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2021-04-13. End: 2028-06-23.

What specific factors led to the exclusion of other potential sources in this 'limited competition' scenario?

The exclusion of sources likely stemmed from specific requirements or justifications provided by the agency, such as unique capabilities, prior performance on related projects, or specific geographic needs. Without further documentation, the exact reasons remain unclear, but typically involve a determination that only certain contractors can meet the specialized needs of the project, thus limiting the pool of eligible bidders.

How does the $6.4 million price compare to industry benchmarks for similar healthcare facility design projects?

A direct comparison to industry benchmarks is challenging without detailed project specifications. However, for a healthcare facility, design costs can range significantly based on size, complexity, and required specialized systems. A preliminary assessment suggests the price is within a plausible range, but a thorough benchmark analysis against comparable projects would be necessary for a definitive value assessment.

What are the potential risks associated with the long performance period extending to June 2028?

The extended performance period of over six years presents several risks. These include potential cost escalations due to inflation or changes in material/labor costs, scope creep if requirements evolve, and the risk of design obsolescence if technology or healthcare standards advance significantly during that time. Maintaining contractor engagement and oversight over such a long duration also requires sustained effort.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75H701-21-R-00007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 142 N MOSLEY ST, SUITE 300, WICHITA, KS, 67202

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,439,866

Exercised Options: $6,439,866

Current Obligation: $6,439,866

Actual Outlays: $4,038,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75H70118D00005

IDV Type: IDC

Timeline