HHS Awards $21.5M for Lawton Indian Hospital Expansion, Boosting Healthcare Infrastructure

Contract Overview

Contract Amount: $21,520,705 ($21.5M)

Contractor: Structsure Projects Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-12

End Date: 2026-08-20

Contract Duration: 920 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAWTON INDIAN HOSPITAL EMERGENCY DEPARTMENT, IMAGING SERVICES & LABORATORY EXPANSION & RENOVATION

Place of Performance

Location: LAWTON, COMANCHE County, OKLAHOMA, 73507

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.5 million to STRUCTSURE PROJECTS INC for work described as: LAWTON INDIAN HOSPITAL EMERGENCY DEPARTMENT, IMAGING SERVICES & LABORATORY EXPANSION & RENOVATION Key points: 1. Significant investment in healthcare infrastructure for the Indian Health Service. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Project duration of 920 days indicates a substantial construction undertaking. 4. Firm fixed price contract type aims to control costs for taxpayers.

Value Assessment

Rating: good

The contract value of $21.5 million for an emergency department, imaging, and laboratory expansion appears reasonable for a project of this scope and duration. Benchmarking against similar healthcare facility construction 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 more favorable pricing for the government. The use of a definitive contract structure is standard for projects with defined scopes.

Taxpayer Impact: The firm fixed price contract type provides cost certainty for taxpayers, protecting against potential cost overruns during the construction phase.

Public Impact

Improved emergency care access for Native American communities served by the Lawton Indian Hospital. Enhanced diagnostic capabilities through new imaging and laboratory facilities. Modernized healthcare infrastructure supporting better patient outcomes. Potential for job creation during the construction and operational phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration may impact immediate service availability.
Potential for unforeseen construction challenges in existing facilities.

Positive Signals

Addresses critical healthcare needs.
Utilizes competitive bidding process.
Firm fixed price contract offers cost control.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending benchmarks for similar hospital expansions vary widely based on size, complexity, and location, but $21.5 million is a significant investment.

Small Business Impact

While the prime contractor is Structsoure Projects Inc., the contract details do not specify any set-aside for small businesses. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The Indian Health Service, under the Department of Health and Human Services, is responsible for overseeing this contract. Standard oversight procedures for construction projects should be in place to ensure quality, timeliness, and adherence to specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for schedule delays due to construction complexity.
Reliance on a single prime contractor for project execution.
Need for ongoing monitoring of construction quality and adherence to budget.
Ensuring adequate subcontractor participation, including small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.5 million to STRUCTSURE PROJECTS INC. LAWTON INDIAN HOSPITAL EMERGENCY DEPARTMENT, IMAGING SERVICES & LABORATORY EXPANSION & RENOVATION

Who is the contractor on this award?

The obligated recipient is STRUCTSURE PROJECTS INC.

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 $21.5 million.

What is the period of performance?

Start: 2024-02-12. End: 2026-08-20.

What is the projected impact of this expansion on patient wait times and service capacity at the Lawton Indian Hospital?

The expansion is expected to significantly increase service capacity and potentially reduce wait times by providing upgraded and expanded emergency, imaging, and laboratory facilities. This modernization aims to meet the growing healthcare demands of the community and improve the overall efficiency of patient care delivery within the hospital.

Are there any specific sustainability or green building requirements incorporated into this construction project?

The provided data does not specify any sustainability or green building requirements. Typically, such requirements would be detailed in the contract's statement of work or specifications. Further review of the full contract documentation would be necessary to ascertain if environmental considerations were included.

How does the awarded price compare to the government's independent cost estimate for this project?

The data indicates a bid range (br) of $23,392, which is significantly lower than the total contract value. Without the government's independent cost estimate, it's difficult to definitively assess how the awarded price compares. However, the presence of a bid range suggests multiple bids were received and evaluated.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75H70123R00014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 903 E 104TH ST, KANSAS CITY, MO, 64131

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

Financial Breakdown

Contract Ceiling: $21,520,705

Exercised Options: $21,520,705

Current Obligation: $21,520,705

Actual Outlays: $17,884,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline