HHS Awards $48.4M for Whiteriver Hospital Design, Highlighting Engineering Services Competition
Contract Overview
Contract Amount: $48,388,208 ($48.4M)
Contractor: Smithgroup, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-02-02
End Date: 2026-01-27
Contract Duration: 725 days
Daily Burn Rate: $66.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARCHITECT-ENGINEER SERVICES FOR WHITERIVER HOSPITAL DESIGN AT WHITERIVER, AZ
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85004
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $48.4 million to SMITHGROUP, INC. for work described as: ARCHITECT-ENGINEER SERVICES FOR WHITERIVER HOSPITAL DESIGN AT WHITERIVER, AZ Key points: 1. Significant investment in healthcare infrastructure for the Whiteriver Indian Hospital. 2. Engineering services sector sees substantial contract award. 3. Potential for long-term impact on healthcare access in Arizona. 4. Contract awarded via full and open competition, suggesting market price discovery.
Value Assessment
Rating: good
The contract value of $48.4M for architectural and engineering services appears reasonable for a hospital design project of this scale. Benchmarking against similar large-scale healthcare facility designs 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, indicating that multiple firms had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure services at a market-driven rate.
Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare infrastructure, aiming to improve services for the community. Competitive bidding helps ensure efficient use of these funds.
Public Impact
Enhances healthcare infrastructure for the Whiteriver community. Supports job creation in the architecture and engineering sectors. Addresses critical needs for modern medical facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns during the design and construction phases.
- Ensuring the design meets the specific needs of the local community and patient population.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can help control costs.
- Significant investment in a critical public service.
Sector Analysis
This contract falls within the Engineering Services sector, specifically for architectural and engineering design. Spending in this sector is often tied to infrastructure development and public works projects, with benchmarks varying significantly based on project complexity and scale.
Small Business Impact
While this contract was awarded under full and open competition, there is no specific indication of small business participation in the provided data. Future analysis could explore subcontracting opportunities for small businesses.
Oversight & Accountability
The Department of Health and Human Services, through the Indian Health Service, is responsible for overseeing this contract. Standard oversight mechanisms for large design contracts should be in place to ensure quality and adherence to schedule and budget.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for scope creep during the design process.
- Dependency on timely approvals from various stakeholders.
- Risk of design not fully meeting evolving healthcare needs.
- Ensuring adequate local workforce availability for future construction phases.
Tags
engineering-services, department-of-health-and-human-services, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $48.4 million to SMITHGROUP, INC.. ARCHITECT-ENGINEER SERVICES FOR WHITERIVER HOSPITAL DESIGN AT WHITERIVER, AZ
Who is the contractor on this award?
The obligated recipient is SMITHGROUP, 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 $48.4 million.
What is the period of performance?
Start: 2024-02-02. End: 2026-01-27.
What is the projected timeline for the completion of the hospital design phase, and are there any interim milestones?
The contract has a duration of 725 days, with an end date of January 27, 2026. This suggests the design phase is expected to conclude within approximately two years. Key milestones would typically be defined within the contract's statement of work, likely including preliminary design reviews, schematic design approval, and final design submission.
How does the awarded amount compare to industry benchmarks for similar hospital design projects, considering the location and scope?
Without specific benchmark data for hospital designs in rural Arizona or for facilities serving tribal communities, a direct comparison is difficult. However, the $48.4M award for a definitive contract suggests a substantial project. Further research into cost per square foot or cost per bed for comparable projects would be necessary for a robust benchmark assessment.
What mechanisms are in place to ensure the long-term effectiveness and maintainability of the hospital design?
The contract's firm fixed price nature incentivizes the contractor to deliver a complete and functional design within budget. Oversight by the Indian Health Service should include reviews of design specifications for durability, energy efficiency, and ease of maintenance. Post-occupancy evaluations could also assess long-term effectiveness.
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
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Solicitation ID: 75H70123R00008
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 455 N 3RD ST STE 250, PHOENIX, AZ, 85004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,388,208
Exercised Options: $48,388,208
Current Obligation: $48,388,208
Actual Outlays: $30,647,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-02-02
Current End Date: 2026-01-27
Potential End Date: 2029-03-17 00:00:00
Last Modified: 2026-01-14
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