HHS awards $22.7M contract for Crownpoint staff quarters replacement, a significant multifamily housing construction project

Contract Overview

Contract Amount: $22,706,827 ($22.7M)

Contractor: LAM Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-12

End Date: 2026-12-31

Contract Duration: 993 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CROWNPOINT STAFF QUARTERS REPLACEMENT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87131

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.7 million to LAM CORPORATION for work described as: CROWNPOINT STAFF QUARTERS REPLACEMENT Key points: 1. The contract value represents a substantial investment in infrastructure for the Indian Health Service. 2. The project falls under multifamily housing construction, indicating a focus on housing solutions. 3. The firm fixed-price contract type suggests a defined cost structure, potentially limiting cost overruns. 4. The duration of 993 days points to a long-term commitment for project completion. 5. The award was made through full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of $22.7 million for multifamily housing construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide further context. The firm fixed-price nature of the contract is a positive indicator for cost control, though it shifts risk to the contractor. Without specific per-unit cost data or detailed project specifications, a precise value-for-money assessment is challenging, but the competitive award process suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as contractors are incentivized to offer competitive pricing to win the bid.

Public Impact

The primary beneficiaries are likely the staff of the Indian Health Service at the Crownpoint facility, who will receive new or improved housing. The project delivers essential new multifamily housing construction, addressing potential infrastructure needs. The geographic impact is concentrated in Crownpoint, New Mexico, supporting local development and services. Workforce implications include potential job creation for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Ensuring compliance with all federal building codes and environmental regulations.
Managing the logistics of construction in a potentially remote location.

Positive Signals

Firm fixed-price contract helps manage budget certainty.
Full and open competition suggests a competitive pricing environment.
Long-term project duration allows for thorough planning and execution.

Sector Analysis

This contract falls within the Construction sector, specifically 'New Multifamily Housing Construction (except For-Sale Builders)'. This is a significant category within federal contracting, often involving substantial investments in infrastructure to support agency operations and personnel. Comparable spending benchmarks would typically involve analyzing other large-scale housing or dormitory construction projects awarded by federal agencies like the Department of Defense or the Department of the Interior.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). However, the prime contractor, LAM CORPORATION, may engage small businesses as subcontractors. Further analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem in New Mexico.

Oversight & Accountability

Oversight for this contract will likely be managed by the Indian Health Service, a division of HHS. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified housing within the agreed-upon budget and timeline. Transparency is generally maintained through federal contract databases, though specific project oversight details may vary.

Related Government Programs

Indian Health Service Facilities Construction
Multifamily Housing Development
Federal Employee Housing
New Mexico Construction Projects

Risk Flags

Potential for cost overruns if contractor mismanages risks.
Risk of construction delays impacting operational needs.
Ensuring quality and compliance with federal standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.7 million to LAM CORPORATION. CROWNPOINT STAFF QUARTERS REPLACEMENT

Who is the contractor on this award?

The obligated recipient is LAM CORPORATION.

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 $22.7 million.

What is the period of performance?

Start: 2024-04-12. End: 2026-12-31.

What is the track record of LAM CORPORATION in completing similar federal construction projects on time and within budget?

Assessing LAM CORPORATION's track record requires a review of their past performance on federal contracts, particularly those involving new multifamily housing construction. This would involve examining contract databases for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications, delays, or disputes. A history of successful project completion, adherence to schedules, and cost control would indicate a lower risk profile for this current project. Conversely, a pattern of issues could raise concerns about the contractor's ability to deliver effectively on the $22.7 million Crownpoint Staff Quarters Replacement.

How does the awarded price compare to industry benchmarks for similar multifamily housing construction projects in New Mexico?

To benchmark the $22.7 million award, one would compare it against the cost per square foot or per unit of recently completed, comparable multifamily housing projects in New Mexico. This analysis should account for factors such as building type, quality of materials, amenities, and prevailing labor costs in the region. Data from construction cost estimating services, industry reports, or publicly available data on similar state or local government housing projects could be utilized. If the awarded price is significantly higher than comparable projects, it might suggest potential overpricing or unique project complexities not immediately apparent.

What are the primary risks associated with a firm fixed-price contract for a project of this scale and duration?

The primary risk with a firm fixed-price (FFP) contract for a large, long-duration project like the Crownpoint Staff Quarters Replacement lies with the contractor. LAM CORPORATION assumes the risk of cost overruns due to unforeseen issues, material price fluctuations, or labor cost increases. While this protects the government's budget from escalating costs, it can incentivize the contractor to cut corners on quality or safety if margins become too tight. The government's risk is primarily related to potential contractor default, delays, or disputes if the contractor struggles to manage costs effectively over the 993-day period.

What is the expected impact of this new housing on the retention and recruitment of IHS staff in Crownpoint?

The construction of new multifamily staff quarters is expected to significantly improve the retention and recruitment of Indian Health Service (IHS) staff in Crownpoint. Adequate and modern housing is a critical factor for healthcare professionals, particularly in remote or underserved areas. By providing improved living conditions, the IHS aims to make Crownpoint a more attractive duty station, potentially reducing staff turnover and making it easier to attract qualified physicians, nurses, and support personnel. This, in turn, can lead to more consistent and higher-quality healthcare services for the community.

How does the $22.7 million expenditure compare to historical IHS spending on housing infrastructure in similar tribal communities?

Comparing the $22.7 million expenditure to historical Indian Health Service (IHS) spending on housing infrastructure in similar tribal communities requires access to historical budget and contract data. This analysis would involve identifying previous IHS projects focused on staff housing or related infrastructure in communities of comparable size and remoteness. It would also involve adjusting historical figures for inflation to ensure a fair comparison. Understanding this context helps determine if the current investment is consistent with past practices, represents an increase in focus on housing, or is an outlier due to specific needs or project scope at Crownpoint.

What are the specific performance metrics or deliverables outlined in the contract to ensure successful project completion?

While the provided data does not detail specific performance metrics, a contract of this nature typically includes detailed specifications, architectural plans, and construction schedules. Key deliverables would include the completed multifamily housing units meeting all specified quality standards, safety regulations, and energy efficiency requirements. Performance metrics would likely involve adherence to the project timeline, successful completion of construction phases, final inspections, and occupancy readiness. The firm fixed-price nature implies that meeting these deliverables within the agreed cost and schedule is paramount for the contractor's success.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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: 75H70124R00004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 317 BORTOT DR, GALLUP, NM, 87301

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,706,827

Exercised Options: $22,706,827

Current Obligation: $22,706,827

Actual Outlays: $13,738,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline