HHS Awards $8.6M for Pine Ridge Duplex Sitework & Foundations to Northcon Inc

Contract Overview

Contract Amount: $8,596,564 ($8.6M)

Contractor: Northcon Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-07

End Date: 2026-11-17

Contract Duration: 832 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PINE RIDGE, KYLE, WANBLEE DUPLEX SITEWORK & FOUNDATIONS - CONSTRUCTION

Place of Performance

Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.6 million to NORTHCON INC for work described as: PINE RIDGE, KYLE, WANBLEE DUPLEX SITEWORK & FOUNDATIONS - CONSTRUCTION Key points: 1. The contract is for construction services at the Pine Ridge, Kyle, and Wanblee duplex sites. 2. Northcon Inc. secured the award through full and open competition after exclusion of sources. 3. The project has a firm fixed price contract type, indicating defined cost parameters. 4. This award falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $8.6 million appears reasonable for a construction project of this scope. Benchmarking against similar institutional building construction contracts in the region would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, suggesting a competitive bidding process was intended. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The firm fixed price contract aims to control costs, ensuring taxpayer funds are used efficiently for the specified construction work.

Public Impact

Improved housing infrastructure for residents in Pine Ridge, Kyle, and Wanblee. Supports local economic activity through construction jobs and material procurement. Enhances the living conditions and community development in the designated areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependence on Northcon Inc. for timely and quality completion.

Positive Signals

Competitive bidding process likely secured a fair price.
Firm fixed price contract provides cost certainty.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector that can see significant variation in project costs based on location, complexity, and materials. The award amount appears within a typical range for such foundational work.

Small Business Impact

The data indicates that small business participation was not a specific requirement or outcome for this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Health and Human Services, specifically the Indian Health Service, is responsible for oversight. The contract type and duration suggest ongoing monitoring will be necessary to ensure compliance and successful project delivery.

Related Government Programs

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

Risk Flags

Potential for unforeseen site conditions impacting cost.
Reliance on a single contractor for project completion.
Limited transparency on specific source exclusions in competition.
Need for detailed regional cost benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.6 million to NORTHCON INC. PINE RIDGE, KYLE, WANBLEE DUPLEX SITEWORK & FOUNDATIONS - CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is NORTHCON 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 $8.6 million.

What is the period of performance?

Start: 2024-08-07. End: 2026-11-17.

What specific site conditions or exclusions led to the 'after exclusion of sources' clause in the competition method?

The 'after exclusion of sources' clause typically indicates that while the competition was intended to be full and open, certain pre-identified sources were excluded from consideration, possibly due to specific capabilities, past performance, or unique requirements. Understanding the rationale behind these exclusions is crucial for assessing the true level of competition and potential impact on price discovery.

Are there any specific environmental or geological challenges at the duplex sites that could impact the foundation work and potentially lead to cost increases?

The provided data does not detail specific site challenges. However, foundation work in remote or undeveloped areas can be susceptible to unforeseen geological conditions (e.g., unstable soil, high water tables) or environmental regulations. A thorough review of the project's environmental impact assessment and geotechnical reports would be necessary to identify potential risks that could affect the firm fixed price.

How does the $8.6 million contract value compare to similar duplex construction projects in South Dakota, considering the specific needs of the Indian Health Service?

Without specific regional benchmarks for IHS-related duplex construction, a direct comparison is difficult. However, $8.6 million for sitework and foundations for multiple duplexes suggests a substantial undertaking. Factors like material costs, labor availability in rural South Dakota, and specialized requirements for IHS facilities would influence this figure. Further comparative analysis with similar government-funded housing projects in comparable regions is recommended.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75H701-24-R-00039

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10615 N GOVERNMENT WAY, HAYDEN, ID, 83835

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,596,564

Exercised Options: $8,596,564

Current Obligation: $8,596,564

Actual Outlays: $6,838,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline