HHS awards $11.1M contract for North Dakota multifamily housing construction to Greenstone Construction

Contract Overview

Contract Amount: $11,148,581 ($11.1M)

Contractor: Greenstone Construction, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-29

End Date: 2026-06-25

Contract Duration: 665 days

Daily Burn Rate: $16.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BELCOURT MULTIPLEX FOR CONSTRUCTION

Place of Performance

Location: BELCOURT, ROLETTE County, NORTH DAKOTA, 58316

State: North Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.1 million to GREENSTONE CONSTRUCTION, INC. for work described as: BELCOURT MULTIPLEX FOR CONSTRUCTION Key points: 1. Contract awarded for new multifamily housing construction, indicating a need for residential facilities. 2. The fixed-price contract type suggests cost certainty for the government. 3. The duration of 665 days points to a substantial construction project. 4. The contract is not available for competition, raising questions about potential cost efficiencies. 5. The project is located in North Dakota, potentially addressing regional housing needs. 6. The award value of over $11 million signifies a significant investment in infrastructure.

Value Assessment

Rating: questionable

Benchmarking the value for this specific type of construction in North Dakota is challenging without more detailed project specifications. However, the absence of competition suggests that a thorough price reasonableness analysis was critical. The fixed-price nature of the contract provides some cost control, but the lack of competitive bidding means potential savings from market forces were not realized. Further analysis would require comparing the scope and quality of the planned construction against similar projects in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential bidders. This approach is typically used when only one contractor possesses the necessary qualifications or when circumstances prevent a competitive process. The lack of competition limits the government's ability to leverage market dynamics to secure the best possible price and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process, potentially leading to higher overall expenditures.

Public Impact

The primary beneficiaries are likely residents who will occupy the new multifamily housing units. The contract delivers essential construction services for new residential infrastructure. The geographic impact is focused on North Dakota, addressing local housing demands. The project will likely create temporary construction jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about whether the best value was obtained.
Project scope and specific requirements are not detailed, making full assessment difficult.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Project addresses a clear need for housing infrastructure.
Contract duration is defined, allowing for project planning.

Sector Analysis

This contract falls within the construction sector, specifically new multifamily housing. The construction industry is a significant part of the economy, with substantial federal spending allocated to infrastructure projects. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per unit for similar housing developments in the region, adjusted for project complexity and material costs. The Indian Health Service's involvement suggests a focus on providing housing for specific communities.

Small Business Impact

The data indicates that small business participation was not a stated requirement for this contract (ss: false, sb: false). Therefore, there are no explicit set-aside provisions for small businesses. This means larger contractors are likely to perform the work, with limited direct subcontracting opportunities for small businesses unless voluntarily pursued by the prime contractor. The impact on the small business ecosystem is minimal in terms of direct contract awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its Indian Health Service (IHS) component. Accountability measures would be tied to the contract's performance against its defined scope, schedule, and quality standards. Transparency is generally facilitated through federal contract databases, though specific project details might be limited. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Department of Health and Human Services Contracts
Indian Health Service Construction Projects
Multifamily Housing Development Contracts
Federal Infrastructure Spending

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to lack of competition.
Limited transparency on specific project scope and requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.1 million to GREENSTONE CONSTRUCTION, INC.. BELCOURT MULTIPLEX FOR CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GREENSTONE CONSTRUCTION, 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 $11.1 million.

What is the period of performance?

Start: 2024-08-29. End: 2026-06-25.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is often synonymous with a sole-source justification. While the specific reason is not detailed, common justifications include unique capabilities of the contractor, urgent and compelling needs where competition is not feasible, or specific government requirements that only one entity can meet. Without further documentation from the agency, the precise rationale remains unclear. This lack of transparency in sole-source awards can be a point of concern for ensuring fair market value and broad participation.

How does the contract value compare to similar multifamily housing construction projects in North Dakota?

Directly comparing the $11.1 million contract value without detailed project specifications (e.g., number of units, square footage, amenities, specific construction methods) is difficult. However, general construction cost indices for North Dakota can provide a rough benchmark. For instance, if this contract is for a substantial number of units, the per-unit cost might be within a typical range. If it's for a smaller development, the value could be on the higher side. The absence of competitive bidding makes a direct value-for-money assessment challenging, as market-driven price discovery was bypassed.

What are the potential risks associated with a sole-source construction contract of this magnitude?

The primary risk with a sole-source contract of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the contractor may have less incentive to offer the most competitive pricing. Other risks include potential scope creep if not managed tightly, contractor performance issues that are harder to address when there are no alternatives, and a lack of innovation that might have been brought by competing firms. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

What is the expected impact of this construction project on the local North Dakota economy and workforce?

This $11.1 million construction project is expected to have a positive short-term impact on the local North Dakota economy by creating jobs for construction workers, material suppliers, and related service providers. The duration of 665 days suggests sustained employment opportunities throughout the project lifecycle. Depending on the scale and location, it could also stimulate local businesses through worker spending. The long-term impact will depend on the occupancy and utilization of the new multifamily housing units, potentially contributing to community development and housing stability.

Are there any historical spending patterns with Greenstone Construction, Inc. by the Indian Health Service or HHS?

To assess historical spending patterns with Greenstone Construction, Inc., a review of federal procurement databases (like FPDS or USASpending) would be necessary. This would reveal the frequency, value, and types of contracts previously awarded to this company by the Indian Health Service (IHS) or the broader Department of Health and Human Services (HHS). Understanding their past performance, contract types, and any issues encountered on previous projects would provide valuable context for evaluating the current award and assessing contractor reliability and past value delivery.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Greenstone Construction Inc.

Address: 2631 12TH AVE S STE B, FARGO, ND, 58103

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,148,581

Exercised Options: $11,148,581

Current Obligation: $11,148,581

Actual Outlays: $5,157,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline