HHS awards $4M sewer rehab contract to TATCO LLC for Crow/Northern Cheyenne Hospital

Contract Overview

Contract Amount: $4,027,328 ($4.0M)

Contractor: Tatco LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-14

End Date: 2026-06-14

Contract Duration: 426 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CROW/NORTHERN CHEYENNE HOSPITAL (CNC) SEWER REHABILITATION (CONSTRUCTION)

Place of Performance

Location: CROW AGENCY, BIG HORN County, MONTANA, 59022

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.0 million to TATCO LLC for work described as: CROW/NORTHERN CHEYENNE HOSPITAL (CNC) SEWER REHABILITATION (CONSTRUCTION) Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The definitive contract type suggests a flexible agreement for services over a defined period. 3. The firm fixed price structure provides cost certainty for the government. 4. The contract duration of 426 days allows ample time for project completion. 5. The project is located in Montana, potentially impacting local employment and infrastructure. 6. The North American Industry Classification System (NAICS) code 238220 points to specialized plumbing and HVAC contracting services.

Value Assessment

Rating: fair

The contract value of $4,027,328 for sewer rehabilitation at the Crow/Northern Cheyenne Hospital appears to be a significant investment in critical infrastructure. Without specific benchmarks for similar hospital sewer rehabilitation projects in Montana or comparable rural healthcare facilities, a precise value-for-money assessment is challenging. However, the firm fixed price nature of the contract offers predictability. Further analysis would require comparing this cost to similar projects in terms of scope, complexity, and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources were excluded prior to the solicitation, possibly due to specific requirements or pre-qualification. With three bidders, the competition level appears moderate, which could lead to reasonable price discovery, but may not represent the absolute lowest price achievable under a truly unrestricted full and open competition.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there's a possibility that a wider pool of bidders could have driven prices even lower.

Public Impact

The primary beneficiaries are the patients and staff of the Crow/Northern Cheyenne Hospital, who will receive improved sanitation and operational reliability. The services delivered include essential sewer rehabilitation, crucial for maintaining public health and safety at the facility. The geographic impact is concentrated in Montana, specifically within the service area of the Crow and Northern Cheyenne reservations. The contract is expected to create or sustain jobs for skilled tradespeople and construction workers involved in the rehabilitation project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during rehabilitation.
Dependence on TATCO LLC's ability to meet project timelines and quality standards.
Risk of disruption to hospital operations if construction activities are not carefully managed.

Positive Signals

Firm fixed price contract provides budget certainty.
Awarded after a competitive process, suggesting a reasonable selection of contractors.
Clear project scope for sewer rehabilitation ensures focus on essential infrastructure.

Sector Analysis

This contract falls within the construction sector, specifically focusing on specialized infrastructure repair. The market for such services involves contractors with expertise in plumbing, excavation, and potentially environmental compliance, particularly given the nature of sewer systems. The value of this single contract is modest within the broader construction industry, but it represents a critical investment for the Indian Health Service's facilities.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. While TATCO LLC's size status is not provided, the absence of a set-aside suggests that larger firms were eligible and competed. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Indian Health Service (IHS) contracting officers and project managers. The definitive contract structure may allow for ongoing monitoring of performance and expenditures. Transparency is generally facilitated through federal contract databases, but specific details on ongoing oversight mechanisms and Inspector General involvement would require further investigation into IHS procurement policies.

Related Government Programs

Indian Health Service Facility Construction and Renovation
Rural Healthcare Infrastructure Projects
Federal Construction Contracts
Public Health Infrastructure

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of disruption to critical hospital operations during construction.
Dependence on contractor performance for timely and quality completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.0 million to TATCO LLC. CROW/NORTHERN CHEYENNE HOSPITAL (CNC) SEWER REHABILITATION (CONSTRUCTION)

Who is the contractor on this award?

The obligated recipient is TATCO LLC.

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 $4.0 million.

What is the period of performance?

Start: 2025-04-14. End: 2026-06-14.

What is TATCO LLC's track record with federal contracts, particularly with the Indian Health Service or similar agencies?

A review of federal contract databases would be necessary to fully assess TATCO LLC's track record. Information such as past performance ratings, previous contract values, and any history of disputes or contract terminations would provide insight into their reliability and experience. Specifically, examining their history with the Indian Health Service (IHS) or other agencies involved in healthcare infrastructure in tribal areas would be most relevant. Without this specific data, it's difficult to gauge their suitability beyond the current award.

How does the $4.03 million cost compare to similar sewer rehabilitation projects at other rural hospitals or federal facilities?

Benchmarking this $4.03 million contract requires detailed comparison with similar sewer rehabilitation projects. Key factors to consider include the size and complexity of the hospital's existing sewer system, the specific rehabilitation methods employed (e.g., lining, replacement), the geographic location (which impacts labor and material costs), and the overall scope of work. Without access to a database of comparable projects with detailed cost breakdowns, it is challenging to definitively state whether this contract represents excellent, fair, or questionable value. However, the firm fixed price nature provides a degree of cost control.

What are the primary risks associated with this specific sewer rehabilitation project, and how are they being mitigated?

The primary risks for this sewer rehabilitation project likely include unforeseen subsurface conditions (e.g., encountering unexpected rock formations, groundwater issues, or existing utility conflicts), potential delays due to weather or material availability, and the possibility of disrupting ongoing hospital operations. Mitigation strategies typically involve thorough site investigations prior to construction, contingency planning in the contract, phased construction schedules to minimize operational impact, and robust project management oversight by the agency. The firm fixed price contract also incentivizes the contractor to manage costs effectively.

What is the expected impact of this contract on the operational capacity and service delivery of the Crow/Northern Cheyenne Hospital?

The successful completion of this sewer rehabilitation contract is expected to significantly enhance the operational capacity and reliability of the Crow/Northern Cheyenne Hospital. A functional and modern sewer system is critical for maintaining sanitation standards, preventing health hazards, and ensuring uninterrupted healthcare services. By addressing potential failures or inefficiencies in the existing system, this project will safeguard the hospital's ability to provide essential medical care to its community, thereby improving patient safety and overall public health outcomes in the region.

How has federal spending on hospital infrastructure, particularly in tribal areas, trended in recent years?

Federal spending on hospital infrastructure, especially within tribal areas served by the Indian Health Service (IHS), has historically been subject to funding appropriations and specific program initiatives. While a detailed trend analysis requires access to historical budget data and contract awards, there is often a recognized need for modernization and repair of aging facilities in these underserved communities. Recent years may have seen increased focus or funding directed towards improving healthcare infrastructure in rural and tribal settings due to recognized disparities and the critical role these facilities play.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15342 CAPUTA LOOP, CAPUTA, SD, 57725

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $4,027,328

Exercised Options: $4,027,328

Current Obligation: $4,027,328

Actual Outlays: $2,333,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline