HHS Awards $9.58M for Duplex Construction in South Dakota, Completing Full and Open Competition

Contract Overview

Contract Amount: $9,583,200 ($9.6M)

Contractor: Lacreek Development Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-25

End Date: 2027-11-03

Contract Duration: 769 days

Daily Burn Rate: $12.5K/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: DUPLEX CONSTRUCTION AT KYLE, PINE RIDGE, AND WANBLEE (CONSTRUCTION)

Place of Performance

Location: KYLE, OGLALA LAKOTA County, SOUTH DAKOTA, 57752

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.6 million to LACREEK DEVELOPMENT CORP for work described as: DUPLEX CONSTRUCTION AT KYLE, PINE RIDGE, AND WANBLEE (CONSTRUCTION) Key points: 1. The contract value of $9.58 million is for duplex construction services. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty. 4. The project is located in South Dakota, within the Indian Health Service's purview.

Value Assessment

Rating: good

The contract value of $9.58 million for construction services appears reasonable given the scope. Benchmarking against similar construction projects of this size and complexity 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 after exclusion of sources. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, benefiting taxpayers by avoiding inflated costs.

Public Impact

Improved housing for residents in Kyle, Pine Ridge, and Wanblee. Supports the Indian Health Service's mission to provide healthcare facilities. Potential for local job creation during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service delivery.
Risk of cost overruns if unforeseen issues arise during construction.

Positive Signals

Competitive award process.
Firm fixed price contract type.
Clear project scope and location.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and federal agency priorities.

Small Business Impact

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

Oversight & Accountability

The contract is a definitive contract with a defined end date, suggesting clear oversight. The 'st' and 'sn' fields indicate the state of performance, aiding in localized oversight.

Related Government Programs

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

Risk Flags

Potential for construction delays.
Risk of unforeseen site conditions.
Dependence on contractor's capacity and performance.
Limited information on small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.6 million to LACREEK DEVELOPMENT CORP. DUPLEX CONSTRUCTION AT KYLE, PINE RIDGE, AND WANBLEE (CONSTRUCTION)

Who is the contractor on this award?

The obligated recipient is LACREEK DEVELOPMENT CORP.

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 $9.6 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-11-03.

What is the specific definition of 'exclusion of sources' in this context and how did it impact the competitive landscape?

Exclusion of sources typically means that while the competition was intended to be full and open, certain pre-qualified or specific types of sources were allowed to bid, while others were excluded. This can sometimes limit the breadth of competition but may be used to ensure specialized capabilities. The impact on price discovery depends on how many qualified bidders remained after the exclusion.

What are the key performance indicators (KPIs) for this construction contract to ensure successful project completion and value for money?

Key performance indicators should include adherence to the project schedule (769 days duration), quality of construction meeting specified standards, compliance with safety regulations, and effective budget management within the $9.58 million firm-fixed-price. Regular site inspections and progress reports are crucial for monitoring these KPIs.

How does this $9.58 million investment in duplex construction align with the broader strategic goals of the Indian Health Service?

This investment likely aligns with IHS's strategic goals of improving the health and well-being of American Indians and Alaska Natives by providing adequate housing, which is a social determinant of health. Better housing can reduce exposure to environmental hazards and improve overall living conditions, indirectly supporting health outcomes.

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: 75H70125R00064

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21617 US HWY 18, MARTIN, SD, 57551

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $9,583,200

Exercised Options: $9,583,200

Current Obligation: $9,583,200

Actual Outlays: $52,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline