HHS Awards $40.4M Contract for Adult Residential Treatment Facility Renovation in Oregon
Contract Overview
Contract Amount: $40,365,710 ($40.4M)
Contractor: THE Native American Rehabilitation Association of the Northwest, Incorporated
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-12
End Date: 2026-09-27
Contract Duration: 1,476 days
Daily Burn Rate: $27.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97205
State: Oregon Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.4 million to THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED for work described as: ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION Key points: 1. Significant investment in healthcare infrastructure for Native American rehabilitation. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (4 years) requires ongoing performance monitoring. 4. Focus on a specific geographic region (Oregon) for critical services.
Value Assessment
Rating: fair
The contract value of $40.4 million for a renovation project of this scale appears substantial. Without comparable contract data or detailed scope, it's difficult to definitively assess pricing against similar facilities. Benchmarking against industry standards for institutional renovations is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method may limit price discovery and potentially lead to higher costs compared to a fully competitive process. The justification for the sole-source award needs careful review.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost efficiencies typically achieved through open competition. The full value of taxpayer funds depends on the necessity and justification of the sole-source approach.
Public Impact
Enhances critical healthcare services for Native American communities. Potential for job creation during the renovation and operational phases. Addresses infrastructure needs for addiction and mental health treatment. Ensures continued service delivery at the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long duration
Positive Signals
- Addresses critical healthcare need
- Supports specific community services
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically related to healthcare facilities. Spending benchmarks for similar renovations can vary widely based on size, complexity, and location. The $40.4 million award suggests a significant project scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Opportunities for small business subcontracting should be explored to ensure broader economic impact and compliance with federal small business goals.
Oversight & Accountability
Oversight will be crucial to ensure the renovation is completed on time, within budget, and meets the required quality standards, especially given the sole-source nature of the award. Performance metrics and regular reporting are essential.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Sole-source award limits competitive pricing.
- High contract value requires diligent oversight.
- Long contract duration increases risk of cost overruns.
- Lack of small business participation noted.
- Potential for scope creep over the project's lifespan.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.4 million to THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED. ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION
Who is the contractor on this award?
The obligated recipient is THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED.
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 $40.4 million.
What is the period of performance?
Start: 2022-09-12. End: 2026-09-27.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details, it's impossible to confirm if alternatives were explored. A thorough review of the justification is necessary to ensure fair pricing and prevent potential waste.
How does the $40.4 million contract value compare to industry benchmarks for similar adult residential treatment facility renovations, considering the project's scope and location?
Benchmarking this $40.4 million contract requires detailed project specifications and access to cost data for comparable renovations. Factors like facility size, age, required upgrades, and regional construction costs significantly influence pricing. A comparative analysis against similar government or private sector projects would be needed for a robust assessment.
What mechanisms are in place to ensure the long-term effectiveness and quality of the renovated facility, and how will performance be measured?
Effectiveness will likely be measured through adherence to renovation timelines, budget compliance, and post-renovation facility performance audits. Key performance indicators (KPIs) related to operational capacity, patient outcomes, and facility safety should be established. Regular site inspections and user feedback will also contribute to assessing long-term effectiveness.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1776 SW MADISON ST, PORTLAND, OR, 97205
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,365,710
Exercised Options: $40,365,710
Current Obligation: $40,365,710
Actual Outlays: $7,243,978
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-12
Current End Date: 2026-09-27
Potential End Date: 2026-09-27 00:00:00
Last Modified: 2025-01-10
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