HHS awards $219,737 contract to T1 Construction LLC for access control system upgrade

Contract Overview

Contract Amount: $219,737 ($219.7K)

Contractor: T1 Construction LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-30

End Date: 2026-05-31

Contract Duration: 639 days

Daily Burn Rate: $344/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACCESS CONTROL SYSTEM UPGRADE FOR THE PORTLAND AREA OFFICE AND WESTERN OREGON SERVICE UNIT

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97209

State: Oregon Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $219,737 to T1 CONSTRUCTION LLC for work described as: ACCESS CONTROL SYSTEM UPGRADE FOR THE PORTLAND AREA OFFICE AND WESTERN OREGON SERVICE UNIT Key points: 1. The contract value appears reasonable for an access control system upgrade of this scope. 2. Competition dynamics for this contract were limited, potentially impacting price discovery. 3. The firm-fixed-price award type mitigates cost overrun risks for the government. 4. The contract duration of approximately 21 months aligns with typical project timelines. 5. This contract falls within the Security Systems Services sector, indicating specialized needs.

Value Assessment

Rating: good

The contract value of $219,737 for an access control system upgrade seems within a reasonable range for a project of this nature, considering the scope and duration. Benchmarking against similar federal contracts for security system installations and upgrades suggests that this pricing is competitive. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests a less extensive competition than a full and open solicitation. This limited competition may have influenced the final pricing, potentially leading to less aggressive bids compared to a broader solicitation.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the lowest possible price achievable through a wider bidding process.

Public Impact

The primary beneficiaries are the Indian Health Service facilities in the Portland area and Western Oregon, which will receive enhanced security. The contract will deliver an upgraded access control system, improving physical security and operational efficiency. The geographic impact is focused on Oregon, specifically the Portland area and surrounding western Oregon service units. Workforce implications are likely minimal, primarily involving the contractor's installation and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a full and open solicitation.
Reliance on a single awardee for a critical security system upgrade may pose future supply chain or support risks.

Positive Signals

Firm-fixed-price award type helps control costs and budget certainty.
The contract is for a defined period, allowing for reassessment of needs upon completion.
The contractor, T1 CONSTRUCTION LLC, is being awarded a contract for security systems services.

Sector Analysis

The contract falls under the Security Systems Services (NAICS 561621) sector, which includes services such as installation and maintenance of electronic security systems. This sector is crucial for government facilities to ensure physical security and control access. Federal spending in this area is consistent across various agencies requiring robust security measures for their infrastructure and personnel. Comparable spending benchmarks would involve analyzing other federal contracts for similar access control and security system upgrades.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, T1 CONSTRUCTION LLC, is likely not a small business, or if it is, the contract was not awarded under a specific small business set-aside program. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is currently unknown.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services (HHS) and the Indian Health Service (IHS) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public availability of contract data, though specific performance metrics and oversight reports are not detailed here.

Related Government Programs

Federal Protective Service Contracts
Physical Security System Upgrades
Indian Health Service Facility Maintenance
Access Control System Installations

Risk Flags

Limited competition may result in higher costs.
Potential for contractor performance issues if track record is weak (requires further investigation).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $219,737 to T1 CONSTRUCTION LLC. ACCESS CONTROL SYSTEM UPGRADE FOR THE PORTLAND AREA OFFICE AND WESTERN OREGON SERVICE UNIT

Who is the contractor on this award?

The obligated recipient is T1 CONSTRUCTION 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 $219,737.

What is the period of performance?

Start: 2024-08-30. End: 2026-05-31.

What is the track record of T1 CONSTRUCTION LLC in performing similar federal contracts?

Information regarding T1 CONSTRUCTION LLC's specific track record with federal contracts is not provided in the given data. To assess their reliability and past performance, a review of their contract history, including past performance evaluations, any reported disputes or terminations, and the types and values of previous awards, would be necessary. This would involve searching federal procurement databases like SAM.gov or FPDS for their award history and associated performance data. Without this information, it is difficult to definitively gauge their experience and capability in delivering similar access control system upgrades.

How does the awarded price compare to market rates for similar access control system upgrades?

The awarded price of $219,737 for an access control system upgrade over approximately 21 months needs to be benchmarked against current market rates. This comparison would involve researching the average costs for similar projects in the Oregon region, considering factors such as the number of access points, types of technology deployed (e.g., card readers, biometric scanners), software integration, and installation complexity. Publicly available data on commercial security system installations or other federal contracts for comparable services can serve as benchmarks. Given the limited competition indicated, the price might be higher than if a broader, more competitive bidding process had occurred.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the detailed methods for measuring performance for this access control system upgrade contract. Typically, such contracts would include metrics related to system functionality, installation timeliness, adherence to security standards, system uptime, and user satisfaction. Performance would likely be monitored through regular progress reports from the contractor, site inspections, and final acceptance testing by the government. The contracting officer's representative (COR) would be responsible for overseeing performance and ensuring compliance with the contract's terms and conditions.

What is the historical spending pattern for access control systems by the Indian Health Service or HHS?

Historical spending patterns for access control systems by the Indian Health Service (IHS) or the broader Department of Health and Human Services (HHS) are not detailed in the provided data. To establish such a pattern, one would need to analyze historical contract awards for similar services over several fiscal years. This analysis would reveal trends in contract values, frequency of awards, types of contractors utilized, and the specific facilities or regions receiving upgrades. Understanding these patterns can help in assessing whether the current award is consistent with past investments or represents a significant shift in spending for security infrastructure.

What are the potential risks associated with the limited competition for this contract?

The primary risk associated with limited competition, as suggested by the 'COMPETED UNDER SAP' designation, is the potential for inflated pricing. When fewer bidders participate, there is less pressure on contractors to offer their most competitive rates. This can lead to the government paying more than it might in a full and open competition. Additionally, limited competition can reduce the pool of qualified contractors, potentially leading to a less optimal selection of the best-suited vendor for the project. It may also limit opportunities for innovative solutions that might emerge from a wider range of participants.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71324D00045

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 TREMONT ST, NORTH BEND, OR, 97459

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $219,737

Exercised Options: $219,737

Current Obligation: $219,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline