HHS awarded $89.9M for construction and admin services, with Skanska USA Building Inc. as the contractor

Contract Overview

Contract Amount: $89,878,968 ($89.9M)

Contractor: Skanska USA Building Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-20

End Date: 2004-09-30

Contract Duration: 1,106 days

Daily Burn Rate: $81.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT/OTHER ADMIN&SVCS BLDGS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $89.9 million to SKANSKA USA BUILDING INC for work described as: CONSTRUCT/OTHER ADMIN&SVCS BLDGS Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of over 3 years indicates a significant project. 4. Fixed-price contract type may limit cost overruns but could impact flexibility. 5. The award was a delivery order, suggesting it was part of a larger contract vehicle. 6. Geographic focus on Georgia for construction and admin services.

Value Assessment

Rating: good

The contract value of approximately $89.9 million over 1106 days (roughly 3 years) for construction and administrative services appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale construction and facilities management contracts awarded by federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the government aimed to control costs upfront, which is a positive indicator for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method of procurement generally leads to a more competitive bidding process, potentially resulting in better pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the chances of obtaining the best value by encouraging a wide range of qualified contractors to submit bids, thereby driving down prices.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from these services, likely supporting its facilities and operational needs. Services include construction and administrative support, crucial for maintaining government infrastructure. The geographic impact is focused on Georgia (ST: GA, SN: GEORGIA), where the services were likely performed. Workforce implications would include employment opportunities for construction workers, project managers, and administrative staff in the Georgia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if administrative services were not clearly defined.
Risk of cost increases if unforeseen construction challenges arise, despite fixed-price contract.
Dependence on a single contractor (Skanska USA Building Inc.) for a significant duration.

Positive Signals

Award to a known entity (Skanska USA Building Inc.) suggests a level of established capability.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition indicates a competitive market and potential for good value.

Sector Analysis

This contract falls within the Construction and Administrative Services sector. The federal government is a significant consumer of construction services for its facilities, ranging from new builds to maintenance and renovations. Administrative services often accompany such projects to ensure smooth execution. The total federal spending on construction and related services is substantial, and this $89.9 million award represents a portion of that expenditure, likely supporting critical infrastructure for the Department of Health and Human Services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, the primary contractor, Skanska USA Building Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). As a delivery order under a larger contract vehicle, oversight might also be influenced by the terms of that parent contract. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Construction Contracts
Government Administrative Support Services
Department of Health and Human Services Facilities Management
Centers for Disease Control and Prevention Infrastructure Projects

Risk Flags

Potential for cost overruns despite fixed-price contract if scope is not tightly managed.
Risk of quality compromise if contractor faces financial pressure.
Dependence on a single contractor for a significant duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $89.9 million to SKANSKA USA BUILDING INC. CONSTRUCT/OTHER ADMIN&SVCS BLDGS

Who is the contractor on this award?

The obligated recipient is SKANSKA USA BUILDING INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $89.9 million.

What is the period of performance?

Start: 2001-09-20. End: 2004-09-30.

What was the specific nature of the construction and administrative services provided under this contract?

The provided data indicates the contract was for 'CONSTRUCT/OTHER ADMIN&SVCS BLDGS'. This suggests a scope encompassing both physical construction activities related to buildings and associated administrative services. The administrative services could range from project management, scheduling, procurement support, documentation, and reporting to ensure the construction project's efficient and compliant execution. Without more detailed contract line item information, the precise breakdown of construction versus administrative tasks remains general. However, the significant award amount implies a substantial construction component, possibly involving new builds, major renovations, or facility upgrades, supported by comprehensive administrative oversight.

How does the $89.9 million award compare to similar construction contracts awarded by HHS or CDC?

Benchmarking the $89.9 million award requires comparing it to similar construction and administrative service contracts awarded by HHS and the CDC, considering factors like project scope, duration, and location. Given this was a delivery order, it might represent a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. However, as a standalone figure, $89.9 million is a significant sum, indicative of a major construction or renovation project. For context, large federal building construction projects can range from tens of millions to hundreds of millions of dollars. A detailed analysis would involve identifying comparable projects within the same agency and sector, adjusting for inflation and scale, to ascertain if the pricing was competitive and represented good value for the services rendered.

What are the potential risks associated with a firm fixed-price contract for construction services?

Firm fixed-price (FFP) contracts are designed to provide cost certainty to the government. However, for complex construction projects, they can introduce risks for the contractor. If unforeseen issues arise during construction (e.g., subsurface conditions, material price escalations beyond contract allowances, design flaws), the contractor may incur losses if they cannot absorb these costs within the fixed price. This could potentially lead to contractor disputes, delays, or even contractor default. Conversely, for the government, the risk is that the contractor may cut corners on quality to protect their profit margin, or that the initial fixed price might have been inflated to account for the contractor's perceived risk. Clear contract terms, robust oversight, and a well-defined scope are crucial to mitigate these risks.

What does the 'delivery order' award type signify in this context?

The 'DELIVERY ORDER' (AW: DELIVERY ORDER) award type signifies that this contract was not a standalone, direct award but rather an order placed against a pre-existing contract vehicle, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of master agreement. This approach allows agencies to procure goods or services efficiently once a broader contract has been established through competition. For this specific $89.9 million award, it means that Skanska USA Building Inc. had previously secured a larger contract with the government, and this delivery order represents a specific task or project under that umbrella agreement. This method streamlines the procurement process for subsequent needs.

What is the significance of the contract duration (1106 days)?

The contract duration of 1106 days, which is approximately 3 years and 2 months, indicates a substantial and long-term commitment for construction and administrative services. Such a duration suggests that the project was not a minor repair or short-term administrative task, but rather a significant undertaking. This could involve a large-scale construction project (e.g., building a new facility, a major renovation), or ongoing facilities management and administrative support over an extended period. The length implies a need for sustained effort and resources, and it allows for phased construction, complex build-outs, or long-term operational support, providing stability for both the contractor and the agency.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1999N00328

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Skanska AB (UEI: 353937956)

Address: 111 N MAGNOLIA AVE STE 1150, ORLANDO, FL, 32801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $97,972,273

Exercised Options: $97,972,273

Current Obligation: $89,878,968

Parent Contract

Parent Award PIID: HHSD200200000055I

IDV Type: IDC

Timeline