HHS Awards $107.7M Construction Contract to Gilbane Building Company Under Full and Open Competition
Contract Overview
Contract Amount: $107,666,746 ($107.7M)
Contractor: Gilbane Building Company
Awarding Agency: Department of Health and Human Services
Start Date: 2001-04-12
End Date: 2004-09-30
Contract Duration: 1,267 days
Daily Burn Rate: $85.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $107.7 million to GILBANE BUILDING COMPANY for work described as: CONSTRUCTION Key points: 1. Significant contract value of over $107 million for construction services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a long contract duration (over 3 years). 4. Construction sector spending is substantial, with this contract representing a portion of that.
Value Assessment
Rating: good
The contract value of $107.7 million appears reasonable for a large-scale construction project of this duration. Benchmarking against similar HHS or CDC construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more cost-effective outcome compared to non-competitive methods.
Public Impact
Impacts public health infrastructure through construction or renovation of facilities. Potential for job creation within the construction sector in Georgia. Ensures necessary facilities are available for CDC operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or scope creep.
- Lack of specific performance metrics makes it difficult to assess value.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract helps control costs.
- Contract supports critical public health agency operations.
Sector Analysis
This contract falls within the construction sector, which is a significant area of government spending. Benchmarks for large federal construction projects vary widely based on scope and location, but $107.7 million is a substantial award.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a component of HHS. Oversight would typically involve project management and contract administration by the agency to ensure successful completion and adherence to terms.
Related Government Programs
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Lack of specific performance metrics.
- No clear indication of small business utilization.
- Scope creep risk in large construction projects.
Tags
department-of-health-and-human-services, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $107.7 million to GILBANE BUILDING COMPANY. CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is GILBANE BUILDING COMPANY.
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 $107.7 million.
What is the period of performance?
Start: 2001-04-12. End: 2004-09-30.
What specific construction services were procured under this contract, and how do they align with the CDC's mission?
The contract was for construction services, likely involving the building or renovation of facilities for the Centers for Disease Control and Prevention. These facilities are crucial for supporting the agency's public health research, disease surveillance, and emergency response operations, directly aligning with its core mission of protecting public health.
What were the key factors considered during the full and open competition that led to Gilbane Building Company's selection?
During a full and open competition, the selection of Gilbane Building Company would have been based on a comprehensive evaluation of proposals. Key factors likely included their technical approach, past performance, management capability, and price. The agency would have assessed which bidder offered the best overall value and met all mandatory requirements.
How does the firm fixed price contract structure mitigate risks for the government in this large construction project?
A firm fixed price (FFP) contract shifts the majority of the risk to the contractor, Gilbane Building Company. This means the price is set and not subject to upward adjustment based on the contractor's actual costs. This structure provides cost certainty for the government and incentivizes the contractor to manage costs efficiently to maintain profitability.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1999N00328
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 3550 ENGINEERING DR, NORCROSS, GA, 30092
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,728,464,965
Exercised Options: $1,728,464,965
Current Obligation: $107,666,746
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200000057I
IDV Type: IDC
Timeline
Start Date: 2001-04-12
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2018-09-28
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