HHS Awards $63.5M for Fort Collins Lab Replacement to Skanska USA Building Inc

Contract Overview

Contract Amount: $63,452,838 ($63.5M)

Contractor: Skanska USA Building Incorporated (2540)

Awarding Agency: Department of Health and Human Services

Start Date: 2002-04-15

End Date: 2009-06-30

Contract Duration: 2,633 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: P2001322, LAB REPLACEMENT, FT COLLINS, CO

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80521, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $63.5 million to SKANSKA USA BUILDING INCORPORATED (2540) for work described as: P2001322, LAB REPLACEMENT, FT COLLINS, CO Key points: 1. Significant investment in critical health infrastructure. 2. Skanska USA Building Inc. secured a major federal contract. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Focus on healthcare facilities construction.

Value Assessment

Rating: good

The award amount of $63.5M appears reasonable for a large-scale lab replacement project of this duration. Benchmarking against similar federal construction contracts would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value for public funds on this significant infrastructure project.

Public Impact

Enhances public health research capabilities at CDC. Supports local economy through construction jobs in Fort Collins, CO. Modernized facilities expected to improve operational efficiency and safety.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long project duration (7 years) increases risk of scope creep and cost escalation.
Fixed-price contract may not fully account for unforeseen construction challenges.
Reliance on a single prime contractor for a project of this magnitude.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Project addresses a critical need for updated laboratory infrastructure.
Experienced contractor likely selected based on qualifications.

Sector Analysis

This project falls within the construction sector, specifically for specialized government facilities. Federal spending on laboratory construction is driven by the need for advanced research and safety standards.

Small Business Impact

While the prime contractor is a large entity, opportunities for small businesses may exist through subcontracting for specialized services or materials within this large construction project.

Oversight & Accountability

Oversight would typically involve regular progress reviews, site inspections, and financial audits to ensure adherence to contract terms and quality standards throughout the project lifecycle.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Long project duration increases risk.
Fixed-price contract limitations.
Potential for scope creep.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $63.5 million to SKANSKA USA BUILDING INCORPORATED (2540). P2001322, LAB REPLACEMENT, FT COLLINS, CO

Who is the contractor on this award?

The obligated recipient is SKANSKA USA BUILDING INCORPORATED (2540).

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 $63.5 million.

What is the period of performance?

Start: 2002-04-15. End: 2009-06-30.

What is the estimated cost per square foot for this lab replacement compared to similar federal laboratory construction projects?

A precise cost per square foot benchmark is not available without detailed project specifications. However, federal laboratory construction costs can range significantly based on complexity, specialized equipment, and location. Comparing this project's total award to its square footage against data from similar HHS or other agency lab projects would be necessary for a meaningful comparison.

What are the primary risks associated with a fixed-price contract for a 7-year construction project?

Fixed-price contracts for long-duration projects like this carry risks of cost overruns for the contractor if material prices or labor costs increase unexpectedly. For the government, the risk is that the contractor may cut corners on quality to maintain profitability, or that the final price may not reflect the true cost if significant unforeseen issues arise, potentially leading to change orders.

How will the effectiveness of the new lab facilities be measured post-completion?

Effectiveness will likely be measured through post-occupancy evaluations focusing on operational efficiency, functionality of specialized equipment, adherence to safety and environmental standards, and the ability to support the CDC's research mission. Key performance indicators related to research output and facility uptime may also be tracked.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2002N00393

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 PRUDENTIAL DRIVE, JACKSONVILLE, FL, 32207

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $852,622,690

Exercised Options: $852,622,690

Current Obligation: $63,452,838

Timeline