HHS awards $14.7M for Ft. Collins building construction, highlighting firm fixed-price contract for shell space build-out

Contract Overview

Contract Amount: $14,727,913 ($14.7M)

Contractor: J.E. Dunn Rocky Mountain, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-08

End Date: 2010-03-01

Contract Duration: 844 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P2006327 BUILDING 401 SHELL SPACE BUILD-OUT - FT COLLINS

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 $14.7 million to J.E. DUNN ROCKY MOUNTAIN, INC. for work described as: P2006327 BUILDING 401 SHELL SPACE BUILD-OUT - FT COLLINS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price structure shifts cost risk to the contractor, J.E. Dunn Rocky Mountain, Inc. 3. Project duration of 844 days indicates a significant construction undertaking. 4. The contract falls under Commercial and Institutional Building Construction NAICS code. 5. Awarded by the Centers for Disease Control and Prevention (CDC) within HHS. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

Benchmarking construction costs for shell space build-outs can be complex due to varying project scopes and regional economic factors. The $14.7 million award for a 844-day project by HHS appears within a reasonable range for a substantial commercial construction project. However, without detailed project specifications and comparable project data from the same region and time period, a precise value-for-money assessment is challenging. The firm fixed-price contract provides cost certainty but limits flexibility if unforeseen issues arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: A competitive process, even with two bidders, generally benefits taxpayers by encouraging contractors to offer their best pricing and terms to secure the award.

Public Impact

The primary beneficiaries are the Centers for Disease Control and Prevention (CDC), which will gain improved facilities. The project delivers essential infrastructure development for federal health agencies. The geographic impact is concentrated in Fort Collins, Colorado. Workforce implications include employment opportunities for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Dependence on contractor's ability to manage schedule effectively over the 844-day duration.
Limited competition with only two bids could mean less aggressive pricing than a more crowded field.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Award to an established entity (J.E. Dunn Rocky Mountain, Inc.) suggests a degree of contractor reliability.
Full and open competition ensures a fair process and allows for a broad range of potential contractors.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, from office buildings to healthcare facilities. Federal spending in this area is driven by the need for agency infrastructure, research facilities, and operational spaces. The market size is substantial, with significant annual federal outlays. This contract for a shell space build-out fits within the broader category of facility modernization and expansion, a common requirement for government agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award went to J.E. Dunn Rocky Mountain, Inc., which is likely a large business. This means that opportunities for small businesses would primarily arise if they are part of J.E. Dunn's supply chain or if they were unsuccessful bidders themselves.

Oversight & Accountability

The firm fixed-price contract structure inherently places oversight on the contractor to deliver the project within the agreed-upon cost. The Department of Health and Human Services, through the CDC, would be responsible for monitoring progress, ensuring compliance with specifications, and managing payments. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight mechanisms are not detailed here. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Federal Building Construction
Government Facility Modernization
Health Agency Infrastructure Projects
Commercial Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Schedule slippage due to project complexity and duration.
Limited competition may impact final price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.7 million to J.E. DUNN ROCKY MOUNTAIN, INC.. P2006327 BUILDING 401 SHELL SPACE BUILD-OUT - FT COLLINS

Who is the contractor on this award?

The obligated recipient is J.E. DUNN ROCKY MOUNTAIN, 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 $14.7 million.

What is the period of performance?

Start: 2007-11-08. End: 2010-03-01.

What is the track record of J.E. Dunn Rocky Mountain, Inc. with federal contracts, particularly within HHS or for similar construction projects?

J.E. Dunn Construction Company, the parent entity, has a significant history of federal contracting across various agencies, including the Department of Defense and the General Services Administration. Their portfolio often includes large-scale institutional and commercial projects. While specific data on J.E. Dunn Rocky Mountain, Inc.'s performance solely within HHS for similar shell space build-outs isn't detailed here, their broader federal experience suggests a capacity for managing complex projects. A deeper dive into their past performance ratings, any past disputes, and the types of federal projects they have successfully completed would provide a more comprehensive assessment of their track record.

How does the $14.7 million cost compare to similar shell space build-out projects awarded by federal agencies in Colorado or the Mountain West region around 2007-2010?

Comparing the $14.7 million cost requires detailed project specifications (square footage, complexity of build-out, specific systems installed) and regional cost indices for the period of 2007-2010. Shell space build-outs can vary dramatically in cost per square foot. Without these specifics, a direct comparison is difficult. However, for a substantial federal facility project awarded during that economic period, $14.7 million for a project spanning over two years is plausible. Benchmarking against GSA or other agency projects of similar scale and type in the same geographic area would be necessary for a precise value assessment. Factors like prevailing wages, material costs, and local market competition would influence the final price.

What were the primary risks identified for this project, and how were they mitigated by the firm fixed-price contract?

Key risks for a construction project of this nature typically include unforeseen site conditions (e.g., soil issues, existing utilities), material price escalation, labor shortages, and design changes. The firm fixed-price (FFP) contract directly addresses the risk of material price escalation and labor cost increases by fixing the total price. The contractor, J.E. Dunn Rocky Mountain, Inc., assumes these cost risks. However, risks related to unforeseen site conditions or scope creep due to design changes might still require contract modifications or contingency planning, depending on the specific contract clauses. The government's primary risk mitigation lies in thorough initial planning, clear specifications, and robust contract administration to prevent scope creep.

What is the expected impact of this facility build-out on the CDC's operational capacity or research capabilities in Fort Collins?

The provided data focuses on the contract award itself and does not detail the specific operational or research goals for the facility. However, a shell space build-out typically signifies an expansion or modernization of existing facilities or the creation of new operational space. For the CDC, this could translate into increased laboratory capacity, enhanced administrative space, improved data center infrastructure, or specialized research environments. The 844-day duration suggests a significant undertaking that would likely support a substantial increase in personnel, equipment, or programmatic activities upon completion, thereby enhancing the CDC's overall capacity in the region.

How has federal spending on commercial and institutional building construction, under NAICS code 236220, trended historically, and where does this $14.7M award fit?

Federal spending on commercial and institutional building construction (NAICS 236220) has historically fluctuated based on infrastructure needs, agency growth, and budget appropriations. Prior to 2007, there was often significant investment in federal facilities. During the economic downturn around 2008-2009, spending patterns could shift, with some projects potentially delayed or re-evaluated. A $14.7 million award in 2007 for a single project represents a moderately large investment within this category for a specific agency (HHS/CDC). It fits within the broader trend of federal agencies requiring specialized facilities for their operations, research, and administrative functions. Analyzing historical spending data for NAICS 236220 would reveal peaks and troughs, influenced by economic conditions and government priorities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2008N09698

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JE Dunn Construction Group Inc (UEI: 007836448)

Address: 2000 S COLORADO BLVD STE 12000, DENVER, CO, 80222

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,609,288

Exercised Options: $102,609,288

Current Obligation: $14,727,913

Timeline