DHHS Awards $13.7M Design/Build Staff Quarters Contract to Hunt Building Company in Arizona
Contract Overview
Contract Amount: $13,695,279 ($13.7M)
Contractor: Hunt Building Company, Ltd
Awarding Agency: Department of Health and Human Services
Start Date: 2004-05-20
End Date: 2006-03-12
Contract Duration: 661 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD STAFF QUARTERS; PINON AND RED MESA, ARIZONA
Place of Performance
Location: ARIZONA
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.7 million to HUNT BUILDING COMPANY, LTD for work described as: DESIGN/BUILD STAFF QUARTERS; PINON AND RED MESA, ARIZONA Key points: 1. Contract awarded for design and construction of staff quarters in Pinon and Red Mesa, Arizona. 2. Hunt Building Company, Ltd. secured the $13.7 million contract. 3. The project falls under the 'New Single-Family Housing Construction' NAICS code. 4. Full and open competition was utilized for this procurement.
Value Assessment
Rating: good
The contract value of $13.7 million for staff quarters construction appears reasonable given the scope. Benchmarking against similar government housing projects would provide a more precise assessment, but the fixed-price nature suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all qualified contractors to bid, fostering a competitive environment that should drive down costs and ensure fair market pricing.
Taxpayer Impact: The competitive bidding process is expected to result in a fair price, maximizing the value of taxpayer dollars spent on essential staff housing.
Public Impact
Enhances living conditions for healthcare staff in remote Arizona locations. Supports the Indian Health Service's mission to provide healthcare to Native Americans. Contributes to local economic activity through construction jobs and material procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction challenges arise.
- Dependence on a single contractor for both design and build phases.
Positive Signals
- Addresses critical infrastructure needs for healthcare professionals.
- Utilizes a competitive procurement process.
- Fixed-price contract provides cost predictability.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Government spending on construction, particularly for essential facilities like housing, is common. Benchmarks for similar projects would depend on location, size, and specific requirements.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation or set-asides in the provided data. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Indian Health Service. Oversight would typically involve project management and quality assurance to ensure the construction meets specifications and timelines.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Full and open competition utilized.
- Fixed-price contract provides cost certainty.
- Addresses critical infrastructure needs.
- Potential for construction cost overruns.
- Dependence on single contractor for design and build.
Tags
new-single-family-housing-construction-e, department-of-health-and-human-services, az, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.7 million to HUNT BUILDING COMPANY, LTD. DESIGN/BUILD STAFF QUARTERS; PINON AND RED MESA, ARIZONA
Who is the contractor on this award?
The obligated recipient is HUNT BUILDING COMPANY, LTD.
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 $13.7 million.
What is the period of performance?
Start: 2004-05-20. End: 2006-03-12.
What is the estimated cost per square foot for the staff quarters, and how does it compare to industry averages for similar construction in Arizona?
The provided data does not include square footage or detailed cost breakdowns, making a per-square-foot analysis impossible. To assess value, this information would be crucial. Comparing it to industry averages for new single-family housing construction in Arizona, considering materials, labor, and design complexity, would reveal if the $13.7 million award represents a competitive price point.
What are the specific risks associated with the 'design/build' delivery method for this project, and what mitigation strategies were employed?
The primary risk of design/build is the potential for the contractor to cut corners on design to maximize profit during construction, or conversely, to inflate design costs. Mitigation strategies could include robust government oversight during the design phase, clear performance specifications, and phased payments tied to design milestones. The fixed-price nature also shifts some risk to the contractor.
How effectively does this contract address the long-term housing needs of IHS staff in these specific Arizona locations?
The contract addresses an immediate need for staff quarters, which is crucial for retaining healthcare professionals in remote areas. However, its long-term effectiveness depends on the durability of the construction, the suitability of the design for the climate and local conditions, and whether it meets the projected growth in staff numbers. Ongoing maintenance and potential future expansion needs are also factors.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Hunt Companies, Inc. (UEI: 136115255)
Address: 4401 N MESA ST STE 201, EL PASO, TX, 16
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,993,932
Exercised Options: $15,993,932
Current Obligation: $13,695,279
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-05-20
Current End Date: 2006-03-12
Potential End Date: 2006-03-12 00:00:00
Last Modified: 2008-01-09
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