HHS awards $32.1M for Gateway Center construction to Chugach McKinley, Inc
Contract Overview
Contract Amount: $32,156,276 ($32.2M)
Contractor: Chugach Mckinley, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2005-06-02
End Date: 2009-05-15
Contract Duration: 1,443 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT GATEWAY CENTER
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.2 million to CHUGACH MCKINLEY, INC. for work described as: CONSTRUCT GATEWAY CENTER Key points: 1. Contract awarded for construction services. 2. Chugach McKinley, Inc. is the contractor. 3. The contract is for the Gateway Center. 4. The total value is over $32 million.
Value Assessment
Rating: fair
The contract value is substantial at over $32 million. Without specific benchmarks for similar construction projects of this scale and complexity, a precise pricing assessment is difficult. The firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive process.
Taxpayer Impact: Taxpayer funds are being used for this construction project. The lack of competition raises questions about whether the best possible price was achieved.
Public Impact
Construction of a new facility, the Gateway Center, will likely create jobs. The project's success depends on timely completion and adherence to quality standards. The long duration of the contract (over 3 years) suggests a significant undertaking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost overruns without competitive pressure
Positive Signals
- Firm fixed price contract type
- Awarded to a single entity, potentially simplifying management
Sector Analysis
This contract falls within the construction sector, specifically for a government facility. Construction projects of this magnitude often involve significant taxpayer investment and require careful oversight to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation goals were considered or met.
Oversight & Accountability
The limited competition and substantial value warrant close oversight to ensure the project stays on schedule, within budget, and meets all specified requirements. Accountability for project outcomes is crucial.
Related Government Programs
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Limited competition
- Lack of justification for limited competition
- Potential for higher costs due to lack of competition
- Long contract duration may increase risk
- No indication of small business participation
Tags
department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.2 million to CHUGACH MCKINLEY, INC.. CONSTRUCT GATEWAY CENTER
Who is the contractor on this award?
The obligated recipient is CHUGACH MCKINLEY, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $32.2 million.
What is the period of performance?
Start: 2005-06-02. End: 2009-05-15.
What was the justification for limiting competition on this significant construction contract?
The justification for limiting competition is not provided in the data. Typically, such decisions are made when only one source can fulfill the requirement due to unique capabilities, urgent needs, or specific circumstances. Without this information, it's difficult to assess if the limited competition was appropriate or if it resulted in a less favorable price for the government.
How does the awarded price compare to industry benchmarks for similar construction projects?
Comparing the awarded price of $32.1 million to industry benchmarks is challenging without more specific details about the Gateway Center's scope, size, and complexity. Factors like location, materials, and specialized requirements significantly influence construction costs. A detailed cost-benefit analysis against comparable projects would be necessary for a robust comparison.
What measures are in place to ensure the effectiveness and quality of the Gateway Center construction?
Effectiveness and quality are typically ensured through detailed contract specifications, performance standards, regular site inspections, and project management oversight by the contracting agency. The firm-fixed-price nature of the contract incentivizes the contractor to complete the work efficiently. However, the government must actively monitor progress and adherence to quality requirements throughout the project lifecycle.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 560 E 34TH AVE, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $32,156,276
Exercised Options: $32,156,276
Current Obligation: $32,156,276
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-06-02
Current End Date: 2009-05-15
Potential End Date: 2009-05-15 00:00:00
Last Modified: 2021-02-18
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