HHS Awards $20.5M for Blackfeet Reservation Apartment Complex Construction

Contract Overview

Contract Amount: $20,548,950 ($20.5M)

Contractor: Swank Enterprises

Awarding Agency: Department of Health and Human Services

Start Date: 2022-11-22

End Date: 2025-12-31

Contract Duration: 1,135 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL FURNISH ALL LABOR, EQUIPMENT, MATERIALS, SUPPLIES, SUPERVISION, AND TRANSPORTATION NECESSARY FOR BLACKFEET RESERVATION APARTMENT COMPLEX IN ACCORDANCE WITH THE ATTACHED SCOPE OF WORK, SPECIFICATIONS, TECHNICAL PROVISIONS, DRAWING

Place of Performance

Location: BROWNING, GLACIER County, MONTANA, 59417

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.5 million to SWANK ENTERPRISES for work described as: THE CONTRACTOR SHALL FURNISH ALL LABOR, EQUIPMENT, MATERIALS, SUPPLIES, SUPERVISION, AND TRANSPORTATION NECESSARY FOR BLACKFEET RESERVATION APARTMENT COMPLEX IN ACCORDANCE WITH THE ATTACHED SCOPE OF WORK, SPECIFICATIONS, TECHNICAL PROVISIONS, DRAWING Key points: 1. Construction project valued at $20.5 million for multifamily housing. 2. Competition method was 'Full and Open', suggesting broad market participation. 3. Risk factors include project duration and potential for cost overruns. 4. Sector is New Multifamily Housing Construction, a key area for infrastructure development.

Value Assessment

Rating: fair

The contract is a Firm Fixed Price type, which typically offers good value by capping costs. However, the total award amount of $20.5 million for a 1135-day duration needs benchmarking against similar multifamily housing construction projects to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and allows the government to secure the best value.

Taxpayer Impact: The $20.5 million investment is intended to provide much-needed housing, potentially improving living conditions and economic opportunities on the Blackfeet Reservation.

Public Impact

Addresses housing needs on the Blackfeet Reservation. Creates construction jobs and stimulates local economy. Potential for long-term community development and improved quality of life.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration of 1135 days.
Firm Fixed Price contract type can lead to disputes if scope changes.
Geographic location may present logistical challenges.

Positive Signals

Full and Open Competition ensures market participation.
Addresses critical infrastructure needs.
Firms Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the New Multifamily Housing Construction sector. Spending in this sector is crucial for addressing housing shortages and supporting community development. Benchmarks for similar projects would typically consider location, size, and complexity.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in the provided data. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The contract is a Definitive Contract awarded by the Department of Health and Human Services, Indian Health Service. Oversight would focus on adherence to the scope of work, specifications, and timely completion within the fixed price.

Related Government Programs

New Multifamily Housing Construction (except For-Sale Builders)
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Long project duration (1135 days).
Firm Fixed Price contract with potential for scope creep.
Geographic location may present logistical challenges.
Lack of specific small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.5 million to SWANK ENTERPRISES. THE CONTRACTOR SHALL FURNISH ALL LABOR, EQUIPMENT, MATERIALS, SUPPLIES, SUPERVISION, AND TRANSPORTATION NECESSARY FOR BLACKFEET RESERVATION APARTMENT COMPLEX IN ACCORDANCE WITH THE ATTACHED SCOPE OF WORK, SPECIFICATIONS, TECHNICAL PROVISIONS, DRAWING

Who is the contractor on this award?

The obligated recipient is SWANK ENTERPRISES.

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 $20.5 million.

What is the period of performance?

Start: 2022-11-22. End: 2025-12-31.

What is the estimated cost per unit for this multifamily housing project?

The provided data does not specify the number of units planned for the apartment complex. Without this information, calculating a precise per-unit cost is not possible. However, the total contract value of $20.5 million for 1135 days of construction suggests a significant investment per unit, requiring further details on unit count for a thorough assessment.

What are the primary risks associated with the long project duration of 1135 days?

A project duration of 1135 days (approximately 3 years) introduces risks such as potential material cost escalation, labor availability fluctuations, and unforeseen site conditions that could impact the fixed price. Weather delays in Montana can also extend timelines. Effective project management and contingency planning are crucial to mitigate these risks.

How does the 'Full and Open Competition' method ensure effectiveness in this construction project?

Full and Open Competition is intended to ensure effectiveness by allowing any qualified contractor to bid, fostering a competitive environment. This process should theoretically lead to the selection of the most capable contractor offering the best value and price. The effectiveness will ultimately be measured by the project's timely completion, adherence to quality standards, and meeting the housing needs outlined in the scope of work.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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: 75H70122R00068

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 PONDERA AVENUE, VALIER, MT, 59486

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

Financial Breakdown

Contract Ceiling: $20,548,950

Exercised Options: $20,548,950

Current Obligation: $20,548,950

Actual Outlays: $20,548,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline