HHS Awards $5.96M Construction Contract to Razor Consulting Solutions, Inc. for IHS Facilities
Contract Overview
Contract Amount: $5,962,921 ($6.0M)
Contractor: Razor Consulting Solutions, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-19
End Date: 2026-08-10
Contract Duration: 690 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONTRACTOR SHALL PROVIDE A FIRM-FIXED-PRICE FOR ALL LABOR, PERSONNEL, EQUIPMENT, MATERIALS, TOOLS, PERSONAL PROTECTIVE EQUIPMENT (PPE), PERMITS, INSURANCE, SUPERVISION, TRANSPORTATION, COORDINATION WITH AUTHORITIES HAVING JURISDICTION (AHJ), INTERNAL
Place of Performance
Location: BELCOURT, ROLETTE County, NORTH DAKOTA, 58316
Plain-Language Summary
Department of Health and Human Services obligated $6.0 million to RAZOR CONSULTING SOLUTIONS, INC for work described as: CONTRACTOR SHALL PROVIDE A FIRM-FIXED-PRICE FOR ALL LABOR, PERSONNEL, EQUIPMENT, MATERIALS, TOOLS, PERSONAL PROTECTIVE EQUIPMENT (PPE), PERMITS, INSURANCE, SUPERVISION, TRANSPORTATION, COORDINATION WITH AUTHORITIES HAVING JURISDICTION (AHJ), INTERNAL Key points: 1. Contract awarded for commercial and institutional building construction. 2. Firm-fixed-price contract valued at $5,962,920.53. 3. Competition was not available for this contract. 4. The contract duration is 690 days, ending August 10, 2026.
Value Assessment
Rating: fair
The firm-fixed-price contract of $5.96M is for construction services. Without a benchmark or comparison to similar IHS construction contracts, assessing its pricing fairness is difficult. The provided 'br' value of 8642 might represent a benchmark, but its context is unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple bids were solicited and evaluated.
Public Impact
Ensures continued operation and maintenance of Indian Health Service facilities. Supports infrastructure development within the healthcare sector. Provides construction services in North Dakota.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear pricing benchmark
Positive Signals
- Firm-fixed-price contract type
- Clear contract duration
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project scope and location. The award amount of $5.96M is moderate for a multi-year construction project.
Small Business Impact
The contract was awarded to Razor Consulting Solutions, Inc. There is no indication whether this is a small business or if subcontracting opportunities for small businesses are included.
Oversight & Accountability
The contract is a definitive contract awarded by the Indian Health Service, a division of HHS. Oversight would typically involve contract management by IHS officials to ensure performance and adherence to terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition
- Unclear benchmark value
- Potential for higher costs due to lack of competition
- Scope of work not fully detailed
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, nd, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $6.0 million to RAZOR CONSULTING SOLUTIONS, INC. CONTRACTOR SHALL PROVIDE A FIRM-FIXED-PRICE FOR ALL LABOR, PERSONNEL, EQUIPMENT, MATERIALS, TOOLS, PERSONAL PROTECTIVE EQUIPMENT (PPE), PERMITS, INSURANCE, SUPERVISION, TRANSPORTATION, COORDINATION WITH AUTHORITIES HAVING JURISDICTION (AHJ), INTERNAL
Who is the contractor on this award?
The obligated recipient is RAZOR CONSULTING SOLUTIONS, INC.
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 $6.0 million.
What is the period of performance?
Start: 2024-09-19. End: 2026-08-10.
What is the specific scope of work for this construction contract?
The provided data indicates the contract is for 'Commercial and Institutional Building Construction' and specifies a firm-fixed price for labor, personnel, equipment, materials, and related services. However, the exact nature of the construction (e.g., new build, renovation, specific facility type) is not detailed, making it difficult to fully assess the value or necessity of the expenditure without further information.
What factors led to the determination that competition was not available?
The data states 'NOT AVAILABLE FOR COMPETITION' without further explanation. Understanding the rationale behind this determination is crucial for assessing potential risks. Reasons could include a sole-source justification, urgent need, or specific technical requirements that only one contractor could meet, each carrying different implications for cost and fairness.
How does the benchmark value of 8642 compare to similar construction projects?
The benchmark value 'br' of 8642 is provided, but its meaning and applicability are unclear without context. To assess effectiveness, this benchmark needs to be defined (e.g., cost per square foot, cost per unit of work) and compared against industry standards or historical data for similar IHS construction projects to determine if the awarded price is reasonable.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75H70124R00046
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5625 51ST AVE S, FARGO, ND, 58104
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $5,962,921
Exercised Options: $5,962,921
Current Obligation: $5,962,921
Actual Outlays: $3,123,359
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-19
Current End Date: 2026-08-10
Potential End Date: 2026-08-10 00:00:00
Last Modified: 2026-03-31
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