HHS awards $2.76M for Rosebud Emergency Department expansion design to Steelhead Engineering

Contract Overview

Contract Amount: $2,757,008 ($2.8M)

Contractor: THE Steelhead Engineering Company, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-27

End Date: 2026-06-24

Contract Duration: 635 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AE SERVICES FOR ROSEBUD EMERGENCY DEPARTMENT EXPANSION DESIGN ROSEBUD, SD

Place of Performance

Location: KALAMAZOO, KALAMAZOO County, MICHIGAN, 49007

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.8 million to THE STEELHEAD ENGINEERING COMPANY, LLC for work described as: AE SERVICES FOR ROSEBUD EMERGENCY DEPARTMENT EXPANSION DESIGN ROSEBUD, SD Key points: 1. Value for money appears reasonable given the scope of architectural and engineering services for a critical healthcare facility expansion. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with project duration and firm fixed-price contract type suggesting cost control. 4. Performance context involves designing essential healthcare infrastructure for the Rosebud Indian Reservation. 5. Sector positioning is within healthcare infrastructure development, a vital area for underserved communities.

Value Assessment

Rating: good

The contract value of $2.76 million for architectural and engineering design services for an emergency department expansion is within a reasonable range for such projects. Benchmarking against similar healthcare facility design contracts, especially those in rural or tribal areas, would provide further context. The firm fixed-price contract type suggests that the government has secured a defined cost for the design services, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. The specific details of how many bids were received are not provided, but the designation suggests a robust competitive process. This level of competition is generally expected to drive down prices and ensure that the most qualified and cost-effective offeror is selected.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are the residents of the Rosebud Indian Reservation, who will gain access to an improved and expanded emergency medical facility. The services delivered include architectural and engineering design for the expansion of the Rosebud Emergency Department. The geographic impact is concentrated on the Rosebud Indian Reservation in South Dakota, addressing a critical healthcare need in that region. Workforce implications may include the employment of architects, engineers, and support staff by the contractor, as well as potential construction jobs during the subsequent build phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if design requirements are not clearly defined and managed.
Dependence on the contractor's ability to meet project timelines for subsequent construction phases.
Ensuring the design adequately addresses the specific healthcare needs and cultural context of the Rosebud community.

Positive Signals

Firm fixed-price contract helps manage cost certainty for the design phase.
Awarded through full and open competition, suggesting a competitive selection process.
Focus on critical healthcare infrastructure addresses a significant public need.

Sector Analysis

The healthcare construction and design sector is a significant market driven by the need for new facilities, upgrades, and specialized medical spaces. This contract falls within the architectural and engineering services sub-sector, specifically focused on healthcare infrastructure. Comparable spending benchmarks for similar-sized emergency department design projects can vary widely based on location, complexity, and specific requirements, but projects in the low millions are common for design phases.

Small Business Impact

The contract was awarded to THE STEELHEAD ENGINEERING COMPANY, LLC, and there is no indication of a small business set-aside. The contract details do not specify subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Indian Health Service (IHS) contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified design services. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for the Department of Health and Human Services may have jurisdiction for audits and investigations if any irregularities arise.

Related Government Programs

Indian Health Service Capital Improvement Projects
Rural Healthcare Infrastructure Grants
Tribal Healthcare Facility Modernization

Risk Flags

Potential for design delays impacting construction schedule.
Ensuring design meets unique community healthcare needs.
Contractor's past performance on similar IHS projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.8 million to THE STEELHEAD ENGINEERING COMPANY, LLC. AE SERVICES FOR ROSEBUD EMERGENCY DEPARTMENT EXPANSION DESIGN ROSEBUD, SD

Who is the contractor on this award?

The obligated recipient is THE STEELHEAD ENGINEERING COMPANY, LLC.

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 $2.8 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-06-24.

What is the track record of THE STEELHEAD ENGINEERING COMPANY, LLC with federal contracts, particularly within the Department of Health and Human Services?

Information regarding the specific track record of THE STEELHEAD ENGINEERING COMPANY, LLC with federal contracts, especially within the Department of Health and Human Services, is not detailed in the provided data. A comprehensive analysis would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or performance issues. Understanding their experience with similar healthcare design projects, particularly for tribal or IHS facilities, would be crucial for assessing their capability and reliability for this specific Rosebud Emergency Department expansion design.

How does the awarded amount of $2.76 million compare to the estimated cost for similar emergency department design projects in rural areas?

The awarded amount of $2.76 million for the design phase of an emergency department expansion is a significant investment. To benchmark its value, one would need to compare it against similar projects in rural or tribal settings. Factors influencing cost include the size of the expansion, the complexity of the medical services to be housed, local labor rates for design professionals, and specific regulatory requirements. Without access to a database of comparable design contracts, it's challenging to definitively state if this is high or low. However, given the critical nature of emergency services and the potential for specialized equipment integration, this figure may be considered within a reasonable range, assuming a comprehensive design scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential delays in the design process impacting subsequent construction timelines, scope creep if design requirements are not meticulously managed, and ensuring the final design meets the specific healthcare needs and cultural context of the Rosebud community. Mitigation strategies likely involve robust project management by the Indian Health Service, clear definition and adherence to the Statement of Work, regular progress reviews, and active engagement with community stakeholders. The firm fixed-price nature of the contract also incentivizes the contractor to manage costs and timelines effectively to avoid financial penalties or reduced profit margins.

What is the expected impact of this contract on the healthcare services available at Rosebud?

This contract is foundational for improving healthcare services at Rosebud by funding the design of an expanded emergency department. A well-designed facility is expected to enhance the capacity, efficiency, and quality of emergency medical care provided to the community. This could translate to shorter wait times, improved patient outcomes due to better facilities and potentially new equipment, and the ability to handle a greater volume or complexity of emergency cases. Ultimately, it aims to strengthen the local healthcare infrastructure and better serve the health needs of the reservation's population.

How has spending on architectural and engineering services for IHS facilities trended in recent years?

Analyzing recent spending trends for architectural and engineering (A&E) services by the Indian Health Service (IHS) would provide context for this $2.76 million award. Generally, federal agencies like IHS face ongoing needs for facility modernization, expansion, and new construction to serve healthcare demands, particularly in underserved areas. Spending in this category can fluctuate based on appropriations, infrastructure priorities, and the lifecycle of existing facilities. A review of historical IHS budget allocations and contract awards for A&E services over the past 3-5 years would reveal whether this award represents an increase, decrease, or steady level of investment in facility design.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E MICHIGAN AVE, KALAMAZOO, MI, 49007

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,757,008

Exercised Options: $2,757,008

Current Obligation: $2,757,008

Actual Outlays: $1,278,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75H70124D00014

IDV Type: IDC

Timeline