HHS awards $5.3M contract for Phoenix Indian Medical Center facility upgrades to Low Mountain Construction Inc

Contract Overview

Contract Amount: $5,294,315 ($5.3M)

Contractor: LOW Mountain Construction Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-12-11

End Date: 2026-02-10

Contract Duration: 426 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIS PROJECT IS FOR THE CONTRACTOR TO UPGRADE VENTILATION IN THE EMERGENCY DEPARTMENT (ED) AND FAST TRACK WAITING AREAS AND UPGRADE THE FLOORING, WALLS, AND VENTILATION IN THE CENTRAL SUPPLY ROOM (CSR) AT THE PHOENIX INDIAN MEDICAL CENTER (PIMC).

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.3 million to LOW MOUNTAIN CONSTRUCTION INC for work described as: THIS PROJECT IS FOR THE CONTRACTOR TO UPGRADE VENTILATION IN THE EMERGENCY DEPARTMENT (ED) AND FAST TRACK WAITING AREAS AND UPGRADE THE FLOORING, WALLS, AND VENTILATION IN THE CENTRAL SUPPLY ROOM (CSR) AT THE PHOENIX INDIAN MEDICAL CENTER (PIMC). Key points: 1. Contract focuses on critical infrastructure upgrades for the Emergency Department and Central Supply Room. 2. The project aims to improve patient care environments and operational efficiency. 3. Fixed-price contract type suggests cost certainty for the government. 4. Competition was full and open, indicating a potentially competitive bidding process. 5. Contract duration of 426 days allows for phased implementation. 6. Geographic focus on Arizona highlights regional healthcare infrastructure investment.

Value Assessment

Rating: good

The contract value of $5.3 million for facility upgrades appears reasonable given the scope of work, which includes ventilation and flooring improvements in critical areas like the Emergency Department and Central Supply Room. Benchmarking against similar healthcare facility renovation projects would provide a more precise value assessment. The firm fixed-price structure helps manage cost risks for the government.

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, suggesting that multiple qualified contractors were solicited and allowed to bid. The presence of 3 bidders indicates a degree of competition, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of bids, driving down costs and ensuring the government receives competitive pricing for the services rendered.

Public Impact

Patients receiving care at the Phoenix Indian Medical Center will benefit from improved facility conditions, particularly in the Emergency Department. The upgrades to the Central Supply Room are expected to enhance operational efficiency and safety for medical staff. The project's geographic impact is concentrated in Arizona, supporting local healthcare infrastructure. The contract supports the construction and trades workforce in Arizona through the execution of the renovation work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting patient care continuity.
Ensuring adherence to strict healthcare facility construction standards.
Managing unforeseen site conditions during renovation.

Positive Signals

Focus on critical patient care areas (ED) suggests high priority.
Firm fixed-price contract limits cost overruns.
Full and open competition promotes competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The Indian Health Service's investment in upgrading the Phoenix Indian Medical Center reflects a broader trend of federal investment in healthcare infrastructure, particularly for underserved communities. Comparable spending benchmarks for similar medical facility renovations can vary widely based on size, complexity, and location.

Small Business Impact

The contract was awarded through full and open competition and there is no indication of a small business set-aside. While Low Mountain Construction Inc. may be a small business, the competition structure does not guarantee subcontracting opportunities for other small businesses. Further analysis would be needed to determine if subcontracting plans are in place.

Oversight & Accountability

The Department of Health and Human Services, through the Indian Health Service, is responsible for overseeing this contract. Standard contract management procedures, including performance monitoring and payment verification, will be employed. Transparency is facilitated through contract databases like FPDS. The Inspector General's office may conduct audits or investigations if concerns arise regarding performance or financial integrity.

Related Government Programs

Indian Health Service Facility Modernization Programs
Department of Health and Human Services Capital Investments
Federal Healthcare Infrastructure Projects
Phoenix Indian Medical Center Operations

Risk Flags

Potential for scope creep impacting budget and timeline.
Ensuring contractor compliance with healthcare construction regulations.
Dependency on timely material and equipment delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.3 million to LOW MOUNTAIN CONSTRUCTION INC. THIS PROJECT IS FOR THE CONTRACTOR TO UPGRADE VENTILATION IN THE EMERGENCY DEPARTMENT (ED) AND FAST TRACK WAITING AREAS AND UPGRADE THE FLOORING, WALLS, AND VENTILATION IN THE CENTRAL SUPPLY ROOM (CSR) AT THE PHOENIX INDIAN MEDICAL CENTER (PIMC).

Who is the contractor on this award?

The obligated recipient is LOW MOUNTAIN CONSTRUCTION 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 $5.3 million.

What is the period of performance?

Start: 2024-12-11. End: 2026-02-10.

What is the track record of Low Mountain Construction Inc. in performing similar federal healthcare facility renovation contracts?

A review of federal procurement data indicates that Low Mountain Construction Inc. has been awarded federal contracts primarily within the construction sector. While specific details on past healthcare facility renovations are not immediately available in summary data, their award for the Phoenix Indian Medical Center suggests they possess the necessary qualifications and experience for this type of project. Further investigation into their past performance on similar projects, including client feedback and project completion history, would be beneficial for a comprehensive assessment of their track record.

How does the awarded amount of $5.3 million compare to the estimated cost or market rates for similar facility upgrades?

Without specific details on the scope of work and prevailing market rates in Phoenix, Arizona, for similar commercial and institutional building construction, a precise benchmark is challenging. However, $5.3 million for comprehensive ventilation and flooring upgrades in critical hospital areas like the ED and CSR is within a plausible range for a project of this nature. Factors such as the age of the facility, specific technical requirements for ventilation, and the extent of flooring replacement significantly influence costs. A detailed cost breakdown from the bid would be necessary for a more granular comparison to industry standards.

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

Key risks include potential construction delays impacting hospital operations, unforeseen site conditions requiring additional funding, and ensuring compliance with stringent healthcare facility standards. Mitigation strategies likely involve detailed project planning, phased construction to minimize disruption, contingency planning for unexpected issues, and rigorous quality assurance protocols. The firm fixed-price contract also mitigates financial risk for the government by capping the total cost, provided the scope remains unchanged.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money in this case?

This procurement method, while allowing for broad competition, involves an initial exclusion of sources, the reasons for which are not detailed here. Assuming the exclusion was based on specific qualifications or capabilities necessary for this specialized healthcare renovation, the subsequent full and open competition among the remaining eligible bidders should still drive value. The presence of three bidders suggests sufficient competition to foster price discovery and encourage competitive proposals, likely resulting in a fair market price for the government.

What is the historical spending pattern for facility upgrades at the Phoenix Indian Medical Center or similar IHS facilities?

Historical spending data for facility upgrades at the Phoenix Indian Medical Center or similar Indian Health Service (IHS) facilities would provide context for the $5.3 million award. Analyzing past contracts for renovations, maintenance, and infrastructure improvements at IHS sites can reveal trends in contract values, types of services procured, and contractor performance. This comparison helps determine if the current investment is consistent with previous spending levels or represents a significant shift in capital improvement strategy for the facility or the agency.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75H701-24-R-00035

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4105 N 20TH ST, PHOENIX, AZ, 85016

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

Financial Breakdown

Contract Ceiling: $5,294,315

Exercised Options: $5,294,315

Current Obligation: $5,294,315

Actual Outlays: $5,294,315

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline