Doyon Management Services awarded $4.87M contract for HVAC upgrades at PIMC facilities

Contract Overview

Contract Amount: $4,869,435 ($4.9M)

Contractor: Doyon Management Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-03-27

End Date: 2026-07-16

Contract Duration: 476 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 1. PIMC MECHANICAL PROJECT 1 - HEATING, VENTILATION, & AIR CONDITION (PROJECT # PH23PH04H6) THE PROJECT CONSISTS OF ALTERATION (LEVEL 2) OF THE HVAC SYSTEM FOR THE PEDIATRIC CLINIC (BUILDING 12) AND THE DENTAL (BUILDING 239) AT THE PIMC. THIS WO

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.9 million to DOYON MANAGEMENT SERVICES, LLC for work described as: 1. PIMC MECHANICAL PROJECT 1 - HEATING, VENTILATION, & AIR CONDITION (PROJECT # PH23PH04H6) THE PROJECT CONSISTS OF ALTERATION (LEVEL 2) OF THE HVAC SYSTEM FOR THE PEDIATRIC CLINIC (BUILDING 12) AND THE DENTAL (BUILDING 239) AT THE PIMC. THIS WO Key points: 1. The contract focuses on essential infrastructure upgrades for critical healthcare facilities. 2. Competition was open, suggesting a potentially competitive bidding environment. 3. The fixed-price contract type aims to control costs for the government. 4. The project duration spans over a year, indicating a significant scope of work. 5. The award is for construction services, a vital sector for facility maintenance. 6. The geographic location in Arizona may influence labor and material costs.

Value Assessment

Rating: good

The contract value of $4.87 million for HVAC system alterations appears reasonable for a project of this scope, involving two distinct buildings at the PIMC. Benchmarking against similar large-scale HVAC renovation projects in healthcare settings would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to lock in costs, which is generally favorable for the government if the scope is well-defined.

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 presence of two bidders suggests a moderate level of competition. While more than two bidders would typically lead to greater price discovery, the open competition framework is a positive sign for achieving a fair market price.

Taxpayer Impact: The open competition, even with two bidders, provides a baseline for fair pricing and encourages contractors to offer competitive bids, ultimately benefiting taxpayers by avoiding inflated costs.

Public Impact

Patients and staff at the PIMC pediatric and dental clinics will benefit from improved air quality and system reliability. The project ensures the continued operational capacity of essential healthcare services. The primary geographic impact is within Arizona, supporting local infrastructure. The construction work will likely involve skilled labor, potentially creating short-term employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during alteration work.
Dependence on Doyon Management Services' ability to manage complex construction schedules.
Risk of delays impacting the operational continuity of the clinics if not managed effectively.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks.
Award to an established entity suggests a degree of contractor reliability.
Focus on essential infrastructure upgrades addresses critical facility needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a critical component of the broader construction industry. The market for healthcare facility upgrades is substantial, driven by the need for modernization, compliance with regulations, and improved patient care environments. Spending in this sector is often characterized by project-specific bidding, with significant variation based on project size, complexity, and location.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Doyon Management Services actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the Indian Health Service. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure and defined delivery schedule. Transparency is generally maintained through contract award databases, though specific project oversight details may not be publicly detailed.

Related Government Programs

Healthcare Facility Construction
HVAC System Upgrades
Public Health Infrastructure
Federal Building Renovations

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of disruption to critical healthcare services during construction.
Dependence on contractor's ability to manage complex project phasing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.9 million to DOYON MANAGEMENT SERVICES, LLC. 1. PIMC MECHANICAL PROJECT 1 - HEATING, VENTILATION, & AIR CONDITION (PROJECT # PH23PH04H6) THE PROJECT CONSISTS OF ALTERATION (LEVEL 2) OF THE HVAC SYSTEM FOR THE PEDIATRIC CLINIC (BUILDING 12) AND THE DENTAL (BUILDING 239) AT THE PIMC. THIS WO

Who is the contractor on this award?

The obligated recipient is DOYON MANAGEMENT SERVICES, 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 $4.9 million.

What is the period of performance?

Start: 2025-03-27. End: 2026-07-16.

What is the track record of Doyon Management Services in completing similar federal construction projects on time and within budget?

Assessing the track record of Doyon Management Services requires a review of their past performance on federal contracts, particularly those involving healthcare facilities and HVAC systems. Data from contract databases like SAM.gov or FPDS can reveal their history of on-time delivery, adherence to budget, and any performance issues or disputes. A history of successful project completion in similar environments would increase confidence in their ability to execute this current project effectively. Conversely, a pattern of delays or cost overruns on comparable projects would raise concerns about potential risks for the PIMC HVAC upgrade.

How does the awarded amount compare to the estimated cost or budget for this HVAC alteration project?

The awarded amount of $4.87 million represents the final negotiated price for the project. To assess value, this figure should be compared against the government's initial cost estimate or budget allocation for the PIMC HVAC alteration. If the awarded amount is significantly lower than the estimate, it could indicate successful negotiation or competitive bidding. However, if it is higher, it might suggest an underestimation of project complexity or a less competitive bidding process. Without the initial estimate, a definitive value comparison is challenging, but the number of bidders offers some insight into the competitive landscape.

What are the primary risk indicators associated with this specific contract, beyond general construction risks?

Specific risk indicators for this contract include the complexity of altering HVAC systems within operational pediatric and dental clinics, which requires careful phasing and minimal disruption. The age and condition of the existing infrastructure in Buildings 12 and 239 could present unforeseen challenges during the Level 2 alteration, potentially leading to scope creep or delays. Furthermore, the firm fixed-price nature means that Doyon Management Services bears the risk of cost overruns due to unforeseen site conditions or material price fluctuations, which could incentivize them to manage the project very tightly or potentially cut corners if not adequately overseen.

How effective is the 'full and open competition after exclusion of sources' method in ensuring fair pricing for this type of construction project?

The 'full and open competition after exclusion of sources' method aims to maximize competition while allowing for specific exclusions if justified. For a project like this HVAC upgrade, it suggests that the government sought bids from all responsible sources but may have excluded certain types of contractors based on specific criteria (though the provided data doesn't detail these exclusions). The fact that two bids were received indicates some level of competition. This method is generally effective in promoting fair pricing, as it allows multiple qualified contractors to compete. However, the effectiveness is amplified when more bidders participate, leading to more robust price discovery and potentially lower costs for the government.

What is the historical spending pattern for HVAC upgrades at PIMC or similar Indian Health Service facilities?

Analyzing historical spending on HVAC upgrades at PIMC or comparable Indian Health Service (IHS) facilities is crucial for benchmarking. This involves examining past contract awards for similar projects, noting their size, scope, duration, and cost. Significant variations in spending for comparable projects could indicate changes in market conditions, inflation, or differences in facility needs. A consistent spending pattern might suggest stable pricing, while a sudden increase could warrant further investigation into the reasons behind it. Understanding this history helps determine if the current $4.87 million award is within expected parameters for such infrastructure improvements.

What are the potential implications of the contract duration (476 days) on the operational continuity of the PIMC clinics?

A contract duration of 476 days (approximately 15-16 months) for HVAC alterations implies a substantial project timeline. The primary implication for the PIMC clinics is the need for meticulous project phasing and scheduling to minimize disruption to patient care. This could involve temporary relocations, noise mitigation, and ensuring continuous operation of essential services during construction. Effective project management by both the contractor and the government contracting officer is critical to ensure that the duration remains within the planned timeframe and that patient services are not unduly impacted. Any significant delays could have cascading effects on clinic schedules and patient access.

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: 75H70125R00001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3450 S 344TH WAY, FEDERAL WAY, WA, 98001

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,869,435

Exercised Options: $4,869,435

Current Obligation: $4,869,435

Actual Outlays: $1,688,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline