HHS Awards $2.47M for New Multifamily Housing Construction in Arizona to Pimmex Contracting Corp

Contract Overview

Contract Amount: $2,472,634 ($2.5M)

Contractor: Pimmex Contracting Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-03

End Date: 2026-04-24

Contract Duration: 386 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PARKER DUPLEX QUARTERS (PH21CR03Q3)

Place of Performance

Location: PARKER, LA PAZ County, ARIZONA, 85344

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.5 million to PIMMEX CONTRACTING CORP for work described as: PARKER DUPLEX QUARTERS (PH21CR03Q3) Key points: 1. The contract is for new multifamily housing construction, a sector with significant infrastructure needs. 2. Pimmex Contracting Corp. secured the award through full and open competition after exclusion of sources. 3. The firm fixed price contract type suggests a defined scope and cost control. 4. The project is located in Arizona, potentially addressing regional housing demands.

Value Assessment

Rating: fair

The contract value of $2.47 million for new multifamily housing construction appears within a reasonable range for a project of this nature. However, without specific details on the scope, size, and amenities of the 'PARKER DUPLEX QUARTERS', a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method implies that while competition was sought, certain sources were excluded, potentially limiting the breadth of price discovery and innovation compared to unrestricted full and open competition.

Taxpayer Impact: The use of a competitive process, even with exclusions, aims to secure a fair price for taxpayers. The final price will depend on the effectiveness of the bidding and negotiation process.

Public Impact

This project will create new housing units, potentially impacting local housing availability and affordability. Construction activities will likely generate local employment opportunities. The development of new housing infrastructure can stimulate economic activity in the surrounding community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Limited competition may have resulted in a suboptimal price.
Project timeline could be impacted by supply chain or labor issues.

Positive Signals

Firm fixed price contract provides cost certainty.
Project addresses a critical need for housing.
Competitive bidding process was utilized.

Sector Analysis

The construction sector, particularly multifamily housing, is vital for infrastructure development. Spending benchmarks vary widely based on location, project scale, and material costs. This award falls within the typical range for such projects, but specific cost-per-unit analysis is needed for a definitive benchmark.

Small Business Impact

The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services, Indian Health Service. Standard oversight mechanisms for federal construction contracts should be in place to ensure quality, timeliness, and adherence to budget.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to construction complexities.
Limited competition may impact price efficiency.
Dependence on Pimmex Contracting Corp. for successful delivery.
Risk of project delays due to external factors (e.g., supply chain, labor).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.5 million to PIMMEX CONTRACTING CORP. PARKER DUPLEX QUARTERS (PH21CR03Q3)

Who is the contractor on this award?

The obligated recipient is PIMMEX CONTRACTING CORP.

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 $2.5 million.

What is the period of performance?

Start: 2025-04-03. End: 2026-04-24.

What is the specific unit cost or cost per square foot for the housing units being constructed?

Without detailed project specifications, including the number of units, square footage per unit, and the quality of materials and finishes, it is impossible to determine the specific unit cost or cost per square foot. This information is crucial for a robust value assessment and comparison against industry benchmarks.

What were the specific reasons for excluding certain sources in the competition process?

The exclusion of sources typically occurs due to specific requirements, such as unique capabilities, past performance on similar projects, or geographic proximity. Understanding these reasons is key to assessing whether the exclusion was justified and if it unduly limited competition, potentially impacting the final price and value.

How does the project's timeline and duration compare to similar multifamily housing construction projects?

The project has a duration of 386 days. Comparing this to similar projects of comparable size and complexity would reveal if the timeline is aggressive, standard, or potentially lagging. Delays can increase costs and impact the timely delivery of needed housing.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75H701-25-R-00002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 S ROOSEVELT AVE, CHANDLER, AZ, 85226

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,472,634

Exercised Options: $2,472,634

Current Obligation: $2,472,634

Actual Outlays: $1,279,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline