HHS Awards $2.05M Duplex Construction Contract to Razor Consulting Solutions in South Dakota
Contract Overview
Contract Amount: $2,054,889 ($2.1M)
Contractor: Razor Consulting Solutions, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2026-01-30
End Date: 2027-03-31
Contract Duration: 425 days
Daily Burn Rate: $4.8K/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: GP21CC601Q7/GP22CC600Q7 FORT THOMPSON DUPLEX CONSTRUCTION
Place of Performance
Location: FORT THOMPSON, BUFFALO County, SOUTH DAKOTA, 57339
Plain-Language Summary
Department of Health and Human Services obligated $2.1 million to RAZOR CONSULTING SOLUTIONS, INC for work described as: GP21CC601Q7/GP22CC600Q7 FORT THOMPSON DUPLEX CONSTRUCTION Key points: 1. The contract is for duplex construction at Fort Thompson. 2. Razor Consulting Solutions, Inc. is the awardee. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project is managed by the Indian Health Service. 5. The contract has a duration of 425 days.
Value Assessment
Rating: fair
The contract value of $2.05M for duplex construction appears within a reasonable range for similar projects, though specific comparable data is limited. The firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential housing construction, with the limited competition potentially leading to a slightly higher cost than unrestricted competition.
Public Impact
Improved housing for residents at Fort Thompson. Supports local economic activity through construction jobs. Addresses infrastructure needs within the Indian Health Service. Potential for future development based on this project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Small business participation not explicitly stated.
- Project duration is substantial.
Positive Signals
- Addresses critical housing needs.
- Firm fixed price contract offers cost control.
- Awarded by a relevant agency (IHS).
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on government infrastructure needs and economic conditions. Benchmarks for similar construction projects are essential for evaluating value.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the contract precluded small business involvement.
Oversight & Accountability
The Indian Health Service is responsible for overseeing this contract. The firm fixed price and defined duration provide a framework for accountability, but ongoing monitoring of progress and quality is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition may not ensure optimal pricing.
- Lack of explicit small business participation.
- Potential for cost increases if unforeseen site conditions arise.
- Contract duration is lengthy, increasing exposure to market fluctuations.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, sd, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.1 million to RAZOR CONSULTING SOLUTIONS, INC. GP21CC601Q7/GP22CC600Q7 FORT THOMPSON DUPLEX CONSTRUCTION
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 $2.1 million.
What is the period of performance?
Start: 2026-01-30. End: 2027-03-31.
What specific factors led to the 'exclusion of sources' in the competition, and how did this impact the final price?
The exclusion of sources suggests specific criteria or circumstances limited the pool of eligible bidders. This could include unique requirements, prior relationships, or specific socio-economic set-asides that were not met by all potential offerors. Understanding these factors is key to assessing if the limited competition resulted in a fair and reasonable price or if broader competition could have yielded better value for taxpayers.
Are there any performance risks associated with Razor Consulting Solutions, Inc. based on past contracts or project history?
Assessing performance risks requires reviewing Razor Consulting Solutions, Inc.'s past performance on similar government contracts. A lack of prior relevant experience or a history of cost overruns or delays on comparable projects would increase the risk profile for this duplex construction. Conversely, a strong track record would mitigate these concerns.
How does the $2.05M cost compare to the average cost per square foot for similar government-funded duplex construction in South Dakota?
Benchmarking the cost per square foot against similar projects in South Dakota is crucial for evaluating value. Factors like material costs, labor rates, and specific site conditions influence this metric. Without detailed project specifications and comparable data, it's difficult to definitively assess if this contract represents excellent value or if it is priced above market rates.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75H70126R00076
Offers Received: 6
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: $2,054,889
Exercised Options: $2,054,889
Current Obligation: $2,054,889
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-01-30
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-01-30
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