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

State: South Dakota Government Spending

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

Positive Signals

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

Risk Flags

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: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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