HHS awards $2.56M contract for Arizona helipad construction to Gunner Contracting LLC

Contract Overview

Contract Amount: $2,560,000 ($2.6M)

Contractor: Gunner Contracting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-01-15

End Date: 2026-09-30

Contract Duration: 258 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NAVAJO AREA CHINLE, PINON, TSAILE HELIPAD CONSTRUCTION

Place of Performance

Location: CHINLE, APACHE County, ARIZONA, 86503

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.6 million to GUNNER CONTRACTING LLC for work described as: NAVAJO AREA CHINLE, PINON, TSAILE HELIPAD CONSTRUCTION Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The project duration of 258 days suggests a focused scope of work for the helipad construction. 4. The award to Gunner Contracting LLC, a single entity, warrants scrutiny of their capacity and past performance. 5. The geographic focus on Chinle, Pinon, and Tsaile in Arizona highlights specific regional infrastructure needs. 6. The contract falls under 'Other Heavy and Civil Engineering Construction,' a broad category requiring specific expertise.

Value Assessment

Rating: fair

The contract value of $2.56 million for helipad construction appears within a reasonable range for such specialized infrastructure projects. However, without specific benchmarks for helipad construction in remote Arizona areas or detailed scope of work, a precise value-for-money assessment is challenging. Comparing this to similar projects by the Indian Health Service or other agencies would provide better context. The firm-fixed-price nature of the contract is generally favorable for cost control, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the pool of bidders. The number of offers received (10) indicates a moderate level of interest, which is positive. However, the exclusion of sources warrants further investigation to ensure it did not unduly restrict competition and impact price discovery.

Taxpayer Impact: The moderate number of bidders suggests that taxpayers likely received a reasonably competitive price, but the exclusion of certain sources could have potentially led to a higher price than if all qualified sources had been allowed to bid.

Public Impact

The primary beneficiaries are the communities of Chinle, Pinon, and Tsaile in Arizona, which will gain improved access via helipads. The services delivered include the construction of essential helipad infrastructure, enhancing emergency medical services and transportation capabilities. The geographic impact is concentrated in the Navajo Area of Arizona, addressing specific needs of these remote regions. The project may have implications for local construction workforces, potentially creating temporary employment opportunities during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method needs further clarification to ensure fair market access.
The specific capabilities and past performance of Gunner Contracting LLC for similar projects should be thoroughly reviewed.
Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price contract.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
A significant number of offers (10) indicates a competitive bidding process.
The project addresses critical infrastructure needs in underserved areas.

Sector Analysis

The construction of helipads falls under the broader 'Heavy and Civil Engineering Construction' sector. This sector is characterized by large-scale infrastructure projects, often involving significant capital investment and specialized engineering expertise. The market size for such specialized construction can vary greatly depending on government funding and regional development priorities. This contract fits within the Indian Health Service's mandate to provide healthcare infrastructure to Native American communities, addressing a specific niche within the larger construction industry.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Gunner Contracting LLC, may choose to subcontract portions of the work to small businesses as part of their business operations, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Indian Health Service contracting officers and program managers within the Department of Health and Human Services. Accountability measures are inherent in the firm-fixed-price contract type, which requires the contractor to deliver the specified work within the agreed-upon price. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones, though specific oversight mechanisms beyond standard contract administration are not detailed in the provided data.

Related Government Programs

Indian Health Service Infrastructure Projects
Federal Helipad Construction Contracts
Department of Health and Human Services Capital Investments
Civil Engineering Construction Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need to verify contractor's specific experience with helipad construction.
Geographic remoteness may introduce logistical and cost challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.6 million to GUNNER CONTRACTING LLC. NAVAJO AREA CHINLE, PINON, TSAILE HELIPAD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GUNNER CONTRACTING 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 $2.6 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-09-30.

What is the specific track record of Gunner Contracting LLC in completing similar helipad construction projects, particularly for federal agencies?

A thorough review of Gunner Contracting LLC's past performance is crucial. This would involve examining their contract history with federal agencies, specifically looking for projects involving helipad construction, airport infrastructure, or similar civil engineering feats in remote or challenging environments. Key metrics to assess would include on-time completion rates, adherence to budget, quality of work, and any instances of contract disputes or performance issues. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be vital in evaluating their suitability and reliability for this specific helipad construction project.

How does the awarded price of $2.56 million compare to the market rates for similar helipad construction projects in Arizona or comparable regions?

Benchmarking the $2.56 million contract value requires detailed analysis of comparable projects. This includes identifying other federal, state, or private helipad construction projects in Arizona or similar geographic and environmental conditions (e.g., remote, arid, high-altitude). Factors such as the size and load-bearing capacity of the helipad, lighting systems, access roads, drainage, and any specialized safety features will influence cost. Without access to detailed cost breakdowns or a database of comparable project costs, it's difficult to definitively state if this price represents excellent value. However, the firm-fixed-price nature suggests the initial estimate was deemed reasonable by the contracting agency.

What specific factors led to the 'exclusion of sources' in the competition process, and what was the potential impact on the final contract price?

The 'exclusion of sources' in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies that while the competition was intended to be open, certain potential bidders were deliberately not considered. The reasons for exclusion could range from specific technical requirements not met by some firms, to national security concerns, or even administrative reasons. Understanding these specific exclusions is critical. If highly capable contractors were excluded, it could have limited competition, potentially leading to a higher price for taxpayers than if a broader pool of bidders had participated. Conversely, if exclusions were based on valid technical or capability gaps, the remaining competition might still have yielded a fair price.

What are the key performance indicators (KPIs) for this helipad construction contract, and how will their successful achievement be measured?

Key performance indicators for this helipad construction contract would likely revolve around adherence to the project schedule (258-day duration), meeting all specified construction standards and quality requirements (e.g., FAA or IHS standards for helipads), and ensuring the final structure is safe and functional for its intended use. Measurement would involve regular site inspections by contracting officers' representatives (CORs), review of progress reports, material testing, and final acceptance testing of the helipad's structural integrity and operational readiness. Failure to meet these KPIs could result in contract penalties or withholding of payment, as stipulated in the contract terms.

What is the historical spending pattern for helipad construction or similar infrastructure projects by the Indian Health Service (IHS) in Arizona?

Analyzing historical spending patterns for IHS helipad construction in Arizona would provide valuable context for the current $2.56 million award. This involves examining past contracts for similar projects, noting their values, durations, locations, and the contractors involved. Understanding whether this award is consistent with, higher than, or lower than previous expenditures can indicate trends in pricing, project complexity, and IHS's investment in regional infrastructure. A review of IHS's budget allocations and capital improvement plans over the past several years would also shed light on the agency's priorities and capacity for funding such projects.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: 75H70125R00053

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2055 E HUNT RANCH VIEW RD, TAYLOR, AZ, 85939

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,560,000

Exercised Options: $2,560,000

Current Obligation: $2,560,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline