HHS awards $15.5M for modular emergency room, highlighting need for rapid healthcare infrastructure

Contract Overview

Contract Amount: $15,503,256 ($15.5M)

Contractor: PCI Support Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-16

End Date: 2026-06-26

Contract Duration: 1,744 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ACQUISITION OF A 16-BED EMERGENCY ROOM MODULAR BUILDING INCLUDING SET UP AND INSTALLATION.

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to PCI SUPPORT SERVICES LLC for work described as: ACQUISITION OF A 16-BED EMERGENCY ROOM MODULAR BUILDING INCLUDING SET UP AND INSTALLATION. Key points: 1. The contract addresses a critical need for emergency healthcare facilities, particularly in underserved areas. 2. The firm-fixed-price structure aims to control costs, but the lack of competition raises concerns about optimal pricing. 3. The modular nature suggests a focus on speed and potentially lower construction costs compared to traditional builds. 4. Performance will be key to ensuring the facility meets the Indian Health Service's specific operational requirements. 5. This acquisition falls within the broader healthcare infrastructure and facilities construction sector.

Value Assessment

Rating: fair

The total contract value of $15.5 million for a 16-bed modular emergency room appears substantial. Benchmarking against similar modular healthcare facility projects is difficult without more specific details on size, features, and location. The lack of competitive bidding means a direct comparison of pricing efficiency is not possible, and the value proposition relies heavily on the contractor's ability to deliver within the fixed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The absence of multiple bidders limits the government's ability to leverage market competition to drive down prices and ensure the best possible value.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the lack of bidding opportunities.

Public Impact

The primary beneficiaries are patients requiring emergency medical services, likely in an area served by the Indian Health Service. The contract delivers a fully equipped and installed 16-bed modular emergency room. The geographic impact is specific to the location where the modular building will be set up in Alabama. Workforce implications could include the need for medical staff to operate the new facility and construction/installation labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can indicate potential barriers to entry for other qualified vendors.
The fixed-price contract shifts risk to the contractor, but initial pricing may be inflated without competition.

Positive Signals

Addresses an urgent need for emergency healthcare infrastructure.
Modular construction can offer faster deployment and potentially lower build costs than traditional methods.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the broader construction and manufacturing sector, specifically focusing on prefabricated or modular buildings for healthcare applications. The market for modular healthcare facilities is growing, driven by the need for rapid deployment, cost-effectiveness, and flexibility. Comparable spending benchmarks would typically involve other government or private sector acquisitions of similar modular units or rapid-build healthcare structures.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this sole-source award. There is no explicit information on subcontracting plans for small businesses. Without a competitive bidding process that includes small business considerations, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages them.

Oversight & Accountability

Oversight will be managed by the Department of Health and Human Services, specifically the Indian Health Service, through contract administration and performance monitoring. Accountability measures will be tied to the firm-fixed-price terms and delivery schedule. Transparency is limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Indian Health Service Facilities Construction
Modular Building Acquisitions
Emergency Room Infrastructure
Healthcare Facility Construction

Risk Flags

Sole-source award limits price competition.
Potential for cost overruns if initial pricing is not optimized.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to PCI SUPPORT SERVICES LLC. ACQUISITION OF A 16-BED EMERGENCY ROOM MODULAR BUILDING INCLUDING SET UP AND INSTALLATION.

Who is the contractor on this award?

The obligated recipient is PCI SUPPORT 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 $15.5 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-06-26.

What is the track record of PCI Support Services LLC in delivering similar modular healthcare facilities for federal agencies?

Information regarding PCI Support Services LLC's specific track record in delivering modular healthcare facilities, particularly for federal agencies like the Indian Health Service, is not readily available in the provided data. As this was a sole-source award, a detailed review of past performance that might have informed a competitive decision is absent. Further investigation into the contractor's past performance history, including any previous government contracts for modular construction or healthcare infrastructure, would be necessary to fully assess their capability and reliability for this specific project.

How does the per-bed cost of this modular emergency room compare to traditional construction or other modular facilities?

The total contract value is approximately $15.5 million for a 16-bed facility, equating to roughly $968,750 per bed. Direct comparison to traditional construction is challenging as it involves different timelines, site preparation, and permanent infrastructure. However, this per-bed cost appears high when compared to some market benchmarks for modular healthcare units, which can range significantly but often fall below this figure, especially for less complex setups. The 'sole-source' nature of this award prevents a direct competitive benchmark, suggesting the price may not reflect optimal market value.

What are the primary risks associated with a sole-source award for critical healthcare infrastructure?

The primary risks associated with a sole-source award for critical healthcare infrastructure include potential overpayment due to the lack of competitive pricing, limited options if the chosen contractor underperforms or faces financial difficulties, and a reduced incentive for the contractor to innovate or provide exceptional value. Taxpayers may bear a higher cost than necessary. Furthermore, it can stifle market competition and discourage other capable small or large businesses from pursuing future government contracts in this space.

What specific performance metrics will be used to evaluate the success of this modular emergency room?

Specific performance metrics are not detailed in the provided data but would typically be outlined in the contract's Statement of Work (SOW). Key metrics would likely include timely delivery and installation of the modular building, adherence to all specified design and construction standards (e.g., building codes, healthcare facility regulations), functionality of all installed systems (HVAC, electrical, plumbing, medical gas if applicable), and successful completion of any required inspections and certifications. Post-installation, operational readiness and patient throughput would also be critical indicators.

What is the historical spending pattern for modular healthcare facilities by the Indian Health Service?

The provided data does not include historical spending patterns for modular healthcare facilities by the Indian Health Service. This specific contract represents a significant investment of $15.5 million. To understand historical trends, one would need to analyze procurement data over several fiscal years, looking for similar acquisitions of modular or prefabricated healthcare structures. Such an analysis could reveal whether this is a common approach for IHS or an exceptional measure driven by specific needs or circumstances.

Are there any provisions for maintenance, support, or future upgrades within this contract?

The provided data indicates the contract includes 'SET UP AND INSTALLATION' but does not explicitly detail provisions for ongoing maintenance, long-term support, or future upgrades. Typically, such services might be covered under separate contracts or task orders, or potentially included as options within the base contract. Given the duration (ending 2026), it's plausible that initial operational support is included, but a comprehensive long-term strategy would need further contractual clarification.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75H71021R00008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3480 HWY 21 N, ATMORE, AL, 36502

Business Categories: 8(a) Program Participant, Category Business, Government, HUBZone Firm, Native American Tribal Government, 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: $15,503,256

Exercised Options: $15,503,256

Current Obligation: $15,503,256

Actual Outlays: $14,501,736

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline