HHS awards $4.8M contract for modular unit installation to PCI Support Services LLC

Contract Overview

Contract Amount: $4,829,408 ($4.8M)

Contractor: PCI Support Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-22

End Date: 2026-05-31

Contract Duration: 982 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE NAVAJO AREA OFFICE SEEKS A RELIABLE CONTRACTOR WHO CAN EFFICIENTLY INSTALL A ONE-STORY MODULAR UNIT FOR THE CROWNPOINT SERVICE UNIT.

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.8 million to PCI SUPPORT SERVICES LLC for work described as: THE NAVAJO AREA OFFICE SEEKS A RELIABLE CONTRACTOR WHO CAN EFFICIENTLY INSTALL A ONE-STORY MODULAR UNIT FOR THE CROWNPOINT SERVICE UNIT. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The fixed-price contract structure aims to control costs for the modular unit installation. 3. Performance period extends over two years, suggesting a need for sustained support. 4. The project is located in New Mexico, indicating a specific regional need. 5. The contractor, PCI Support Services LLC, is the sole awardee. 6. The contract value is approximately $4.8 million.

Value Assessment

Rating: fair

The contract value of $4.8 million for the installation of a one-story modular unit appears to be within a reasonable range for such a project, though a direct comparison is difficult without more detailed specifications. The fixed-price nature of the award helps to define the total cost upfront. However, the lack of competition means there's no benchmark to assess if this price represents the best value achievable in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis. This means that only one vendor was solicited and awarded the contract. Without a competitive bidding process, it is difficult to ascertain the level of competition and its potential impact on price discovery. The absence of multiple bids suggests that either the requirement was highly specialized or there were specific justifications for not opening it to a wider pool of contractors.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. The government may have paid a higher price than if multiple vendors had vied for the contract.

Public Impact

The Navajo Area Office and the Crownpoint Service Unit will benefit from the installation of a new modular unit, likely improving operational capacity or services. The services delivered include the efficient installation of a one-story modular unit. The geographic impact is localized to the Crownpoint Service Unit in New Mexico. The contract supports the infrastructure needs of the Indian Health Service within the Navajo Area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other businesses and potentially higher cost savings.
Lack of competition may indicate a niche market or limited vendor availability, requiring further investigation.
The contract duration of nearly two years suggests a significant undertaking, with potential for scope creep if not managed closely.

Positive Signals

Fixed-price contract provides cost certainty for the government.
The award is for a specific infrastructure need, addressing a clear requirement.
The contractor is identified, allowing for performance tracking.

Sector Analysis

This contract falls within the broader construction and facilities management sector, specifically focusing on the installation of modular units. The market for modular construction has been growing, driven by demand for cost-effective and rapid deployment of facilities across various sectors, including government and healthcare. Benchmarking this specific contract is challenging without detailed specifications, but it represents a segment of federal spending aimed at improving infrastructure for essential services.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the procurement was not specifically targeted towards small businesses, and there is no explicit requirement for subcontracting with small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem for this particular contract appears limited, unless the prime contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS) contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and oversight. Transparency would be enhanced by publicizing the contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Indian Health Service Facilities Construction
Modular Building Installation Contracts
Department of Health and Human Services Infrastructure Projects
Federal Government Purchase Orders

Risk Flags

Sole-source award
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.8 million to PCI SUPPORT SERVICES LLC. THE NAVAJO AREA OFFICE SEEKS A RELIABLE CONTRACTOR WHO CAN EFFICIENTLY INSTALL A ONE-STORY MODULAR UNIT FOR THE CROWNPOINT SERVICE UNIT.

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 $4.8 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-05-31.

What specific justifications were provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which typically implies a sole-source justification. Common reasons for sole-source awards include unique capabilities of a single contractor, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. Without access to the full contract file or justification documents, the precise reason for this sole-source award remains unknown. However, the nature of specialized modular unit installation or specific site requirements could have contributed to this determination. Further review of the contract's justification for other than full and open competition (JOFOC) would be necessary to understand the rationale.

How does the cost of this modular unit installation compare to similar projects within the Indian Health Service or other federal agencies?

Direct cost comparison for this $4.8 million contract is challenging without detailed specifications of the modular unit, site preparation requirements, and installation complexity. Similar projects within the Indian Health Service (IHS) or other federal agencies can vary significantly based on size, features, location, and prevailing market conditions. Generally, modular construction aims for cost-effectiveness and speed compared to traditional builds. However, the sole-source nature of this award prevents a direct benchmark against competitive bids. To assess value, one would need to compare the cost per square foot, included features, and warranty terms against other IHS or federal modular projects, ideally those awarded competitively.

What are the potential risks associated with a sole-source contract for modular unit installation?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the best possible price. Other risks include limited innovation, as the contractor may not be incentivized to offer alternative solutions or efficiencies. Furthermore, there's a risk of vendor lock-in if the contractor's solution is highly specialized. Ensuring adequate oversight and robust contract management becomes even more critical to mitigate these risks and ensure the project meets all requirements at a fair price.

What is the track record of PCI Support Services LLC in performing similar federal contracts, particularly for modular unit installation?

Information regarding PCI Support Services LLC's specific track record for modular unit installation contracts with the federal government is not detailed in the provided data. To assess their capability and past performance, a review of their contract history, including past performance evaluations and any reported issues on previous projects, would be necessary. Federal procurement databases and contract award histories can often provide insights into a contractor's experience with similar requirements, their ability to meet deadlines, and their overall performance quality. Without this specific data, it's difficult to definitively evaluate their suitability beyond the current award.

What is the expected impact of this modular unit on the services provided by the Crownpoint Service Unit?

The installation of a new one-story modular unit is intended to enhance or expand the operational capacity of the Crownpoint Service Unit. While the specific services are not detailed, such units often serve to provide additional clinical space, administrative offices, or specialized treatment areas. The impact could range from reducing patient wait times, increasing the number of individuals served, improving the working environment for staff, or enabling the delivery of new or expanded health programs. The modular nature suggests a potentially faster deployment than traditional construction, allowing for a quicker realization of these service improvements.

Are there any specific performance metrics or milestones outlined in the contract to ensure successful installation?

The provided data does not include specific performance metrics or milestones for the installation of the modular unit. However, standard federal contracts, especially those with a fixed-price structure and a defined performance period (ending May 31, 2026), typically include clauses for timely completion, quality of work, and adherence to specifications. The contracting officer and project managers would be responsible for monitoring progress against the agreed-upon schedule and ensuring the final installation meets all technical requirements and safety standards. Detailed performance requirements would be found within the full contract document.

Industry Classification

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

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3480 HIGHWAY 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: $4,829,408

Exercised Options: $4,829,408

Current Obligation: $4,829,408

Actual Outlays: $4,233,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline