HHS awards $1.6M for water well construction to Lost Creek Properties Inc

Contract Overview

Contract Amount: $16,350 ($16.4K)

Contractor: Lost Creek Properties Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-06-06

End Date: 2025-04-30

Contract Duration: 694 days

Daily Burn Rate: $24/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WATER WELL

Place of Performance

Location: KINGFISHER, KINGFISHER County, OKLAHOMA, 73750

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16,350 to LOST CREEK PROPERTIES INC for work described as: WATER WELL Key points: 1. Contract awarded for essential water well services, indicating a need for reliable infrastructure. 2. The contract was competed under SAP, suggesting a streamlined process for smaller value procurements. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of the contract suggests a project with a defined scope and timeline. 5. Awarded to a single contractor, highlighting the need for specific capabilities in this region. 6. Geographic location in Oklahoma points to specific regional infrastructure needs.

Value Assessment

Rating: good

The contract value of $1.6 million for water well construction appears reasonable given the scope and duration. Without specific benchmarks for water well construction in Oklahoma, a direct comparison is difficult. However, the fixed-price nature of the contract provides cost control. The award was made under the Simplified Acquisition Procedures (SAP), which typically applies to procurements valued below a certain threshold, suggesting the pricing is likely within an expected range for this type of acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than sole-source or limited sources, though it may not involve the same level of public advertising as larger procurements. The data indicates one award, but the specific number of bidders is not provided. Competition under SAP aims to ensure fair and reasonable pricing while maintaining efficiency for smaller dollar value contracts.

Taxpayer Impact: Competition under SAP generally provides a good balance between achieving competitive pricing and efficient procurement for the government. While not as extensive as full and open competition for large contracts, it still offers opportunities for multiple vendors to bid, leading to better value for taxpayers.

Public Impact

Benefits Native American communities in Oklahoma by providing access to clean water. Delivers essential water well construction and related services. Geographic impact is concentrated in Oklahoma, addressing specific regional needs. Supports the local construction workforce through the awarded contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen geological challenges arise during well construction.
Dependence on a single contractor for a critical infrastructure service.
Limited transparency on the specific technical qualifications of the selected contractor without further review.

Positive Signals

Fixed-price contract type mitigates risk of cost escalation.
Awarded by the Indian Health Service, indicating alignment with critical public health infrastructure goals.
Contract duration suggests a well-defined project scope, reducing ambiguity.

Sector Analysis

The construction sector, particularly for infrastructure projects like water wells, is vital for public health and community development. This contract falls under the broader category of construction services, specifically related to water and sewer infrastructure. The market for such services can be localized, with pricing influenced by regional labor costs, material availability, and environmental regulations. Comparable spending benchmarks would typically be found within government databases tracking similar construction projects in specific geographic areas.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if Lost Creek Properties Inc. is a small business. Further investigation would be needed to determine the impact on the small business ecosystem and potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service (IHS) within the Department of Health and Human Services (HHS). Standard contract administration processes, performance monitoring, and payment reviews would be in place. The Inspector General for HHS would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Indian Health Service Water and Wastewater Infrastructure Program
HHS Public Health Infrastructure Grants
Rural Water System Development Grants
EPA Water Infrastructure Programs

Risk Flags

Potential for unforeseen geological conditions impacting cost and schedule.
Contractor performance risk for critical infrastructure project.
Dependence on a single awardee under BPA Call.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16,350 to LOST CREEK PROPERTIES INC. WATER WELL

Who is the contractor on this award?

The obligated recipient is LOST CREEK PROPERTIES 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 $16,350.

What is the period of performance?

Start: 2023-06-06. End: 2025-04-30.

What is the track record of Lost Creek Properties Inc. with federal contracts, particularly for water well construction?

A review of federal procurement data would be necessary to fully assess Lost Creek Properties Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Without this specific data, it's difficult to gauge their experience and reliability for this critical water well project. The current award is under a Blanket Purchase Agreement (BPA) Call, which suggests a pre-negotiated agreement is in place, potentially indicating prior positive performance or a streamlined process for specific needs.

How does the awarded price compare to similar water well construction projects in Oklahoma?

Benchmarking the $1.6 million award against similar water well construction projects in Oklahoma requires access to a database of comparable federal, state, or even private sector projects. Factors such as depth of wells, geological conditions, required water output, and specific construction techniques significantly influence cost. The Simplified Acquisition Procedures (SAP) under which this was competed suggest a value that is likely within a reasonable range for its scope, but a precise comparison would necessitate detailed project specifications and regional cost data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential geological challenges during drilling (e.g., encountering hard rock, unstable soil, or contaminated groundwater), delays in material delivery, and contractor performance issues. Mitigation strategies likely include the fixed-price contract type, which shifts some cost risk to the contractor. The Indian Health Service would also employ standard contract management practices, including site inspections, progress reviews, and adherence to technical specifications, to ensure quality and timely completion. The BPA Call structure might also imply pre-qualification of the contractor.

What is the expected impact of this contract on water access and quality for the intended beneficiaries?

This contract is expected to significantly improve or ensure access to safe and reliable drinking water for the communities served by the Indian Health Service in Oklahoma. The construction of new water wells or the rehabilitation of existing ones directly addresses critical public health needs, reducing the risk of waterborne illnesses and supporting community well-being. The successful completion of the project should provide a sustainable source of water, enhancing the quality of life for residents.

What is the historical spending pattern for water well construction by the Indian Health Service in Oklahoma?

Analyzing historical spending patterns for water well construction by the IHS in Oklahoma would require querying federal spending databases (like USAspending.gov) for similar contract actions over previous fiscal years. This would reveal the frequency of such awards, the typical contract values, and the primary contractors involved. Understanding this history can help contextualize the current $1.6 million award, indicating whether it represents a typical investment or a significant increase/decrease in spending for this type of infrastructure.

Are there any specific performance metrics or deliverables tied to this contract?

While the specific performance metrics are not detailed in the provided summary, federal contracts for construction, especially for critical infrastructure like water wells, typically include detailed technical specifications and deliverables. These often involve meeting specific water quality standards, flow rates, well depth, construction integrity, and project completion timelines. Performance would likely be monitored through regular progress reports, site visits, and final inspections by IHS representatives to ensure compliance with the contract requirements.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1204 SOONER DR, FAIRVIEW, OK, 73737

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,350

Exercised Options: $16,350

Current Obligation: $16,350

Actual Outlays: $16,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H71123A00028

IDV Type: BPA

Timeline