HHS awards $500K BPA Call to MGL Enterprises for Okmulgee Field Office water and sewer line construction

Contract Overview

Contract Amount: $50,000 ($50.0K)

Contractor: MGL Enterprises LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2030-04-30

Contract Duration: 1,485 days

Daily Burn Rate: $34/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CALL TO ADD LUMP SUM FUNDING FOR VARIOUS PROJECT NUMBERS UNDER THE OKMULGEE FIELD OFFICE, INDIAN HEALTH SERVICES (IHS).

Place of Performance

Location: OKMULGEE, OKMULGEE County, OKLAHOMA, 74447

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50,000 to MGL ENTERPRISES LLC for work described as: CALL TO ADD LUMP SUM FUNDING FOR VARIOUS PROJECT NUMBERS UNDER THE OKMULGEE FIELD OFFICE, INDIAN HEALTH SERVICES (IHS). Key points: 1. Contract awarded to MGL Enterprises LLC for essential infrastructure upgrades. 2. Project aims to improve water and sewer systems for the Okmulgee Field Office. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. Long-term duration of over 4 years indicates a significant project. 5. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated terms. 6. Small business set-aside was not utilized for this procurement.

Value Assessment

Rating: good

The contract value of $500,000 for water and sewer line construction over approximately four years appears reasonable for the scope of work, especially considering it falls under a BPA Call. Without specific details on the project's scale (e.g., miles of pipe, number of connections), direct cost benchmarking is challenging. However, the firm fixed-price nature provides cost certainty. The award to MGL Enterprises LLC, a single contractor, implies a focused engagement for this specific need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates the contract was 'COMPETED UNDER SAP' (Small Acquisition Procedures), and the award type is a 'BPA CALL'. This suggests a competitive process was likely followed, but the exact number of bidders or the specific method of competition (e.g., full and open, limited competition) is not explicitly detailed. BPA Calls are typically used to procure specific items or services under an existing master BPA, which itself may have been competed.

Taxpayer Impact: The use of competitive procedures, even under SAP, generally benefits taxpayers by encouraging competitive pricing and ensuring a reasonable cost for the services rendered.

Public Impact

Beneficiaries include the Indian Health Service (IHS) and potentially the local community served by the Okmulgee Field Office. Services delivered involve the construction and repair of water and sewer lines. Geographic impact is focused on the Okmulgee Field Office location in Oklahoma. Workforce implications include potential job creation for construction labor and skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit detail on the competitive process limits full transparency on price discovery.
The long contract duration could introduce risks related to material cost fluctuations or unforeseen site conditions.

Positive Signals

Award under a BPA Call suggests potential for streamlined procurement and pre-negotiated favorable terms.
Firm Fixed Price contract type offers cost certainty for the government.
Focus on essential infrastructure like water and sewer lines addresses critical operational needs.

Sector Analysis

This contract falls within the Construction sector, specifically related to utility infrastructure. The North American Industry Classification System (NAICS) code 237110 (Water and Sewer Line and Related Structures Construction) confirms this. Spending in this area is crucial for maintaining public health and operational efficiency for government facilities. Benchmarking would typically involve comparing per-mile costs or costs per connection for similar projects in the region or for federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was likely open to all eligible contractors, including large businesses. While this contract doesn't directly support small business set-asides, MGL Enterprises LLC's size and potential subcontracting opportunities could still impact the small business ecosystem, depending on their own subcontracting practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service (IHS) within the Department of Health and Human Services (HHS). As a BPA Call, the underlying master BPA likely has established oversight mechanisms. The firm fixed-price nature and defined scope aid in accountability. Transparency is facilitated through contract databases, though specific project-level details might be limited. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Indian Health Service Infrastructure Projects
Federal Water and Sewer Construction Contracts
Department of Health and Human Services Facility Maintenance
Okmulgee Field Office Operations

Risk Flags

Contract Duration
Limited Competition Detail
Contractor Past Performance Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50,000 to MGL ENTERPRISES LLC. CALL TO ADD LUMP SUM FUNDING FOR VARIOUS PROJECT NUMBERS UNDER THE OKMULGEE FIELD OFFICE, INDIAN HEALTH SERVICES (IHS).

Who is the contractor on this award?

The obligated recipient is MGL ENTERPRISES 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 $50,000.

What is the period of performance?

Start: 2026-04-06. End: 2030-04-30.

What is the specific scope of work for the water and sewer line construction under this BPA Call?

The provided data specifies the contract is for 'CALL TO ADD LUMP SUM FUNDING FOR VARIOUS PROJECT NUMBERS UNDER THE OKMULGEE FIELD OFFICE, INDIAN HEALTH SERVICES (IHS).' This indicates the funding is for specific, likely pre-defined, projects related to water and sewer line construction and related structures. While the exact 'various project numbers' are not detailed here, the NAICS code 237110 confirms the general nature of the work. A comprehensive understanding would require reviewing the individual task orders or the master BPA documentation that this call is associated with, which would detail the specific locations, types of work (e.g., new installation, repair, replacement), and quantities involved.

How does the $500,000 contract value compare to similar water and sewer construction projects for federal facilities?

Benchmarking the $500,000 value requires more granular project details. However, for context, federal contracts for water and sewer line construction can vary significantly based on scale, complexity, and location. A project of this value might cover the repair or replacement of a moderate length of piping, upgrades to a specific building's connections, or the installation of new lines in a limited area. Larger projects involving extensive new infrastructure or system-wide overhauls can easily run into millions of dollars. Given this is a BPA Call, the pricing is likely based on pre-negotiated rates that aim for value. Without knowing the specific deliverables, a precise comparison is difficult, but $500,000 suggests a focused scope rather than a large-scale system upgrade.

What are the potential risks associated with a firm fixed-price contract of this duration (over 4 years)?

While a firm fixed-price (FFP) contract provides cost certainty for the government, a long duration (1485 days, approx. 4 years) introduces potential risks. The primary risk is that the contractor may face increased material costs or labor expenses over the contract period that erode their profit margin, potentially leading to quality compromises or contractor disputes if not managed carefully. Conversely, if costs decrease significantly, the contractor could realize unexpectedly high profits. For the government, the risk lies in the contractor's motivation to control costs effectively throughout the extended period. Changes in scope or unforeseen site conditions, if not handled through contract modifications, can also create friction. Robust contract administration and clear communication are essential to mitigate these risks.

What is MGL Enterprises LLC's track record with the Indian Health Service or similar infrastructure projects?

Information regarding MGL Enterprises LLC's specific track record with the Indian Health Service (IHS) or extensive experience in water and sewer line construction is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past performance ratings, contract awards, and any reported issues. Their past performance on similar construction projects, particularly those involving utility infrastructure and government contracts, would be a key indicator of their capability and reliability for executing this BPA Call effectively.

How does spending on water and sewer infrastructure at IHS facilities compare historically?

Historical spending data for water and sewer infrastructure projects specifically under the Indian Health Service (IHS) would provide valuable context for this $500,000 BPA Call. Analyzing past expenditures would reveal trends in contract values, types of projects undertaken, and the average duration and cost of similar infrastructure work. This comparison could highlight whether this award is typical, an increase, or a decrease in investment for such services. Without access to historical IHS spending reports or detailed contract databases filtered for this specific service category and agency, it's difficult to provide a precise historical comparison. However, IHS, like many federal agencies, faces ongoing needs for infrastructure maintenance and upgrades.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 E 2ND ST, JENNINGS, OK, 74038

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,000

Exercised Options: $50,000

Current Obligation: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75H71125A00077

IDV Type: BPA

Timeline