HHS Awards $40.4M Contract for Adult Residential Treatment Facility Renovation in Oregon

Contract Overview

Contract Amount: $40,365,710 ($40.4M)

Contractor: THE Native American Rehabilitation Association of the Northwest, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-12

End Date: 2026-09-27

Contract Duration: 1,476 days

Daily Burn Rate: $27.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97205

State: Oregon Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40.4 million to THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED for work described as: ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION Key points: 1. Significant investment in healthcare infrastructure for Native American rehabilitation. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (4 years) requires ongoing performance monitoring. 4. Focus on a specific geographic region (Oregon) for critical services.

Value Assessment

Rating: fair

The contract value of $40.4 million for a renovation project of this scale appears substantial. Without comparable contract data or detailed scope, it's difficult to definitively assess pricing against similar facilities. Benchmarking against industry standards for institutional renovations is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method may limit price discovery and potentially lead to higher costs compared to a fully competitive process. The justification for the sole-source award needs careful review.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost efficiencies typically achieved through open competition. The full value of taxpayer funds depends on the necessity and justification of the sole-source approach.

Public Impact

Enhances critical healthcare services for Native American communities. Potential for job creation during the renovation and operational phases. Addresses infrastructure needs for addiction and mental health treatment. Ensures continued service delivery at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to healthcare facilities. Spending benchmarks for similar renovations can vary widely based on size, complexity, and location. The $40.4 million award suggests a significant project scope.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Opportunities for small business subcontracting should be explored to ensure broader economic impact and compliance with federal small business goals.

Oversight & Accountability

Oversight will be crucial to ensure the renovation is completed on time, within budget, and meets the required quality standards, especially given the sole-source nature of the award. Performance metrics and regular reporting are essential.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-health-and-human-services, or, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40.4 million to THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED. ADULT RESIDENTIAL TREATMENT FACILITY RENOVATION

Who is the contractor on this award?

The obligated recipient is THE NATIVE AMERICAN REHABILITATION ASSOCIATION OF THE NORTHWEST, INCORPORATED.

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 $40.4 million.

What is the period of performance?

Start: 2022-09-12. End: 2026-09-27.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details, it's impossible to confirm if alternatives were explored. A thorough review of the justification is necessary to ensure fair pricing and prevent potential waste.

How does the $40.4 million contract value compare to industry benchmarks for similar adult residential treatment facility renovations, considering the project's scope and location?

Benchmarking this $40.4 million contract requires detailed project specifications and access to cost data for comparable renovations. Factors like facility size, age, required upgrades, and regional construction costs significantly influence pricing. A comparative analysis against similar government or private sector projects would be needed for a robust assessment.

What mechanisms are in place to ensure the long-term effectiveness and quality of the renovated facility, and how will performance be measured?

Effectiveness will likely be measured through adherence to renovation timelines, budget compliance, and post-renovation facility performance audits. Key performance indicators (KPIs) related to operational capacity, patient outcomes, and facility safety should be established. Regular site inspections and user feedback will also contribute to assessing long-term effectiveness.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1776 SW MADISON ST, PORTLAND, OR, 97205

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Native American Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,365,710

Exercised Options: $40,365,710

Current Obligation: $40,365,710

Actual Outlays: $7,243,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2022-09-12

Current End Date: 2026-09-27

Potential End Date: 2026-09-27 00:00:00

Last Modified: 2025-01-10

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