HHS Awards $106.5M Construction Contract to Turner Construction Company via Full and Open Competition
Contract Overview
Contract Amount: $106,496,795 ($106.5M)
Contractor: Turner Construction Company
Awarding Agency: Department of Health and Human Services
Start Date: 2001-01-26
End Date: 2009-02-14
Contract Duration: 2,941 days
Daily Burn Rate: $36.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $106.5 million to TURNER CONSTRUCTION COMPANY for work described as: CONSTRUCTION Key points: 1. Significant contract value of $106.5 million awarded for construction services. 2. Turner Construction Company secured the contract through a full and open competition. 3. The contract spans nearly 8 years, indicating a long-term project. 4. The award falls under the 'Construction' sector, with a substantial dollar amount.
Value Assessment
Rating: good
The contract value of $106.5 million is substantial. Benchmarking against similar large-scale construction projects would be necessary to fully assess pricing, but the firm fixed-price structure suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of qualified contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Public health infrastructure may be improved or maintained through this construction project. Local economy potentially benefits from job creation and subcontracts related to the construction. Long-term project duration suggests sustained investment in facilities or infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific project details (PSC, NA, ND) limits understanding of scope and potential risks.
- Contract duration of nearly 8 years could present risks related to cost escalation or changing requirements.
Positive Signals
- Awarded via full and open competition, indicating a robust procurement process.
- Firm fixed-price contract provides cost predictability.
- Award to a single entity (NO=1) suggests a clear prime contractor responsible for delivery.
Sector Analysis
This contract falls within the Construction sector, which is vital for maintaining and developing government facilities. The $106.5 million award is a significant investment, and benchmarks for similar large-scale construction projects would be relevant for detailed cost analysis.
Small Business Impact
While the contract was awarded through full and open competition, there is no explicit information regarding small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight to ensure adherence to scope, budget, and quality standards. The Centers for Disease Control and Prevention (CDC) is responsible for monitoring project execution.
Related Government Programs
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Lack of specific project scope details (PSC, NA, ND).
- Long contract duration (2941 days) increases risk of cost escalation and changing requirements.
- No explicit mention of small business subcontracting goals or achievements.
- Potential for unforeseen site conditions in construction projects.
Tags
department-of-health-and-human-services, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $106.5 million to TURNER CONSTRUCTION COMPANY. CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is TURNER CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $106.5 million.
What is the period of performance?
Start: 2001-01-26. End: 2009-02-14.
What specific facilities or infrastructure improvements does this $106.5 million construction contract entail for the CDC?
The provided data lacks specific details regarding the nature of the construction project. Further investigation into the contract's Statement of Work (SOW) or related documentation would be required to identify the exact facilities or infrastructure improvements being undertaken. This could range from new building construction to renovations or upgrades of existing CDC facilities.
What are the primary risks associated with a nearly 8-year construction contract, and how are they mitigated?
Key risks include potential cost overruns due to inflation or material price fluctuations, scope creep, unforeseen site conditions, and contractor performance issues over the extended period. Mitigation strategies typically involve robust contract management, contingency planning, clear change order processes, and performance monitoring mechanisms.
How does the firm fixed-price (FFP) structure impact the effectiveness of this large construction contract for the government?
An FFP contract provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. This structure is effective in controlling budget and incentivizes the contractor to manage costs efficiently. However, it places more risk on the contractor and requires very clear specifications to avoid disputes.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1999N00328
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vinci (UEI: 462009101)
Address: 915 ATLANTIC DR NW, ATLANTA, GA, 30326
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $4,811,133,340
Exercised Options: $4,811,133,340
Current Obligation: $106,496,795
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200000059I
IDV Type: IDC
Timeline
Start Date: 2001-01-26
Current End Date: 2009-02-14
Potential End Date: 2009-02-14 00:00:00
Last Modified: 2018-09-28
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