HHS CDC Awards $116M Firm Fixed Price Contract to Turner Construction for Facilities Support
Contract Overview
Contract Amount: $115,989,722 ($116.0M)
Contractor: Turner Construction Company
Awarding Agency: Department of Health and Human Services
Start Date: 2002-07-26
End Date: 2012-02-01
Contract Duration: 3,477 days
Daily Burn Rate: $33.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BIGTOC
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $116.0 million to TURNER CONSTRUCTION COMPANY for work described as: BIGTOC Key points: 1. Significant contract value of $115.99 million awarded to a single large business. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over 9 years, indicating a long-term need for services. 4. Facilities support services are crucial for agency operations, impacting multiple programs.
Value Assessment
Rating: good
The contract was awarded using a firm fixed price structure, which shifts risk to the contractor. The total award value of $115.99 million over nearly a decade suggests a substantial investment in facilities support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows all responsible sources to submit bids, theoretically leading to the most advantageous pricing for the government.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential facilities support services.
Public Impact
Ensures operational continuity for the CDC by maintaining critical facilities. Supports public health initiatives through reliable infrastructure. Potential for job creation within the construction and facilities management sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation if not managed.
- Reliance on a single large contractor for critical infrastructure.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm fixed price contract limits cost overruns for the government.
Sector Analysis
This contract falls under general facilities support services, a common expenditure for large government agencies. Benchmarks for similar long-term facilities contracts vary widely based on scope and location.
Small Business Impact
The contract was awarded to a large business (Turner Construction Company) and there is no indication of small business participation in the provided data.
Oversight & Accountability
The long duration of the contract necessitates ongoing oversight to ensure performance standards are met and the fixed price remains competitive over time.
Related Government Programs
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Long contract duration
- Sole large business awardee
- Potential for price escalation over time
- Lack of small business participation noted
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 $116.0 million to TURNER CONSTRUCTION COMPANY. BIGTOC
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 $116.0 million.
What is the period of performance?
Start: 2002-07-26. End: 2012-02-01.
What specific facilities support services are included in this contract and how do they align with the CDC's mission?
The contract likely encompasses a broad range of services essential for maintaining the operational integrity of CDC facilities. This could include maintenance, repairs, custodial services, groundskeeping, and potentially specialized support for laboratory or research spaces. The alignment with the CDC's mission is direct, as reliable and safe facilities are fundamental to conducting public health research, disease surveillance, and emergency response operations.
Given the firm fixed price and long duration, what mechanisms are in place to prevent potential cost inefficiencies or scope creep?
While a firm fixed price contract shifts cost risk to the contractor, long durations can still present challenges. Mechanisms likely include detailed performance work statements, regular performance reviews, and clear change order procedures. The government would monitor contractor performance against these metrics and ensure any modifications to the scope are formally approved and justified, preventing uncontrolled cost increases.
How does the $116 million award compare to typical spending on facilities support for agencies of the CDC's size and scope?
The $116 million award over approximately 9.5 years represents a significant, but not necessarily excessive, investment for a federal agency like the CDC, which operates numerous complex facilities. Annual spending would average around $12 million. Benchmarking requires detailed comparison of services, facility size, and geographic locations, but this figure appears within a reasonable range for comprehensive, long-term facilities management for a major research and public health organization.
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: $4,411,970,576
Exercised Options: $4,295,980,854
Current Obligation: $115,989,722
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: 2002-07-26
Current End Date: 2012-02-01
Potential End Date: 2012-02-01 00:00:00
Last Modified: 2018-09-28
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