HHS awards $108.7M for Roybal Campus construction, a significant investment in public health infrastructure

Contract Overview

Contract Amount: $108,733,552 ($108.7M)

Contractor: Turner Construction Company

Awarding Agency: Department of Health and Human Services

Start Date: 2008-04-30

End Date: 2014-01-31

Contract Duration: 2,102 days

Daily Burn Rate: $51.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 24 ROYBAL CAMPUS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $108.7 million to TURNER CONSTRUCTION COMPANY for work described as: BUILDING 24 ROYBAL CAMPUS Key points: 1. Value for money appears reasonable given the scale and duration of the construction project. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of 2102 days indicates a long-term commitment and potential for cost overruns. 4. The contract is for commercial building construction, a sector with established market rates. 5. This contract positions the CDC within the broader healthcare and public health infrastructure sector. 6. Fixed-price contract type helps mitigate cost escalation risks for the government.

Value Assessment

Rating: good

The $108.7 million contract for the Roybal Campus construction represents a substantial investment. Benchmarking against similar large-scale institutional building projects is complex due to unique site requirements and scope. However, the firm fixed-price nature of the contract provides cost certainty. The duration of the project (over 5 years) suggests a comprehensive build-out, and the price appears aligned with the expected scope of work for a facility of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 6 bidders participating, the level of competition was robust. This suggests that the Centers for Disease Control and Prevention (CDC) likely received competitive pricing due to the multiple offers received, fostering price discovery and potentially driving down costs compared to a less competitive scenario.

Taxpayer Impact: A competitive bidding process for a project of this magnitude ensures that taxpayer dollars are used efficiently, as multiple firms vied to offer the best value.

Public Impact

The primary beneficiaries are the Centers for Disease Control and Prevention (CDC) and its employees, who will gain a modern, functional campus. The services delivered include the construction of a new campus, encompassing commercial and institutional building development. The geographic impact is concentrated in Georgia (ST: GA), where the Roybal Campus is located. Workforce implications include job creation in the construction sector during the project's duration and long-term employment opportunities within the CDC's expanded facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2102 days) increases the risk of unforeseen delays and cost escalations, despite the fixed-price nature.
The scale of the project may present management challenges for the contractor, potentially impacting quality or schedule.
Reliance on a single large contract for a major campus build-out concentrates risk with one primary awardee.

Positive Signals

Firm fixed-price contract type provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition with multiple bidders suggests a strong market response and potential for competitive pricing.
The contractor, Turner Construction Company, is a well-established entity with significant experience in large-scale construction projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for large-scale government facilities is often characterized by a mix of large, established firms and specialized subcontractors. Spending benchmarks for similar federal building projects vary widely based on location, size, and complexity, but a contract of this value for a campus build-out is substantial within this category.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false) and there is no explicit mention of small business subcontracting goals (SMB: false). This suggests that the primary award went to a large contractor, and opportunities for small businesses would likely be through subcontracting opportunities offered by Turner Construction Company. The absence of specific set-aside information means the direct impact on the small business ecosystem through this prime contract is limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, but oversight would still focus on schedule adherence, quality control, and compliance with contract terms. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details are not provided.

Related Government Programs

Federal Building Construction
Public Health Infrastructure
Government Facilities Management
CDC Capital Investments
Large-Scale Construction Projects

Risk Flags

Long project duration
Potential for change orders
Contractor performance risk
Market volatility impacting materials/labor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $108.7 million to TURNER CONSTRUCTION COMPANY. BUILDING 24 ROYBAL CAMPUS

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 $108.7 million.

What is the period of performance?

Start: 2008-04-30. End: 2014-01-31.

What is Turner Construction Company's track record with similar large-scale federal construction projects?

Turner Construction Company has a substantial track record with large-scale federal projects, including numerous high-value contracts for government agencies and military installations. They have experience in building complex facilities such as research laboratories, hospitals, and administrative centers. Their portfolio often includes projects with similar durations and complexities to the Roybal Campus construction. Reviewing their past performance on projects of comparable size and scope, particularly those involving institutional or healthcare facilities, would provide further insight into their capabilities and potential risks associated with this specific contract. Their history suggests they are well-equipped to handle such endeavors, but a detailed review of past project outcomes, including any reported delays or cost issues, would be prudent.

How does the per-square-foot cost of this project compare to similar federal building constructions?

Without specific square footage data for the Roybal Campus build-out, a direct per-square-foot cost comparison is not feasible. However, the total contract value of $108.7 million over a 2102-day period for a significant campus development suggests a substantial investment. To benchmark effectively, one would need to identify the total square footage of the completed facilities and compare it against average costs for similar institutional or commercial buildings constructed for federal agencies in the same geographic region. Factors such as specialized laboratory requirements, LEED certification goals, and site-specific challenges can significantly influence per-square-foot costs, making direct comparisons difficult without detailed project specifications.

What are the primary risk indicators associated with a construction project of this duration and value?

The primary risk indicators for a project of this scale and duration (2102 days, $108.7M) include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions. Cost escalation, while mitigated by the firm fixed-price contract, can still occur through change orders if scope creep is not managed effectively. Contractor performance risk, including quality control issues and labor availability, is also a concern. Furthermore, the long timeline increases the risk of technological obsolescence or changes in programmatic needs for the facility. Robust project management, clear communication channels, and proactive risk mitigation strategies by both the government and the contractor are crucial to addressing these indicators.

How effective is the firm fixed-price contract type in managing costs for long-term construction projects?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for long-term construction projects by shifting the majority of cost risk to the contractor. This structure incentivizes the contractor to control costs and improve efficiency to maximize profit. For the government, it provides a high degree of cost certainty, as the final price is largely predetermined, barring significant, justifiable change orders. However, for very complex or long-duration projects, contractors may build in higher contingency amounts to account for potential risks, potentially leading to a higher initial price compared to cost-reimbursement contracts. Effective oversight is still required to ensure the contractor meets quality standards and adheres to the schedule.

What is the historical spending pattern for the Centers for Disease Control and Prevention (CDC) on capital construction projects?

The Centers for Disease Control and Prevention (CDC), as a major federal health agency, has a history of significant capital investments in facilities to support its research, laboratory, and operational needs. Historical spending patterns would likely show a cyclical nature, with periods of major construction or renovation projects funded through specific appropriations or large contract awards, followed by periods focused on maintenance and smaller upgrades. The Roybal Campus project represents a substantial, multi-year capital expenditure, indicative of the agency's need to modernize and expand its infrastructure to meet evolving public health challenges. Analyzing past large-scale construction contracts awarded by the CDC would reveal trends in project types, contract values, and durations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2007N09677

Offers Received: 6

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,002,248,266

Exercised Options: $1,142,460,950

Current Obligation: $108,733,552

Timeline