DHHS Awards $36.3M for Fort Yuma Healthcare Center Construction to Pilkington Commercial Co
Contract Overview
Contract Amount: $36,329,985 ($36.3M)
Contractor: Pilkington Commercial CO., Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-01-05
End Date: 2020-01-20
Contract Duration: 1,476 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FORT YUMA HEALTH CARE CENTER (NEW CONSTRUCTION)
Place of Performance
Location: WINTERHAVEN, IMPERIAL County, CALIFORNIA, 92283
Plain-Language Summary
Department of Health and Human Services obligated $36.3 million to PILKINGTON COMMERCIAL CO., INC. for work described as: IGF::OT::IGF FORT YUMA HEALTH CARE CENTER (NEW CONSTRUCTION) Key points: 1. Construction project for Indian Health Service facility in California. 2. Awarded via full and open competition after exclusion of sources. 3. Firm Fixed Price contract type suggests cost certainty. 4. Project duration of 1476 days indicates a significant undertaking.
Value Assessment
Rating: fair
The award amount of $36.3M for a new healthcare center construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale healthcare construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method, while competitive, may limit the pool of potential bidders, potentially impacting price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare infrastructure. The competitive nature, even with exclusions, aims to secure value for money, though the specific impact depends on the bidding landscape.
Public Impact
Improved healthcare access for the Fort Yuma community. Job creation during the construction phase. Long-term infrastructure investment in tribal healthcare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the project's long duration.
- Limited competition may have influenced final pricing.
- Scope creep could impact the final cost and timeline.
Positive Signals
- Addresses critical healthcare infrastructure needs.
- Firm Fixed Price contract provides cost predictability.
- Competition, even limited, ensures some level of price vetting.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, economic development, and public service requirements. Benchmarks vary widely based on project type, size, and location.
Small Business Impact
The data indicates the prime contractor is Pilkington Commercial Co., Inc. There is no explicit information on small business participation in this award. Further analysis would be needed to determine if small business subcontracting goals were met.
Oversight & Accountability
Oversight would typically involve the Indian Health Service and potentially the Department of Health and Human Services IG. Monitoring progress, cost, and quality against the contract requirements is crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition may have led to higher costs.
- Long project duration increases risk of delays and cost overruns.
- Potential for unforeseen site conditions impacting budget.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $36.3 million to PILKINGTON COMMERCIAL CO., INC.. IGF::OT::IGF FORT YUMA HEALTH CARE CENTER (NEW CONSTRUCTION)
Who is the contractor on this award?
The obligated recipient is PILKINGTON COMMERCIAL CO., INC..
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 $36.3 million.
What is the period of performance?
Start: 2016-01-05. End: 2020-01-20.
What was the rationale for excluding certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?
The rationale for excluding sources typically relates to specific capabilities, past performance, or security requirements deemed essential for the project's success. While this method aims for competition among qualified entities, it inherently narrows the field. The impact on price is difficult to quantify without knowing the excluded entities and the number of responsive bidders. A more open competition might have yielded lower bids if more diverse contractors were eligible and participated.
Given the 4-year duration, what mechanisms are in place to manage potential cost increases due to inflation or unforeseen site conditions?
The Firm Fixed Price (FFP) contract structure generally places the burden of cost increases on the contractor. However, contracts often include clauses for unforeseen site conditions or significant changes in economic factors (like inflation) that could trigger contract modifications or claims. Robust project management and contingency planning by the agency are essential to mitigate these risks and ensure the project stays within budget.
How does the successful completion of this healthcare center align with the Indian Health Service's broader mission and strategic goals for improving healthcare delivery?
The construction of the Fort Yuma Healthcare Center directly supports the IHS mission by expanding access to essential medical services in an underserved area. This aligns with strategic goals focused on infrastructure development, modernization of facilities, and improving health outcomes for Native Americans. The new facility is expected to enhance the quality and range of care provided, contributing to the overall well-being of the community.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: 15102SOL00009
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2975 S AVE B, YUMA, AZ, 85364
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $36,329,985
Exercised Options: $36,329,985
Current Obligation: $36,329,985
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-01-05
Current End Date: 2020-01-20
Potential End Date: 2020-01-20 00:00:00
Last Modified: 2019-12-05
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