DoD's $17.8M Naval Medical Center Design-Build Contract Awarded to HSMM/HOK Walter Reed JV

Contract Overview

Contract Amount: $17,813,451 ($17.8M)

Contractor: Hsmm/Hok Walter Reed JV

Awarding Agency: Department of Defense

Start Date: 2007-01-25

End Date: 2009-03-31

Contract Duration: 796 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL FACILITIES DESIGN-BUILD RFP DOCUMENTS NAD PARRKING FACILITIES, NATIONAL NAVAL MEDICAL CENTER, BETHESDA, MD.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to HSMM/HOK WALTER REED JV for work described as: MEDICAL FACILITIES DESIGN-BUILD RFP DOCUMENTS NAD PARRKING FACILITIES, NATIONAL NAVAL MEDICAL CENTER, BETHESDA, MD. Key points: 1. Contract awarded for design-build of medical facilities and parking at the National Naval Medical Center. 2. The contract was secured through full and open competition, indicating a broad solicitation process. 3. A firm-fixed-price structure was used, which shifts cost risk to the contractor. 4. The contract duration was 796 days, spanning from January 2007 to March 2009. 5. The award value of $17.8 million is a significant investment in healthcare infrastructure. 6. The project is located in Bethesda, Maryland, a key hub for military medicine.

Value Assessment

Rating: good

The contract value of $17.8 million for design-build of medical facilities and parking appears reasonable for a project of this scope. Benchmarking against similar large-scale healthcare construction projects would provide a more precise assessment of value for money. The firm-fixed-price contract type suggests that the initial bid was competitive and the contractor assumed cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this significant project. This competitive environment is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive bidding process that aims to secure the best value.

Public Impact

Beneficiaries include military personnel and their families receiving care at the National Naval Medical Center. Services delivered include the design and construction of essential medical facilities and parking. The geographic impact is concentrated in Bethesda, Maryland, enhancing local healthcare infrastructure. The project likely involved a significant number of architects, engineers, and construction workers, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Ensuring timely completion within the 796-day duration is critical to avoid impacting medical services.
Quality control during design and construction must be rigorously monitored to meet medical facility standards.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, potentially saving taxpayer money.
Full and open competition likely resulted in a competitive bid and good value.
The project addresses critical healthcare infrastructure needs for the Navy.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, specifically focusing on design-build for large-scale medical facilities. The market for healthcare construction and design is substantial, driven by the need for modern, specialized medical infrastructure. This project represents a significant investment in specialized healthcare facilities, aligning with broader trends in government and private sector healthcare development.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, HSMM/HOK Walter Reed JV, is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures would include adherence to the firm-fixed-price terms, quality control inspections, and milestone completion tracking. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Military Construction Projects
Healthcare Facility Design and Construction
Naval Medical Facilities
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of schedule delays impacting medical facility readiness.
Ensuring adherence to stringent medical facility design and construction standards.
Contractor performance and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to HSMM/HOK WALTER REED JV. MEDICAL FACILITIES DESIGN-BUILD RFP DOCUMENTS NAD PARRKING FACILITIES, NATIONAL NAVAL MEDICAL CENTER, BETHESDA, MD.

Who is the contractor on this award?

The obligated recipient is HSMM/HOK WALTER REED JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2007-01-25. End: 2009-03-31.

What is the track record of HSMM/HOK Walter Reed JV in executing similar large-scale medical facility design-build projects?

Assessing the track record of HSMM/HOK Walter Reed JV is crucial for understanding their capability to deliver this project successfully. While the provided data confirms their award for the National Naval Medical Center project, it does not detail their past performance on similar contracts. A thorough review would involve examining past performance evaluations, project completion history, and any documented issues or successes on comparable design-build healthcare facilities. This analysis would help determine if the JV has a proven history of meeting deadlines, staying within budget, and delivering high-quality medical infrastructure, thereby mitigating risks associated with this specific contract.

How does the awarded value of $17.8 million compare to industry benchmarks for similar medical facility design-build projects?

The awarded value of $17.8 million for the design-build of medical facilities and parking at the National Naval Medical Center requires comparison with industry benchmarks for similar projects. Factors influencing cost include facility size, complexity of medical equipment integration, specific design requirements, and geographic location. Benchmarking would involve analyzing data from similar projects in terms of cost per square foot, cost per bed, or cost per parking space. Without access to a comprehensive database of comparable projects and their costs, it is difficult to definitively state whether $17.8 million represents excellent, fair, or questionable value. However, given the firm-fixed-price nature and full and open competition, it suggests a competitive pricing environment.

What are the primary risks associated with this firm-fixed-price contract for medical facility design-build?

The primary risks associated with this firm-fixed-price contract for medical facility design-build, despite shifting cost risk to the contractor, include potential scope creep if contract modifications are not managed tightly, and unforeseen site conditions that could lead to change orders and disputes. Contractor performance risk is also significant; if the contractor lacks the expertise or resources to deliver the project on time and to the required quality standards, it could lead to delays and impact the operational readiness of the medical center. Furthermore, the complexity of medical facility design, including specialized systems and regulatory compliance, introduces inherent risks that must be carefully managed throughout the project lifecycle.

How effective was the full and open competition in ensuring optimal price discovery for this contract?

The full and open competition utilized for this contract is generally considered the most effective method for ensuring optimal price discovery. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that reflect true market value. The fact that three bids were received suggests sufficient interest and competition. This process encourages bidders to offer their best pricing and most efficient solutions to win the contract. The firm-fixed-price structure further reinforces this by requiring the contractor to absorb cost overruns, incentivizing accurate initial pricing.

What is the historical spending pattern for medical facility design-build contracts within the Department of the Navy over the past decade?

Analyzing historical spending patterns for medical facility design-build contracts within the Department of the Navy over the past decade would provide valuable context for this $17.8 million award. This would involve examining the frequency, size, and types of similar contracts awarded, as well as the prevailing contract types and competition levels. Understanding trends in spending, average contract values, and the success rates of design-build approaches in naval healthcare infrastructure can help identify if this contract is an outlier, part of a consistent investment strategy, or indicative of changing procurement approaches. Such analysis could also reveal patterns in contractor performance and pricing over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1315 FRANKLIN RD SW, ROANOKE, VA, 24016

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,813,451

Exercised Options: $17,813,451

Current Obligation: $17,813,451

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline