DoD's $11.7M Keesler AFB radiation oncology clinic contract awarded to Carothers Construction Inc

Contract Overview

Contract Amount: $11,718,632 ($11.7M)

Contractor: Carothers Construction Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-04

End Date: 2009-10-17

Contract Duration: 592 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DIAGNOSTIC IMAGING CENTER-RADIATION ONCOLOGY CLINIC, KEESLER AFB, MS.

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39534

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to CAROTHERS CONSTRUCTION INC for work described as: DIAGNOSTIC IMAGING CENTER-RADIATION ONCOLOGY CLINIC, KEESLER AFB, MS. Key points: 1. The contract aimed to establish a radiation oncology clinic, a critical healthcare facility. 2. The fixed-price contract structure suggests a defined scope and budget, potentially limiting cost overruns. 3. The award was made under full and open competition, indicating a broad search for qualified contractors. 4. The contract duration of approximately 592 days points to a significant construction project. 5. The geographic location in Mississippi may have implications for local workforce and material sourcing. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities are not mandated by this specific award.

Value Assessment

Rating: fair

The contract value of $11.7 million for a radiation oncology clinic at Keesler AFB appears to be within a reasonable range for specialized medical facility construction. However, without specific details on the scope of work, square footage, and included equipment, a precise value-for-money assessment is challenging. Benchmarking against similar military or civilian healthcare construction projects of comparable size and complexity would be necessary for a more definitive evaluation of pricing and value.

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 4 bidders suggests a moderate level of competition for this specialized construction project. While not an exceptionally high number of bidders, it indicates that multiple firms were interested and capable of undertaking the work, which generally supports price discovery and a more competitive outcome.

Taxpayer Impact: Full and open competition, with multiple bidders, is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a wide range of options to secure the best value.

Public Impact

Military personnel and their families at Keesler Air Force Base will benefit from on-site radiation oncology services. The contract facilitated the construction of a specialized medical facility, enhancing healthcare infrastructure. The project's geographic impact is concentrated in Mississippi, potentially supporting local construction jobs and businesses. The delivery of advanced medical services aims to improve patient outcomes and reduce the need for off-base treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Dependence on the primary contractor's ability to manage complex medical construction projects.
Limited visibility into subcontracting opportunities for small businesses unless specified by the prime.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Fixed-price contract type can provide cost certainty for the government.
The project addresses a critical healthcare need for military beneficiaries.

Sector Analysis

The construction of specialized medical facilities, such as radiation oncology clinics, falls within the broader commercial and institutional building construction sector. This sector is characterized by projects requiring specific technical expertise, adherence to stringent building codes, and often, specialized equipment integration. The market for such facilities can be influenced by healthcare demand, technological advancements in medical treatment, and government healthcare spending priorities. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per procedure room for similar medical facilities constructed by government agencies or private healthcare providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a larger firm, or that the competition was open to all sizes without specific small business preferences. While there's no explicit subcontracting requirement mentioned, prime contractors in large construction projects often engage small businesses for specialized trades or material supply, though the extent of this is not detailed here. The impact on the small business ecosystem would depend on whether Carothers Construction Inc. actively sought out and utilized small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy, responsible for ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are inherent in the firm-fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency is generally facilitated through contract award databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction Projects
Healthcare Facility Construction
Department of Defense Medical Facilities
Radiation Oncology Services

Risk Flags

Potential for specialized construction complexity
Need for precise radiation shielding and medical equipment integration
Dependence on contractor's specialized experience

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to CAROTHERS CONSTRUCTION INC. DIAGNOSTIC IMAGING CENTER-RADIATION ONCOLOGY CLINIC, KEESLER AFB, MS.

Who is the contractor on this award?

The obligated recipient is CAROTHERS CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2008-03-04. End: 2009-10-17.

What was the specific scope of work for the radiation oncology clinic construction?

The provided data indicates the contract was for the 'DIAGNOSTIC IMAGING CENTER-RADIATION ONCOLOGY CLINIC' at Keesler AFB, MS. While the exact scope of work is not detailed, it would typically encompass site preparation, construction of the building shell and interior spaces, installation of specialized radiation shielding, HVAC systems, electrical, plumbing, and potentially integration points for medical equipment like linear accelerators. The firm-fixed-price nature suggests a well-defined scope was established prior to award to manage costs effectively. Further details would likely be found in the contract's statement of work or performance work statement.

How does the $11.7 million contract value compare to similar healthcare construction projects?

Benchmarking the $11.7 million contract value requires comparison with similar specialized medical facility constructions. For instance, the construction of a standalone radiation oncology center, including shielding and specialized infrastructure, can range significantly based on size, location, and equipment. Projects of this nature, especially within a military context which may have additional security and logistical requirements, could range from several million to tens of millions of dollars. Without specific details on square footage, the complexity of the radiation shielding, and the type/quantity of medical equipment integrated, a precise comparison is difficult. However, for a dedicated clinic, $11.7M appears to be within a plausible range, assuming a moderate size and scope.

What are the potential risks associated with constructing a specialized medical facility like a radiation oncology clinic?

Constructing a radiation oncology clinic presents several risks. These include the highly specialized nature of radiation shielding, which requires precise engineering and construction to ensure safety and compliance with regulations, potentially leading to costly rework if errors occur. Integration of complex medical equipment, such as linear accelerators, requires careful coordination between construction and equipment vendors, posing risks of delays or compatibility issues. Furthermore, adherence to stringent healthcare building codes and standards adds complexity. The firm-fixed-price contract aims to mitigate cost risks for the government, but unforeseen site conditions or design changes could still pose challenges for the contractor, potentially impacting schedule or quality if not managed effectively.

What is the track record of Carothers Construction Inc. in government contracting, particularly for medical facilities?

Information on Carothers Construction Inc.'s specific track record with government contracts, especially for medical facilities, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar projects, including client satisfaction, adherence to schedule and budget, and any history of contract disputes or modifications. Their experience with Department of Defense or other federal agency projects, particularly those involving specialized construction like healthcare or research facilities, would be a key indicator of their capability and reliability for this type of work.

How has federal spending on healthcare facility construction evolved, and where does this contract fit?

Federal spending on healthcare facility construction, particularly within the Department of Defense, has historically fluctuated based on military readiness needs, modernization efforts, and healthcare system upgrades. This $11.7 million contract for a radiation oncology clinic at Keesler AFB represents a specific investment in enhancing medical capabilities for military beneficiaries. It aligns with broader trends of improving healthcare infrastructure within military installations to provide comprehensive care. While this single contract is a small part of overall federal construction spending, it reflects a targeted allocation towards specialized medical services, potentially part of a larger initiative to upgrade or expand healthcare services across various bases.

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: N6945007R0763

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7084 COUNTY ROAD 436, WATER VALLEY, MS, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,718,632

Exercised Options: $11,718,632

Current Obligation: $11,718,632

Contract Characteristics

Cost or Pricing Data: NO

Timeline