Holitna Construction awarded $19M for Miramar Ambulatory Care Center project, a sole-source contract

Contract Overview

Contract Amount: $19,048,830 ($19.0M)

Contractor: Holitna Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2028-02-15

End Date: 2028-02-15

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MARINE CORPS AIR STATION MIRAMAR AMBULATORY CARE CENTER IO PROJECT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to HOLITNA CONSTRUCTION, LLC for work described as: MARINE CORPS AIR STATION MIRAMAR AMBULATORY CARE CENTER IO PROJECT Key points: 1. The contract's value of $19 million for an ambulatory care center project warrants scrutiny regarding cost-effectiveness. 2. As a sole-source award, the absence of competitive bidding raises concerns about potential overpricing and reduced value for money. 3. The fixed-firm price contract structure aims to mitigate cost overruns, but the lack of competition limits price discovery. 4. Performance context is limited due to the contract's recent award and sole-source nature, making benchmarking difficult. 5. This contract falls within the Defense sector, specifically supporting military healthcare infrastructure. 6. The project's location in California may have implications for local labor markets and material sourcing.

Value Assessment

Rating: questionable

The $19 million award for the Ambulatory Care Center project lacks readily available comparable contract data due to its sole-source nature. Without competitive bids, it is difficult to benchmark the pricing against market rates or similar projects. The firm fixed-price structure provides some cost certainty, but the absence of competition prevents an assessment of whether the price represents fair and reasonable value. Further analysis would require access to cost breakdowns or historical data for similar sole-source construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis to Holitna Construction, LLC. The lack of competition means that multiple bidders were not solicited, and the government did not benefit from a bidding process to drive down prices or explore alternative solutions. This approach is typically used when only one source is capable of meeting the requirement, but it limits the government's ability to ensure the best possible price and value.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods or services, as the competitive pressure that typically leads to lower prices is absent. This can result in less efficient use of public funds.

Public Impact

The primary beneficiaries are the military personnel and their families stationed at Marine Corps Air Station Miramar, who will gain access to improved healthcare facilities. The project will deliver a new ambulatory care center, enhancing the medical services available on base. The geographic impact is localized to Marine Corps Air Station Miramar in San Diego, California. The construction and furnishing of the facility will likely create temporary employment opportunities in the local construction and trades sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of transparency in the procurement process due to no-bid award.
Potential for cost overruns if not rigorously managed, despite fixed-price.
Limited public information on contractor's specific experience with similar large-scale healthcare facilities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a specific contractor suggests they met unique requirements or were the only viable option.
Project aims to improve critical healthcare infrastructure for military personnel.

Sector Analysis

The construction and facilities management sector is a significant area of federal spending. This contract for an ambulatory care center falls under the broader umbrella of healthcare infrastructure development within the Department of Defense. Comparable spending benchmarks for similar sole-source healthcare facility construction projects are difficult to ascertain without more specific project details and cost breakdowns. However, the federal government consistently invests in upgrading and maintaining its medical facilities to ensure readiness and provide adequate care to service members.

Small Business Impact

This contract was awarded to Holitna Construction, LLC and there is no indication of a small business set-aside (ss: false) or subcontracting plan (sb: false) being a primary driver for this specific award. As a sole-source contract, the focus was likely on the unique capabilities of the awarded contractor rather than broad participation by small businesses. This means that opportunities for small businesses to participate in this specific project may be limited unless the prime contractor voluntarily engages them for subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, which awarded the contract on behalf of the Marine Corps. Accountability measures would include contract performance monitoring, milestone reviews, and financial audits. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Department of Defense Healthcare Facilities
Ambulatory Care Center Construction
Sole-Source Construction Contracts
Federal Healthcare Infrastructure

Risk Flags

Sole-source award raises concerns about competition and price.
Lack of detailed justification for sole-source procurement.
Limited public data on contractor's relevant experience.
Potential for higher costs compared to competitive bids.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to HOLITNA CONSTRUCTION, LLC. MARINE CORPS AIR STATION MIRAMAR AMBULATORY CARE CENTER IO PROJECT

Who is the contractor on this award?

The obligated recipient is HOLITNA CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2028-02-15. End: 2028-02-15.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'SOLE SOURCE'. However, the specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the agency's needs, or in cases of urgent and compelling requirements. Without further documentation from the awarding agency (Department of the Army), the precise rationale, such as unique technical capabilities, proprietary technology, or extreme urgency, remains unknown. This lack of transparency is a common concern with sole-source procurements.

How does the $19 million cost compare to similar ambulatory care center projects, particularly those awarded sole-source?

Directly comparing the $19 million cost to similar projects is challenging without more specific data on the scope, size (square footage), and complexity of the Miramar Ambulatory Care Center. Furthermore, sole-source contracts inherently lack the price discovery mechanism of competitive bidding, making direct value-for-money comparisons difficult. Generally, sole-source awards may result in higher costs compared to competitively bid contracts. To assess value, one would need to analyze the contractor's cost breakdown, compare it to industry benchmarks for similar construction types, and evaluate the necessity and urgency that led to the sole-source decision. The firm fixed-price nature suggests an attempt to control costs, but the baseline price itself is unverified by competition.

What are the potential risks associated with a sole-source construction contract of this magnitude?

The primary risk with a sole-source construction contract of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not achieve the most economical price. Other risks include limited innovation, as the contractor may not be incentivized to propose cost-saving alternatives, and potential quality issues if oversight is insufficient, as there's less market pressure to maintain high standards. Furthermore, the justification for the sole-source award itself could be flawed, leading to inefficient use of taxpayer funds. Robust contract management and oversight are crucial to mitigate these risks.

What is Holitna Construction, LLC's track record with similar federal healthcare construction projects?

The provided data identifies Holitna Construction, LLC as the contractor but does not offer details on their specific track record, particularly concerning federal healthcare construction projects. To assess their suitability and past performance, one would need to consult federal procurement databases (like SAM.gov), past performance reviews, and potentially agency-specific contract award histories. Information regarding their experience with ambulatory care centers, project management capabilities for facilities of this scale, and history of meeting deadlines and budget constraints on similar government contracts would be essential for a comprehensive evaluation.

What are the long-term implications for healthcare services at MCAS Miramar following this project?

The long-term implication of this project is the modernization and potential expansion of healthcare services available to personnel and their families at Marine Corps Air Station Miramar. A new ambulatory care center is expected to provide enhanced medical capabilities, potentially including more specialized services, improved patient capacity, and updated medical technology. This investment aims to ensure that military healthcare facilities are equipped to meet the evolving health needs of the force, contributing to overall readiness and well-being. The success of these implications hinges on the effective completion of the construction and the subsequent operational efficiency of the new facility.

Are there any specific performance metrics or milestones tied to this contract that are publicly available?

The provided data does not include specific performance metrics or milestones tied to this contract. Typically, such details are outlined in the contract's statement of work (SOW) and are not always made public, especially for sole-source awards. Performance monitoring would likely involve adherence to the construction schedule, quality control standards, and adherence to the firm fixed-price budget. Without access to the full contract document or agency reporting, it is impossible to detail the specific KPIs or milestones. However, the contract end date of February 15, 2028, suggests a multi-year construction and delivery timeline.

Industry Classification

NAICS: Manufacturing › Household and Institutional Furniture and Kitchen Cabinet Manufacturing › Institutional Furniture Manufacturing

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 WANDO PARK BLVD, MOUNT PLEASANT, SC, 29464

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,048,830

Exercised Options: $19,048,830

Current Obligation: $19,048,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline