DoD's $22.6M Hospital Replacement Contract Awarded to LEO A DALY/RLF Under Full and Open Competition
Contract Overview
Contract Amount: $22,650,301 ($22.7M)
Contractor: LEO a Daly/Rlf
Awarding Agency: Department of Defense
Start Date: 2009-03-30
End Date: 2017-09-30
Contract Duration: 3,106 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 1-5 AE FT. RILEY HOSPITAL REPLACEMENT
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68114
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $22.7 million to LEO A DALY/RLF for work described as: 1-5 AE FT. RILEY HOSPITAL REPLACEMENT Key points: 1. The contract awarded was for architectural services for a hospital replacement project. 2. LEO A DALY/RLF secured the contract through full and open competition. 3. The project duration was 3106 days, indicating a long-term commitment. 4. The contract was firm fixed price, providing cost certainty for the government.
Value Assessment
Rating: good
The contract value of $22.6 million for architectural services appears reasonable for a hospital replacement project of this scale and duration. Benchmarking against similar large-scale healthcare construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery and achieving a competitive price. This method allows all qualified contractors to bid, fostering a market-driven outcome.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available.
Public Impact
Replacement of a critical healthcare facility at Fort Riley ensures continued medical services for military personnel and their families. The project's long duration suggests a significant undertaking with potential for substantial economic activity and job creation in the architectural and construction sectors. The firm fixed price contract structure provides budget predictability for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (3106 days) could lead to cost overruns if not managed effectively.
- Potential for scope creep in a large hospital replacement project.
- Reliance on a single awardee for a long-term project.
Positive Signals
- Firm fixed price contract limits cost risk for the government.
- Full and open competition suggests a competitive award process.
- Project addresses a critical infrastructure need for the military.
Sector Analysis
Architectural services for large-scale government projects, particularly healthcare facilities, are a significant segment of the professional services sector. Spending benchmarks for such projects vary widely based on size, complexity, and location.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense, which typically has robust oversight mechanisms for large construction and service contracts. The long duration necessitates ongoing monitoring.
Related Government Programs
- Architectural Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases potential for scope creep and management challenges.
- Hospital construction projects are complex and prone to unforeseen issues.
- Lack of specific small business participation data.
- Potential for cost escalation if not managed tightly, despite fixed price.
Tags
architectural-services, department-of-defense, ne, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.7 million to LEO A DALY/RLF. 1-5 AE FT. RILEY HOSPITAL REPLACEMENT
Who is the contractor on this award?
The obligated recipient is LEO A DALY/RLF.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.7 million.
What is the period of performance?
Start: 2009-03-30. End: 2017-09-30.
What was the specific scope of architectural services required for the hospital replacement, and how did it align with the final contract value?
The specific scope of architectural services would encompass detailed design, planning, and potentially oversight for the Fort Riley hospital replacement. The $22.6 million value suggests a comprehensive service package for a major facility. A detailed breakdown of deliverables against cost would be needed for a precise value assessment, but the scale of a hospital replacement typically justifies such an investment in architectural expertise.
Were there any significant risks identified during the bidding process or contract execution that could impact project timelines or costs?
Given the project's long duration and the nature of hospital construction, risks could include unforeseen site conditions, changes in medical technology requirements, or contractor performance issues. The firm fixed price contract mitigates direct cost increases for the government, but delays could still impact operational readiness. Effective risk management and oversight by the Army would be crucial.
How effectively did the full and open competition process ensure the government secured the best value for these architectural services?
Full and open competition is designed to maximize value by encouraging broad participation and competitive pricing. The fact that this method was used suggests an effort to obtain competitive bids. The ultimate measure of effectiveness would be a post-award analysis comparing the final price and quality of services against industry benchmarks and alternative procurement strategies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural 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
Solicitation ID: W912DQ09R4001
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8600 INDIAN HILLS DR, OMAHA, NE, 68114
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,650,301
Exercised Options: $22,650,301
Current Obligation: $22,650,301
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-03-30
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2023-01-27
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)