DoD's $65.5M COVID-19 Alternate Care Facility Contract Awarded to Metropolitan Pier and Exposition Authority
Contract Overview
Contract Amount: $65,526,533 ($65.5M)
Contractor: Metropolitan Pier and Exposition Authority
Awarding Agency: Department of Defense
Start Date: 2020-03-28
End Date: 2020-04-24
Contract Duration: 27 days
Daily Burn Rate: $2.4M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COVID-19 ALTERNATE CARE FACILITY (ACF): MCCORMICK PLACE - CHICAGO, IL
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60616
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $65.5 million to METROPOLITAN PIER AND EXPOSITION AUTHORITY for work described as: COVID-19 ALTERNATE CARE FACILITY (ACF): MCCORMICK PLACE - CHICAGO, IL Key points: 1. Significant expenditure for emergency healthcare infrastructure during the pandemic. 2. Lack of competition raises questions about price discovery and potential value. 3. Contract awarded during a national emergency, potentially impacting standard procurement processes. 4. Construction sector spending benchmark for emergency facilities needs careful review.
Value Assessment
Rating: questionable
The contract value of $65.5M for a 27-day duration is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the services and facilities provided compared to similar emergency construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers and limiting opportunities for other qualified contractors.
Taxpayer Impact: The lack of competition in awarding a large contract during a crisis may have resulted in taxpayer funds being spent at a non-optimal price point.
Public Impact
Ensured critical healthcare capacity during the COVID-19 pandemic. Demonstrates government's ability to rapidly procure essential services in emergencies. Highlights the significant financial investment required for public health infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High cost for short duration
- Potential for cost overruns due to emergency nature
Positive Signals
- Rapid deployment of critical infrastructure
- Met urgent public health needs
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, specifically for an Alternate Care Facility. Emergency construction projects during crises often command premium pricing due to urgency and limited contractor availability.
Small Business Impact
The contract was awarded to the Metropolitan Pier and Exposition Authority, which is a governmental entity, not a small business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
Awarded by the Department of the Army under the Department of Defense, this contract should be subject to standard oversight for emergency procurements to ensure funds are used effectively and appropriately.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- High cost relative to duration
- Potential for non-competitive pricing
- Limited transparency in price determination
Tags
commercial-and-institutional-building-co, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.5 million to METROPOLITAN PIER AND EXPOSITION AUTHORITY. COVID-19 ALTERNATE CARE FACILITY (ACF): MCCORMICK PLACE - CHICAGO, IL
Who is the contractor on this award?
The obligated recipient is METROPOLITAN PIER AND EXPOSITION AUTHORITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $65.5 million.
What is the period of performance?
Start: 2020-03-28. End: 2020-04-24.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids, even in an emergency?
The justification for a sole-source award during an emergency typically centers on the extreme urgency of the need, the unavailability of other sources, or the unique capabilities of the awarded entity. For the COVID-19 ACF, the rapid escalation of the pandemic likely necessitated immediate action to secure critical healthcare capacity, potentially overriding standard competitive procurement timelines.
How does the per-day cost of this facility compare to similar emergency healthcare setups or standard construction costs for comparable spaces?
Without competitive bids, a direct comparison is challenging. However, the total award of $65.5M over 27 days equates to approximately $2.4M per day. This figure needs to be benchmarked against the cost of leasing existing facilities, rapidly constructing temporary structures, or converting existing buildings for similar medical purposes during the pandemic.
What measures were in place to ensure accountability and prevent waste, fraud, and abuse given the expedited, non-competitive nature of the award?
While expedited, emergency contracts still require oversight. Accountability measures would typically include detailed reporting requirements, site inspections, and post-award audits. The Department of Defense and the Army would be responsible for ensuring that the funds were used for their intended purpose and that the contractor met all contractual obligations, despite the lack of pre-award competition.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912P620R0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 301 E CERMAK RD, CHICAGO, IL, 60616
Business Categories: U.S. Government Authorities, Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $65,526,533
Exercised Options: $65,526,533
Current Obligation: $65,526,533
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-28
Current End Date: 2020-04-24
Potential End Date: 2020-04-24 00:00:00
Last Modified: 2020-06-08
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