Young Gun Construction LLC awarded $5M for Bluff Reclamation Project, facing limited competition

Contract Overview

Contract Amount: $5,034,126 ($5.0M)

Contractor: Young GUN Construction LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-04-01

End Date: 2025-09-30

Contract Duration: 182 days

Daily Burn Rate: $27.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RILEY PASS FY25 2025 BLUFF B RECLAMATION PROJECT

Place of Performance

Location: LUDLOW, HARDING County, SOUTH DAKOTA, 57755

State: South Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.0 million to YOUNG GUN CONSTRUCTION LLC for work described as: RILEY PASS FY25 2025 BLUFF B RECLAMATION PROJECT Key points: 1. The contract's fixed-price nature aims to control costs, but the limited competition raises concerns about optimal value. 2. The remediation services sector is competitive, yet this specific project's procurement approach warrants scrutiny. 3. Performance risk appears moderate given the short duration and defined scope, but contractor experience is a key factor. 4. This project aligns with the Forest Service's broader land management and environmental restoration goals. 5. The contract's value proposition is contingent on the effectiveness of the remediation services delivered. 6. Geographic concentration in South Dakota may limit broader market testing for similar services.

Value Assessment

Rating: fair

Benchmarking the $5.03 million award for remediation services is challenging without detailed scope and comparable project data. The firm fixed-price contract suggests an attempt to define costs upfront. However, the lack of robust competition means there's less assurance that the price reflects the best possible value achievable in a more open market. Further analysis would require understanding the specific remediation tasks and comparing them to industry standards for similar environmental projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a limited solicitation process. This suggests that either only one source was deemed capable of meeting the requirements, or there were specific circumstances justifying a non-competitive award. The limited number of bidders, potentially only one, restricts price discovery and may lead to a less competitive outcome for the government.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of a competitive bidding process, potentially resulting in a higher price than if multiple firms had vied for the contract.

Public Impact

The primary beneficiaries are the environmental restoration efforts managed by the Forest Service. Services delivered include remediation of land impacted by past activities, contributing to ecological health. The geographic impact is concentrated in South Dakota, specifically the area designated for the Bluff Reclamation Project. Workforce implications may include local employment opportunities for skilled remediation technicians and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in a higher cost to taxpayers.
Lack of transparency in the non-competitive award process.
Potential for contractor lock-in if future phases are also sole-sourced.

Positive Signals

Firm fixed-price contract provides cost certainty.
Project duration is relatively short, potentially reducing long-term risk.
Focus on environmental remediation aligns with agency conservation goals.

Sector Analysis

The remediation services sector is a critical component of environmental management and infrastructure development. This contract falls within the broader construction and environmental services industry, which is characterized by specialized expertise and varying levels of competition depending on the project's complexity and location. Federal spending in this area supports ecological restoration, hazardous material cleanup, and land reclamation efforts across various agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided. Given the limited competition award, it is unclear if small businesses had an opportunity to participate in this specific contract, either as the prime contractor or as subcontractors. Further investigation into the award justification would be needed to assess potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Forest Service contracting officer and program managers. Accountability is established through the firm fixed-price contract terms and performance requirements. Transparency is limited by the non-competitive award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Remediation Services
Land Reclamation Projects
Forest Service Conservation Programs
Federal Environmental Contracts

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.0 million to YOUNG GUN CONSTRUCTION LLC. RILEY PASS FY25 2025 BLUFF B RECLAMATION PROJECT

Who is the contractor on this award?

The obligated recipient is YOUNG GUN CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-09-30.

What is the specific nature of the 'Bluff Reclamation Project' and the remediation services required?

The 'RILEY PASS FY25 2025 BLUFF B RECLAMATION PROJECT' is a land reclamation initiative undertaken by the Forest Service. While the provided data does not detail the specific environmental hazards or the exact remediation techniques, such projects typically involve addressing soil erosion, removing invasive species, restoring native vegetation, or cleaning up contaminated sites to improve ecological health and land usability. The 'Remediation Services' NAICS code (562910) confirms the focus on environmental cleanup and site remediation activities. The project's location in South Dakota and its firm fixed-price nature suggest a defined scope of work aimed at achieving specific environmental restoration outcomes within a set budget and timeframe.

How does the $5.03 million award compare to similar remediation projects managed by the Forest Service or other agencies?

Direct comparison of the $5.03 million award is difficult without detailed project specifications. However, federal remediation contracts can range significantly in cost, from hundreds of thousands for smaller site cleanups to tens or hundreds of millions for large-scale hazardous waste removal or extensive land restoration. The 'Bluff Reclamation Project' appears to be a mid-sized initiative. Factors influencing cost include the type and extent of contamination, the complexity of the terrain, the required remediation technologies, labor costs in the specific geographic area (South Dakota), and the duration of the project (182 days). A firm fixed-price contract aims to cap these costs, but the benchmark value is best assessed against projects with highly similar environmental challenges and geographical contexts.

What are the potential risks associated with awarding this contract on a non-competitive basis?

Awarding the contract on a 'NOT AVAILABLE FOR COMPETITION' basis carries several risks. Primarily, it limits price discovery, meaning the government may pay more than it would in a competitive environment where multiple bidders vie for the work. This can lead to reduced value for taxpayer money. Secondly, it restricts the pool of potential contractors, potentially excluding innovative solutions or more efficient methods that other firms might offer. There's also a risk of complacency from the awarded contractor, as they face no direct competition for this specific contract. While the firm fixed-price structure mitigates some financial risk, the overall efficiency and effectiveness could be compromised without competitive pressure.

What is the track record of Young Gun Construction LLC in performing federal remediation contracts?

The provided data does not include specific details on the track record of Young Gun Construction LLC. To assess their suitability and past performance, one would need to examine their contract history within federal databases like SAM.gov or FPDS. Key areas to investigate would include the types of projects they have completed, their performance ratings on previous contracts, any history of contract disputes or terminations, and their experience with similar remediation services. A strong track record with successful project completion, on-time delivery, and within budget would increase confidence in their ability to execute the Bluff Reclamation Project effectively.

What are the historical spending patterns for remediation services by the Forest Service or the Department of Agriculture?

Historical spending on remediation services by the Forest Service and the broader Department of Agriculture (USDA) is substantial, reflecting their extensive land management responsibilities. These agencies frequently engage contractors for activities such as hazardous material abatement, wildfire recovery, soil and water remediation, and ecosystem restoration across millions of acres of federal land. Annual spending can fluctuate based on environmental events (like wildfires or natural disasters), legislative priorities, and budget allocations. Analyzing past spending trends would reveal patterns in contract types (e.g., fixed-price vs. cost-plus), common contractors, and the geographic distribution of remediation efforts, providing context for the current $5.03 million award.

How does the duration of 182 days impact the assessment of this contract's value and risk?

The relatively short duration of 182 days (approximately six months) for the Bluff Reclamation Project has several implications. For value assessment, it suggests a well-defined, potentially smaller-scale scope of work that can be completed within a limited timeframe. This can reduce the risk of cost overruns associated with prolonged projects and allows for quicker realization of environmental benefits. From a risk perspective, a shorter duration generally lowers the probability of unforeseen issues arising, such as significant changes in environmental regulations, unexpected site conditions, or contractor performance degradation over time. However, it also implies that the contractor must mobilize and execute efficiently to meet the deadline, which could increase pressure and potentially impact quality if not managed properly.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1240LU25R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10609 S CAVE RD, LUDLOW, SD, 57755

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,034,126

Exercised Options: $5,034,126

Current Obligation: $5,034,126

Actual Outlays: $5,034,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline