Interior Department awards $18.8M contract for dormitory design and build to Aleut Construction LLC

Contract Overview

Contract Amount: $18,798,396 ($18.8M)

Contractor: Aleut Construction LLC

Awarding Agency: Department of the Interior

Start Date: 2021-09-20

End Date: 2026-01-20

Contract Duration: 1,583 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESGN BLD-REPLACEMENT ATSA BIYAAZH DORM

Place of Performance

Location: SHIPROCK, SAN JUAN County, NEW MEXICO, 87420

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $18.8 million to ALEUT CONSTRUCTION LLC for work described as: DESGN BLD-REPLACEMENT ATSA BIYAAZH DORM Key points: 1. The contract's value of $18.8 million represents a significant investment in infrastructure for the Bureau of Indian Affairs and Bureau of Indian Education. 2. Aleut Construction LLC, the awardee, has a track record that warrants examination for performance on similar projects. 3. The contract type, Firm Fixed Price, aims to control costs but requires careful monitoring for scope creep. 4. The duration of the contract, spanning over 1500 days, suggests a complex and lengthy project. 5. Geographic location in New Mexico may indicate specific regional needs or workforce considerations. 6. The contract's purpose, dormitory design and build, directly addresses student housing needs.

Value Assessment

Rating: fair

Benchmarking the $18.8 million price tag for a dormitory design and build project requires detailed cost breakdowns and comparison to similar construction projects in New Mexico. Without specific cost data per square foot or per dormitory unit, a precise value-for-money assessment is challenging. However, the firm fixed-price nature suggests an attempt to cap costs, which is a positive indicator if the scope is well-defined. Further analysis would involve comparing the contractor's proposed costs against industry standards for similar construction types and complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests a competitive process but with specific limitations. This procurement method implies that while multiple sources were considered, certain entities might have been excluded based on predefined criteria. The number of bidders (5) indicates some level of competition, but the 'exclusion of sources' aspect warrants further investigation to understand if it limited the pool of potential offerors and potentially impacted price discovery.

Taxpayer Impact: While competition existed, the exclusion of certain sources may have prevented the government from obtaining the absolute lowest price achievable through unrestricted full and open competition.

Public Impact

Students and educational staff at facilities managed by the Bureau of Indian Affairs and Bureau of Indian Education will benefit from improved dormitory facilities. The contract will deliver design and construction services for new dormitory structures. The project's impact is geographically focused on New Mexico, addressing specific infrastructure needs in the region. The construction activities will likely create temporary employment opportunities for skilled and unskilled labor in the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' could limit the competitive landscape and potentially lead to higher costs.
The long contract duration (1583 days) increases the risk of unforeseen cost escalations or delays if not managed meticulously.
Lack of detailed cost breakdowns makes it difficult to assess the true value for money.
The specific reasons for excluding sources in the competition process are not detailed, raising questions about fairness and optimal price.
The contractor's past performance on similar large-scale construction projects needs thorough review to mitigate execution risks.

Positive Signals

The contract is awarded as Firm Fixed Price, which helps in budget certainty and cost control.
The award to Aleut Construction LLC, a company with experience in construction, suggests a focus on qualified bidders.
The project addresses a critical need for improved student housing, directly impacting educational outcomes.
The Bureau of Indian Affairs and Bureau of Indian Education are involved, indicating alignment with agency missions.
The contract specifies a clear deliverable: dormitory design and build, providing a defined scope.

Sector Analysis

The construction sector, particularly commercial and institutional building, is a significant area of federal spending. This contract falls within the broader category of infrastructure development, which often sees substantial investment, especially for agencies like the Department of the Interior serving specific populations. Comparable spending benchmarks would involve analyzing the cost per square foot or per student capacity for similar dormitory construction projects awarded by federal or state agencies in the Southwest region.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus remains on the prime contractor's ability to execute the project.

Oversight & Accountability

Oversight for this contract will primarily be managed by the contracting officers and program managers within the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are embedded in the Firm Fixed Price contract type, which incentivizes the contractor to adhere to the agreed-upon cost and schedule. Transparency can be assessed through publicly available contract data, though detailed project management documentation may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Bureau of Indian Affairs School Construction
Bureau of Indian Education Facilities Management
Department of the Interior Capital Improvement Projects
Federal Dormitory Construction Contracts
Native American Housing Infrastructure

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of schedule delays impacting student housing availability.
Uncertainty in value for money without detailed cost breakdowns.
Limited competition due to 'exclusion of sources' could impact pricing.
Contractor performance history needs thorough vetting.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.8 million to ALEUT CONSTRUCTION LLC. DESGN BLD-REPLACEMENT ATSA BIYAAZH DORM

Who is the contractor on this award?

The obligated recipient is ALEUT CONSTRUCTION LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2021-09-20. End: 2026-01-20.

What is the track record of Aleut Construction LLC on similar federal construction projects, particularly regarding cost overruns and schedule adherence?

A thorough review of Aleut Construction LLC's past performance is crucial. This involves examining contract histories with federal agencies, specifically looking for projects of similar scale and complexity (e.g., dormitory construction, institutional buildings). Key metrics to analyze include on-time completion rates, adherence to budget, quality of work, and any instances of disputes or contract modifications. Data from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be essential. A history of successful, timely, and budget-conscious project delivery would be a positive indicator, while frequent delays or cost overruns would raise significant concerns about the current project's risk profile.

How does the awarded price of $18.8 million compare to market rates for similar dormitory construction projects in New Mexico?

To benchmark the $18.8 million award, we need to compare it against industry standards for dormitory construction in New Mexico. This involves analyzing cost per square foot, cost per student capacity, and overall project complexity. Factors such as prevailing wage rates, material costs specific to the region, and site preparation requirements will influence the comparison. If data on comparable projects is available (e.g., from construction cost databases, state or local government projects), it can provide a valuable reference point. A price significantly above or below market averages would warrant further investigation into the reasons, such as unique project specifications, contractor efficiency, or potential pricing anomalies.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while intended to ensure competition, carries specific risks. The primary risk is that excluding certain potential bidders, even if justified by specific criteria, may limit the pool of qualified offerors. This reduced competition could potentially lead to higher prices than what might be achieved in an unrestricted competition. It also raises questions about whether the exclusion criteria were overly restrictive or if they inadvertently favored certain types of contractors. Transparency regarding the reasons for exclusion is important for assessing fairness and ensuring the government received the best possible value. The government must demonstrate that the exclusion was necessary and served the public interest.

What is the expected impact of this dormitory construction on the educational environment and student well-being for the targeted Bureau of Indian Affairs/Education schools?

The construction of new dormitories is expected to have a significant positive impact on the educational environment and student well-being. Improved housing facilities can lead to better living conditions, increased student comfort, and a more conducive atmosphere for learning and rest. This can translate into improved student morale, better academic performance, and reduced health-related issues associated with substandard housing. For students who may travel long distances to attend these schools, reliable and safe dormitory accommodations are essential for their continued education and overall development. The project directly addresses a critical need for adequate infrastructure that supports the holistic needs of students.

How does the contract's duration of 1583 days (approximately 4.3 years) influence the risk assessment and management strategy?

A contract duration of 1583 days is substantial and significantly influences the risk assessment and management strategy. Long-term projects are inherently exposed to a greater number of potential risks, including fluctuations in material costs, labor availability, regulatory changes, and unforeseen site conditions. Inflationary pressures over such an extended period can impact the real value of the fixed price. Effective risk management will require robust contract administration, proactive monitoring of market trends, contingency planning for potential delays, and clear communication protocols between the government and the contractor. The government must ensure that milestones are clearly defined and progress is regularly assessed to mitigate the risks associated with such a lengthy undertaking.

What are the potential workforce implications, both for the construction phase and for the long-term operation of the new facilities?

The construction phase will likely generate temporary employment opportunities for skilled trades (carpenters, electricians, plumbers) and general laborers in the New Mexico region. This can provide a short-term economic boost to the local workforce. Post-construction, the new dormitory facilities will require ongoing operational staff, such as resident advisors, maintenance personnel, and administrative support. The number of these positions will depend on the capacity and design of the dormitories. The project could also necessitate training programs for staff to manage and maintain the new facilities effectively, ensuring a safe and supportive living environment for students.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1621R0053

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Aleut Corporation

Address: 12355 SUNRISE VALLEY DR STE 300D, RESTON, VA, 20191

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: $18,798,396

Exercised Options: $18,798,396

Current Obligation: $18,798,396

Actual Outlays: $4,772,981

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1618D0006

IDV Type: IDC

Timeline