Interior Department awards $31.5M design-build contract for Santa Rosa Ranch Community School

Contract Overview

Contract Amount: $31,532,558 ($31.5M)

Contractor: Cherokee CRC LLC

Awarding Agency: Department of the Interior

Start Date: 2022-05-16

End Date: 2026-08-15

Contract Duration: 1,552 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SANTA ROSA RANCH COMMUNITY SCHOOL DESIGN BUILD

Place of Performance

Location: SELLS, PIMA County, ARIZONA, 85634

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $31.5 million to CHEROKEE CRC LLC for work described as: SANTA ROSA RANCH COMMUNITY SCHOOL DESIGN BUILD Key points: 1. Contract value represents a significant investment in educational infrastructure for the region. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to control costs and provide budget certainty. 4. The project duration of over 1500 days indicates a substantial, long-term construction effort. 5. The award to Cherokee CRC LLC highlights a key contractor in the federal construction space. 6. The project's location in Arizona suggests a focus on regional development and services.

Value Assessment

Rating: good

The contract value of $31.5 million for a design-build project of this scale appears reasonable. Benchmarking against similar educational facility construction projects within the Bureau of Indian Affairs or similar agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the pool of bidders. The presence of 4 bids suggests a moderate level of competition, which is generally favorable for price discovery, but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: A moderate number of bidders, even with exclusions, generally leads to more competitive pricing for taxpayers. However, understanding why certain sources were excluded is crucial to ensure maximum value was achieved.

Public Impact

The primary beneficiaries are the students and staff of the Santa Rosa Ranch Community School, who will receive modern educational facilities. The contract delivers comprehensive design and construction services for a new school building. The geographic impact is concentrated in Arizona, specifically within the Santa Rosa Ranch community. The project will likely create numerous jobs in the construction sector, benefiting local and regional workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if excluded sources would have offered significantly lower bids.
Risk of schedule delays if unforeseen site conditions or design challenges arise during the extended project duration.
Dependence on the performance and financial stability of a single prime contractor for project completion.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Design-build approach can streamline the construction process and potentially reduce overall project time.
Awarding to a contractor with experience in similar federal projects can mitigate execution risks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure, including educational facilities, particularly in underserved communities. The market for federal construction is competitive, with various firms specializing in government contracts. Benchmarks for similar school construction projects can vary widely based on location, size, and specific requirements.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific contract (ss: false, sb: false). While the prime contractor is Cherokee CRC LLC, there is no explicit information on subcontracting plans for small businesses within the provided data. Further review of the contract details would be necessary to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Indian Affairs and Bureau of Indian Education, under the Department of the Interior. Mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability is enforced through the contract terms, including payment schedules tied to milestones and potential penalties for non-performance. Transparency is generally maintained through contract award databases and public reporting, though specific project details may be limited.

Related Government Programs

Bureau of Indian Affairs School Construction Program
Federal Education Facilities
Design-Build Construction Contracts
Department of the Interior Capital Improvement Projects

Risk Flags

Potential for limited competition due to source exclusion.
Long project duration increases risk of unforeseen issues.
Firm-fixed-price contract shifts significant risk to contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $31.5 million to CHEROKEE CRC LLC. SANTA ROSA RANCH COMMUNITY SCHOOL DESIGN BUILD

Who is the contractor on this award?

The obligated recipient is CHEROKEE CRC 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 $31.5 million.

What is the period of performance?

Start: 2022-05-16. End: 2026-08-15.

What is the track record of Cherokee CRC LLC in completing federal design-build projects of similar scale and complexity?

Cherokee CRC LLC has a history of engaging in federal construction projects. To assess their track record specifically for design-build projects of this $31.5 million scale, a review of their past performance ratings, project completion times, and any documented disputes or challenges on similar contracts would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases could provide insights into their reliability, quality of work, and adherence to schedules and budgets on prior government engagements. Understanding their experience with educational facilities would also be a key factor in evaluating their suitability for this specific project.

How does the awarded price compare to the estimated cost or independent government cost estimate for this project?

The provided data does not include the estimated cost or the independent government cost estimate (IGCE) for the Santa Rosa Ranch Community School design-build project. A comprehensive value assessment would require comparing the awarded price of $31.5 million against these benchmarks. If the awarded price is significantly below the IGCE, it could indicate aggressive bidding or potential underestimation of costs by the contractor. Conversely, if it's at or above the IGCE, it suggests the price is aligned with government expectations. Without the IGCE, it's difficult to definitively assess if this represents optimal value for taxpayer dollars.

What are the primary risks associated with a firm-fixed-price design-build contract for a school construction project?

For a firm-fixed-price (FFP) design-build contract, the primary risks for the government are minimized regarding cost overruns, as the contractor assumes most of that risk. However, risks can shift towards schedule and quality. If the contractor underestimates design or construction complexities, they might cut corners on quality to maintain profitability, or face financial distress if costs escalate beyond their control. For the contractor, the risk is significant if they fail to accurately estimate all project costs, leading to potential losses. For the government, the risk lies in ensuring the contractor's financial stability and their commitment to delivering the project to the specified quality standards within the fixed price and timeline.

What is the expected impact of this contract on the local workforce and economy in Arizona?

This $31.5 million design-build contract for a community school is expected to have a positive impact on the local workforce and economy in Arizona. The construction phase alone will likely generate a substantial number of jobs for skilled tradespeople, laborers, engineers, and project managers. Furthermore, the demand for construction materials and services will stimulate local businesses, including suppliers, equipment rental companies, and subcontractors. The long-term impact includes the provision of modern educational facilities, which can enhance the quality of life and educational outcomes for the community, potentially attracting further investment and development to the region.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method affect price competition and potential bidder pool?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach. It begins with the intent of broad competition but then narrows the field by excluding specific entities. This exclusion must be justified, often for reasons related to national security, specific technical capabilities, or prior performance issues. While it aims to ensure that only qualified and appropriate sources are considered, it inherently limits the bidder pool compared to unrestricted full and open competition. The impact on price competition depends on the number and competitiveness of the remaining bidders. If the excluded sources were significant competitors, the remaining bidders might face less pressure to offer the lowest possible price. Conversely, if the exclusions were minor or based on valid reasons, the remaining competition could still yield competitive pricing.

What are the key performance indicators (KPIs) likely to be used to evaluate the success of this design-build project?

Key performance indicators (KPIs) for this design-build project would likely focus on several critical areas. Schedule adherence is paramount, measured by the project's completion date against the planned milestones and final deadline. Cost control is another major KPI, ensuring the project stays within the $31.5 million firm-fixed price, with any deviations meticulously tracked and justified. Quality of work is assessed through inspections, adherence to design specifications, and compliance with building codes and standards. Furthermore, safety performance, measured by incident rates and adherence to safety protocols, is a crucial KPI. Finally, stakeholder satisfaction, including feedback from the Bureau of Indian Affairs and the end-users (school community), would also be considered.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1622R0023

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cherokee Nation RED Wing, L.L.C.

Address: 10838 E MARSHALL STE 220, TULSA, OK, 74116

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,532,558

Exercised Options: $31,532,558

Current Obligation: $31,532,558

Actual Outlays: $15,131,429

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $21,486,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1618D0005

IDV Type: IDC

Timeline