Interior's $66.4M Oglala Dam Remediation Contract Awarded to Komada LLC for Heavy Civil Engineering

Contract Overview

Contract Amount: $66,355,418 ($66.4M)

Contractor: Komada LLC

Awarding Agency: Department of the Interior

Start Date: 2023-09-12

End Date: 2026-04-30

Contract Duration: 961 days

Daily Burn Rate: $69.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OGLALA DAM REMEDIATION PROJECT. SEE SECTION J FOR LIST OF ATTACHMENTS.

Place of Performance

Location: OGLALA, OGLALA LAKOTA County, SOUTH DAKOTA, 57764

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $66.4 million to KOMADA LLC for work described as: OGLALA DAM REMEDIATION PROJECT. SEE SECTION J FOR LIST OF ATTACHMENTS. Key points: 1. Contract value of $66.4M for dam remediation suggests significant investment in critical infrastructure. 2. The award to Komada LLC indicates a focus on specialized heavy civil engineering capabilities. 3. A definitive contract type with a firm fixed price suggests a clear scope and budget expectation. 4. The contract duration of 961 days points to a complex and lengthy remediation process. 5. The exclusion of sources in the 'full and open competition' suggests specific justifications were met. 6. The project's location in South Dakota highlights regional infrastructure development needs.

Value Assessment

Rating: good

The contract value of $66.4 million for the Oglala Dam Remediation Project appears substantial, reflecting the complexity and scale of heavy civil engineering work. Benchmarking against similar large-scale dam repair or construction projects would provide a clearer picture of value for money. The firm fixed-price nature of the contract suggests that the government has a defined budget and expects the contractor to manage costs within that framework. Without specific cost breakdowns or comparisons to similar projects, a precise value assessment is challenging, but the scale implies a significant undertaking.

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 reasons led to the exclusion of certain potential bidders. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a limited pool of qualified or eligible participants. This procurement approach may impact price discovery, potentially leading to higher prices than a truly unrestricted full and open competition if the exclusions were not well-justified or if they significantly reduced the competitive landscape.

Taxpayer Impact: Taxpayers may face higher costs if the exclusion of sources limited the number of competitive bids. Transparency around the reasons for exclusion is crucial to ensure fair competition and optimal use of public funds.

Public Impact

The primary beneficiaries are likely residents and businesses in the vicinity of the Oglala Dam, who will benefit from improved safety and reliability of water infrastructure. The project will deliver critical heavy civil engineering services focused on the remediation and repair of the Oglala Dam. The geographic impact is concentrated in South Dakota, addressing a specific regional infrastructure need. The contract is expected to create or sustain jobs in the construction and engineering sectors, particularly for skilled labor involved in heavy civil projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price contract.
Risk of schedule delays due to the complexity of dam remediation and potential weather impacts in South Dakota.
Dependence on Komada LLC's specialized expertise, raising concerns if performance issues emerge.
Limited competition due to 'exclusion of sources' could impact overall cost-effectiveness for taxpayers.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long contract duration (961 days) allows for thorough and potentially high-quality remediation.
Award to a single contractor (Komada LLC) suggests they met specific technical requirements for this specialized work.
Project addresses critical infrastructure needs, enhancing public safety and resource management.

Sector Analysis

The Oglala Dam Remediation Project falls within the Heavy and Civil Engineering Construction sector, specifically NAICS code 237990. This sector involves the construction of infrastructure projects such as dams, bridges, highways, and other large-scale public works. Spending in this sector is often driven by government investment in aging infrastructure and new development projects. Comparable spending benchmarks would involve looking at other large dam repair or construction contracts awarded by federal agencies like the Army Corps of Engineers or the Bureau of Reclamation, which often manage similar large-scale water infrastructure projects.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'small business set-aside' field is false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary contractor, Komada LLC, will likely handle the majority of the work, and the direct impact on the small business ecosystem may be limited unless Komada LLC voluntarily engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education, the contracting agencies. Accountability measures are typically embedded within the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency can be assessed through publicly available contract data, such as this record, and any associated reports or press releases. Inspector General jurisdiction would depend on the specific IG office within the Department of the Interior responsible for overseeing contracts of this nature.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Bureau of Reclamation Water Infrastructure Projects
Federal Highway Administration Infrastructure Grants
National Dam Safety Program

Risk Flags

Limited competition due to source exclusion
Potential for unforeseen site conditions impacting cost and schedule
Contractor performance risk on specialized infrastructure project

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $66.4 million to KOMADA LLC. OGLALA DAM REMEDIATION PROJECT. SEE SECTION J FOR LIST OF ATTACHMENTS.

Who is the contractor on this award?

The obligated recipient is KOMADA 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 $66.4 million.

What is the period of performance?

Start: 2023-09-12. End: 2026-04-30.

What is Komada LLC's track record with similar large-scale dam remediation projects?

Information regarding Komada LLC's specific track record with large-scale dam remediation projects is not detailed in the provided data. Further investigation into their past performance on federal contracts, particularly those involving heavy civil engineering and infrastructure repair, would be necessary to assess their capabilities and reliability. Reviewing contract databases, past performance evaluations, and any publicly available project portfolios would offer insights into their experience and success rates in handling projects of similar complexity and scale. Understanding their history with firm fixed-price contracts and adherence to schedules and budgets on comparable projects is crucial for evaluating risk.

How does the $66.4 million contract value compare to similar dam remediation projects nationwide?

The $66.4 million contract value for the Oglala Dam Remediation Project is substantial and aligns with the significant investment typically required for large-scale civil engineering infrastructure repairs. To benchmark this value effectively, comparisons should be made with other federal or state-level dam remediation or construction contracts awarded over the past few years. Factors such as the dam's size, complexity of the required repairs (e.g., structural, hydraulic), geographic location (which influences labor and material costs), and the specific scope of work (e.g., including environmental mitigation) must be considered. Projects of similar magnitude, such as those managed by the Army Corps of Engineers or the Bureau of Reclamation, would serve as relevant benchmarks. Without access to detailed cost breakdowns and scope comparisons, a precise value-for-money assessment remains challenging, but the figure indicates a significant undertaking.

What are the primary risks associated with this firm fixed-price contract for dam remediation?

The primary risk associated with this firm fixed-price contract for dam remediation lies in potential unforeseen site conditions that could significantly increase costs beyond the initial estimate. While the fixed price aims to cap the government's expenditure, Komada LLC bears the risk of cost overruns. If unexpected geological issues, environmental hazards, or structural problems are discovered during the remediation process, the contractor may face financial strain or seek change orders, potentially leading to disputes. Schedule delays are another significant risk, especially given the 961-day duration and the nature of dam work, which can be impacted by weather, regulatory hurdles, or supply chain disruptions. The government's risk is primarily related to the contractor's ability to deliver the project successfully within the agreed-upon price and timeline, and the potential for disputes or contract modifications.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for infrastructure projects?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring competitive pricing is variable and depends heavily on the justification for the exclusion. Ideally, full and open competition maximizes the number of bidders, driving down prices through market forces. However, when specific sources are excluded, the competitive pool shrinks. If the exclusions are based on legitimate, well-documented requirements for specialized expertise, security clearances, or unique capabilities essential for the project, the remaining competition might still yield fair pricing, albeit potentially higher than a truly unrestricted bid. Conversely, if exclusions are arbitrary or poorly justified, they can stifle competition, leading to less favorable pricing for the government and taxpayers. Transparency regarding the reasons for exclusion is paramount for assessing its impact on price discovery and overall value.

What are the historical spending patterns for dam remediation projects within the Department of the Interior?

Historical spending patterns for dam remediation projects within the Department of the Interior (DOI) are not directly available from the provided contract data. However, the DOI, through agencies like the Bureau of Indian Affairs (BIA) and the Bureau of Reclamation, is responsible for managing numerous water infrastructure assets, including dams. Spending in this area typically fluctuates based on infrastructure condition assessments, federal appropriations, and national priorities for water resource management and safety. Large-scale remediation projects, like the Oglala Dam, represent significant capital investments. Analyzing historical DOI budgets allocated to infrastructure maintenance, repair, and construction, particularly for water-related assets, would provide context. Trends might show increasing investment due to aging infrastructure or specific regional needs, influenced by legislative actions like infrastructure bills.

What are the potential workforce implications of this $66.4 million contract in South Dakota?

This $66.4 million contract for the Oglala Dam Remediation Project is likely to have significant positive workforce implications in South Dakota. Heavy civil engineering and construction projects of this magnitude require a substantial labor force, including skilled tradespeople (e.g., concrete finishers, heavy equipment operators, ironworkers), engineers (civil, structural, geotechnical), project managers, safety officers, and administrative support staff. The 961-day duration suggests sustained employment opportunities over several years. The project could stimulate local economies by creating jobs directly with the prime contractor (Komada LLC) and indirectly through local suppliers, equipment rental companies, and service providers. It may also necessitate training programs or attract skilled labor to the region, contributing to the development of the local construction workforce.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140A1623R0026

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5045 LIST DR, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Corporate Entity Tax Exempt, 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: $66,355,418

Exercised Options: $66,355,418

Current Obligation: $66,355,418

Actual Outlays: $47,824,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline