Interior Awards $80M Crystal Boarding School Design-Build Contract to Cherokee CRC LLC

Contract Overview

Contract Amount: $80,155,733 ($80.2M)

Contractor: Cherokee CRC LLC

Awarding Agency: Department of the Interior

Start Date: 2023-01-11

End Date: 2027-06-15

Contract Duration: 1,616 days

Daily Burn Rate: $49.6K/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: CRYSTAL BOARDING SCHOOL DESIGN BUILD

Place of Performance

Location: ZUNI, MCKINLEY County, NEW MEXICO, 87327

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $80.2 million to CHEROKEE CRC LLC for work described as: CRYSTAL BOARDING SCHOOL DESIGN BUILD Key points: 1. Significant investment in educational infrastructure for the Bureau of Indian Affairs. 2. Cherokee CRC LLC, a Native American-owned company, is the prime contractor. 3. The contract utilizes a Firm Fixed Price structure, aiming for cost certainty. 4. Project duration spans over four years, indicating a substantial construction effort.

Value Assessment

Rating: good

The contract value of $80.16 million appears reasonable for a large-scale design-build project of this nature. Benchmarking against similar educational facility construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial broad solicitation followed by a restriction, potentially impacting the breadth of competition and price discovery.

Taxpayer Impact: The substantial investment aims to improve educational facilities, which has a positive long-term impact on students and communities, justifying the taxpayer expenditure.

Public Impact

Enhances educational facilities for Native American students. Supports economic development through construction jobs and contractor engagement. Addresses long-standing infrastructure needs in tribal education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price optimization.
Potential for cost overruns in long-term construction projects.
Dependence on a single contractor for design and build phases.

Positive Signals

Focus on critical educational infrastructure.
Award to a Native American-owned business.
Firm Fixed Price contract provides cost predictability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The value is significant for a single project, reflecting the scale of educational facility development.

Small Business Impact

While the prime contractor is a Native American-owned business, the data does not specify the extent of small business participation as subcontractors. Further analysis is needed to determine SMB involvement.

Oversight & Accountability

The Bureau of Indian Affairs and Bureau of Indian Education are responsible for oversight. The duration and complexity of the project necessitate robust monitoring to ensure quality and adherence to schedule and budget.

Related Government Programs

Commercial and Institutional Building Construction
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Limited competition may reduce price competitiveness.
Long project duration increases risk of unforeseen cost increases.
Potential for contractor performance issues over extended period.
Dependence on specific design and build expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $80.2 million to CHEROKEE CRC LLC. CRYSTAL BOARDING 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 $80.2 million.

What is the period of performance?

Start: 2023-01-11. End: 2027-06-15.

What specific factors led to the exclusion of sources after initial full and open competition, and how did this impact the final price?

The exclusion of sources after initial full and open competition suggests specific criteria or requirements were introduced that narrowed the field of eligible bidders. This could be related to specialized expertise, past performance on similar projects, or specific socio-economic preferences. While it can streamline the process for the agency, it may limit the number of competitive bids received, potentially leading to a higher price than if broader competition had been maintained throughout.

What are the key performance indicators (KPIs) for this design-build contract, and how will their achievement be measured to ensure project effectiveness?

Key performance indicators likely include adherence to the design specifications, construction quality standards, project completion within the established timeline (June 2027), and adherence to the firm fixed price. Effectiveness will be measured by the successful delivery of a functional and safe boarding school facility that meets the educational needs of its students. Regular site inspections, progress reports, and milestone reviews will be crucial for monitoring.

Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen issues during the extended construction period?

A firm fixed price contract generally places the risk of unforeseen issues on the contractor. However, mechanisms like change order processes are typically defined to handle legitimate scope changes requested by the government or unavoidable external factors. Clear contract language regarding what constitutes a compensable change versus a contractor's risk is essential. Robust project management and communication between the agency and contractor are vital to proactively identify and address potential issues.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A1622R0011

Offers Received: 2

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: $80,155,733

Exercised Options: $80,155,733

Current Obligation: $80,155,733

Actual Outlays: $33,579,204

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