Interior Department awards $73M design-build contract for Tonalea Day School to Sealaska Constructors LLC

Contract Overview

Contract Amount: $73,001,110 ($73.0M)

Contractor: Sealaska Constructors LLC

Awarding Agency: Department of the Interior

Start Date: 2023-09-12

End Date: 2028-06-19

Contract Duration: 1,742 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TONALEA DAY SCHOOL DESIGN BUILD

Place of Performance

Location: TONALEA, COCONINO County, ARIZONA, 86044

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $73.0 million to SEALASKA CONSTRUCTORS LLC for work described as: TONALEA DAY SCHOOL DESIGN BUILD Key points: 1. The contract value represents a significant investment in educational infrastructure for Native American communities. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance history of Sealaska Constructors LLC will be a key indicator of successful project execution. 4. The project's duration suggests a long-term commitment to improving educational facilities. 5. This contract falls within the broader sector of institutional building construction, serving a critical public need.

Value Assessment

Rating: good

The contract value of $73 million for a design-build project of this scale appears within a reasonable range for institutional construction. Benchmarking against similar Bureau of Indian Affairs or Bureau of Indian Education projects would provide a more precise assessment of value for money. The firm-fixed-price structure helps mitigate cost overruns for the government, assuming the initial scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but the 'limited' competition level suggests that the government may not have achieved the most competitive pricing possible compared to a truly full and open process. Further details on the exclusion rationale are needed for a complete assessment.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers if it restricts the pool of qualified and competitive bidders, potentially leading to less aggressive pricing.

Public Impact

Students and staff at Tonalea Day School will benefit from modernized and purpose-built educational facilities. The project will deliver comprehensive design and construction services for a critical educational institution. The geographic impact is focused on the Tonalea community in Arizona, improving local educational resources. The construction phase will likely create temporary employment opportunities for skilled trades and laborers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if the 'exclusion of sources' was not fully justified and limited competitive pricing.
Ensuring timely completion within the 1742-day duration is critical to avoid disrupting educational services.
Quality of construction must meet long-term educational needs and safety standards.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Design-build approach can streamline the project delivery process.
The award to Sealaska Constructors LLC, potentially a firm with experience in the region or with similar projects, could indicate a good fit.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the construction industry that focuses on facilities like schools, hospitals, and government buildings. The market for such projects is often driven by government funding for public services and infrastructure. Comparable spending benchmarks would involve looking at other large-scale educational facility construction projects funded by federal agencies, particularly those serving Native American communities.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests the contract was awarded based on best value or lowest price technically acceptable to a broader range of contractors. There is no explicit information on subcontracting plans for small businesses, which will be a key factor in assessing the contract's impact on the small business ecosystem. The large dollar value may present opportunities for small businesses if Sealaska Constructors LLC engages them for specialized services.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Indian Affairs and Bureau of Indian Education, agencies within the Department of the Interior responsible for Native American education. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality control. Transparency will depend on the public availability of contract modifications, progress reports, and final inspection results. Inspector General jurisdiction would typically fall under the Department of the Interior's IG.

Related Government Programs

Bureau of Indian Affairs School Construction Program
Bureau of Indian Education Facilities Management
Federal School Construction Projects
Native American Education Infrastructure

Risk Flags

Limited competition may impact price discovery.
Long project duration increases risk of cost escalation and scope creep.
Need for robust oversight to ensure quality and timely completion.
Potential for unforeseen site conditions in construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $73.0 million to SEALASKA CONSTRUCTORS LLC. TONALEA DAY SCHOOL DESIGN BUILD

Who is the contractor on this award?

The obligated recipient is SEALASKA CONSTRUCTORS 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 $73.0 million.

What is the period of performance?

Start: 2023-09-12. End: 2028-06-19.

What is the track record of Sealaska Constructors LLC on similar federal design-build projects?

Assessing the track record of Sealaska Constructors LLC on similar federal design-build projects is crucial for understanding their capacity and past performance. Information regarding their experience with educational facilities, particularly in remote or challenging environments, would be highly relevant. A review of past federal contracts awarded to Sealaska Constructors LLC, including their on-time completion rates, budget adherence, and any documented performance issues or awards, would provide valuable insight. Specific details on their safety records and quality control measures on previous projects would further inform the risk assessment for this Tonalea Day School contract.

How does the awarded price compare to similar institutional building construction contracts in Arizona?

To benchmark the value of this $73 million contract, a comparison with similar institutional building construction projects in Arizona is necessary. This would involve identifying other federal, state, or large private sector projects of comparable size and scope (e.g., schools, community centers, government offices) that have been awarded recently. Key metrics for comparison would include cost per square foot, cost per student capacity (if applicable), and the complexity of the construction. Analyzing the types of construction (e.g., concrete, steel frame, modular) and the level of finishes would also be important. Without specific comparable project data, it is difficult to definitively state whether this contract represents excellent, good, or fair value for money.

What are the specific reasons for the 'Exclusion of Sources' in the competition process?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the initial intent was broad competition, certain sources were intentionally excluded. Understanding the rationale behind these exclusions is critical for evaluating the competition's effectiveness. Common reasons for exclusion can include specific technical requirements that only a limited number of firms can meet, national security concerns, or prior performance issues with certain contractors. If the exclusions were not well-justified or were overly broad, it could indicate a less competitive environment, potentially impacting the final price and value for taxpayers. Further documentation from the contracting agency detailing the justification for these exclusions is needed for a thorough analysis.

What are the potential risks associated with the long duration of the contract (1742 days)?

A contract duration of 1742 days (approximately 4.7 years) for a design-build project presents several potential risks. Firstly, there is an increased risk of cost escalation due to inflation over such an extended period, even with a firm-fixed-price contract, if scope changes or unforeseen conditions arise. Secondly, the long timeline increases the possibility of changes in regulatory requirements or building codes that may necessitate costly modifications. Thirdly, maintaining consistent project oversight and quality control over several years can be challenging. Finally, extended project durations can lead to contractor fatigue or shifts in key personnel, potentially impacting performance and project momentum. Proactive risk management and robust oversight are essential to mitigate these long-term risks.

How will the success of the Tonalea Day School project be measured and evaluated?

The success of the Tonalea Day School design-build project will be measured against several key performance indicators (KPIs) outlined in the contract. These typically include adherence to the project schedule, completion within the firm-fixed-price budget, and meeting all specified design and construction quality standards. User satisfaction, particularly from the school administration, teachers, and students upon occupancy, will be a critical qualitative measure. Post-occupancy evaluations, warranty claim rates, and the long-term durability and functionality of the facility will also contribute to the overall assessment of project success. The Bureau of Indian Affairs and Bureau of Indian Education will be responsible for monitoring these metrics throughout the project lifecycle and upon completion.

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: 140A1623R0039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 6TH AVE. SUITE 800, SEATTLE, WA, 98101

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $73,001,110

Exercised Options: $73,001,110

Current Obligation: $73,001,110

Actual Outlays: $25,332,333

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0025

IDV Type: IDC

Timeline