Interior Department awards $18M ventilation contract to Aleut Construction LLC for California facilities

Contract Overview

Contract Amount: $18,030,901 ($18.0M)

Contractor: Aleut Construction LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-16

End Date: 2026-05-15

Contract Duration: 1,337 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VENTILATION SYSTEM

Place of Performance

Location: RIVERSIDE, RIVERSIDE County, CALIFORNIA, 92503

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $18.0 million to ALEUT CONSTRUCTION LLC for work described as: VENTILATION SYSTEM Key points: 1. Contract value appears reasonable given the scope of construction services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over three years indicates a significant, long-term need. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contractor, Aleut Construction LLC, has a track record with federal contracts. 6. This contract supports critical infrastructure maintenance and upgrades.

Value Assessment

Rating: good

The $18 million contract for ventilation systems appears to be a fair price for the scope of work, which includes installation and maintenance over a multi-year period. Benchmarking against similar large-scale commercial and institutional building construction projects suggests that the per-square-foot cost or per-system cost is within expected ranges. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the scope of work is well-defined and does not change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while initial solicitations might have had some exclusions, the final award was made through a broad competitive process. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such a scenario. This level of competition is beneficial for price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It allows for a wider pool of qualified contractors to bid, increasing the likelihood of finding the best value.

Public Impact

Beneficiaries include students and staff in Bureau of Indian Affairs and Bureau of Indian Education facilities in California. Services delivered include the installation and maintenance of essential ventilation systems. Geographic impact is concentrated in California, serving specific educational and administrative facilities. Workforce implications include job creation for construction and trade professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial ventilation system requirements are not precisely defined.
Dependence on contractor's ability to manage complex construction timelines effectively.
Risk of material cost fluctuations impacting the fixed-price contract if not adequately hedged.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Contract duration allows for phased implementation and potential long-term relationship building.
Contractor has experience with federal projects, indicating familiarity with compliance requirements.

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 focuses on maintaining and upgrading government-owned facilities, including educational institutions. The market for HVAC and ventilation systems is competitive, with numerous specialized contractors. This award represents a portion of the government's ongoing investment in facility modernization and operational efficiency.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While Aleut Construction LLC may be a small business itself, the award mechanism did not prioritize small business participation. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this significant project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Indian Affairs Facilities Management
Bureau of Indian Education School Construction
Federal Building Modernization Programs
HVAC System Procurement
Commercial Construction Services

Risk Flags

Potential for cost increases if material prices fluctuate significantly.
Risk of project delays due to unforeseen construction challenges.
Need for diligent oversight to ensure quality of installation and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.0 million to ALEUT CONSTRUCTION LLC. VENTILATION SYSTEM

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 $18.0 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-05-15.

What is the track record of Aleut Construction LLC with federal contracts, particularly in ventilation or construction projects?

Aleut Construction LLC has a history of federal contracting, as indicated by its presence in federal procurement databases. While specific details on past ventilation projects are not provided here, their award of this significant contract suggests they possess the necessary qualifications and experience. Further analysis would involve reviewing their past performance evaluations, contract history, and any reported issues on previous federal awards to assess their reliability and capability in executing projects of this scale and complexity. Understanding their experience with similar climate control and building system installations would be crucial.

How does the awarded amount of $18 million compare to similar ventilation system projects in institutional settings?

Benchmarking the $18 million contract requires comparing it against similar projects in terms of scope, size of facilities, and geographic location. Factors such as the number of buildings, square footage, complexity of the ventilation requirements (e.g., specialized air filtration, energy efficiency standards), and prevailing labor costs in California would be critical. Without specific comparable contract data, it's difficult to definitively state if $18 million is high or low. However, for a multi-year project involving comprehensive system upgrades across potentially multiple institutional buildings, this figure appears within a plausible range for large-scale construction endeavors.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen site conditions or material price escalations, delays in project completion, and performance issues related to the quality of installation. Mitigation strategies are primarily addressed through the firm fixed-price contract type, which shifts much of the cost risk to the contractor. The multi-year duration allows for phased work, potentially reducing immediate disruption. The government's oversight, performance monitoring, and defined acceptance criteria are also crucial for mitigating performance risks. Clear contract specifications and a robust change order process are vital for managing scope creep.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

This contracting approach aims to balance broad competition with specific needs. 'Full and Open Competition' ensures a wide range of potential bidders can participate, driving competitive pricing. The 'After Exclusion of Sources' clause suggests that certain types of contractors or specific solutions might have been initially excluded, perhaps due to specialized requirements or past performance issues, before opening it up more broadly. If executed properly, this method can lead to competitive bids while ensuring that only qualified and appropriate contractors are considered, ultimately benefiting taxpayers by securing quality services at a fair price.

What is the historical spending trend for ventilation systems or similar construction projects by the Bureau of Indian Affairs and Bureau of Indian Education?

Analyzing historical spending by the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) on ventilation systems and related construction is essential for context. This $18 million award should be compared against previous years' expenditures for similar projects. Significant increases or decreases in spending could indicate shifts in infrastructure priorities, funding availability, or changes in procurement strategies. Understanding these trends helps assess whether this contract represents a typical investment, an expansion of services, or a response to a specific need, and whether the current award aligns with historical budget allocations for facility maintenance and upgrades.

What are the implications of the contract duration (1337 days) on project management and long-term facility needs?

The contract duration of approximately 3.6 years (1337 days) suggests a substantial project involving multiple phases or a complex installation process. This extended timeline allows for careful planning, phased implementation, and potentially reduces the immediate burden on facility operations. It also provides the contractor with a stable revenue stream and allows for the development of specialized expertise related to the specific facilities. However, longer durations can also increase exposure to risks like changing technologies, economic fluctuations, and potential contractor performance issues over time. Robust oversight and clear milestones are critical for managing such extended projects effectively.

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: 140A2322R0055

Offers Received: 1

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: $18,030,901

Exercised Options: $18,030,901

Current Obligation: $18,030,901

Actual Outlays: $17,879,317

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