Interior Department awards $2.39M contract for urgent HVAC upgrades at BIA/BIE facilities in South Dakota

Contract Overview

Contract Amount: $2,390,798 ($2.4M)

Contractor: Rock GAP Engineering LLC

Awarding Agency: Department of the Interior

Start Date: 2025-08-26

End Date: 2026-08-31

Contract Duration: 370 days

Daily Burn Rate: $6.5K/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: IE048-URGENT-HVAC DESIGN/BUILD BLDG85-86

Place of Performance

Location: FLANDREAU, MOODY County, SOUTH DAKOTA, 57028

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $2.4 million to ROCK GAP ENGINEERING LLC for work described as: IE048-URGENT-HVAC DESIGN/BUILD BLDG85-86 Key points: 1. Contract addresses critical infrastructure needs for Bureau of Indian Affairs and Bureau of Indian Education facilities. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor. 4. Project duration of 370 days indicates a significant scope of work. 5. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. 6. Focus on building construction (NAICS 236220) highlights the need for specialized expertise.

Value Assessment

Rating: good

The contract value of approximately $2.39 million for HVAC design and build services appears reasonable given the scope and urgency. Benchmarking against similar projects is challenging without more detailed project specifications and location-specific cost data. However, the firm-fixed-price structure suggests the government has negotiated a definitive cost, providing a degree of cost certainty. The delivery order format may indicate a pre-negotiated rate structure from a parent contract, which could offer some level of value comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible prospective contractors were permitted to submit offers. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and innovation. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the initial pool, but the core competition was open.

Taxpayer Impact: A full and open competition, even with potential source exclusions, is generally favorable for taxpayers as it maximizes the opportunity for multiple companies to bid, driving down costs through competitive pressure.

Public Impact

Benefits students and staff at Bureau of Indian Affairs and Bureau of Indian Education facilities by ensuring safe and functional heating, ventilation, and air conditioning systems. Delivers essential building infrastructure upgrades to facilities located in South Dakota. Impacts the operational efficiency and comfort within government-managed educational and administrative buildings. Supports the construction and skilled trades workforce involved in executing the HVAC design and build project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the design/build process, despite the firm-fixed-price.
Dependence on contractor's ability to meet tight deadlines for urgent infrastructure needs.
Risk of performance issues if the HVAC system design or installation is not up to standard.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition potentially leads to better pricing and quality.
Focus on urgent needs suggests a high priority for facility improvement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220), a significant segment of the construction industry. The market for HVAC services is robust, driven by the need for energy efficiency, system upgrades, and compliance with building codes. Federal spending in this area is consistent, supporting critical infrastructure for government operations and facilities. Comparable spending benchmarks would typically involve analyzing other federal or state contracts for similar-sized building construction and HVAC modernization projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor, ROCK GAP ENGINEERING LLC, may be a small business, the contract itself did not have a specific small business set-aside designation. This means opportunities for subcontracting to small businesses are not mandated by the contract's set-aside status, though they may still occur at the contractor's discretion or as part of broader federal subcontracting goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of the Interior's Bureau of Indian Affairs and Bureau of Indian Education. The firm-fixed-price nature of the contract provides a clear baseline for performance and cost accountability. Transparency is facilitated through contract databases like FPDS. Specific Inspector General jurisdiction would depend on the agency's internal structure and the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Bureau of Indian Affairs Facilities Management
Bureau of Indian Education School Construction
Federal Building HVAC Modernization
Urgent Infrastructure Repair Contracts
Department of the Interior Construction Projects

Risk Flags

Urgent need may increase risk of rushed execution or unforeseen issues.
Firm-fixed-price requires careful scope definition to avoid change orders.
Potential for performance gaps if contractor lacks specific expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.4 million to ROCK GAP ENGINEERING LLC. IE048-URGENT-HVAC DESIGN/BUILD BLDG85-86

Who is the contractor on this award?

The obligated recipient is ROCK GAP ENGINEERING 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 $2.4 million.

What is the period of performance?

Start: 2025-08-26. End: 2026-08-31.

What is the track record of ROCK GAP ENGINEERING LLC in performing similar federal HVAC design and build contracts?

Information regarding ROCK GAP ENGINEERING LLC's specific track record with federal HVAC design and build contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented successes or failures on similar projects. Understanding their experience with projects of comparable size, complexity, and urgency is crucial for evaluating their capability to successfully execute this contract. Without this data, the assessment relies on the assumption that the contracting agency performed adequate due diligence during the selection process.

How does the awarded amount of $2.39 million compare to market rates for similar HVAC design and build projects in South Dakota?

Directly comparing the $2.39 million award to precise market rates for similar HVAC design and build projects in South Dakota is challenging without detailed project specifications (e.g., square footage, system complexity, specific equipment required) and current regional construction cost indices. However, the contract being firm-fixed-price suggests that the government has negotiated a definitive cost. The 'full and open competition after exclusion of sources' method implies that multiple bids were likely received, and the award was made to the most advantageous offer. This competitive process generally helps ensure the price is aligned with market conditions, though specific benchmarking would require access to more granular cost data and regional construction cost analysis.

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

The primary risks include potential delays in project completion due to unforeseen site conditions or contractor performance issues, and the possibility of cost overruns if the scope expands beyond the initial design, despite the firm-fixed-price structure. Mitigation strategies likely involve robust project management by the Department of the Interior, clear contract terms, and performance monitoring. The firm-fixed-price shifts significant cost risk to the contractor, incentivizing efficient project execution. The 'urgent' nature also implies a high priority, potentially leading to expedited processes but also increasing pressure on timely delivery. The contract's duration of 370 days provides a defined timeline for managing these risks.

What is the expected impact of these HVAC upgrades on the operational effectiveness and energy efficiency of the targeted facilities?

The expected impact of these HVAC upgrades is significant improvement in operational effectiveness and energy efficiency. Modern HVAC systems are designed to provide more reliable climate control, reducing downtime and improving comfort for occupants, which is particularly crucial in educational settings. Furthermore, newer systems typically incorporate advanced energy-saving technologies, leading to reduced energy consumption and lower utility costs for the government. The design and build nature of the contract suggests a comprehensive overhaul rather than a simple repair, aiming for long-term performance and efficiency gains.

How does this contract align with historical federal spending patterns for infrastructure improvements at Bureau of Indian Affairs and Bureau of Indian Education facilities?

This contract aligns with historical federal spending patterns that prioritize the maintenance and upgrade of infrastructure at facilities managed by the Bureau of Indian Affairs (BIA) and the Bureau of Indian Education (BIE). These agencies often operate in geographically diverse and sometimes remote locations, requiring consistent investment in building systems like HVAC to ensure safe and functional environments. The amount awarded, while substantial, is within the typical range for significant building system upgrades. Federal agencies are generally mandated to maintain their facilities, and spending on HVAC modernization is a recurring component of infrastructure budgets.

What specific criteria were used to justify the 'after exclusion of sources' clause in this full and open competition?

The justification for the 'after exclusion of sources' clause in a full and open competition typically stems from specific technical requirements, unique capabilities, or past performance considerations that necessitate narrowing the initial pool of potential offerors. For instance, the agency might have identified a need for specialized expertise in designing and building HVAC systems for particular types of buildings or environments found at the BIA/BIE facilities, or perhaps a specific technology was required. While the competition remains 'full and open' to any responsible source meeting these pre-defined criteria, it prevents bids from entities that cannot meet these essential qualifications, ensuring that the offers received are relevant and technically viable.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A2325Q0055

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6759 ACADEMY RD NE, ALBUQUERQUE, NM, 87109

Business Categories: American Indian Owned Business, 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: $2,390,798

Exercised Options: $2,390,798

Current Obligation: $2,390,798

Actual Outlays: $90,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1621D0046

IDV Type: IDC

Timeline