RJS Construction Inc. awarded $8.29M contract for library renovation in New Mexico

Contract Overview

Contract Amount: $8,291,701 ($8.3M)

Contractor: RJS Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2025-09-18

End Date: 2027-07-05

Contract Duration: 655 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND RENOVATE SIPI LIBRARY

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87120

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $8.3 million to RJS CONSTRUCTION INC for work described as: DESIGN AND RENOVATE SIPI LIBRARY Key points: 1. Contract value appears reasonable for a commercial building renovation of this scope. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of nearly two years indicates a substantial renovation effort. 5. Geographic location in New Mexico may influence labor and material costs. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $8.29 million for the design and renovation of the SIPI Library appears to be within a reasonable range for a project of this scale. Benchmarking against similar commercial and institutional building construction projects in New Mexico or comparable regions would provide a more precise assessment. The firm fixed-price nature of the contract helps control costs, shifting some of the financial risk to the contractor. Without specific cost breakdowns or detailed scope of work, a definitive value-for-money judgment is challenging, but the initial data suggests a fair price given the project's apparent complexity.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives competitive pricing. The exclusion of sources clause might suggest specific requirements or pre-qualification steps, but the overall intent is to maximize competition.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it is designed to yield the lowest possible price through robust market engagement and multiple bids.

Public Impact

The primary beneficiaries are students and staff of the SIPI (Southwestern Indian Polytechnic Institute) who will gain access to an updated and functional library. The services delivered include design and renovation of the library facility, likely encompassing structural, electrical, plumbing, and aesthetic upgrades. The geographic impact is concentrated in New Mexico, specifically at the SIPI campus. Workforce implications may include employment opportunities for construction workers, architects, engineers, and project managers in the local New Mexico area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined upfront.
Risk of unforeseen site conditions during renovation that could impact schedule and cost.
Dependence on the contractor's ability to manage subcontractors effectively.
Potential for delays if material procurement or labor availability becomes an issue.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive pricing environment.
Clear project end date (July 2027) provides a defined timeline.
Contract awarded to RJS Construction Inc., whose track record would need further review for performance history.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The market for such services is driven by demand for new facilities and upgrades to existing infrastructure across various sectors, including education. Spending in this area is influenced by government funding cycles, institutional needs, and economic conditions. Comparable spending benchmarks would typically be derived from data on similar educational facility renovations or construction projects.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the prime contractor, RJS Construction Inc., may engage small businesses for specialized services or material supply as part of their subcontracting strategy, which would indirectly benefit the small business community.

Oversight & Accountability

Oversight for this contract would likely be managed by the contracting officer and the relevant program officials within the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are typically embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building and Facilities Construction
Educational Facility Renovations
Bureau of Indian Affairs Construction Projects
Bureau of Indian Education Capital Improvements

Risk Flags

Potential for unforeseen site conditions
Contractor performance history requires verification
Scope definition clarity for renovation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.3 million to RJS CONSTRUCTION INC. DESIGN AND RENOVATE SIPI LIBRARY

Who is the contractor on this award?

The obligated recipient is RJS CONSTRUCTION INC.

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 $8.3 million.

What is the period of performance?

Start: 2025-09-18. End: 2027-07-05.

What is the track record of RJS Construction Inc. on similar federal contracts?

A thorough review of RJS Construction Inc.'s past performance on federal contracts is crucial for assessing their reliability and capability in executing this library renovation project. This would involve examining contract award data, including the types of projects completed, their value, and the timeliness of delivery. Performance evaluations, if available in systems like the Contractor Performance Assessment Reporting System (CPARS), would provide insights into their quality of work, adherence to schedule, and overall customer satisfaction. Any history of contract disputes, terminations, or significant overruns would be a red flag. Conversely, a history of successful, on-time, and within-budget project completions would increase confidence in their ability to deliver this project successfully.

How does the awarded amount compare to the estimated cost or independent government cost estimate?

The awarded amount of $8.29 million represents the final negotiated price for the design and renovation of the SIPI Library. To assess value for money, this figure should be compared against the government's independent cost estimate (ICE) or the contractor's initial proposal before negotiation. If the awarded amount is significantly lower than the ICE, it suggests strong competition and effective negotiation by the government. Conversely, if it is close to or exceeds the ICE, it might warrant further scrutiny into the estimate's accuracy or the negotiation process. Understanding the variance, if any, between the awarded price and pre-negotiation estimates provides a key indicator of whether the government secured a competitive price.

What are the key performance indicators (KPIs) for this renovation project?

Key performance indicators for this library renovation project would likely focus on adherence to the project schedule, quality of construction, and compliance with design specifications. Specific KPIs might include: completion of design milestones by set dates, percentage of construction completed on schedule, number of reported defects or punch list items, adherence to safety protocols (e.g., zero lost-time incidents), and final inspection pass rates. The contract terms would define these KPIs and the metrics for measuring success. Regular progress reports and site inspections would be used to monitor performance against these indicators, ensuring the project stays on track and meets the required standards.

What is the historical spending trend for library renovations or similar educational facility projects by the Bureau of Indian Affairs/Education?

Analyzing historical spending trends for library renovations or similar educational facility projects by the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) is essential for contextualizing the current $8.29 million contract. This involves examining past contract awards for capital improvements, construction, and renovation of educational infrastructure over several fiscal years. Trends might reveal patterns in project size, frequency, average cost per square foot, and the types of contractors engaged. Understanding these historical patterns can help identify if current spending levels are consistent, increasing, or decreasing, and whether this specific project aligns with the agencies' long-term investment strategies in educational facilities.

Are there any specific risks associated with renovating facilities on tribal lands or for Native American educational institutions?

Renovating facilities on tribal lands or for Native American educational institutions can present unique risks and considerations. These may include navigating specific cultural sensitivities and requirements, potential complexities in land use agreements or permitting processes, and ensuring meaningful engagement with tribal communities. Workforce availability and local economic conditions can also play a significant role. Furthermore, historical underfunding of infrastructure in some of these institutions might mean that existing conditions are more deteriorated than initially assessed, potentially leading to unforeseen challenges during renovation. Understanding and proactively managing these specific contextual risks is vital for project success.

What is the expected impact of this renovation on the SIPI's operational capacity and student services?

The renovation of the SIPI Library is expected to significantly enhance its operational capacity and the quality of services offered to students and faculty. A modernized library can provide improved access to resources, better study spaces, updated technology infrastructure (e.g., Wi-Fi, computer labs), and potentially expanded collections. This upgrade can foster a more conducive learning environment, support academic research, and improve overall student engagement with library services. The project's success will be measured not only by the physical completion of the renovation but also by the subsequent utilization and positive impact on the educational mission of SIPI.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140A2325R0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RJS Construction, Inc.

Address: 1618 RUDKIN RD # B, UNION GAP, WA, 98901

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,291,701

Exercised Options: $8,291,701

Current Obligation: $8,291,701

Actual Outlays: $98,989

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $848,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A1623D0024

IDV Type: IDC

Timeline