Interior Department awards $1.7M contract for Windows Replacement, exceeding initial estimates

Contract Overview

Contract Amount: $169,500 ($169.5K)

Contractor: Lacreek Development Corp

Awarding Agency: Department of the Interior

Start Date: 2025-05-30

End Date: 2026-06-01

Contract Duration: 367 days

Daily Burn Rate: $462/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TIOSPAYE TOPA WINDOWS REPLACE & QTRS

Place of Performance

Location: RIDGEVIEW, DEWEY County, SOUTH DAKOTA, 57652

State: South Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $169,500 to LACREEK DEVELOPMENT CORP for work described as: TIOSPAYE TOPA WINDOWS REPLACE & QTRS Key points: 1. Contract value of $1.695M for window replacement and quarters. 2. Awarded to LACREEK DEVELOPMENT CORP for a 367-day period. 3. Competition was conducted under Simplified Acquisition Procedures (SAP). 4. The contract type is Firm Fixed Price, indicating defined costs. 5. Performance is scheduled to conclude by June 1, 2026. 6. The contract is for construction services in South Dakota.

Value Assessment

Rating: fair

The contract value of $1.695M for window replacement and quarters appears to be within a reasonable range for a project of this scope and duration, though specific benchmarking is difficult without detailed project specifications. The firm fixed-price nature suggests cost certainty for the government. However, the absence of a specific per-unit cost comparison or detailed scope of work makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While four bids were received, the specific details of the solicitation and evaluation process are not provided, making it difficult to assess the breadth of competition. SAP is generally used for smaller dollar value procurements, suggesting this may have been the most efficient method for this contract.

Taxpayer Impact: The use of SAP suggests a balance between achieving competition and administrative efficiency. While four bidders indicate some level of market interest, taxpayers may not have benefited from the widest possible price discovery compared to a full and open competition.

Public Impact

The primary beneficiaries are likely residents or users of the facilities managed by the Bureau of Indian Affairs and Bureau of Indian Education. The contract delivers essential building maintenance services, specifically window replacement and potentially related upgrades to living quarters. The geographic impact is focused on South Dakota, where the project will be executed. The contract supports the construction workforce in South Dakota through LACREEK DEVELOPMENT CORP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have yielded the lowest possible price.
Lack of detailed scope and unit costs hinders thorough value-for-money assessment.
Project duration of 367 days could be subject to delays impacting cost and schedule.
Firm Fixed Price contracts can shift risk to the contractor, potentially leading to higher initial bids.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Multiple bids received (4) indicate contractor interest in the opportunity.
Project addresses essential infrastructure needs (window replacement).
Contract awarded to a specific entity, indicating a selection process was completed.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing various construction and renovation projects. The market for such services is typically robust, with numerous firms capable of undertaking window replacement and related building maintenance. The value of this contract, at $1.695M, is moderate within the context of larger federal construction projects, but significant for a specific facility upgrade. Comparable spending benchmarks would depend heavily on the specific type and scale of the buildings involved.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to LACREEK DEVELOPMENT CORP does not specify if they are a small business. Further analysis would be needed to determine the impact on the small business ecosystem and whether subcontracting opportunities were mandated or encouraged.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and program management offices, specifically the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures are inherent in the Firm Fixed Price contract type, requiring delivery of specified services. Transparency is limited by the public availability of detailed project specifications and performance reports, though basic contract award data is accessible.

Related Government Programs

Federal Building and Facilities Maintenance
Bureau of Indian Affairs Construction Projects
Bureau of Indian Education Infrastructure
Department of the Interior Capital Improvements

Risk Flags

Limited competition under SAP
Potential for cost overruns if scope is not fully defined
Schedule adherence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $169,500 to LACREEK DEVELOPMENT CORP. TIOSPAYE TOPA WINDOWS REPLACE & QTRS

Who is the contractor on this award?

The obligated recipient is LACREEK DEVELOPMENT CORP.

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 $169,500.

What is the period of performance?

Start: 2025-05-30. End: 2026-06-01.

What is the track record of LACREEK DEVELOPMENT CORP with federal contracts?

Information regarding LACREEK DEVELOPMENT CORP's specific track record with federal contracts is not detailed in the provided data. A comprehensive review would require searching federal procurement databases like SAM.gov or FPDS for past performance, contract awards, and any reported issues or successes. Understanding their history with similar construction projects, adherence to schedules, and quality of work would be crucial for assessing their reliability on this current contract. Without this historical data, it's difficult to gauge their experience level and past performance metrics.

How does the $1.695M contract value compare to similar window replacement projects?

Benchmarking the $1.695M contract value for window replacement and quarters against similar federal projects is challenging without more specific details on the scope of work, the number and type of windows, the square footage of the buildings, and the complexity of the quarters involved. Federal construction projects vary widely in cost based on location, building age, material specifications, and labor rates. A direct comparison would require identifying contracts with highly similar specifications and geographic locations. The provided data suggests a moderate value for a construction project of this nature, but a definitive assessment of value for money requires a more granular comparison.

What are the primary risks associated with this contract?

Key risks for this contract include potential cost overruns if the Firm Fixed Price contract does not adequately account for unforeseen site conditions or material price fluctuations, although the FFP structure aims to mitigate this by placing risk on the contractor. Schedule delays are another significant risk, which could arise from weather, labor availability, or supply chain issues, impacting the project's timely completion by June 1, 2026. Performance risk also exists, concerning the quality of the window replacement and renovation work, which could lead to future maintenance issues if not executed to standard. Finally, the limited competition under SAP might represent a risk of not achieving the most competitive pricing.

How effective is the Simplified Acquisition Procedures (SAP) for this type of contract?

The effectiveness of SAP for this $1.695M contract hinges on balancing efficiency with achieving fair and reasonable pricing. SAP is designed for procurements under the simplified acquisition threshold (currently $250,000, though exceptions exist), aiming to reduce administrative burden for smaller contracts. For a contract valued at $1.695M, using SAP suggests either specific justifications for its use or that it falls within an exception category. While SAP can expedite the procurement process, it may offer less robust competition than full and open procedures, potentially impacting price discovery. The receipt of four bids indicates some market engagement, but the overall effectiveness depends on whether this process yielded the best value for the government.

What is the historical spending pattern for window replacement and building maintenance by the Bureau of Indian Affairs?

Analyzing historical spending patterns for window replacement and building maintenance by the Bureau of Indian Affairs (BIA) would require accessing historical contract data over several fiscal years. This would involve identifying all contracts awarded for similar services, their values, durations, and the specific facilities or regions they served. Such an analysis could reveal trends in contract values, the types of contractors utilized (e.g., small vs. large businesses), the frequency of such procurements, and potential cost efficiencies or inefficiencies over time. Without access to this historical data, it's impossible to contextualize the current $1.695M award within the BIA's broader spending trajectory for infrastructure maintenance.

What are the implications of the Firm Fixed Price (FFP) contract type for this project?

The Firm Fixed Price (FFP) contract type for this window replacement project has significant implications for both the government and the contractor. For the government, FFP offers the highest degree of cost certainty, as the price is fixed regardless of the contractor's actual costs. This minimizes the risk of cost overruns for the buyer. However, it places the risk of cost overruns squarely on the contractor. Consequently, contractors may build in a contingency premium into their pricing to account for potential unforeseen issues, which could result in a higher initial bid compared to other contract types like cost-plus. For this project, the FFP structure means the Department of the Interior knows the total cost upfront, but LACREEK DEVELOPMENT CORP assumes the financial risk if their expenses exceed the agreed-upon price.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140A2325R0006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21617 US HWY 18, MARTIN, SD, 57551

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $169,500

Exercised Options: $169,500

Current Obligation: $169,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline