DOI Awards $10.1M Contract for Klamath Falls NFH Phase 1 Construction to Morello Construction LLC
Contract Overview
Contract Amount: $10,090,809 ($10.1M)
Contractor: Morello Construction LLC
Awarding Agency: Department of the Interior
Start Date: 2022-06-02
End Date: 2026-08-26
Contract Duration: 1,546 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: OR-KLAMATH FALLS NFH CONSTRUCTION OF PHASE 1
Place of Performance
Location: KLAMATH FALLS, KLAMATH County, OREGON, 97601
State: Oregon Government Spending
Plain-Language Summary
Department of the Interior obligated $10.1 million to MORELLO CONSTRUCTION LLC for work described as: OR-KLAMATH FALLS NFH CONSTRUCTION OF PHASE 1 Key points: 1. The contract value is $10.1 million, awarded for industrial building construction. 2. Morello Construction LLC is the prime contractor. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. The project is located in Oregon and spans over 4 years.
Value Assessment
Rating: good
The contract value of $10.1 million appears reasonable for a multi-year construction project of this nature. Benchmarking against similar federal construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while full and open competition was intended, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The use of full and open competition, even with exclusions, aims to achieve fair pricing for taxpayers. The specific impact depends on the number and competitiveness of the excluded sources.
Public Impact
Enhances critical infrastructure for the U.S. Fish and Wildlife Service. Supports regional economic activity through construction jobs and material procurement. Contributes to the operational capacity of the National Fish Hatchery system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Long project duration (over 4 years) may introduce cost escalation risks.
- Firm Fixed Price contract with a long duration could be disadvantageous if market prices rise significantly.
Positive Signals
- Clear project scope for Phase 1 construction.
- Awarded to a specific contractor, indicating a selection process was completed.
- Firm Fixed Price contract provides budget certainty.
Sector Analysis
This contract falls under the Industrial Building Construction sector. Federal spending in this sector is substantial, supporting infrastructure development across various agencies. Benchmarks for similar projects would typically consider factors like building size, complexity, and location.
Small Business Impact
Analysis of small business participation is not directly available from the provided data. Further review would be needed to determine if small businesses were involved as subcontractors or if specific set-asides were utilized.
Oversight & Accountability
The contract is managed by the U.S. Fish and Wildlife Service, an agency within the Department of the Interior. Standard federal procurement oversight processes would apply, including contract performance monitoring and financial accountability.
Related Government Programs
- Industrial Building Construction
- Department of the Interior Contracting
- U.S. Fish and Wildlife Service Programs
Risk Flags
- Potential for limited competition.
- Long contract duration increases risk exposure.
- Firm Fixed Price with long duration may not be optimal for fluctuating markets.
- Lack of explicit small business participation data.
Tags
industrial-building-construction, department-of-the-interior, or, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $10.1 million to MORELLO CONSTRUCTION LLC. OR-KLAMATH FALLS NFH CONSTRUCTION OF PHASE 1
Who is the contractor on this award?
The obligated recipient is MORELLO CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2022-06-02. End: 2026-08-26.
What was the rationale for excluding specific sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?
The rationale for excluding sources typically relates to specific technical requirements, past performance issues, or national security concerns. Understanding these exclusions is crucial to assessing whether the competition was truly optimized for value. If highly capable contractors were excluded, the resulting price might be higher than if a broader competitive field had been engaged.
Given the 4-year duration and Firm Fixed Price structure, what are the potential risks of cost overruns or underperformance due to market fluctuations or unforeseen construction challenges?
A Firm Fixed Price contract for a long-duration project carries inherent risks. If material costs, labor rates, or other input prices increase significantly beyond projections, the contractor may face reduced profit margins or seek change orders. Conversely, if the contractor underestimates costs or encounters unexpected site conditions, they bear the financial burden, potentially impacting quality or leading to disputes.
How does the $10.1 million award compare to industry benchmarks for similar-sized and complex fish hatchery construction projects, considering the specific location in Oregon?
Without specific project details (e.g., square footage, specific facility types, complexity of environmental controls), a precise benchmark is difficult. However, $10.1 million for a multi-year phase of a significant construction project is within a plausible range for federal infrastructure. A detailed cost-benefit analysis comparing the awarded price to similar projects, adjusted for regional economic factors and project scope, would be necessary for a definitive assessment.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial 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: SEALED BID
Solicitation ID: 140F0322B0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2637 OLD MIDLAND ROAD, KLAMATH FALLS, OR, 97603
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,135,430
Exercised Options: $10,090,809
Current Obligation: $10,090,809
Actual Outlays: $9,836,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-02
Current End Date: 2026-08-26
Potential End Date: 2026-08-26 00:00:00
Last Modified: 2026-02-11
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