Visitor's Center Construction Contract Awarded for $10.14M to Addon Services LLC

Contract Overview

Contract Amount: $10,144,254 ($10.1M)

Contractor: Addon Services LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-16

End Date: 2026-06-15

Contract Duration: 1,368 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT NEW VISITOR'S CENTER AT SENEY NATIONAL WILDLIFE REFUGE

Place of Performance

Location: SENEY, ALGER County, MICHIGAN, 49883

State: Michigan Government Spending

Plain-Language Summary

Department of the Interior obligated $10.1 million to ADDON SERVICES LLC for work described as: CONSTRUCT NEW VISITOR'S CENTER AT SENEY NATIONAL WILDLIFE REFUGE Key points: 1. Contract value represents a significant investment in infrastructure for the Seney National Wildlife Refuge. 2. The fixed-price contract structure aims to control costs, but potential for change orders exists. 3. Competition level was 'Full and Open After Exclusion of Sources,' suggesting a potentially narrowed but still competitive field. 4. The project duration of 1368 days indicates a substantial construction timeline. 5. The contract is categorized under Commercial and Institutional Building Construction, a common sector for federal projects. 6. Geographic focus on Michigan highlights regional development and resource management.

Value Assessment

Rating: fair

The contract value of $10.14 million for a visitor's center at a national wildlife refuge appears within a reasonable range for such projects. However, without specific benchmarks for visitor center construction costs in similar ecological or geographic areas, a precise value-for-money assessment is challenging. The firm fixed-price nature provides cost certainty, but the duration of the contract (1368 days) could introduce risks related to material cost fluctuations or unforeseen site conditions that might necessitate modifications, potentially impacting the final cost.

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.' This indicates that while the competition was open, certain sources were excluded prior to the solicitation, which could imply a pre-qualification or specific requirement that narrowed the initial pool of potential bidders. The presence of two bidders suggests some level of competition, but the exact impact on price discovery is difficult to ascertain without knowing the number of initially excluded sources and the nature of the exclusion.

Taxpayer Impact: The competition level, while open, had exclusions, which may have limited the number of competitive bids received. This could potentially lead to a higher price than if truly unrestricted full and open competition had occurred.

Public Impact

The primary beneficiaries are visitors to the Seney National Wildlife Refuge, who will gain access to a new, modern facility. The project will deliver a new visitor's center, enhancing the educational and recreational experience at the refuge. The geographic impact is localized to the Seney National Wildlife Refuge in Michigan. The construction activities will likely create temporary employment opportunities for skilled trades and laborers in the region. The facility is expected to support the U.S. Fish and Wildlife Service's mission of conservation and public engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long project duration and fixed-price contract.
Risk of delays if unforeseen site conditions or material availability issues arise.
The 'exclusion of sources' in the competition could indicate a less competitive environment than ideal.
Dependence on a single contractor for a multi-year construction project.

Positive Signals

Firm fixed-price contract provides cost certainty for the base scope of work.
The project aims to improve visitor experience and support conservation efforts.
Awarded to a contractor with experience in commercial and institutional building construction.
The project is located within a designated national wildlife refuge, aligning with federal conservation goals.

Sector Analysis

The construction of visitor centers and facilities within national parks and wildlife refuges falls under the broader commercial and institutional building construction sector. This sector is characterized by a wide range of project sizes and complexities, from small renovations to large-scale new builds. Federal spending in this area often focuses on infrastructure improvements, visitor access, and support facilities for public lands. Benchmarks for similar projects can vary significantly based on location, materials, and specific functional requirements, but projects in the multi-million dollar range are common for significant new structures.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside criterion for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not clearly defined by this award alone, and it's unclear if small businesses will be involved as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily be managed by the U.S. Fish and Wildlife Service, a division of the Department of the Interior. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would typically apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

National Wildlife Refuge System Construction Projects
Department of the Interior Visitor Center Modernization
Federal Building and Facilities Construction
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for cost escalation due to long project duration.
Limited competition due to source exclusion.
Contractor performance risk over extended timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.1 million to ADDON SERVICES LLC. CONSTRUCT NEW VISITOR'S CENTER AT SENEY NATIONAL WILDLIFE REFUGE

Who is the contractor on this award?

The obligated recipient is ADDON SERVICES 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: 2022-09-16. End: 2026-06-15.

What is the track record of Addon Services LLC in completing federal construction projects of similar scale and complexity?

Assessing the track record of Addon Services LLC requires a review of their past performance on federal contracts. Specifically, one would look for projects of comparable value (around $10 million), duration (over 3 years), and type (visitor centers, institutional buildings). Data from contract databases like SAM.gov or FPDS can reveal past awards, performance ratings, and any history of disputes or contract modifications. A strong track record would indicate successful delivery on time and within budget for similar projects, demonstrating their capability to manage complex construction endeavors. Conversely, a history of delays, cost overruns, or performance issues would raise concerns about their ability to execute this current project successfully.

How does the awarded price compare to industry benchmarks for constructing visitor centers in similar environments?

To benchmark the awarded price of $10.14 million, one would compare it against the cost per square foot or per project of similar visitor centers constructed in comparable ecological zones and geographic regions. Factors such as local labor costs, material availability, site accessibility, and specific environmental requirements (e.g., LEED certification, sustainable materials) significantly influence construction costs. Without access to a detailed cost breakdown or specific comparable project data, it's difficult to definitively state if this price represents excellent value. However, the firm fixed-price nature suggests the government has negotiated a price deemed acceptable for the defined scope, aiming to mitigate risk.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents a nuanced risk profile. While it aims for broad competition, the exclusion of certain sources prior to solicitation can limit the number of potential bidders. This limitation might reduce the overall competitive pressure, potentially leading to a higher price than if truly unrestricted competition had occurred. The risk lies in whether the exclusions were justified and if they inadvertently prevented highly capable contractors from bidding. Furthermore, understanding the rationale behind the exclusions is crucial to ensure fairness and prevent potential bid protests or perceptions of impropriety. The government must demonstrate that the exclusions were based on legitimate, objective criteria.

How effective is the firm fixed-price contract type in managing cost and schedule risks for a project of this duration?

The firm fixed-price (FFP) contract type is generally effective in managing cost risks for the government, as it shifts the burden of cost overruns to the contractor. For a project of this duration (1368 days), however, the FFP structure introduces significant risk for the contractor regarding potential fluctuations in material prices, labor costs, and unforeseen site conditions. This risk for the contractor can translate into higher initial bid prices to account for contingencies. While the government benefits from cost certainty on the base scope, the long duration increases the likelihood of change orders or contract modifications, which can add costs and impact the schedule if not managed meticulously. Effective oversight is crucial to control scope creep and ensure fair adjustments for legitimate changes.

What is the historical spending pattern for visitor center construction by the U.S. Fish and Wildlife Service?

Analyzing historical spending patterns for visitor center construction by the U.S. Fish and Wildlife Service (USFWS) would involve examining past contract awards for similar facilities. This would reveal trends in contract values, types of contractors utilized, competition levels, and project durations. Understanding these patterns can help contextualize the current $10.14 million award. For instance, if similar projects have historically cost more or less, or if they have typically involved more or fewer bidders, it provides a basis for evaluating the current contract's efficiency and competitiveness. It also helps identify any shifts in procurement strategies or funding priorities over time.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27789 MOUND RD STE 200, WARREN, MI, 48092

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,144,254

Exercised Options: $10,144,254

Current Obligation: $10,144,254

Actual Outlays: $8,069,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140F0822D0006

IDV Type: IDC

Timeline