DOI awards $3.7M contract for Ash Meadows Fish Conservation Facility construction to KWR Construction Inc

Contract Overview

Contract Amount: $3,677,194 ($3.7M)

Contractor: KWR Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2024-06-24

End Date: 2026-04-17

Contract Duration: 662 days

Daily Burn Rate: $5.6K/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: DESIGN/CONSTRUCT ADDITION TO PUPFISH PROPAGATION BUILDING AND NEW WORKSHOP BUILDING AT THE ASH MEADOWS FISH CONSERVATION FACILITY IN AMARGOSA VALLEY, NEVADA, NYE COUNTY

Place of Performance

Location: AMARGOSA VALLEY, NYE County, NEVADA, 89020

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $3.7 million to KWR CONSTRUCTION INC for work described as: DESIGN/CONSTRUCT ADDITION TO PUPFISH PROPAGATION BUILDING AND NEW WORKSHOP BUILDING AT THE ASH MEADOWS FISH CONSERVATION FACILITY IN AMARGOSA VALLEY, NEVADA, NYE COUNTY Key points: 1. Contract focuses on essential facility expansion for fish propagation and workshop needs. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract is firm-fixed-price, transferring cost overrun risk to the contractor. 4. Project duration of 662 days indicates a significant construction timeline. 5. Geographic location in Nye County, Nevada, highlights regional development focus. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $3.7 million for the design and construction of additions to a fish conservation facility and a new workshop appears reasonable given the scope. Without specific benchmarks for similar conservation facility construction projects, a direct comparison is difficult. However, the firm-fixed-price structure suggests that the initial bid was competitive and that the contractor assumes the risk for cost overruns. The contract is a delivery order, which may indicate it is part of a larger IDIQ contract, making direct value assessment more complex without visibility into the parent contract.

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.' While this indicates that the solicitation was broadly advertised, the 'exclusion of sources' clause suggests that certain pre-qualified or previously vetted entities may have been the primary focus, or that specific requirements limited the pool of eligible bidders. The number of bidders is not specified, but the competitive nature of the award is implied by the 'full and open' designation.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value. However, the 'exclusion of sources' aspect warrants further investigation to ensure no potentially lower-cost or more innovative solutions were inadvertently overlooked.

Public Impact

The U.S. Fish and Wildlife Service will benefit from enhanced facilities for its fish propagation programs. The project will deliver new construction for a propagation building addition and a workshop. The geographic impact is concentrated in Amargosa Valley, Nevada, supporting regional conservation efforts. Construction activities will likely create temporary employment opportunities in Nye County. Improved infrastructure will support the long-term mission of species conservation and research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design requirements are not fully defined.
Risk of construction delays due to unforeseen site conditions or material availability.
Dependence on the contractor's ability to meet specialized construction standards for conservation facilities.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a robust bidding process.
Project addresses critical infrastructure needs for a vital conservation program.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of infrastructure development and facility modernization. Federal agencies frequently contract for construction services to maintain and expand their operational capabilities. Benchmarking this contract's value against similar federal building projects would require access to a database of comparable construction contracts, considering factors like location, building type, and specific functional requirements.

Small Business Impact

The contract was awarded to KWR CONSTRUCTION INC, and there is no indication of a small business set-aside. The 'full and open competition' nature suggests that large businesses were likely eligible and potentially dominant in the bidding process. Subcontracting opportunities for small businesses may exist, but this would depend on KWR CONSTRUCTION INC's subcontracting plan, which is not detailed here. The impact on the small business ecosystem is likely minimal unless specific subcontracting goals are mandated and met.

Oversight & Accountability

Oversight for this contract will primarily be managed by the U.S. Fish and Wildlife Service contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price and timeline. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Construction Contracts
U.S. Fish and Wildlife Service Infrastructure Projects
Conservation Facility Development
Nevada State Construction Projects

Risk Flags

Potential for delays due to remote location
Reliance on contractor's specialized construction expertise
Need for clear definition of 'exclusion of sources' in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.7 million to KWR CONSTRUCTION INC. DESIGN/CONSTRUCT ADDITION TO PUPFISH PROPAGATION BUILDING AND NEW WORKSHOP BUILDING AT THE ASH MEADOWS FISH CONSERVATION FACILITY IN AMARGOSA VALLEY, NEVADA, NYE COUNTY

Who is the contractor on this award?

The obligated recipient is KWR CONSTRUCTION INC.

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 $3.7 million.

What is the period of performance?

Start: 2024-06-24. End: 2026-04-17.

What is the track record of KWR CONSTRUCTION INC in completing similar federal construction projects on time and within budget?

Assessing KWR CONSTRUCTION INC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, delivery orders, and any associated performance evaluations or past performance questionnaires (PPQs). Key metrics to analyze would include on-time completion rates, adherence to budget, and any instances of contract disputes, modifications, or terminations for default. Without access to this specific performance data, it is difficult to definitively assess their reliability for this project. However, the fact that they were awarded this contract under full and open competition suggests they met the minimum qualifications and demonstrated capability during the bidding process.

How does the awarded price of $3.7 million compare to similar construction projects for conservation facilities in the region or nationally?

A precise value-for-money assessment requires benchmarking against comparable projects. Similar federal or state conservation facility construction projects, particularly those involving specialized propagation buildings and workshops, would serve as the best comparison. Factors such as square footage, complexity of design, specific environmental controls required, and geographic location significantly influence cost. Without a database of such comparable projects, it's challenging to definitively state if $3.7 million represents excellent, fair, or concerning value. However, the firm-fixed-price nature of the contract implies that the government has secured a price ceiling, transferring cost overrun risk to the contractor, which is a positive indicator for budget certainty.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

Primary risks for this project include potential construction delays due to unforeseen site conditions (e.g., soil stability, groundwater), material procurement challenges, or labor shortages in the remote Amargosa Valley location. Weather-related delays are also a factor in Nevada. Mitigation strategies are inherent in the contract type and scope definition. The firm-fixed-price (FFP) contract shifts the financial risk of cost overruns to KWR CONSTRUCTION INC. Clear and detailed design specifications are crucial to mitigate scope creep. The U.S. Fish and Wildlife Service's project management and oversight will be key to monitoring progress, addressing issues promptly, and ensuring adherence to quality standards. The contractor's experience and bonding capacity also serve as risk mitigators.

What is the expected effectiveness of the new and expanded facilities in supporting the U.S. Fish and Wildlife Service's mission?

The effectiveness of the new and expanded facilities is directly tied to their ability to enhance the operational capacity of the Ash Meadows Fish Conservation Facility. The addition to the propagation building is expected to increase the space and potentially the efficiency of fish breeding programs, likely supporting endangered or sensitive species management. The new workshop building will provide dedicated space for maintenance, equipment repair, and potentially research activities, improving overall facility functionality and reducing downtime. By providing modern, adequate infrastructure, these improvements are expected to bolster the Service's ability to conduct critical conservation work, research, and public outreach related to aquatic resources in the region.

How has federal spending on similar construction projects for conservation facilities trended over the past five years?

Analyzing federal spending trends on similar construction projects requires access to historical contract data, specifically filtering for conservation facilities, fish hatcheries, and related biological research or propagation infrastructure. Generally, federal spending on infrastructure, including agency facilities, can fluctuate based on appropriations, infrastructure initiatives (like the Bipartisan Infrastructure Law), and specific agency needs. Conservation-focused projects often receive consistent, albeit sometimes modest, funding as they support long-term environmental mandates. A detailed trend analysis would involve querying databases like FPDS or USASpending.gov for relevant North American Industry Classification System (NAICS) codes and contract types over the specified period to identify patterns in award volume and total expenditure.

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: 76 N TEN POND PL, SIERRA VISTA, AZ, 85635

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,701,748

Exercised Options: $3,677,194

Current Obligation: $3,677,194

Actual Outlays: $2,778,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140FGA23D0106

IDV Type: IDC

Timeline